New York Attorney General Letitia James and State Police Superintendent Steven G. James announced the conviction and sentencing of Nathaniel Wagner, 42, of Newfane, NY, for operating a residential contracting fraud scheme in Niagara County. From December 2019 to July 2022, Wagner stole more than $230,000 from over a dozen homeowners throughout Niagara County by taking large up-front deposits and spending the money on personal expenses instead of performing any work. Wagner previously pleaded guilty to Grand Larceny in the Third Degree and Scheme to Defraud in the First Degree and was sentenced to four to eight years in prison.
“When fraudulent contractors steal from those who hire them, they put New Yorkers’ homes and finances at serious risk,” said Attorney General James. “Instead of performing the home repairs he was hired to do, Nathaniel Wagner pocketed hundreds of thousands of dollars of his clients’ deposits and then strung them along for months and even years as he spent their money on himself. I thank the State Police and our partners in law enforcement for their work to secure this conviction, which sends a clear message that anyone who preys on New York homeowners with fraudulent schemes will be brought to justice.”
“I want to thank the Attorney General’s Office for their strong partnership that has led to the conviction of Mr. Wagner,” said New York State Police Superintendent Steven G. James. “This individual perpetuated a devious scheme to cheat homeowners out of their hard-earned money for promised contracting work he failed to perform. The State Police continues to support our partners in investigating and apprehending individuals willing to take advantage of others.”
The conviction is the result of a joint investigation by the Office of the Attorney General’s (OAG) Criminal Enforcement and Financial Crimes Bureau (CEFC) and the New York State Police (NYSP). The investigation began in spring 2022 when OAG and NYSP received numerous complaints from homeowners throughout Niagara County, including Lewiston, Lockport, Wilson, Newfane, Ransomville, North Tonawanda, and Niagara Falls.
The investigation revealed that Wagner stole more than $230,000 from over a dozen homeowners between December 2019 and July 2022. During that time, Wagner advertised his business, Wagner Built Construction, on Facebook by offering services such as building barns, garages, and decks.
Wagner solicited large upfront deposits ranging from several thousand dollars to over $30,000 but never performed the work or delivered materials as promised. He also refused refunds despite multiple excuses provided over months or even years.
In one instance when confronted by a suspicious homeowner after constant delays and excuses like truck breakdowns or family illnesses among others; Wagner created fraudulent invoices showing fake purchases from reputable businesses.
An audit conducted by OAG revealed that instead of using homeowners' money for materials or improvements; Wagner diverted funds quickly into personal expenses primarily through ATM cash withdrawals amounting up several thousand dollars at once alongside payments covering rental/mortgage insurance/car maintenance/child support/purchases made via Apple/eBay/Sunoco/Dollar General/Verizon/etc., sending money via Zelle towards family members & funding brokerage accounts under Robinhood Interactive Brokers Berkshire Hathaway
In April 2023 Niagara County grand jury charged him with twelve counts involving Grand Larceny Third Degree Class D felony/two counts Grand Larceny Second Degree Class E felony/one count Scheme Defraud First Degree Class E felony following March plea deal before Honorable Caroline Wojtaszek resulting four-eight-year state prison sentence alongside signing judgments favoring victims totaling $453058
Attorney General James thanked NYSP/Niagara County Sheriff’s Office/District Attorney’s Office valuable assistance case prosecution Assistant Attorneys Eleanor Biggers Liam Dwyer alongside Deputy Supervising Analyst Jayleen Garcia Supervising Analyst Paul Strocko Forensic Audit Section Bashiri Kirven supervised Sandy Bizzarro Kristen Fabbri CEFC led Joseph D’Arrigo Stephanie Swenton Investigations Bureau Christopher DiPasquale Scott Barnes supervised Peter Fitzgerald Samuel Scotellaro Juanita Bright Major Investigations Unit Oliver Pu-Folkes Chief Investigator Division Criminal Justice José Maldonado Jennifer Levy First Deputy