A Nebraska contractor was sentenced to a little over 7 years in federal prison and ordered to pay more than $700,000 in restitution to victims after accepting money from customers for construction projects across multiple states then failing to do the work.
According to court documents, 43-year-old Bobby Bates Sr of Grand Island, Nebraska, pleaded guilty to one count of wire fraud.
From February 2023 to October 2023, Bates, as the owner of Built Rite Construction, used a social media group called “Building Barndominiums” to solicit clients for construction projects. Bates required customers to provide initial deposits of up to 50 percent of the estimated overall construction cost. He instructed customers to pay via wire or checks into his bank accounts.
After collecting funds, Bates either failed to complete construction or never began construction. As victims contacted him, he gave false excuses and promises or did not respond to messages about uncompleted projects.
Bank records show Bates used payments from customers for personal expenditures instead of for the respective construction projects. A federal judge ordered Bates to pay restitution of $703,016 to more than ten victims located in Missouri, Iowa, Kansas, Nebraska, Alabama, Illinois, and South Dakota.
“Anyone who has done a construction project understands that there is a level trust required with a contractor, particularly when there are upfront payments. Fraud like this damages an entire industry because consumers fear being swindled by con artists like Bobby Bates,” said U.S. Attorney Ryan A. Kriegshauser. “Here, the victims handed over their hard-earned money to someone they thought they could trust. We hope victims take solace in that Mr. Bates is not only going to prison but also ordered to pay back every dime he stole from them. The Financial Litigation Program with my office is standing by to do everything possible to make good on this court ordered restitution amount.”
The U.S. Postal Inspection Service and the Federal Bureau of Investigation (FBI) investigated the case.
