DENVER — Two contractors have been indicted and are accused of defrauding homeowners and businesses by using money that was meant to fund projects for their own personal benefit, according to the Denver District Attorney's Office.
A Denver Grand Jury indicted 52-year-old Erik Osborn and 60-year-old Joseph O’Rourke on several felony theft counts. In total, they face 20 counts of theft.
Osborn is accused of violating the Colorado Organized Crime Control Act (COCCA).
The indictment alleges that between Nov. 5, 2015, and Nov. 13, 2019, Osborn owned and operated two construction companies, Oxbo Services LLC and Ozzco Construction LLC.
As owner, Osborn contacted homeowners and business owners to act as the general contractor on their construction projects.
He requested and was provided money from homeowners and business owners which was to be held in a trust to pay employees, subcontractors, and consultants, or to pay for materials.
Instead, according to the indictment, Osborn with assistance from O’Rourke, used the funds for their own personal benefit, to pay off debts unrelated to the projects, or to pay off personal and/or civil judgments, leaving several subcontractors or material providers unpaid.
When the subcontractors did not get paid, they demanded payment from the homeowners or business owners or filed mechanic liens, according to prosecutors.
That resulted in the homeowners or business owners having to pay additional funds to satisfy subcontractors’ claims and mechanic liens. The victims lost tens of thousands of dollars, according to the indictment.
While this alleged criminal activity was occurring, Osborn was on probation for prior crimes and was prohibited as part of his probation from doing things such as opening bank accounts or controlling any assets, funds or financial information of any individual, group or business.
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