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Federal government files complaint against Summit Contracting owners to stop ongoing fraud scheme

Posted: 4:05 PM, Nov 27, 2019
Updated: 2019-11-27 17:27:14-05
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MILWAUKEE (NBC 26) -- The United States filed a complaint Wednesday in federal court seeking a civil injunction against Chad Schampers, Nathaniel Smith and their construction business, Summit Contracting Inc. of De Pere, according to United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin.

The complaint is based on alleged wire fraud and banking law violations. Beginning as early as 2018, the complaint claims Summit Contracting has conducted a fraudulent scheme that induces customers to finance construction projects, often by misrepresenting the terms of the financing offered.

Once the projects are approved, funds for the project are withdrawn from the financing company before Summit completes, or in some cases even begins, its work by making false statements to financing companies that the work has already been completed, according to the complaint.

The complaint further alleges withdrawals are made without customers' knowledge. Some Summit customers have been left with substantial loan payments for work that is not what Summit promised, or never completed at all.

"The complaint alleges that Summit Contracting, Inc. and its owners are engaging in a scheme to rip off both customers and financial institutions," Krueger said. "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 complaint asks the federal court to prohibit any threats or intimidation of current or former customers of Summit who post negative reviews or provide information in connection with any law enforcement investigation or the destruction, deletion, removal or transfer of any business, accounting and other records concerning Summit's operations.

Summit Contracting did not respond to a phone call requesting comment Wednesday afternoon.