Contractor Took Your Money? Illinois Remedies

WGN Investigates reported on October 28, 2026 that a group of disabled veterans say they lost more than $300,000 to a suburban contractor whose promises, they say, exceeded the work delivered. Thomas Emalfarb of Emalfarb Law LLC appeared in the report as an independent construction law expert. Watch the WGN Investigates video report here.

Emalfarb Law LLC does not represent the veterans, the contractor, or any other party connected with the reported dispute. This article relies on facts attributed to WGN's reporting and explains the Illinois law that applies when a homeowner pays a contractor and the work is not finished. The allegations in the report have not been proven, and the contractor denied wrongdoing.

The report raises the question homeowners ask us most often after a remodeling project collapses: the contractor took my money, so what can I actually do about it? Illinois gives homeowners civil, statutory, and criminal remedies. Each one has a different purpose, a different deadline, and a different chance of returning the money.

What WGN Reported

According to the report by Lourdes Duarte and Andrew Schroedter, the veterans are sharing their story as a warning to other homeowners. Veteran Rob Schultz told WGN, "At the end by termination, we were out $220,000," and described a garage that leaked and drywall that was never finished. Two other veterans shared similar accounts. One paid to update his bathroom, and another paid for a new garage. "My job was an abandonment," said Willie James Forrest. "He never came back."

The veterans say the contractor was well known among Lake County's veteran community and came to them with good recommendations.

WGN reported that a review of court records found the contractor has also been accused of wrongdoing in two unrelated lawsuits. Reached by phone, the contractor denied cheating the veterans and promised to make things right. WGN reported that weeks later the veterans were still waiting, and that the Gurnee Police Department is investigating. WGN also noted that the cases underscore the problems that can arise when homeowners pay the full cost upfront.

Thomas Emalfarb, who is not involved with the cases and was briefed on the matter by WGN Investigates, told WGN: "More than likely, if someone has taken your money...and you haven't heard from them in a year, file the lawsuit and keep moving forward." The rest of this article explains why, and what has to happen before and after that suit is filed. You can watch the full WGN segment here.

Is It a Breach of Contract or Fraud?

The first question is not how much was lost. It is what kind of wrong occurred, because the answer decides which remedies are available.

A contractor who takes a deposit in good faith, starts the work, and then fails to finish has breached the contract. The homeowner's claim is for damages: generally, the reasonable cost to complete and correct the work, less any part of the contract price the homeowner never paid. A breach claim on a written contract generally must be filed within ten years, 735 ILCS 5/13-206, and on an oral contract within five years, 735 ILCS 5/13-205.

A contractor who takes money with no intention of performing, or who obtains payment through a knowing misrepresentation, may have committed fraud. That conduct can support a common law fraud claim, a statutory claim under the Consumer Fraud and Deceptive Business Practices Act, and a criminal charge.

The distinction is real and courts enforce it. The Illinois Supreme Court has held that a breach of a contractual promise, without more, is not actionable under the Consumer Fraud Act. Avery v. State Farm Mutual Automobile Insurance Co., 216 Ill. 2d 100 (2005). The homeowner must show a deceptive act or practice beyond the failure to perform. Repeated false statements about start dates, materials ordered, permits obtained, or money spent on the project are the kind of facts that can cross that line.

What the Home Repair and Remodeling Act Adds

Most residential remodeling in Illinois is governed by the Home Repair and Remodeling Act, 815 ILCS 513. The Act does not order a contractor to finish a job, but it imposes duties that frequently go unmet on the projects that fail.

• Written contract. For any job over $1,000, the contractor must furnish a written contract or work order before starting work. 815 ILCS 513/15.
• Consumer rights pamphlet. The contractor must give the homeowner the Attorney General's pamphlet, Home Repair: Know Your Consumer Rights. 815 ILCS 513/20.
• Insurance. The contractor must carry liability insurance at the minimum limits in 815 ILCS 513/25.

A knowing violation of the Act is an unlawful practice under Section 2Z of the Consumer Fraud Act. 815 ILCS 505/2Z. That matters because the Consumer Fraud Act authorizes a homeowner who suffers actual damage to recover those damages, and it permits the court to award reasonable attorney fees and costs. 815 ILCS 505/10a. Consumer Fraud Act claims generally must be filed within three years. 815 ILCS 505/10a(e).

On a $220,000 loss, the difference between a contract claim and a contract claim with fee exposure can decide whether a case settles. Homeowners should look for the signed contract, the pamphlet acknowledgment, and any certificate of insurance before they meet with counsel.

Can a Contractor Be Criminally Charged for Taking Your Money?

Yes, when the facts show criminal intent. The Home Repair Fraud Act, 815 ILCS 515, makes home repair fraud a crime. Section 5 creates the separate offense of aggravated home repair fraud when the victim is 60 years of age or older or a person with a disability. 815 ILCS 515/5. The aggravated offense carries enhanced penalties, and it applies directly to the population WGN described.

A homeowner with these facts should report them to the police department where the work was performed, as the veterans in WGN's report have done in Gurnee. A complaint to the Illinois Attorney General's Consumer Fraud Bureau is also appropriate. The Attorney General's office also maintains a Military and Veterans Rights Bureau. If any part of the project was paid with grant funds intended for an accessible home, the veteran should also notify the agency that issued the grant.

Criminal proceedings have limits. The prosecutor controls the case, the timeline is not the homeowner's, and the standard of proof is beyond a reasonable doubt. A court can order restitution on conviction, but restitution is only as good as the defendant's ability to pay. A police report does not replace a civil suit. The two can proceed at the same time.

Why a Lawsuit Becomes the Next Step

When a contractor has stopped responding, a lawsuit is usually the only tool that compels an answer. Before filing, send a written demand that identifies the contract, the payments, the unfinished and defective work, and a firm date to either finish or refund. Send it by a method that proves delivery. Our guide to construction demand letters explains what a demand should contain. If the date passes without a meaningful response, file.

A claim of this size is filed in the circuit court for the county where the work was performed or where the contractor resides. For a Gurnee project, that is the Circuit Court of Lake County in Waukegan. Small claims procedure is limited to claims of $10,000 or less, so a six-figure loss proceeds as an ordinary civil action.

Delay helps the contractor, not the homeowner. Every month of silence is a month in which assets can be spent or transferred, other customers can obtain judgments first, and memories fade. The limitations periods described above are the outer limit, not the plan.

A Judgment Is Not the Same as Getting Paid

Winning the case produces a judgment. Collecting it is a separate process. Illinois gives a judgment creditor several enforcement tools:

• Citation to discover assets. The contractor must appear, answer questions under oath about assets, and produce records. A citation can also freeze bank accounts and other property held by third parties. 735 ILCS 5/2-1402.
• Wage deduction and garnishment. If the contractor has employment income or receivables owed by others, those can be reached.
• Judgment lien on real estate. Recording a memorandum of judgment creates a lien on the contractor's real estate in that county. 735 ILCS 5/12-101.

If the contractor files bankruptcy, collection stops under the automatic stay. A debt for money obtained by false pretenses, a false representation, or actual fraud can be excepted from an individual's discharge under 11 U.S.C. 523(a)(2)(A), but the creditor generally must file an adversary complaint within 60 days after the first date set for the meeting of creditors. Fed. R. Bankr. P. 4007(c). Missing that deadline usually means the debt is discharged.

The Mechanic's Lien Risk Homeowners Overlook

An abandoned project can cost the homeowner twice. If the contractor took the homeowner's money but did not pay its subcontractors or suppliers, those parties may claim a mechanic's lien against the home under the Mechanics Lien Act. 770 ILCS 60/21; 770 ILCS 60/24.

Illinois offers owner-occupants a significant protection. On an existing owner-occupied single-family residence, a subcontractor generally must serve the owner with notice within 60 days after it first furnishes labor or materials. Without that 60-day residential notice, the subcontractor's lien is generally not enforceable against an owner who paid the contractor before receiving notice. Homeowners should gather every notice they received during the project and compare it against their payment dates.

The contractor may also record a lien of its own, claiming a balance on the very job it abandoned. A homeowner faced with a doubtful lien can serve a Section 34 demand, which requires the claimant to file suit within 30 days or forfeit the lien. 770 ILCS 60/34.

How Homeowners and Veterans Can Protect the Next Project

WGN's report illustrates a recurring pattern: trust built through a community or a referral is treated as a substitute for diligence. A recommendation is a reason to interview a contractor. It is not a reason to skip the checks.

• Search court records in the county where the contractor lives and works for lawsuits, judgments, and liens.
• Confirm permits with the village or city before work starts. A contractor who suggests skipping the permit is a contractor who is avoiding inspection.
• Verify insurance by obtaining a certificate directly from the insurance agent.
• Keep the deposit small and tie each later payment to completed, inspected work.
• Require lien waivers and a sworn contractor's statement before each payment. 770 ILCS 60/5.
• Put every change in writing, including revised prices and completion dates.

Our guide to home repair contractor red flags covers the warning signs the Attorney General identifies, and our contractor licensing guide explains which trades Illinois licenses and how to verify them.

Bottom Line

A homeowner who paid for work that was never delivered has real remedies in Illinois: a contract claim, a Consumer Fraud Act claim that can carry attorney fees, a criminal complaint that is aggravated when the victim is a person with a disability, and judgment enforcement tools that reach the contractor's assets. None of them works on its own schedule. When the contractor has taken the money and gone silent, the homeowner should preserve the file, send a written demand, and file suit.

If you are an Illinois homeowner facing an unfinished or abandoned project, contact Emalfarb Law LLC at (847) 208-6513 or [email protected].

This article is general information, not legal advice for a particular claim or project. The facts of the reported dispute have not been adjudicated.

Frequently Asked Questions

What can I do if a contractor took my money and never finished the work in Illinois?

You can sue for breach of contract, and if the contractor deceived you, you may also have a claim under the Consumer Fraud Act. A written contract claim generally must be filed within ten years under 735 ILCS 5/13-206, and an oral contract claim within five years under 735 ILCS 5/13-205. A Consumer Fraud Act claim under 815 ILCS 505/10a generally must be filed within three years, and it permits the court to award attorney fees and costs. Damages on an abandoned job usually equal the reasonable cost to finish and correct the work, less any contract balance you never paid. Start by sending a written demand that sets a firm date to finish or refund. If the contractor stays silent, file suit promptly. Delay rarely helps the homeowner: witnesses forget, assets move, and other creditors may collect first from the same limited pool of money.

Is a contractor who takes money and walks away committing a crime in Illinois?

It can be, if the contractor never intended to perform or obtained the money through a knowing misrepresentation. The Home Repair Fraud Act, 815 ILCS 515, makes home repair fraud a criminal offense, and Section 5 of that Act, 815 ILCS 515/5, creates the separate offense of aggravated home repair fraud when the victim is 60 years of age or older or a person with a disability. A contractor who starts in good faith and later fails to finish usually faces a civil claim, not a prosecution. The line depends on intent and on what the contractor said when it took the money. Report the facts to the police department where the work was performed, and file a complaint with the Illinois Attorney General. A criminal case can lead to a restitution order, but it does not replace a civil suit, which you control and which can reach the contractor's assets directly.

Does the Illinois Home Repair and Remodeling Act protect homeowners whose contractor abandoned the job?

Yes, it adds leverage, although it does not itself require the contractor to finish. Under 815 ILCS 513/15, a contractor must furnish a written contract or work order before starting any job over $1,000, and 815 ILCS 513/20 requires the contractor to give the homeowner the Attorney General's consumer rights pamphlet. Section 25 sets minimum liability insurance. Under 815 ILCS 505/2Z, a knowing violation of the Act is an unlawful practice under the Consumer Fraud Act, which supports a claim for actual damages and a discretionary award of attorney fees. If the contractor started work on a large job without a signed written contract, skipped the pamphlet, or carried no insurance, those facts belong in the complaint. They often change the settlement value of a case that would otherwise be a straightforward contract dispute, because the fee exposure gives the contractor a reason to resolve it.

Can I still collect if the contractor files bankruptcy?

Possibly, if the debt arose from fraud. Under 11 U.S.C. 523(a)(2)(A), a debt for money obtained by false pretenses, a false representation, or actual fraud can be excepted from an individual debtor's discharge. The exception is not automatic. Under Federal Rule of Bankruptcy Procedure 4007(c), the creditor generally must file an adversary complaint within 60 days after the first date set for the meeting of creditors, and the creditor must prove the fraud. If the deadline passes, the debt is usually discharged even if the contractor lied. A homeowner who receives a bankruptcy notice should stop all collection activity, because the automatic stay applies, and should have counsel review the case immediately. The contract file, payment records, and the contractor's written promises are the evidence that decides whether the debt survives. Without them, an otherwise strong fraud claim may be difficult to prove.

Can the contractor's unpaid subcontractors put a lien on my home after I paid the contractor?

Yes, in some circumstances, which is why an abandoned job can cost a homeowner twice. A subcontractor or supplier who was not paid by the contractor may claim a mechanic's lien against the owner's property under 770 ILCS 60/21 and 60/24. On an existing owner-occupied single-family residence, a subcontractor generally must serve the owner with notice within 60 days after it first furnishes work or materials. If it does not, its lien is generally not enforceable against an owner who paid the contractor before receiving notice. Gather every notice you received during the project and compare it to your payment dates. Going forward, require sworn contractor's statements under 770 ILCS 60/5 and lien waivers before each payment. If a lien is recorded, a Section 34 demand under 770 ILCS 60/34 can force the claimant to sue within 30 days or lose the lien.