Retired veteran David Alvarado thought he’d found the perfect place to build a new family home in Port St. Lucie, Florida. In 2023, he hired a builder to do just that.
But all he got from Mark Montalto of Port St. Lucie Properties was an empty lot and a $19,000 lien from a landscaping company that said Montalto never paid them.
“It’s been traumatic, to say the least,” Alvarado told WPTV.
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Alvarado not only had to pay off the lien but hire a new builder — all while suing Montalto. Between the lien, legal fees, rental housing and the new contractor, he says he spent $150,000 extra.
“It’s just gut-wrenching,” he said. “I know people know what I’m referring to when you feel that pit in your stomach. It’s just hollow.”
WPTV reports that Alvarado is one of at least 19 people who have filed suits against Montalto in St. Lucie Court.
In April, the builder was arrested for construction fraud, including 17 charges of grand theft and four counts of theft from people 65 and older.
If convicted, Montalto, 61, could be sentenced to over 100 years in jail. But Alvarado fears the builder’s victims will never get their money back; Montalto filed for bankruptcy last month.
Justice is hard to come by
Dorothy Calixte and her husband are among those suing Montalto. She told WPRV they had to pay $90,000 in liens to finish their dream home and take out a mortgage at a higher rate.
She also had to get a second job to pay down the debt.
“You shouldn’t have to live like that, and you don’t even have time to enjoy the dream home that you wanted,” she said.
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There is some recourse for homeowners like Alvarado and Calixte who are trying to recover money they lost to builders who don’t fulfill their contracts and have declared bankruptcy. One option is the Florida Construction Industry Recovery Fund.
The maximum award a Florida homeowner can recover from this fund has traditionally been $50,000 per claim.
But that’s just been raised to $100,000 for claims on homebuilding contracts signed after Jan. 1, 2025.
How to protect yourself from shady contractors
There’s no foolproof way to prevent contractor fraud — but you can take several steps to lower your risk:
- Research the contractor’s background. Look up licensing status and check for complaints or lawsuits on your state’s contractor licensing board and county court websites.
- Get everything in writing. A clear, detailed contract can help protect you if something goes wrong.
- Request lien waivers. This helps ensure subcontractors are paid and reduces the chance they’ll file liens against your property.
- Watch for red flags. Frequent delays, evasive answers about payments, and requests for large upfront deposits can all be signs of trouble.
If you find yourself in a similar situation, taking action is crucial to protecting yourself. While laws and regulations vary by jurisdiction, here are a few steps to consider:
- File a complaint with the state licensing board and your local consumer protection office.
- Dispute wrongful liens in court if you believe they’re invalid or were filed in error.
- Hire an attorney to explore your legal options, including suing the builder or filing a claim in bankruptcy court.
- Apply to your state’s Contractor Recovery Fund (also known as a Homeowner’s Recovery Fund) if the contractor was licensed and your case qualifies.
For Alvarado and others like him, justice may still be far off. But the arrest of Montalto is, at the very least, a step in the right direction.
“Thank God,” said Calixte, after learning of Montalto’s arrest. “That’s all I ask for. At this point, I need justice.”
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
