75
      Wednesday
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      Thursday
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      Friday
      82 / 70

      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.