Contracting scam makes millions from Marylanders
(WJLA) - What you’re watching on Keith Hogie’s home security system is something prosecutors called a textbook contracting scam. And new court documents tell us it made Tommy Clack a millionaire.
"It sounded great, but it was no great deal in the end," said Hogie.
Clack approached homeowners like Hogie, claiming to have leftover materials from another job and could pave a driveway for a steal – but after the work was done, the price skyrocketed.
"He originally quoted a price of $30, which I thought was per square yard -- turns out it was square foot which would have made my driveway $24,000, which is a ridiculous price for that work," explained Hogie.
He refused to pay, but other Marylanders say they got steamrolled by the scam.
"$13,900," said Russell Gibson.
"$15,000," added another victim.
According to federal prosecutors, between 2004 and 2007, Clack’s paving operation brought in more than $5.7 million – which he admits he did not truthfully report to the IRS.
That $5.7 million was made over a period of four years, and prosecutors say he ran his paving operation for roughly a decade – operating in Maryland, North Carolina, South Carolina, and Florida.
In addition to pleading guilty to filing a false tax return, Clack also admitted bank fraud for lying on a mortgage application back in 2003. He defaulted on that home loan.