Roofing Scams Colorado Springs: Denver Contractors Target Homeowners
Colorado Springs homeowners face a growing threat from Denver-based roofing contractors running sophisticated fraud schemes that have cost victims over $2 million in documented cases. These storm chasing operations target vulnerable residents with deductible waiving scams, fake damage claims, and aggressive door-to-door sales tactics immediately following hail storms.
Over the past decade, more than a dozen major prosecutions have exposed systematic roofing contractor fraud by Denver-area operators targeting Colorado Springs homeowners, resulting in prison sentences totaling decades and restitution orders exceeding $1 million. These cases reveal sophisticated criminal enterprises that exploit Colorado’s position in “Hail Alley” to run elaborate insurance fraud schemes, with elderly residents and storm victims bearing the devastating costs.
The most recent arrests—Irish nationals caught at JFK Airport attempting to flee the country after planting worms under Denver homeowners’ shingles—represent just the latest chapter in an ongoing criminal saga that has transformed Colorado’s roofing industry into a battlefield between legitimate contractors and predatory storm chasers.
For immediate help with storm damage, check the Colorado Roofing Association contractor directory for pre-screened legitimate contractors.
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Roofing Scams Colorado Springs: The Worm-Planting Scheme That Shocked Investigators
On May 29, 2024, Denver District Attorney investigators arrested Dean Morgan and John McNamara at JFK International Airport as they attempted to board a flight to Dublin. The Irish nationals had spent weeks targeting elderly residents in Denver’s Congress Park neighborhood with what investigators called one of the most audacious roofing scams they had ever encountered.
Their method was as simple as it was sinister: they climbed onto victims’ roofs, planted live worms under shingles, photographed them, and claimed the “maggots” indicated serious infestations requiring immediate expensive repairs. Operating under the fake company name “Mary Jim’s Roofing & Masonry,” the pair convinced multiple elderly homeowners to write checks exceeding $10,000 each for work that was never completed.
“Since we last talked, what appeared to be two or three people in this neighborhood being vandalized, is now turning into an international investigation,” victim Jim Ford told CBS Colorado. Ford, like other victims, initially thought he was dealing with isolated incidents until investigative reporting revealed the scope of the operation.
The arrests came after a joint investigation by the Denver DA’s Economic Crimes Unit, Elder/At-Risk Unit, and Denver Police. Each defendant faces four counts of theft and one count of racketeering, charges that could result in significant prison time if convicted. Investigators believe the pair may have committed similar crimes in California before their Colorado operations.
What makes this case particularly troubling is how it fits a documented pattern of out-of-state operators specifically targeting Colorado Springs and Denver area homeowners with increasingly sophisticated fraud schemes.
The $170,000 Denver Contractor Multi-Company Fraud Scheme
Keywords: Aaron Spontaneo roofing scam, Mario Vasquez contractor fraud, Umbrella Roof scam, Hybrid Remodeling fraud, Denver roofing contractor arrests
The Morgan-McNamara case represents the latest evolution in contractor fraud techniques, but it builds on years of documented schemes by Denver-based operators. Perhaps no case better illustrates the systematic nature of these operations than the prosecution of Aaron Spontaneo and Mario Vasquez, who ran a sophisticated fraud network that bilked homeowners out of $170,000 using multiple fake company names.
Between 2013 and 2016, Spontaneo (who also used the alias “Aaron Jackson”) and Vasquez operated under at least five different company names: Umbrella Roof, AccuHome Renovations, Altitude Renovations, Hybrid Remodeling Concepts, and Better Business Exteriors. This shell-game approach allowed them to maintain clean reputations even as complaints mounted against individual business entities.
Their victims included twenty homeowners across Aurora, Lone Tree, Highlands Ranch, Denver, Brighton, Commerce City, and Englewood, with individual losses ranging from $2,000 to nearly $30,000. A grand jury indicted both men on 21 counts of theft and one count of racketeering under the Colorado Organized Crime Control Act.
Kathy Varone of Aurora became one of the most vocal victims after losing $9,346 to Hybrid Remodeling in 2014. “They preyed on single moms. They preyed on senior citizens, the elderly,” Varone told CBS Colorado investigator Jennifer Brice. But Varone’s financial losses extended far beyond the initial fraud—she had to pay an additional $6,900 to have another company remove the faulty work and install a proper roof, bringing her total loss to approximately $16,000.
Mary Navarro of Denver paid $15,000 to Hybrid Remodeling Concepts for hail damage repairs after the company promised a complete roof replacement. “I think they’re the lowest people that there can be,” she said. “I don’t want to see anybody hurt anymore.” Navarro never received her new roof—the contractors simply vanished with her insurance settlement.
The scale of victim targeting became clear during prosecution. As Varone explained: “It’s not anymore for me. It’s for other homeowners. They’ve targeted single mothers, widows, senior citizens… that’s who I’m doing this for.”
Spontaneo ultimately pleaded guilty to felony theft and forgery, receiving a four-year deferred judgment contingent on paying over $170,000 in restitution. But for many victims, the financial recovery could never restore their sense of security or trust.
Colorado Springs Roofing Scams: When Local Contractors Turn Criminal
Keywords: Quality Roofing and Construction scam, Josh Noel contractor fraud, Colorado Springs roofing contractors, BBB rated roofing scams
While Denver-based contractors dominated many major fraud cases, Colorado Springs saw its own shocking betrayal when Quality Roofing and Construction—a company with a thirteen-year history and A+ Better Business Bureau rating—imploded in spectacular fashion in 2017.
Josh Noel and Christina Noel, both 42, had built Quality Roofing into what appeared to be a legitimate local operation. They held valid contractor licenses and maintained an excellent BBB rating that gave customers confidence in their services. But KKTV 11 News investigations revealed the company was running a classic advance-fee fraud, collecting down payments from multiple customers while providing little to no actual work.
Louise Allen signed a contract with Quality Roofing on October 13, 2016, paying $4,300 as a down payment for storm damage repairs. Months later, no work had been completed. “Since Oct. 13 is when I signed the contract and nothing has been done,” Allen told investigators. “I’ve been given the runaround. Nothing but excuses, excuses turn into lies and then more lies to cover up the previous lies.”
The company’s fraud became particularly cruel in cases involving vulnerable homeowners like single mother Desiree Streib. While Quality Roofing did complete her roof replacement, the work failed final county inspection due to broken windows and missing shingles. Worse, Gulf Eagle Supply filed a mechanic’s lien against her home for unpaid materials, leaving Streib facing additional thousands in costs. “As a single parent I don’t just have thousands of dollars laying around to take care of it myself,” she said.
Jose Del a Cruz had been a satisfied Quality Roofing customer in 2009 and rehired the company in 2016, highlighting how the fraud operation exploited established community relationships. While his roof was completed, garage door and deck repairs were never finished, potentially costing him $6,000 in insurance money due to missing paperwork.
Perhaps most heartbreaking was the case of a 65-year-old Colorado Springs man who paid $8,457.95 in September and November 2016 for work that was never begun. Despite calling the company 2-3 times weekly for three months, he received no response and no materials were ever delivered to his property.
The Colorado Springs Police Financial Crimes Unit investigated multiple complaints before arresting both Noels on theft charges. The case demonstrated how even seemingly established local contractors could exploit customer trust for fraudulent gain.
Insurance Deductible Waiving Scams: The Illegal Practice Costing Colorado Homeowners Thousands
Keywords: deductible waiving scams, Colorado roofing insurance fraud, illegal deductible waiving, Senate Bill 38 Colorado, roofing insurance scams
Among all the fraud techniques used by Denver-based contractors targeting Colorado Springs homeowners, deductible waiving schemes represent perhaps the most widespread and costly form of roofing insurance fraud. These operations exploit homeowners’ desire to minimize out-of-pocket costs while generating illegal profits for contractors and potentially exposing victims to criminal liability.
The mechanics of deductible waiving fraud are deceptively simple but devastatingly effective. As detailed in industry analyses, contractors approach homeowners after storm events and promise to “waive,” “absorb,” or “pay” their insurance deductibles through various means—sign credits, rebates, or simply billing insurance companies for higher amounts than homeowners actually pay.
The core fraud involves dual invoicing systems. A contractor might charge a homeowner $9,000 for a $10,000 roof repair (when the homeowner’s deductible is $1,000), then submit a full $10,000 invoice to the insurance company. The insurance company pays the full amount based on fraudulent documentation, while the contractor pockets the difference and the homeowner believes they received a “free” benefit.
Colorado specifically prohibited this practice through Senate Bill 38 in 2012, making it a Class 2 misdemeanor punishable by 3-12 months imprisonment and fines up to $1,000. The law requires contractors to include specific disclosure statements in contracts and provides homeowners with a 72-hour rescission period.
But the true cost of deductible waiving extends far beyond the immediate fraud. To recoup the “waived” deductible, contractors typically use substandard materials, employ less skilled labor, rush installations, and skip critical safety steps. Homeowners often end up with roofs that fail prematurely, leak, or create safety hazards.
Carole Walker of the Rocky Mountain Insurance Association warns: “Unfortunately, hail season in Colorado is also scam season. The number one sign of a scam is the door-to-door roofer offering false promises.” Colorado ranks second nationally for hail insurance claims, creating ideal conditions for these fraudulent operations.
The National Insurance Crime Bureau estimates insurance fraud costs each American family approximately $300 annually in increased premiums, with deductible fraud contributing significantly to these costs as insurance companies implement stricter verification procedures and raise rates to offset losses.
Roofing Scams Colorado Springs: Storm Chaser Nearly Kills Elderly Homeowner
Keywords: Security-Widefield roofing scams, storm chaser carbon monoxide poisoning, dangerous roofing contractors, Colorado Springs area roofing fraud
The devastating impact of contractor fraud extends beyond financial losses, as demonstrated by a shocking 2018 case in Security-Widefield where storm chasers’ shoddy work nearly killed an elderly resident.
Michael and Veloy Montano, residents in their 70s, hired contractors who flooded into their Security-Widefield neighborhood after multiple hailstorms in summer 2018. The contractors improperly installed roofing materials, creating carbon monoxide leaks that poisoned Michael Montano and resulted in symptoms resembling Parkinson’s disease.
“I took him to I don’t know how many doctors, emergency rooms, hospital after hospital,” Veloy Montano told the Colorado Springs Gazette. Michael developed “intense headaches, coupled with nausea, hallucinations, and tremors that resembled Parkinson’s disease” from the carbon monoxide exposure. Medical bills totaled nearly $50,000 by early 2016.
The case highlighted the deadly consequences of substandard work by unqualified storm chasers. Roger Lovell of the Pikes Peak Regional Building Department explained the systemic problem: “Homeowners — honestly, they’re so trusting. They’ll sign a contract without even looking.” Storm chasers would set up temporary offices in strip malls with yard signs, then “skip town without fulfilling their promises” after collecting signatures and payments.
Colorado Prosecutors Crack Down: Major Prison Sentences for Roofing Contractor Fraud
Keywords: Jonathan McMillian Lifetime Roofing sentence, George Harris East West Roofing prison, Colorado roofing contractor prosecutions, Colorado Organized Crime Control Act
Colorado prosecutors have responded to the epidemic of roofing contractor fraud with increasingly aggressive enforcement, securing significant prison sentences and restitution orders that reflect the serious nature of these crimes.
Jonathan McMillian of Lifetime Roofing and Restoration received one of the harshest sentences: 12 years in Colorado Community Corrections, later transferred to state prison after violating terms. McMillian’s operation targeted post-hailstorm victims across Jefferson County, instructing employees to collect insurance payments quickly before providing any actual work. A joint investigation by the Jefferson County DA’s office and National Insurance Crime Bureau conducted over 50 interviews and identified 45+ insurance claim files connected to McMillian’s fraud.
The scope of McMillian’s operation was staggering—he bilked $68,000 from 17 homeowners between 2014-2015, with many victims being elderly at-risk adults. Investigators found he carried fake Better Business Bureau accreditation cards to appear legitimate. Restitution exceeded $94,000.
George Harris of East West Roofing LLC received 8 years in prison plus 10 years economic crimes probation after defrauding over $250,000 from 30 victims across Durango, Grand Junction, Montrose, and Summit County. Colorado Attorney General Phil Weiser emphasized the seriousness of these crimes: “When bad actors—especially ones providing essential services like roofing repair—victimize and deceive consumers, they hurt the entire community.”
Recent prosecutions show prosecutors increasingly using racketeering charges under the Colorado Organized Crime Control Act, treating these operations as criminal enterprises rather than isolated fraud cases. The January 2025 indictment of Schwalb Builders involved 34 counts including racketeering and conspiracy, with defendants accused of stealing $1,145,271 from customers while leaving homes damaged and uninhabitable.
The current threat landscape
Despite aggressive prosecutions, the threat from fraudulent roofing contractors remains significant and evolving. Recent cases demonstrate increasingly sophisticated operations with international elements, as seen in the Irish nationals case, and longer-term organized schemes that can operate for years before detection.
Current enforcement priorities include enhanced multi-jurisdictional cooperation, with cases routinely involving multiple district attorney offices and the state Attorney General. The use of statewide grand juries has improved prosecution efficiency, while partnerships with the National Insurance Crime Bureau provide specialized investigative expertise.
But the fundamental conditions that attract fraudulent contractors to Colorado remain unchanged. The state’s position in “Hail Alley” guarantees regular severe weather events, creating ongoing opportunities for storm-chasing operations. Colorado’s lack of statewide roofing contractor licensing creates enforcement challenges, with regulation handled at the local level where resources may be limited.
How to Identify Roofing Scams Colorado Springs: Red Flags Every Homeowner Must Know
Keywords: how to identify roofing scams, roofing contractor red flags, avoiding roofing fraud Colorado, storm chaser warning signs, door-to-door roofing scams
Law enforcement officials and roofing industry experts have identified specific warning signs that can help Colorado Springs and Denver area homeowners avoid becoming victims of roofing contractor fraud:
Immediate roofing scam red flags include:
- Door-to-door roofing solicitation, especially shortly after hail storms
- Offers to waive, pay, or absorb insurance deductibles (illegal in Colorado under Senate Bill 38)
- Demands for full payment upfront before roofing work begins
- Claims of having “leftover roofing materials” from other nearby jobs
- High-pressure tactics to sign roofing contracts immediately without time for consideration
- Out-of-state license plates or temporary local addresses for roofing companies
- Extremely low roofing bids compared to other estimates
Advanced roofing fraud warning signs include:
- Storm chaser contractors who insist on handling all insurance communications
- Roofing companies with no verifiable local physical address
- Lack of proper local roofing licensing and insurance documentation
- Reluctance to provide references from recent local roofing customers
- Use of generic roofing business names that could apply anywhere
Detective recommendations from Colorado Springs Police emphasize: “Only sign a roofing contract with a clear timetable of when materials will be delivered and when your job will be completed.”
Protect Yourself from Roofing Scams Colorado Springs: Prevention Guide
Keywords: protect from roofing scams, verify roofing contractors Colorado, legitimate roofing contractors, Colorado Roofing Association, report roofing fraud
Colorado Springs and Denver area homeowners can take specific steps to protect themselves and help law enforcement combat roofing contractor fraud:
Before hiring any roofing contractor:
- Verify local roofing licensing with Colorado Springs or Denver building departments
- Check Better Business Bureau ratings and roofing contractor complaint histories
- Get multiple written roofing estimates from established local contractors
- Use the Colorado Roofing Association directory for pre-screened roofing contractors
- Never allow any contractor to waive or pay your insurance deductible
If approached by suspicious roofing contractors:
- Document license plate numbers and roofing business information
- Take photos of any claimed hail damage before allowing roof access
- Report suspicious roofing activity to Colorado Springs Police or Denver Police financial crimes units
- Contact the Colorado Attorney General’s fraud reporting hotline at 720-508-6553
- Report storm chaser activity to the National Insurance Crime Bureau at 800-835-6422
For victims of roofing contractor fraud:
- Contact Colorado Springs or Denver police financial crimes units immediately
- Preserve all roofing contracts, receipts, and communication records
- Report roofing fraud to the Colorado Attorney General and BBB
- Consider consulting with attorneys specializing in roofing construction fraud
- Connect with roofing fraud victim advocacy groups for support and resources
For emergency roof repairs from verified contractors, check FEMA’s contractor verification guidelines and always get multiple estimates from local licensed professionals.
Conclusion: Stay Alert for Denver Roofing Contractor Scams Targeting Colorado Springs
Keywords: Colorado roofing contractor fraud prevention, Denver storm chasers, Colorado Springs homeowner protection, roofing scam awareness
The documented cases of roofing contractor fraud in Colorado reveal a persistent threat that has evolved over decades but continues to exploit the same fundamental vulnerabilities: severe weather events, elderly and vulnerable populations, and the complex relationship between homeowners and their insurance companies.
From the worm-planting Irish nationals to the multi-million-dollar organized crime operations, these cases demonstrate that roofing contractor fraud represents serious criminal enterprises that cause lasting harm to Colorado Springs and Denver area communities. The total documented losses exceed $2 million across major prosecuted cases, with countless additional victims who may never receive justice or financial recovery.
While law enforcement has achieved significant successes with lengthy prison sentences and substantial restitution orders, the roofing contractor fraud problem persists because Colorado’s unique geographic position and regulatory structure create ongoing opportunities for fraudulent operators. The state’s position in “Hail Alley” guarantees regular severe weather events, while the lack of statewide contractor licensing creates enforcement challenges.
The most effective protection against roofing scams remains an informed and vigilant public. Colorado Springs homeowners who understand the warning signs, verify roofing contractor credentials, and report suspicious storm chaser activity can help break the cycle of victimization that has plagued Colorado communities for years.
As Attorney General Phil Weiser stated: “Dishonest and deceptive businesses that violate the law and steal from Coloradans will not be tolerated.” But enforcement alone cannot solve this roofing fraud problem—it requires community-wide awareness and commitment to protecting vulnerable neighbors from predatory contractors who view natural disasters as profit opportunities.
The next hailstorm will bring both legitimate Colorado roofing contractors offering genuine repairs and fraudulent operators seeking to exploit homeowners in crisis. The difference between becoming a satisfied customer and a roofing fraud victim may depend on recognizing the warning signs documented in these cases and taking the time to verify credentials before signing any contract or writing any check.
If you’ve been victimized by roofing contractor fraud in Colorado Springs or the Denver metro area, contact the Colorado Attorney General’s fraud hotline at 720-508-6553 or report to your local police financial crimes unit immediately.
Additional Resources:
Denver Building Department – License verification
Colorado Roofing Association – Find verified contractors
Better Business Bureau – Check contractor ratings
Colorado Attorney General – Report fraud
National Insurance Crime Bureau – Insurance fraud reporting
Colorado Springs Building Department – Verify licenses
