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Florida Upscale Homebuilder Convicted to 15 yrs for Fraud and Racketeering
Monday, 04 September 2006

Trusted home builder sentenced for swindling
Upscale home builder Steven Sanfilippo was sentenced Thursday to 15 years in prison for bilking customers and subcontractors out of nearly $800,000. The Santa Rosa County courtroom where he was sentenced was nearly filled with supporters and a number of his victims. A jury convicted Sanfilippo, 46, in April of more than two dozen counts of theft, fraud and racketeering.

  Trusted home builder sentenced for swindling
Sanfilippo to serve 15 years, repay clients about $800,000

     
      I let them down,? home builder              
      Steven Sanfilippo said of the
      customers from whom he stole.
      Tony Giberson

Upscale home builder Steven Sanfilippo was sentenced Thursday to 15 years in prison for bilking customers and subcontractors out of nearly $800,000.

The Santa Rosa County courtroom where he was sentenced was nearly filled with supporters and a number of his victims.

A jury convicted Sanfilippo, 46, in April of more than two dozen counts of theft, fraud and racketeering.

"He could have stopped at any time but did not," Assistant State Attorney Russ Edgar said of the fraud that encompassed eight homeowners and 18 subcontractors and suppliers between 2002 and 2004. "He took their money, and he took their dreams."

The homeowners were swindled out of $522,849, and the businesses are owed $263,529, according to the prosecution.

Sanfilippo also was ordered to serve 15 years' probation after his prison term and to pay restitution to his victims.

In Santa Rosa County Jail since his conviction, Sanfilippo appeared in court wearing a light-blue jail uniform and handcuffs.

When Circuit Judge Paul Rasmussen announced the sentence, Sanfilippo's chin sank to his chest.

Rasmussen admonished him for wasting his skill and talent for building homes, saying that throughout the trial he didn't hear a single complaint about the quality of his work.

As president of Anthony Homes, Sanfilippo received recognition for his designs of homes in the Pensacola Bay Area, including a $1.6 million home he built for himself on East Gadsden Street in Pensacola. He also had donated to the Pensacola Cultural Center and helped raise money for the Alzheimer's Association of Northwest Florida.

Before the sentencing, Sanfilippo apologized to the families and subcontractors who lost money after dealing with him in the course of building homes in Grand Pointe East near Gulf Breeze and Whispers at Cordova near Cordova Mall.

Many of his victims were retired; some lost more than $100,000.

"I let them down by basically not handling the construction funds properly," he said. "These are the results of bad decisions that were made over the last several years."

The prosecution argued it was more than just mismanagement.

"What we're talking about here is lying, cheating and stealing," Edgar said. "He still mischaracterizes what he did."

Before the sentence was handed down, Sanfilippo's older brother, Richard, who operates Sam's Fun City amusement park on U.S. 29, said his family has made arrangements to begin restitution by mortgaging his mother's house. There is $100,000 in an account for that use; another $85,000 could be available, he said.



"We have made arrangements to lend Steven some funds," the older brother said. "We realize how serious the situation is."

Richard Sanfilippo repeated the defense argument that his brother became overextended in his business and really didn't intend to rip off anyone.

"I didn't see any evidence that Steven has personally profited," Richard Sanfilippo said.

Edgar disagreed, saying that the builder lived richly while he was ripping off his customers.

Defense attorney Ross Keene asked Rasmussen for a relatively short sentence, citing Sanfilippo's lack of criminal past and his need to earn money to repay his victims.

Six people spoke at the sentencing hearing to urge the maximum amount of prison time possible.

Some people were glad he got the long prison sentence but expressed doubt they would ever see a penny of restitution.

"We're happy he's going to jail, but it's not helping us pay the bills," said Kristen Sanders, whose parents, Nancy and Richard Buchs, lost $90,000 when they hired Sanfilippo to build their dream retirement home.

Troy Bouk, 40, said he put his life savings into the house he asked Sanfilippo to build. He later found out that the builder took his money and, just two days later, used it for other purposes.

Dealing with Sanfilippo also was an ordeal because he would erupt at customers when they asked about the progress of their construction, Bouk said.

"People are just victims to him," said Bouk, who had to finish the house himself. "We have been through the wringer on this."

Edgar said his office would assist the homeowners in applying for state reimbursement of as much as $50,000, but the businesses could have a more difficult time getting their money back.

Sanfilippo still faces Escambia County charges of grand theft between $20,000 and $100,000.

The case involves several contractors who hired him to repair homes damaged by Hurricane Ivan on Sept. 16, 2004. He's accused of defrauding those contractors after he had been arrested for the case in which he was sentenced Thursday.

Steven Sanfilippo to pay restitution

Homeowners Amount

John and Elise Morgan $142,521

Richard Buchs and Nancy Clark-Buchs $90,000

Donald and Janet Gairing $82,559

Ginger and Troy Bouk $77,239

Mary and Mark King $73,646

Robert Gray and Alan Sugarman $21,776

Nell Bell $21,761

Janice Byrd $13,346

Homeowners subtotal $522,849

Subcontractors, suppliers

Absolute Interiors $40,000

McPhillips Windows 'n More $37,533

Dean's Solid Surfacing Inc. $31,869

Building Supply Center Inc. $26,546

Underwood Group Inc. $18,000

Builder Resource Group, aka BRG Appliances $17,640

Advanced Control Concepts, Inc.dba Seville Security and Sound $13,000

Pensacola Insulation Inc. $12,485

A-1 Lawn Sprinkler Co. $10,400

Panhandle Marble Co. Inc. $10,000

Creative Flooring of Pensacola Inc. $9,400

Wall to Wall Flooring $7,800

Daron Home $7,000

Barnes Heating and Air Conditioning Inc. $6,465

Dolphin Pools $5,450

Woerner Turf $3,517

Gulf Coast Environmental Contractors Inc. $3,300

GCE Systems, fka JPJ Stucco Inc. $3,125

Subcontractors, suppliers subtotal $263,529

TOTAL $786,378

Amounts rounded to nearest dollar
Article Comments

Make the punishment fit the crime Sat Sep 02, 2006 1:52 pm
I have heard it said that Florida prisons are our states largest industry. Between the 85% law, the DOC kickback corruption, the number of people incarcerated for crimes without victims it could be true.

Go on the website for the Florida Department of Corrections sometime. If you browse through 100 inmates, I will bet that half of them are there for Violation of Probation.

Guy gets out of prison (or jail), he is on probation,can't get decent job, has trouble paying electric bill and has to come up with money for fines and to PAY FOR HIS OWN SUPERVISION!!

I agree with Milton Dog.....Make/let the guy work it off.... He won't be doing anybody any good in prison. While he still has skills, while we still need re-building, while his victims need help...What's he going to be worth in 15 years?

I used to be a small-time builder. Hired the subs, bought the materials, kept things moving along....It took a lot of work. When Ivan came through my house, I could not get anyone to do anything for anyprice. I went through 3 temporary roof repairs before the insurance company gave me enough money to move forward. Anyone who lived through it should remember. Granted he screwed up. I screwed a few things up then too and I was only dealing with one house, my own.
home builder Mon Aug 28, 2006 11:08 am
????????,

Obviously this person should pay for his crime, but
15 years in prison is ridiculous. It is just another example of
Americas' severely flawed justice system. Murderers spend
less time in prison. He should be made to do work that would
ultimately result in the victims getting just resolve. American
justice is a JOKE!

nsignificant!!
Reader Comment Sat Aug 26, 2006 6:50 am
So you think he should be free, and allowed to build more houses? Wrong..................
What a waste Fri Aug 25, 2006 10:56 pm
$800,000 is nothing compared to how much has been spent in legal fees and court costs. Not to mention how much it will cost the taxpayers to incarcerate a harmless man for 15 years and supervise him for an additional 15 years. Violent crimes offenders are given lighter sentences. I know common sense isn't a given around here but wouldn't it benefit everyone involved if he were put on work release for his sentence to make restitution? What good will it do anyone for such a talented man to be wasting away behind bars? What he did was wrong, but he can't make it right in jail.
Creative sentencing Fri Aug 25, 2006 5:26 pm
Part of Steve's sentence should involve actual physical construction work to contribute toward his restitution bill. From the looks of him he could use a little exercise. Dywall or painter's helper might be a good place for him to start. After a few years of sweating on a job site he might aquire a better appreciation for all the working men he ripped off.
Reader Comment Fri Aug 25, 2006 3:26 pm
Thanks for the lesson on how drywall mud dries. :\ Now, I feel sorry for anyone that think that cracked corners in virtually every corner of the house is normal, especially within 1 year. That is not normal...it is poor quality.

This house was built prior to Ivan. No, it did not cost that much prior, but yes, it worth more than that figure now. Too bad it was built by a felon who is exactly where he belongs.
Credibility Fri Aug 25, 2006 2:38 pm
I think those of you who say Sanfillipo builds beautiful houses and should be put to work serving the community by building Habitat homes or by repairing storm damaged homes have no idea what a contractor actually does. Sanfillipo basically was a new home contractor who was responsible for hiring, scheduling and paying sub-contractors (subs) who would work or hire other subs to do various parts of the construction of the home. His value was bringing these people to the job at the right time, ensure the completion of their work by scheduling inspections of their work and then to distribute the bank draws or buyers deposits to pay the subs and suppliers. Subs that are not paid can file mechanics liens against the home preventing the owner from getting clear title to the home. Subs are usually workers, many who live paycheck to paycheck. When Sanfillipo failed to pay his subs and suppliers he put himself into a position where he will find it hard to work as a contractor because suppliers won?t extend him credit and subs won?t work for him unless no other work is available.

My point is that I doubt he would find sufficient subs to work for him and certainly no reputable organization would allow him to disperse funds. He is a crook no matter why he stole the money he was entrusted and as such should lose his contractor?s license and the confidence of everyone else who works in construction.
Milton Dog Fri Aug 25, 2006 1:14 pm
I didn't say "all" the houses Steve built were perfect. All homes settle and drywall dries out and cracks appear. If you know anything about construction, you know that dry wall mud goes on wet, and as time goes by, it dries and shrinks as it's doing that. Cracks appear!
You had to have seen some examples of his work or you wouldn't have contracted him to build a home for you in the first place. Poor judgement call on your part, probably not. He integrated some nice upgrades into his models. All the people in Heron's Forest aren't running out to sell their homes he built because a wall was out of square. And believe me, he's not the only builder out there with walls out of square or counters where corners didn't line up. I know a contractor working today, this very minute, building homes after putting the wrong design and windows in a home friends paid a great deal of money for, and basically told them to suck it up when they complained. Either accept the house as-is or walk away and wait another 18 months for the next house to be built. Check deeply into builders and you'll see a lot of them taking money under false pretenses, promising a wonderful home just like the model and then scraping to cut corners and putting in builders grade lighting fixtures, tubs and carpeting and passing them off as "upgrades".
Shoddy subcontractors, especially after Ivan, were a lot more numerous than before. If you didn't live here then and you may not live here now, you have no idea how hard it was to get anyone to do anything for any amount of money. And it took anywhere from 9 months to 15 months to get even a passable job done regardless of the price.
I'm sorry if your $350,000 house that you paid for (now worth probably a good bit more) wasn't perfect. I'm not defending what he did. All I'm saying is put his possibly questionable skills to use by making him get out there and work. I'm not saying he should be allowed to escape his prison terms, but while he's a guest of the state, let him work for his supper and have to spend the rest of his time in prison. Why let him lay around a cell for the next 15 years while my taxes provide his water and gruel.
Reader Comment Fri Aug 25, 2006 11:49 am
dianecote...If you think Whispers is all that, let me be the first to tell you that it is not. I can tell you about one house he built in there suffers from poor construction. The house is only 2.5 years old, and nearly every corner in the house sufferes from cracking drywall mud. Curved walls are horribly curved. Shotty sub-contracting brought too many post move-in repairs, both inside and outside. And all of this after being constantly "delayed". The house took nearly a year to actually build...which was ridiculous.

I think the man is exactly where he belongs.
That's the point Fri Aug 25, 2006 9:45 am
Well then, it's really disingenuous to say he didn't enjoy his home when he certainly enjoyed the fruits of his home.

 
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