Contractor indicted for swindling

Remodeling your home can be a harrowing experience, but for Woodside homeowners Rakhshanda and Shah Razi, it was much more - it was a nightmare.
After only two weeks of work on their home, the Razis were out of pocket $175,000, and their Howard Beach contractor had all but disappeared.
According to District Attorney Richard A. Brown, the Razis hired David Celerio, owner of Midtown Home Improvements, Inc., formerly located at 102-15 159th Road in Howard Beach, in October 2005.
He allegedly told the couple that for approximately $300,000 his company would demolish their one-family house and remodel it into a legal two-family with a lot size the same as the present one.
On October 10, Celerio allegedly requested $3,000 from the Razis as a down payment. That same day, Rakhshanda Razi signed a contract with the defendant and his company which stated that the total remodeling cost was $300,000, payable in two installments - initially $200,000 and a $100,000 payment after the work was completed.
Two weeks later, Rakhshanda Razi signed an amendment to the contract, at which time the total cost was decreased to $280,000 and the initial cost was decreased to $176,000.
Celerio allegedly told the Woodside couple that the initial money would be put in an escrow account to be used for supplies and materials during the remodeling process.
On November 1, the Razis gave Celerio a check for $174,052 to be placed in the escrow account. On that same day, Celerio and his workers allegedly began demolishing the home and, during the course of the next two weeks, took out the interior walls and dismantled the kitchen before leaving and never returning.
After a few months of phone calls to Celerio, the Razis were unable to get in touch with him, and none of their money has been returned. The couple then contacted Brown’s Economic Crimes Bureau to complain that they had been cheated by Celerio.
The ensuing investigation determined that the $174,052 check written by the Razis was not deposited in an escrow account but in an account in the name of “Midtown Building and Construction Corp.,” for which Celerio was the sole signatory.
The investigation further determined that the majority of withdrawals made from the account were cash withdrawals, bill payments, and payroll checks and did not reflect construction activity done on the Razis’ residence.
Kharla Catracho, a neighbor of the Razis pointed out the importance of doing research.
“Taking the time to research your options prior to hiring is exceptionally important and necessary in today’s society … fraud statistics are increasing and we need to be more aware than ever,” said Catracho.
Celerio was indicted for second-degree grand larceny on Tuesday, February 6. He faces up to 15 years in prison if found guilty. His bail has been set at $100,000.