Court slaps roofing company with $6 million in fraud fines

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A Denver District Court judge has ordered a roofing company accused of taking payment but not performing work on Colorado Springs and Denver homes to pay $1.7 million in restitution fines.

In addition to the $1.7 million, Glenn Jessen, the former president of Claim Specialists International, must pay more than$4.2 million in civil penalties and more than $639,000 in costs and fees to the Office of the Attorney General.

According to the complaint the state filed against Claim Specialists International and its principals in August 2009, the company offered roofing consulting services and engaged in an aggressive door-to-door scheme to secure roof-repair contracts starting in April 2007.

The company targeted homes in the Denver metro area and Colorado Springs following hail storms in an attempt to secure homeowners’ insurance money.

The company based its pitch on a free roof inspection and offered insurance claim adjustment services performed by unlicensed public insurance adjustors. Following the insurance claim approval, the company would collect homeowners’ insurance money before performing the roofing work. In nearly 500 instances, the company never completed the work it agreed to perform.