The Utah Attorney General’s Office has charged a Sandy contractor with 12 counts of theft for allegedly pocketing money that was supposed to pay off construction costs. Castle Homes owner Michael D. Alvey, 55, allegedly put 20 developments and more than 400 homes at risk by failing to pay subcontractors and suppliers.
According to court documents, Alvey owed $3,352,400 when he declared bankruptcy in June 2001 and the Utah Department of Commerce had to step in and pay $483,644 to protect Castle Homes customers from liens.
While in business, a former associate said Alvey was collecting $10,000 in salary-plus $2,500 on his credit card -each month. Investigators reportedly found he owed more than $100,000 on a business credit card that was also used to pay for airline tickets, dentist bills and purchases at Victoria’s Secret and the BYU Bookstore.
The Utah Division of Occupational and Professional Licensing gave Alvey and Castle Homes a probationary license in January, 2001 after reportedly receiving numerous complaints about liens and unpaid bills. On April 24, 2001, Alvey and Castle Homes surrendered its license and six weeks later filed a chapter 7 bankruptcy. One supply company lost approximately $1 million.
Alvey was arrested late last month and charged with seven second-degree counts and five third-degree counts of theft by failure to pay monies. If convicted, Alvey faces up 1-to-15 years in prison for each second-degree felony and 0-to-5 years for each third degree-felony.
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