AVON, Ind (Feb. 12, 2015)--Gary Ogle of BiltRite Homes, LLC, is accused of ripping off a Richmond Hill subdivision homeowner who was rebuilding after the deadly 2012 explosion.
The explosion killed two people and leveled dozens of homes.
Allegedly, Ogle failed to pay the subcontractors hired to complete the job. He now faces 16 counts of corrupt business, forgery, perjury and theft.
The investigation was conducted by the Indiana State Police and the Marion County Prosecutor's Office Grand Jury Division.
According to court documents, BiltRite Homes agreed to rebuild a home damaged in the November 2012 explosion in the Richmond Hill subdivision. Ogle’s company received $242,937 in payments from the victims’ mortgage lender for the project.
Some of the funds received by the Ogle’s company were intended for, but never paid to subcontractors working on the home. Three subcontractors placed liens against the victims’ property after Ogle allegedly didn't pay.
It is estimated that at least $12,000 of out-of-pocket expenses were incurred by the Richmond Hill homeowner.
Vic Vance, the CEO of 1st Signature Lending, didn't lend money to the Richmond Hill homeowner making these allegations, however, he says several of his clients were also duped by Ogle and BiltRite Homes, LLC.
"People that are the clients and had nothing to do with the whole debacle have had their lives ruined," said Vance.
Vance says his clients Ogle allegedly ran the same scheme as he did with the Richmond Hill homeowner. BiltRite allegedly agreed to complete the construction for his clients, but failed to pay the subcontractors for their work.
"People did the work, materials were delivered, our money was received by them and they paid none of it," said Vance.
By failing to pay, the subcontractors placed liens on the homes under construction, costing the hopeful homeowners thousands.
BiltRite has an "F" rating with the Better Business Bureau. The company has received eight complaints in three years.
A BBB consumer complaint from 2013 reads:
"We recently got three bills in the mail threatening to put liens on our home for unpaid costs from BiltRite. These costs were already built into mortgage that BiltRite was supposed to pay."
"How do you sign affidavits that say I've paid everyone and then you don't?" said Vance.
Vance says he started an entire new branch of his company, Signature Series Homes, after his clients were allegedly scammed by BiltRite.
"These are people who started with good credit, a dream to build a home and ended in disaster," said Vance.
Ogle Made his first court appearance on Thursday. CBS4 spoke with him on the phone. He says he is surprised by the allegations, but withheld commenting further.