Jurors in Denver are hearing raw, emotional testimony from homeowners who say a local contractor took large deposits, tore into their houses, and then walked away, leaving gutted rooms, missed deadlines, and at least one property so unsafe that the city slapped on a red tag and deemed it uninhabitable. The testimony comes in the second week of the criminal trial of contractor Avi Schwalb.
As reported by Denver7, Kevin and Noelle Collins told jurors they paid more than $250,000 for a remodel of their 1951 bungalow that never reached completion, only to have city inspectors later red-tag the home. Noelle testified, “I’m afraid that Avi is going to get a slap on the wrist,” while Kevin described damaged work and repeated missed deadlines. Prosecutors are using the Collinses and other clients to tie those stories to banking records and what they say is a pattern of conduct.
According to the Colorado Attorney General’s Office, bank records show Schwalb Builders and Avi’s Remodeling received roughly $1,145,271 in customer funds that were not spent on the specific projects or returned to consumers. The Attorney General has brought racketeering, conspiracy, and felony theft counts against those involved. A multi-million dollar remodeling scheme was previously detailed in coverage of the grand jury indictment and wider complaints against the companies, as per Hoodline. The construction trust fund law cited in the filings requires contractors to hold customer money in trust for the project it was paid for.
ACLU lawsuit and tenant claims
Separately, the ACLU of Colorado sued a landlord connected to Schwalb, alleging repeated harassment of immigrant tenants and threats to report them to immigration authorities. A judge later issued a preliminary injunction, according to the ACLU’s press release. That civil action is currently stayed while related bankruptcy proceedings remain active.
Bankruptcy trustee seeks to liquidate properties
Court filings dated Feb. 6 show the Chapter 7 trustee has asked for permission to hire LIV Sotheby’s International Realty to list and sell 14 properties in Aurora and Denver to repay creditors, as reported by Denver7. The trustee argued there could be equity left after mortgages, commissions, and closing costs, which could create a pool of funds for victims and other creditors. The outcome of the bankruptcy case could shape how civil lawsuits proceed and how any restitution is ultimately calculated.
What’s next in court
Prosecutors say they expect Avi Schwalb’s trial to wrap up next week, with testimony from multiple customers and expert witnesses still on the schedule. Related criminal cases involving his son, Sean, are moving on a separate track and could take months to resolve. Attorneys for alleged victims say what jurors are hearing now will be central to both criminal accountability and any civil restitution that follows…