Two Ireland nationals are charged with wire fraud for scheme to steal from elderly homeowners

Press Release

Posed as home repair contractors fraudulently stole more than $400,000 from Shoreline homeowner who they mislead about roof and foundation repairs

Seattle - Two individuals from Ireland are charged in U.S. District Court in Seattle with conspiracy to commit wire fraud for their theft of more than $400,000 from a Shoreline, Washington, homeowner. Patrick McDonagh and Matthew McDonagh were arrested by U.S. Customs and Border Protection in mid-June and have been held at the immigration detention center. They have been transferred to the Federal Detention Center at SeaTac and will make their first appearance on the criminal charge today at 2:00 PM.

According to the criminal complaint, the pair was part of a group that traveled the country allegedly scamming homeowners - especially the elderly - by falsely representing the home needed an urgent repair. One older homeowner in the Shoreline neighborhood north of Seattle, lost about $435,000 to the scheme.

"This type of fraud on our elderly neighbors is heartbreaking," said U.S. Attorney Tessa M. Gorman. "To pose as someone trying to help them, while all the while the goal is to steal as much as they can from the victim's hard-earned retirement funds. It is a special kind of cruelty to engage in such conduct."

The men first approached the victim in January 2024, claimed they were working in the neighborhood and had noticed that the victim had a hole in his roof. The men offered to fix the hole and remove the moss from the roof. Over the course of a few days, they pressured the victim to write them checks for their "services" of $15,000, $20,000, and $26,000. They also claimed that the victim's foundation was cracked, and they said they would repair that with a "titanium tie rod system."

The roof had no hole, and the foundation was not failing. However, the men dug trenches and poured some concrete to make it appear work was done, and each day they pressured the victim to write more checks. They even demanded an extra $20,000 for "taxes." Ultimately, they demanded the victim wire $200,000 to a third party for building supplies - again far in excess of any work they claimed to have done. In all the brothers stole $435,000 from the victim.

The FBI investigation connected the brothers to contractor fraud complaints in Washington County, Oregon and Spokane, Washington totaling about $50,000. In those cases, they used fake photos of holes in the homeowner's roof or alleged problems with the house's foundation or posed as local-reputable businesses.

"Sadly, seniors are often an attractive target for fraudsters attempting to steal a lifetime of savings, and scammers are skilled at deceiving people, said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. "We encourage consumers to stay vigilant and avoid making quick decisions before doing research or getting to know someone. If you think you or someone you know could be a fraud victim, call your financial institution immediately and report suspected fraud to the FBI at tips.fbi.gov."

Red flags for contractor fraud:

• The contractor knocks on your door looking for business because they are "in the area" and uses aggressive sales tactics.

• The contractor pressures you for an immediate hiring decision.

• The contractor accepts only cash as payment and demands full payment before starting any work.

• In the sales pitch, the contractor claims to have materials left over from a previous job.

Tips to avoid contractor fraud:

• Always get multiple estimates for any work you want done.

• Ensure contractors are licensed and insured. Look them up at Washington State's Department of Labor & Industries website at https://secure.lni.wa.gov/verify/

• Check with consumer protection agencies such as the Better Business Bureau and Federal Trade Commission to search for complaints against a contractor.
• Conspiracy to commit Wire fraud is punishable by up to 20 years in prison.

The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the FBI.

The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar. Ms. Staniar serves as the Elder Fraud Coordinator for the U.S. Attorney's Office, Western District of Washington.

To learn more about the department's elder justice efforts please visit the Elder Justice Initiative page.

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Updated July 15, 2024