Construction Company Owner Gets 9 Years for Fraud
By edhat staff
The owner of a local construction company has been sentenced to 9 years and 4 months in prison for fraud on Thursday.
Mark John Melchiori owned Melchiori Construction Company and pled guilty last year to one count of felony diversion of construction funds, one count of felony prevailing wage fraud, and one count of felony unlawful money transmission. Melchiori also admitted a special allegation that the amount taken was in excess of $100,000 and an aggravated white-collar crime enhancement that the amount he took was in excess of $500,000.
The charges stemmed from a complaint by Robert Zemeckis, a film director, screenwriter, and Acadamy Award-winning director. Zemeckis stated he paid Melchiori Construction Company $500,000 in 2012 to remodel his home, but Melchiori illegally used the money for his own purposes. Zemeckis testified that due to Melchiori's fraud and failure to pay subcontractors, a lien was placed on his causing causing total damages closer to $1 million.
Melchiori was also accused of misappropriating $10 million from his company and using the funds to purchase a $2 million house, luxury vehicles, and host lavish parties.
With the assistance of both the California Department of Insurance and the California Department of Industrial Relations, the District Attorney’s Office also found that Melchiori had been underpaying his workers on public works projects to finance his lifestyle and that he had been funneling money through various companies to cover up his crimes.
Judge Jim Herman sentenced Melchiori to the maximum sentence of 9 years and 4 months.
- October 19, 2019: Construction Company Owner Pleads Guilty to Fraud