May 5, 2011 1:05 PM by Greg Boyce
A Denver District Court judge has ordered Glenn Jessen, 41, to pay more than $1.7 million in restitution for accepting payment for but not performing roofing work for Denver and Colorado Springs homeowners. Jessen is the former president of Claim Specialists International, Inc.
The court also ordered Jessen to pay more than $4.2 million in civil penalties and more than $639,000 in costs and fees to the Office of the Attorney General.
"This decision is a victory not only for the hundreds of homeowners in Denver and Colorado Springs who were victimized by Claim Specialists International's door-to-door scam, but also for consumers across the state," said Colorado Attorney General John Suthers. "My office is committed to sending these types of scam artists and other similar home-repair scammers' packing. This judgment underlines that home-repair scammers should feel anything but at home in the state of Colorado."
According to the complaint the state filed against Claim Specialists International and its principals in August 2009, the company offered roofing consulting services and engaged in an aggressive door-to-door scheme to secure roof-repair contracts starting in April 2007. The company targeted homes in the Denver metro area and Colorado Springs following hail storms in an attempt to secure homeowners' insurance money. The company based its pitch on a free roof inspection and offered insurance claim adjustment services performed by unlicensed public insurance adjustors. Following the insurance claim approval, the company would collect homeowners' insurance money before performing the roofing work. In nearly 500 instances, the company never completed the work it agreed to perform.
After word of Claim Specialists International's business practices became public in February 2009, other principals of the company dissolved the business and incorporated as K2 Roofing and Construction Company and continued the business model. Separately, Jessen formed Colorado Roof Exchange in the spring of 2009 and then became involved with SJC Building, Inc., in Aurora, both which have business models similar to Claim Specialists International.
The judge's order, which followed a 10-day trial in Denver District Court, bars Jessen from owning or operating any home-repair company that engages in door-to-door sales in Colorado