Sep 22, 2005 9:08 am US/Central
Homeowners Burned Twice By Fire And Fraud
Action Fire Restoration Promised To Restore Homes Devastated By Fire
by Pam Zekman
CHICAGO (CBS) ―
Six months ago the CBS 2 Investigators were first tipped off about the apparent scam.
We held our story until Wednesday at the request of law enforcement officials who feared the central figure in the case would leave the country before they could arrest him.
Now CBS 2's Pam Zekman reports on what she found -- homeowners who got burned twice, first by a fire then by a fraud.
It's bad enough to watch your home go up in flames, your possessions destroyed.
"When you're standing there in your nightgown and your house just burned down, you're probably more vulnerable than you'll ever be in your life," said Laura Lockhart.
Then a company called Action Fire Restoration steps in and promises to restore your home in just a few months.
All you have to do is sign a repair agreement authorizing your insurance company to make checks out to both the homeowner and action fire.
But our investigation found that all too often Action Fire has collected or tried to collect insurance money for work it has not done or work that has to be redone.
And when the company doesn't get the money, it files claims against the homes that can result in a financial disaster for the already devastated homeowners.
The company's owner is Tad Christensen, who knows just what to say to desperate homeowners.
"He made a person feel it was okay and we'll have you back in your house in four months," Lockhart said.
Ten months later the work was still not complete on Lockhart's Aurora home, but Christensen had already collected $78,000 from Lockhart's insurance settlement.
Then he filed a lien against her house for almost $90,000 more. Now Lockhart is suing the company for consumer fraud.
"He said he would fix our house and then he sort of disappeared," Lockhart said.
Joan Coleman says Action Fire's salesman promised her South Side house would be rebuilt in just two months.
In court documents, Christensen claims he's owed the money for work completed on the fire-damaged homes and upgrades ordered by the homeowners.
Complaints about Action Fire should be directed to National Insurance Crime Bureau at 800-835-6422.
Thursday night at 10PM, we'll have more on another angle of this scam involving a Loop lawyer and a public adjustor who negotiates with insurance companies.
(© MMV, CBS Broadcasting, Inc. All Rights Reserved.)
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