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Builder accused of defrauding buyers

He used one customer's payment to cover the costs of another project, officials said, and homes never were finished as promised.

By COLLEEN JENKINS
Published November 10, 2005

After vowing to make things right for more than 20 customers left with unfinished homes, the president of Arista Builders has repaid most of the nearly $1-million he owed them.

But it wasn't enough.

On Wednesday, authorities arrested Samuel J. Meli on a charge of scheming to defraud multiple Pasco County customers who had contracted with Arista to build their homes or additions before the company abruptly closed its door in February.

The decision to charge Meli, 45, ultimately rested more on what the Safety Harbor building contractor told his victims than on how he spent their money, Assistant State Attorney Mary Handsel said.

He wasn't buying fancy cars or taking expensive vacations, she said. But as he sank into deeper financial trouble, Meli wasn't upfront with his clients, many of whom waited months without word as to why their homes were half-built.

"What he did was criminal, there's no question about it," Handsel said.

Meli turned himself in at the Land O'Lakes jail on Wednesday. He planned to immediately post bail, his attorney, Pete Proly, said.

With the help of his family, Meli will continue to work with prosecutors to pay restitution to his former customers, his attorney said. Meli filed for bankruptcy in August, court records show.

"There was never any intention to defraud or cheat anyone," Proly said, "and I think that's been proven by their willingness to make good with the homeowners."

Victims already have gotten back money they had paid Meli. But Handsel said he still owes about $100,000 to clients who lost money when they had to hire a new contractor, pay unexpected lodging costs as they waited for their new homes or cover the increased costs of building materials.

Pasco sheriff's Detective Jeff Peake and prosecutors spent months interviewing people who allegedly were defrauded between March and September 2004. What they found was a pyramid scheme, Handsel said, in which Meli would use one customer's payment to cover the costs of another project instead of for its intended purpose.

Some victims said Meli failed to apply for permits or begin construction on their homes, court records show. Others saw construction get under way but later learned Meli had not paid all the subcontractors on his projects, leaving buyers with liens or notices of liens on their properties.

Victims lost from $600 to $24,000, Handsel said. Now, Meli faces up to five years' prison time, five years' probation or a combination of both.

Handsel expects Meli's attorneys to push for a pretrial intervention program, meaning he would avoid a jail sentence. However, state statutes require victims to approve that more lenient punishment.

At least one victim agreed Wednesday that Meli's actions warranted criminal charges. Maria Avila got her $24,000 deposit back a couple of months ago, but increased building costs mean she no longer can afford to rebuild her Port Richey home that was destroyed by a fire.

"He played with us," Avila said. "He played with my feelings, with my money. . . . He kept my money for more than a year.

"Sometimes the money doesn't compensate everything."

[Last modified November 10, 2005, 01:21:17]