Attorney General James and New York State Police Announce Conviction of Contractor for Stealing More Than $230,000 from Western New York Homeowners

September 9, 2024

NEW YORK - New York Attorney General Letitia James and State Police Superintendent Steven G. James announced the conviction and sentencing of Nathaniel Wagner, 42, of Newfane, NY, for operating a residential contracting fraud scheme in Niagara County. From December 2019 to July 2022, Wagner stole more than $230,000 from over a dozen homeowners throughout Niagara County by taking large up-front deposits and spending the money on personal expenses - including on personal investments, Apple products, and groceries - instead of doing any work for those who hired him. Wagner previously pleaded guilty to Grand Larceny in the Third Degree and Scheme to Defraud in the First Degree and today was sentenced to four to eight years in prison.

"When fraudulent contractors steal from those who hire them, they put New Yorkers' homes and finances at serious risk," said Attorney General James. "Instead of performing the home repairs he was hired to do, Nathaniel Wagner pocketed hundreds of thousands of dollars of his clients' deposits and then strung them along for months and even years as he spent their money on himself. I thank the State Police and our partners in law enforcement for their work to secure this conviction, which sends a clear message that anyone who preys on New York homeowners with fraudulent schemes will be brought to justice."

"I want to thank the Attorney General's Office for their strong partnership that has led to the conviction of Mr. Wagner," said New York State Police Superintendent Steven G. James. "This individual perpetuated a devious scheme to cheat homeowners out of their hard-earned money for promised contracting work he failed to perform. The State Police continues to support our partners in investigating and apprehending individuals willing to take advantage of others."

Today's conviction is the result of a joint investigation by the Office of the Attorney General's (OAG) Criminal Enforcement and Financial Crimes Bureau (CEFC) and the New York State Police (NYSP). The investigation began in the spring of 2022 when OAG and NYSP received numerous complaints from homeowners in towns throughout Niagara County, including Lewiston, Lockport, Wilson, Newfane, Ransomville, North Tonawanda, and Niagara Falls. The investigation revealed that Wagner stole more than $230,000 from more than a dozen homeowners between December 2019 and July 2022. During that time, Wagner advertised his business, Wagner Built Construction, on Facebook by offering to build and install barns, garages, and decks.

Wagner solicited large, upfront deposits ranging from several thousand dollars to over $30,000 for home improvement work, but never performed the work, failed to deliver materials he claimed to have purchased with the deposits, and refused to issue refunds to homeowners. When confronted by homeowners who had paid him thousands of dollars and received nothing in return, Wagner gave long lists of excuses over a period of months and even years, including that his truck broke down and caught fire, he and his family members suffered from illnesses, there were permitting issues, there were issues with a foreman, he had too many jobs, he had dental issues, he had domestic issues, he had an injured worker, he had insurance issues, materials were delivered damaged, he needed additional money to purchase materials, and even that his phone was not working.

In one situation, when a homeowner became suspicious after his constant delays and excuses, Wagner went as far as creating fraudulent invoices to show fake purchases from a reputable business to conceal his theft. Wagner also attempted to calm upset customers by delivering minimal materials to their homes, which were often unusable or damaged, and then never returned to start construction work.

An audit conducted by OAG revealed that instead of using homeowners' money to purchase materials or perform home improvements, Wagner quickly diverted the money for his own personal expenses. Wagner typically depleted homeowner deposits in a matter of days, primarily through ATM cash withdrawals of several thousand dollars at a time. Wagner also used homeowner deposits to pay over $90,000 in other expenses, including rental and mortgage insurance, car maintenance, and child support payments, as well as for purchases from Apple, eBay, Sunoco, Dollar General, Verizon, Frank's Deli, 7-11, Exxon Mobile, Tops Market, and Frankie's Pizza. Wagner also used homeowner deposits to send money via Zelle to family members, and to fund brokerage accounts at Robinhood, Interactive Brokers, and Berkshire Hathaway.

In April 2023, a Niagara County grand jury charged Wagner with 12 counts of Grand Larceny in the Third Degree (a Class D felony), two counts of Grand Larceny in the Second Degree (a Class E felony), and one count of Scheme to Defraud in the First Degree (a Class E felony). On March 8, 2024, he pleaded guilty before the Honorable Caroline Wojtaszek to Grand Larceny in the Third Degree and Scheme to Defraud in the First Degree. He was sentenced today to four to eight years in state prison and signed judgments in favor of his victims totaling $453,058.

Attorney General James thanks the NYSP, the Niagara County Sheriff's Office, and the Niagara County District Attorney's Office for their valuable assistance in this investigation.

This case was prosecuted by Assistant Attorneys General Eleanor Biggers and Liam Dwyer, with the assistance of Deputy Supervising Analyst Jayleen Garcia and Supervising Analyst Paul Strocko. Forensic accounting was performed by Forensic Auditor Investigator Bashiri Kirven, under the supervision of Deputy Chief Auditor Sandy Bizzarro and Chief Auditor Kristen Fabbri of the Forensic Audit Section. CEFC is led by Deputy Bureau Chief Joseph G. D'Arrigo and Bureau Chief Stephanie Swenton. Detective Investigator Christopher DiPasquale and former Detective Investigator Scott Barnes of the Investigations Bureau handled the criminal investigation, under the supervision of Detective Supervisor Peter Fitzgerald, Assistant Chief Samuel Scotellaro, and Deputy Chief Juanita Bright of the Major Investigations Unit. The Investigations Bureau is led by Chief Investigator Oliver Pu-Folkes. Both CEFC and the Investigations Bureau are part of the Division for Criminal Justice, which is led by Chief Deputy Attorney General José Maldonado and overseen by First Deputy Attorney General Jennifer Levy.