More than $200,000. Retired teacher fell prey to pressure from fraud artist

Joey Thompson
Province

Pensioner Francis Loftus was what most people would think of as the proverbial sitting duck.

With family either deceased or out of country, the retired, never-wed school marm still lived in the unassuming Kitsilano bungalow where she was raised.

Far be it for the humble live-alone to doubt an established contractor’s estimate of essential repairs to her only asset besides a teacher’s pension.

But court documents show it wasn’t until work on the simple two-storey, two-bedroom home began that the serious swindling got under way.

Before long, Andrew James Kralik had persuaded the senior to fill in the blanks on at least half a dozen work contracts, citing repairs worth more than $200,000.

The owner of Exterior Home Services convinced the elderly lady the house needed painting, an exterior door should be a window, the porch soffits were toast and the fascia and door sills needed a quick fix. Oh yes, the roof had to be replaced as well as gutters, downspouts, back porch and railings.

Those were the little jobs.

Cracks in the foundations were next. Lead drain lines needed replacing as did the garage doors. The house desperately needed structural upgrading, he said, also a new sump pump, lining in the chimney, chain-link fencing, burglar alarm system and so on.

Loftus signed over her car worth $28,000. With Kralik’s blessing, she also arranged for a reverse mortgage, a loan offered to seniors by the Canadian Home Income Plan Corp.

The accumulation of yellow work orders in Loftus’s drawer was enough to make a homeowner’s head spin. It certainly caused B.C. Consumer Services Branch staff — assigned to look into complaints of possible shifty or unconscionable transactions — to raise their eyebrows.

Enter Graham Chard, government branch investigator, who hired a quantity surveyor and a building contractor to get to the bottom of what work had really occurred at Loftus’s home.

By the time the paperwork was done, Kralik faced criminal trial for fraud, a rare move by investigators, given that police don’t usually get involved in contract breaches and consumer ripoffs. Civil court is their usual venue.

Loftus, 86 years old and frail by now, stood in the witness stand for seven days last year answering lawyers’ questions. The experts also testified: They said much of the $228,000 worth of so-called work written up by the 42-year-old was never done. What had been was worth no more than $40,000 tops.

“Mr. Kralik knowingly engaged in dishonest conduct and was aware that by his conduct he was depriving Ms. Loftus of significant amounts of money,” B.C. Supreme Court Madam Justice Catherine Wedge ruled recently.

“He persuaded Ms. Loftus that her home required extensive repairs when it did not. He convinced her to take a reverse mortgage on her home and then proceeded to divest her of most of the mortgage funds within a three-month period. I find [him] guilty of fraud.”

Renovations are a billion-dollar business. It’s crucial that homeowners read carefully and store safely any contracts they sign. And if there’s nagging doubt about the cost or quality of work performance, get in contact with the Consumer Services Branch of the Attorney-General’s Ministry. Contact information is available on the B.C. government website.

© The Vancouver Province 2006

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