United States Files Suit to Enjoin Summit Contracting, Inc. and Its Owners from Continuing Ongoing Fraud Scheme

United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on November 27, 2019, the United States filed a complaint seeking a civil injunction against Chad Schampers, Nathaniel Smith, and their construction business—Summit Contracting, Inc. (“Summit”), located  in De Pere, Wisconsin.  The complaint was filed pursuant to Title 18, United States Code, Section 1345 based on alleged wire fraud and banking law violations.  Along with the complaint, the United States also filed a motion for a preliminary injunction to enjoin defendants’ misconduct while the lawsuit proceeds.      

The complaint alleges that beginning as early as 2018 and continuing to the present, defendants have conducted a fraudulent scheme that induces customers to finance construction projects, often by misrepresenting the terms of the financing offered.  As alleged, once the projects are approved for financing, defendants fully withdraw the funds for the project from the financing company before Summit completes (or in some instances, even commences) its work by making false statements to financing companies that the work has already been completed.  The complaint further alleges that withdrawals are made without the customer’s knowledge, contrary to the payment authorization provided by the client, or both, and that some Summit customers are left with substantial loan payments for work that is not what Summit promised, or worse, never completed at all.  

The complaint asks the Court to enjoin defendants’ ongoing wire fraud scheme and banking law violations to prevent a continuing and substantial injury to the victims of fraud.  The complaint requests, among other relief, that the Court prohibit defendants and their agents, officers, employees, and all persons participating with defendants, from the following:

• making any false statement to any financial institution with respect to any financing transaction;
• misrepresenting to prospective or actual Summit customers the terms of financing offered for Summit projects;
• requiring Summit customers to sign paperwork concerning the completion of work before Summit has confirmed completion of the work with the customers;
• threatening or intimidating any customer or former customer of Summit who posts a negative review online or in any other medium or provides information  in connection with any law enforcement investigation of defendants’ misconduct; or
• destroying, deleting, removing, or transferring any and all business, accounting, and other records concerning defendants’ operations.     
   

“The complaint alleges that Summit Contracting, Inc. and its owners are engaging in a scheme to rip off both customers and financial institutions,” said United States Attorney Krueger.  “We are seeking a preliminary injunction to prevent defendants from harming any more victims while the suit continues.  This action underscores the United States Attorney’s Office’s commitment to combat fraud schemes aggressively.” 

The United States is represented in this matter by Assistant United States Attorney Emily A. Constantine. 

For Additional Information Contact:

Public Information Officer Kenneth Gales 414-297-1700

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