Two contractors from Reading were indicted yesterday for allegedly embezzling about $100,000 from clients, abandoning a series of projects, failing to pay subcontractors, and operating without a certificate of registration.
A Middlesex County grand jury returned 17 indictments against Peter DeGennaro and 17 against his partner, Charlene Connors. The grand jury also returned two indictments against contractor Donna Wayman of Wilmington for abandoning a project and failing to pay subcontractors. Wayman worked with DeGennaro and Connors on one project.
A spokesman for Middlesex District Attorney Gerry Leone said DeGennaro and Connors both face six felony counts, five for embezzlement, and one for larceny over $250. Each felony count carries a maximum penalty of 10 years in prison.
``Not only did these victims pay hard-earned money for services they never received, but we allege these defendants then took that money and used it as their own personal bank accounts,'' Leone said in a statement.
Leone's spokesman, Corey Welford, said restitution and fines may also be pursued. ``We are certainly conscious of the fact that the victims in this case have lost significant amounts of money,'' he said.
DeGennaro and Connors could not be reached to comment yesterday. An attorney who has represented DeGennaro in the past could not be reached to comment.
Thomas Gatzunis, the state's public safety commissioner, who oversees licensing of home improvement contractors, said criminal indictments of contractors are rare. He said he did not know how many contractors have been indicted in Massachusetts over the last 10 years, but he said it was probably a very small number.
DeGennaro and Connors were the focus of a Boston Globe Consumer Beat column last month about homeowners who were frustrated with the inability of state regulators to stop the two contractors from starting construction projects and never finishing the work. The homeowners alleged DeGennaro continued to work on homes even after the state revoked his home improvement contractor registration.
In the Globe story, DeGennaro said the reason he stopped work on the homes was because the owners had failed to pay him for his work. ``What you have here is people who didn't pay to finish,'' he said.
According to Welford, DeGennaro and Connors received a total of $48,500 from David and Sylvia Ghafari of Wilmington in 2001 for the construction of a new house. Welford said the money was supposed to go into an escrow account but instead was withdrawn and spent by DeGennaro and Connors.
Welford said DeGennaro and Connors also accepted nearly $55,000 from Maureen Daly of Wilmington in 2001 and 2002 for the construction of a new home. Welford said the money also was supposed to go into an escrow account but instead was withdrawn and spent by DeGennaro and Connors.
Welford said DeGennaro and Connors never obtained permission from the town of Wilmington to build either the Ghafari or Daly homes but never returned the money.
The indictments also allege that between 2004 and 2006 DeGennaro and Connors, operating as House Watch of New England, either abandoned a series of home improvement projects or failed to build to the owner's specifications. In most of the cases, the homeowners had to pay other contractors to finish work on their homes.
``The allegations against Peter DeGennaro and Charlene Connors show they are predators on their community,'' said Rob Mark of Reading, who hired DeGennaro last year. ``They took our money and failed to deliver what was promised.''
The two contractors had their licenses suspended by state regulators in 2006 but the indictment alleges they continued to perform work afterward. The indictment also alleges that several subcontractors were not paid by DeGennaro and Connors.
Bruce Mohl can be reached at mohl@globe.com.