BR home builder booked on felony theft, misapplication of payments

Payments demanded from clients

Authorities on Tuesday arrested a 45-year-old homebuilder accused of failing to pay more than 30 subcontractors more than $528,000 on four homebuilding projects
in the Baton Rouge area in 2012, according to arrest warrants.

Quinn Martin, 7912 Willow Grove Blvd., Baton Rouge, was booked into East Baton Rouge Parish Prison by state attorney general investigators on 54 counts of misapplication of payments by a contractor and four counts of felony theft.

Martin’s Baton Rouge-based company, QMI Custom Homes, entered into homebuilding contracts, worth a total of $1,865,477, with four different parties in 2012, the warrants say.

The five victims on those four projects received liens and payment demand notices from 32 of Martin’s subcontractors for a combined $528,666 the subcontractors were owed, the warrants say.

The warrants say Martin acknowledged to his clients and subcontractors that money and additional work were owed but said he did not have the money and did not offer further explanation.

Phone calls left at Martin’s office for comment were not returned Wednesday, and emails sent through the QMI Custom Homes website went unanswered.

All of the victims’ names were redacted in the arrest warrants.

In one case, an unidentified man contracted QMI Custom Homes on Jan. 8, 2012, to build a home in Prairieville for $449,016, the warrant says.

The man had paid $403,664 to the company as of Oct. 12, the warrant says.

As of Jan. 10, 14 subcontractors had sent liens and payment demand notices for $84,925, the warrants say.

On March 1, two other people entered into a $452,234 contract with Martin to build a home in Baton Rouge, the warrant says.

The pair had paid Martin $373,752 toward the project as of Oct. 5, the warrant says.

The pair began receiving liens from unpaid subcontractors in early December and by Jan. 10 had received 13 liens and demand payments from subcontractors totaling $106,979, the warrant says.

Another customer entered into a $350,000 contract with Martin’s company on June 23 to build a house in Baton Rouge, the warrant says. The victim had paid $237,660 as of Nov. 28.

The victim also began receiving liens from unpaid subcontractors in mid-December and has received $118,893 worth of liens and demand notices from 13 subcontractors as of Jan. 10, the warrant says.

The victim has spoken to other contractors about completing the home for between $130,000 to $150,000, the warrant says.

A fifth victim entered into a $614,227 contract with Martin’s company on Aug. 1 to build a house on another Baton Rouge lot, the warrant says.

The victim had paid $202,845 to the company as of Dec. 18, the warrant says.

The victim received liens and demand notices from 15 subcontractors for a total of $217,869, the warrant says.

Authorities examined the unfinished home and found the exterior was incomplete, the warrant says. The victim said he is trying to hire another contractor to complete construction.


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Comments (4)


1) Comment by mmac11 - 24/04/2013

THIS is a big problem in La. Really, take a look at this. You hire someone to paint your home and the paint store can place a lien on your home: You hire a contractor who you pay. He hires a sub. The sub hires a painter. The painter picks up the paint, but puts it on a tab and doesn't pay. The paint store places a lien for the materials. Too many crooks working together. If I did not hire you, I do not owe you. PERIOD. I pay for and sometimes pickup materials and direct hire for labor. It is the only safe thing to do in this backward state.

2) Comment by ebbette - 08/02/2013

A homeowner pays the general contractor, who is responsible for overseeing the work process and paying the subcontractors. A subcontractor can file a lien against the property if he doesn't receive payment for his work. A homeowner is legally responsible for paying the subcontractor, even if he has already paid the general contractor. If the homeowner doesn't pay or can't afford to pay, the property may go into foreclosure and be sold at an auction. The sheriff disburses the payment to the subcontractor from the sale proceeds. A subcontractor or supplier must provide the homeowner with a 20-day preliminary notice that states he'll be providing work or materials to improve the property and has a right to file a mechanic's lien if he doesn't receive a payment. To avoid paying twice for the same work or having a mechanic's lien filed against the property, choose your general contractor and subcontractors carefully. MOST IMPORTANT - As you make a payment, obtain an unconditional release and waiver of lien from each subcontractor or the supplier. More info: http://realestate.findlaw.com/owning-a-home/understanding-mechanic-s-liens.html

3) Comment by BRmoderate - 07/02/2013

I don't understand why the homeowner is liable for paying the subcontractors. Please excuse my being naive but these subs were contracted by the builder not the homeowner. It would be like the UAW suing me when Ford did not pay them to build my car.

4) Comment by redavaw1 - 07/02/2013

This is so common it's pitiful. In the mortgage business, we have seen this kind of behavior for years! It's heartbreaking for the homeowners who are innocent. The only advice I would give someone is to get the construction loan in your name, be your own building supervisor and pay everyone yourself. Pay everyone only after satisfactory work has been completed. OR purchase the house as a completed product. ALSO get a HOME INSPECTION!! WORD FROM THE WISE