Attorney General Ellison obtains default judgment against pool contractor who defrauded Minnesota consumers

After AG sues in August 2022, court permanently bans Charles Workman and company from residential construction industry in Minnesota; orders $1.1M in refunds to victims and $1.1M civil penalty to State

January 27, 2023 (SAINT PAUL) — Attorney General Keith Ellison today announced that he obtained a default judgment in Scott County District Court against pool contractor Charles Workman and his company, MN Crete Pools, LLC, for their deceptive pool construction scheme. The judgment permanently bans Workman and his company from the residential construction industry in Minnesota. The judgment requires Workman and his company to pay $1.1 million in restitution to their victims, $1.1 million in civil penalties to the State, and the State’s attorneys’ fees and costs in pursuing the case. The judgment comes in the wake of the lawsuit Attorney General Ellison filed in August 2022 against Workman and his company for defrauding and deceiving his victims. 

“Mr. Workman turned people’s dreams of having a swimming pool for their family to enjoy into a nightmare.” Attorney General Ellison said. “He lied to them at every step to get them to pay him in advance, and then disappeared with their money without providing the pools he promised. Let this be a warning to any contractor even thinking about defrauding people: I will not tolerate this kind of predatory behavior. 

“I want to thank the families Mr. Workman defrauded for coming forward and contacting my office. This result was made possible because they shared their stories with us,” Attorney General Ellison continued. “If you’ve been scammed by a contractor, don’t feel ashamed and don’t stay silent. My office and I will continue to hold unscrupulous contractors accountable.” 

Attorney General Ellison sued Workman and MN Crete Pools in August 2022 after alleging they used a deceptive sales model to lure consumers into signing expensive pool installation contracts and paying a down payment of tens of thousands of dollars. At a time when competition for pool contractors was fierce, Workman got business by misrepresenting to consumers that his company had only one more opening to build a pool and falsely promising to start and complete projects within timelines that were much sooner than his competition. After misleading consumers into contracting with his company, Workman deceived consumers into making additional advanced payments for pool equipment or pool installation services that he failed to provide or complete. In some cases, Workman got consumers to make these payments before they were contractually due by offering discounts or free equipment or services. But the discounts, equipment, and services never materialized because Workman and his company never finished the projects. Other times, Workman fraudulently triggered payments under contracts by performing minimal work on projects before abandoning them after receiving payment.   

When consumers contacted Workman about the lack of progress on their project, he offered all kinds of false excuses: among them, that his employees were sick, he had filed a permit incorrectly, road restrictions hadn’t been lifted, or his equipment had mechanical issues. Workman even acknowledged to a few consumers that he had not lived up to his end of the contract and promised to refund money to them, but never did. In the end, Workman scammed more than a dozen Minnesota families out of $1.1 million before fleeing the state.  

Tips for Consumers 

Attorney General Ellison encourages Minnesotans who are interested in home renovation, remodeling, or construction projects to check online for information about specific contractors and companies, get information from contractors in writing, and carefully review all documents before signing. For more information about selecting a contractor, tips on avoiding home improvement scams, and your rights when contracting for home improvement work, visit the Office’s online publication titled Home Building and Remodeling.   

The Minnesota Department of Labor and Industry licenses residential building contractors in Minnesota. Not all “contractors” are required to have a state license. For example, specialty contractors who provide only one specialty skill (except residential roofers) are not required to be licensed. The Department has a license look up tool on its website, www.dli.mn.gov, which consumers can use to verify a contractor’s status.  

Hiring a licensed contractor doesn’t guarantee something won’t go wrong, but it provides certain safeguards if something does. For example, licensed contractors must have liability and property damage insurance. Hiring a licensed contractor also gives consumers access to the Contractor Recovery Fund, which is administered by the Department of Labor and Industry. The Contractor Recovery Fund is meant to be a safety net for Minnesota consumers who have lost money due to a licensed contractor’s fraudulent, deceptive, or dishonest practices, conversion of funds, or failure to perform. When consumers obtain final judgments against a licensed contractor in these situations but are unable to collect on the judgment from the contractor, consumers can have up to $75,000 of the judgment paid by the Contractor Recovery Fund. Additional information about the Contractor Recovery Fund, selecting a contractor, soliciting bids, and more can be found in the Department’s publication titled Consumer’s Guide to Hiring a Residential Building Contractor.   

Attorney General Ellison asks Minnesota consumers to report problems and concerns about a contractor by submitting a complaint online or by calling the Attorney General’s Office at (651) 296-3353 (Metro area), 1-800-657-3787 (Greater Minnesota), or 1-800-627-3529 (Minnesota Relay).