Troubleshooter Investigates Unlicensed Builder

WAKE COUNTY (WTVD) -- Eyewitness News has finished an exclusive Troubleshooter investigation into a builder who is promising Wake County families dream homes and then leaving them in the lurch.

The problem: This man is not a licensed builder.

Gabrielle and Peter Schmidt and hired Branden Toth of Toth Building and Development to build their dream home in 2005.

"He said he was a builder, new to the area, and the reason why he could give us such a great deal on the house was because he needed to keep busy in the winter," Gabrielle Schmidt said.

The Schmidts gave Toth $7,000 to get started.

"All the time, I thought he had a license," Gabrielle Schmidt said.

So did Charles and Annette Campbell.

"We were the first house out here," Charles Campbell said. "Now everything else is built, and we still just have a foundation."

The Campbells have just a foundation, not the $400,000 home they contracted Toth Building and Development to build.

"So the construction began in April, and we thought that everything was going fine until it came to a standstill after about 10 days of work," Charles Campbell said.

Once the work stopped, the Campbells say the calls started coming in.

"We were wondering, why is the sub-contractor calling us for money? He said we owed him about $14,000 and he wanted his money," Annette Campbell said.

Three different liens came on the Campbell's property, because the sub-contractors were not paid. The couple says they lost about $60,000.

"We want it to be our dream home. We were hoping it was going to be," Annette Campbell said. "But it's been so frustrating, so many headaches, we don't know what to do anymore."

The Campbells called Eyewitness News, and Troubleshooter Diane Wilson tracked down Branden Toth. We asked Toth why he is representing himself as a builder if he is not licensed here in the state of North Carolina.

"It's never meant to be misleading," Toth said.

He tells Eyewitness News that he has a general contactor who is overseeing the job. He says he is not working as the builder, but as the foreman. Toth claims that even though he represents himself as the builder and contractor to the Schmidts and Campbells in their contracts, he pays a general contractor to oversee the project, hire the sub-contractors and do all the building.

Toth says he only does any work under $30,000, for which you do not need a license.

But there is a problem. On the permits for the Schmidt and Campbell homes, Toth represents himself as the homeowner. The general contractor listed on the Campbell's permit is Charles Ramsey, who is licensed. Ramsey Construction has worked with Toth on one project, but Jim Ramsey with Ramsey Construction says things went sour when Toth owed them more than $30,000.

Because of that debt, Ramsey says they took themselves off the Campbells' project and requested no permits be released to anyone but Charles Ramsey. Despite no permits being released, Toth started work on the Campbells home, Ramsey says, without their knowledge.

Regardless of the permit problems, Toth insists he is going to take care of the Campbells.

"We're trying to do whatever we can to rectify it. Trying to get whatever we can to fix the house," he said.

Toth says he will get a new licensed contractor to take over the project, start paying off the liens and start paying interest on the construction loan.

But nearly two months later, there is no contractor, no payments and only a foundation on the Campbells' home.

Troubleshooter Diane Wilson tracked down Toth again. This time, she found him working on a home site with three stop-work notices, because he is still unlicensed and does not have proper permits.

When we asked him how he is working with three stop-work notices on the site, Toth tells us he did not know about the stop-work orders.

As for what he has done for the Campbells, he says they have not paid any of the interest on the construction loan because the Campbell's bank won't verify they will allow him to continue to build their house.

But Toth does admit that he still owes the money, regardless if the bank allows him to continue to build their home.

Shortly after we talked with Toth, he gave the Campbells $4,300, which went toward the interest on the construction loan. Plus, there is now a licensed contractor on the job, Ramsey Construction. The Campbells also have a new contract - - not with Toth Building and Development, but with Ramsey Construction.

Because of all the troubles, $10,000 was knocked off the total price of the home. Jim Ramsey with Ramsey Construction says work will start at the Campbells home within the next week and their home should be completed by May.

As for the Schmidts, they fired Toth. They paid off the liens that they say were on their property because Toth never paid the contractors. They are now trying to pick up the pieces.

In the meantime, they have this warning for others.

"I just want to inform everyone out there about this man that is still out there.," Peter Schmidt said.

We've heard several other people with similar complaints. They all say Branden Toth represented himself as a builder, took thousands of dollars from them and left them with a mess. Some do have liens on their properties.

Eyewitness News also heard from contractors who say Toth owes them thousands of dollars, too.

Before you do any work on your home, know who you are dealing with. Any work that costs more than $30,000 must have a licensed contractor. If a contractor tells you they are licensed, check it out - - don't take their word for it. You can check a contractor out by getting their licensed number and checking with the North Carolina Licensing Board.