Former Maine contractor indicted for allegedly bilking customers out of more than $400K

A Knox County contractor who allegedly fled to South Carolina after defrauding nearly 60 customers in five counties for work he never did has been indicted by a grand jury.

Malcolm Stewart, 56, formerly of Union, who did business as Castle Builders, induced 57 customers to pay a total of $437,906 in deposits "for home construction projects that he knew he did not have the capacity to complete," according to Maine Attorney General Aaron M. Frey.

The Knox County Grand Jury on Thursday returned an indictment against Stewart on two counts of Class B theft by deception and a warrant has been issued for his arrest, according to a news release from Frey's office. Bail was set at $50,000 cash.

Customers were in Hancock, Kennebec, Knox, Lincoln and Somerset counties, and the alleged offenses occurred between April 2018 and September 2019, according to the indictment.

Frey said that in most of the transactions listed in the indictment, Stewart didn't do any work in return for the deposits. In a few of the transactions, he did a "a minimal amount of substandard work," Frey said.

The indictment also alleges that Stewart induced two customers to advance him a loan of $50,000 in December 2018 by falsely claiming he had cash flow problems because customers were not paying him, and that he could start repaying the loan in January 2019. Stewart, however, never made a single repayment, according to the indictment.

Stewart closed the business without notice after he collected his last deposit on Sept. 6, 2019, and left Maine for Pelzer, S.C., Frey said.

In December 2019, the Office of Attorney General filed a civil action against Stewart and his wife, Elizabeth Stewart, under the Maine Unfair Trade Practices Act. That lawsuit remains pending.

"A contractor who knowingly induces consumers to pay him money without intending to perform the promised services commits a criminal offense," Frey said. "Obtaining money through deception is not just bad business; it's theft, and it directly harms consumers who have in many cases saved money over time to pay for these services."

In addition to announcing the indictment, Frey urged consumers to exercise caution when hiring home construction contractors.

"Maine does not license home construction contractors, so consumers must proceed with caution when hiring a contractor," Frey said. "Ask your friends and family for the names of people who have done good work for them. Check references and do some research to determine if the contractor is reputable or has many complaints."

He also urged consumers to consult Chapter 17 of the Attorney Generals Consumer Law Guide, which has information on Maine's law governing home construction and repair contracts, and what consumers who are not satisfied with the work can do.