Couples paid man to build homes — but he demolished them and stole their money, feds say
A man left couples with demolished homes after he was paid to build them new ones — and stole hundreds of thousands of dollars as a result, prosecutors say.
Now the Virginia builder is facing up to 20 years in federal prison after not doing the work he was paid to do, according to the U.S. Attorney’s Office for the Eastern District of Virginia.
Instead, prosecutors say he spent his clients’ money on other projects and on himself.
One couple lost more than $278,000, and another couple lost $250,000 after hiring the man, court documents show.
Pedro Felipe Valdes Sanchez, 57, of Centreville, pleaded guilty to defrauding his clients on Nov. 8, the attorney’s office announced in a news release.
“In the end, Valdes performed minimal work on these customers’ homes, sometimes only demolishing the existing residence on the customers’ property,” the release says.
McClatchy News contacted Valdes’ attorney for comment on Nov. 10 and was awaiting a response.
The builder’s ‘scheme’
From May 2017 to April 2018, homeowners in the area of McClean, a community about 10 miles west of Washington, D.C., were defrauded through Valdes’ “scheme” after hiring him to build or remodel homes, according to prosecutors.
Several couples hired Valdes through his construction company, Artifact LLC, court documents state. At the same time, Valdes and his company worked on other properties, which were owned by his brother’s companies.
While “Valdes successfully completed projects for his brother’s companies …” he did not successfully complete projects for his clients, according to a statement of facts.
In June 2017, one married couple hired Valdes to demolish their home and build a custom home on the same property for $520,000, the statement of facts shows.
This couple paid Valdes a $52,000 deposit for pre-construction costs — but he did not use the money on their home, according to prosecutors. Instead, he spent it on properties he was working on for his brother.
For the next several months, Valdes continued to spend the couple’s deposit money for expenses not involving their new home, court documents state.
By March 2018, the couple paid Valdes $278,466 for permit applications, the demolition of their old home, excavation, and the foundation and framing expenses of the new home, according to the statement of facts.
However, Valdes and his company only spent $49,000 on “minimal work,” specifically the demolition of the old home, its excavation, and permits, according to prosecutors.
As a result, the couple, left with only a demolished property, asked for their money back, according to the statement of facts. Valdes’ company returned $20,000, but Valdes declared bankruptcy soon after. This led to the couple having to give up the $20,000.
As of Nov. 8, the couple has not recovered any of the money they paid Valdes, court documents show.
During a similar but separate instance, Valdes left another married couple with a demolished home after they hired him to build a custom home on their property, according to the statement of facts.
With $250,000 the couple paid Valdes, he stole $15,000 in cash withdrawals and checks he wrote to himself for personal expenses, the statement of facts shows.
Ultimately, the couple ended their contract with Valdes, who never returned their $250,000 after not finishing the job he was paid to do, according to the statement of facts.
Now Valdes faces a maximum sentence of up to 20 years in prison, prosecutors say.
However, “actual sentences for federal crimes are typically less than the maximum penalties,” according to the release.
Valdes’ sentencing is scheduled for Feb. 14, the release says.
Hopeful buyers lost $6M in fake open house scheme, feds say. CA man going to prison
Real estate agent steals $1.8 million by trying to sell properties not for sale, feds say
‘Bills were tight.’ Real estate couple stole $300K by creating fake contracts, feds say
Homes weren’t for sale — but California man still ‘sold’ them for $6 million, feds say
