A Tennessee man who pretended to be a contractor was recently sentenced to 10 years of jail time for defrauding seven families over two years, reported Kelsey Gibbs of News Channel 5 Nashville.

The man accepted hundreds of thousands of dollars from the families but did not do any work on their houses.

Chris Jensen of Jensen Quality Homes said that homeowners should do their due diligence on the contractor they hire.

“Hiring a general contractor can be more expensive, but it’s because they’re doing everything by the book,” Jensen said.

A 2023 JW Surety Bonds study indicates that one in every 10 Americans has been a contractor fraud victim, with an average loss of more than $2,400. This alarming statistic is a warning for homeowners to be vigilant when hiring contractors.

Tennessee law mandates that a licensed contractor must be involved in any project with a bid of $25,000 or higher.

Jensen recommends that homeowners verify the credentials of a contractor they consider hiring. The Tennessee Department of Commerce and Insurance has a comprehensive list of licensed contract workers, allowing residents to check contractors’ legitimacy.

“If somebody is looking for a down payment, I would ask for a contract,” Jensen said.

Jensen also advises homeowners to trust their gut, ask for references and referrals, and never pull a permit for a contractor.

“Because you as a homeowner — totally legal for you to pull your own permit — but for me to work for you, I need to be licensed, and I have to have that license to pull the permit,” Jensen said.

In Tennessee, other trades besides general contractors, such as plumbers and electricians, must be professionally licensed to operate legally.