Contracting scam makes millions from Marylanders - WCIV-TV | ABC News 4 - Charleston News, Sports, Weather

Contracting scam makes millions from Marylanders

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By Kris Van Cleave
Special from WJLA

WASHINGTON (WJLA) - A paving contractor with a history of charges related to what officials describe as bad business deals has now been accused of bilking Marylanders out of millions of dollars.

Surveillance footage on Keith Hogie's home security system is something prosecutors called a textbook contracting scam. And new court documents show it made Tommy Clack a millionaire.

"It sounded great, but it was no great deal in the end," said Hogie.

Clack approached homeowners like Hogie, claiming to have leftover materials from another job and could pave a driveway for a steal – but after the work was done, the price skyrocketed.

"He originally quoted a price of $30, which I thought was per square yard -- turns out it was square foot which would have made my driveway $24,000, which is a ridiculous price for that work," explained Hogie.

He refused to pay, but other Marylanders say they got steamrolled by the scam.

"$13,900," said Russell Gibson.

"$15,000," added another victim.

According to federal prosecutors, between 2004 and 2007, Clack's paving operation brought in more than $5.7 million – which he admits he did not truthfully report to the IRS.

That $5.7 million was made over a period of four years, and prosecutors say he ran his paving operation for roughly a decade – operating in Maryland, North Carolina, South Carolina, and Florida.

In addition to pleading guilty to filing a false tax return, Clack also admitted bank fraud for lying on a mortgage application back in 2003. He defaulted on that home loan.

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