Contractor scams have become an alarming issue across Canada, leaving many homeowners financially devastated and their properties in disrepair.
Below are some real-life examples highlighting the severity and tactics of these fraudulent activities:
1. Halifax Roofing and Chimney Scam
In January 2025, residents of Halifax Regional Municipality were targeted by a group of men posing as legitimate contractors. They went door-to-door offering chimney repair services, convincing homeowners to pay an initial fee. After commencing demolition, they demanded significantly more money to complete the work, which was never finished. Investigations revealed that the company was fictitious, and the victims were directed to a convincing but fraudulent website.
2. Toronto Contractor Fraud
Between November 2024 and January 2025, a man in Toronto posed as a contractor, offering discounted roof repairs. He collected deposits from multiple victims but never initiated any work. The individual, Georgios Sakellaris, was arrested and charged with multiple counts of fraud over $5,000, possession of property obtained by crime, and laundering proceeds of Canadian currency. Authorities believe there may be more victims and have released his image to the public.
3. Northumberland County Contractor Charged
In July 2023, a contractor in Northumberland County was charged after allegedly failing to complete agreed-upon work at a client’s residence. The Ontario Provincial Police received information that the business owner had not fulfilled contractual obligations, leading to charges being filed.
4. Federal Government Overbilling Scheme
In November 2024, Public Services and Procurement Canada referred multiple cases to the Royal Canadian Mounted Police involving fraudulent overbilling by subcontractors on federal contracts. These subcontractors billed multiple departments for the same work over several years, leading to significant financial losses for the government. The investigation is ongoing, and further details have not been disclosed to protect its integrity.
5. Calgary Senior’s Unfinished Renovation
A Calgary senior’s retirement dream was shattered when a trusted contractor failed to complete agreed-upon renovations. Despite paying a substantial amount upfront, the work remained unfinished, leaving the homeowner out of money and hope. This case underscores the importance of thorough research and caution when hiring contractors.
These incidents highlight the critical need for vigilance when selecting contractors. To protect yourself:
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Verify Credentials: Ensure the contractor has valid licenses and insurance.
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Check References: Speak with previous clients and review past work.
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Get Written Contracts: Detail the scope of work, timelines, and payment schedules.
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Avoid Large Upfront Payments: Be cautious of contractors demanding significant deposits before starting work.
By taking these precautions, homeowners can reduce the risk of falling victim to contractor scams.
For a deeper insight into the impact of contractor fraud, watch the following investigative report: