DENVER — The owner of a home remodeling company and his father — both in the midst of more than a dozen lawsuits — have been arrested and are now facing criminal theft and organized crime charges after a grand jury indictment.
According to arrest affidavits dated Dec. 13, Sean and Avi Schwalb face multiple counts of theft between $100,000 and $1 million, theft between $20,000 and $100,000 and theft between $5,000 and $20,000. They also face multiple charges related to the violation of the Colorado Organized Crime Control Act. In total Sean and Avi face 34 and 30 felonies, respectively.
Both Sean and Avi Schwalb received a bond of $1.1 million dollars from the chief judge overseeing the state's Grand Jury. In Denver District Court Monday, a judge delayed on adjusting Sean Schwalb's bond, stating that the matter could be brought up at a hearing on Jan. 13. However, she did lower the bond for Avi Schwalb to $50,000 and ordered him to surrender his passports. Avi will also have another hearing on Jan. 13.
The indictment is currently sealed. A witness list for the case consists of 67 names, including both victims and investigators. The Colorado Attorney General's Office is prosecuting the case.
Over the past year, Denver7 Investigates has spoken to multiple victims of Schwalb Builders, including Kevin and Noelle Collins.
The couple paid Schwalb Builders more than $250,000 for a remodel, only to be left with an unfinished job. The City of Denver issued a “stop work” order and an independent engineering report said the house was “unsafe to occupy” and noted that Schwalb Builders did not pull permits and was not licensed.
The Collins family has spent the past year renting a home while also paying their mortgage on a house where they can’t live.
Meanwhile, they said they were outraged by Sean Schwalb’s Instagram page that showed him living a lavish lifestyle, photographed with expensive cars and watches.
Jason Kruger, a construction attorney representing the Collins family, said this was the worst case of fraud he had seen. He also drew a connection to Sean and Avi Schwalb’s companies, even though Avi has denied involvement in Schwalb Builders.
“The father’s company assisted and coordinated with the fraud,” Krueger previously told Denver7 Investigates.
Krueger’s process servers were able to serve both Avi and Sean Schwalb with the lawsuit, but he said only Avi has cooperated so far.
In a deposition related to another lawsuit, Avi denied involvement in the company, but acknowledged several connections, including giving his son money to start Schwalb Builders.
Several courts have already issued summary judgments in lawsuits against Schwalb Builders and Sean Schwalb, totaling hundreds of thousands of dollars.
Sean and Avi Schwalb previously declined to speak on the record with Denver7 Investigates.
This is a developing story. We will continue to update as we learn more.
Previous coverage:
- 'Ruined:' Customers take on Schwalb Builders after unpermitted remodel
- Restoring trust: Contractors offer help to Denver family after unpermitted, unsafe remodel
