The $225,000 Vanishing Act: How One New Jersey HOA Fell Victim to a Commercial Paving Scam

Last Updated: March 22, 2025

Imagine walking out to your property's parking lot one morning and finding nothing but milled asphalt, construction debris from unrelated projects, and no sign of the paving contractor who just collected $225,000 of a $300,000 milling and paving project with your community's hard-earned money.

For one Homeowners Association in Brick Township, New Jersey, this nightmare scenario became an expensive reality. Their story serves as a powerful warning for commercial property managers, HOA boards, and business owners throughout Monmouth and Ocean Counties.

A Brick Township New Jersey's HOA's Nightmare

The Project Beginning

In early 2018, the Brick Township HOA board members recognized that their aging parking lots needed complete rehabilitation. Like many HOA property owners, they sought to improve their community, enhance property values, and ensure resident safety.

Meeting the Paving Expert (Or So They Thought)

After collecting proposals, the HOA selected what appeared to be a reputable paving contractor. The company presented impressive credentials that wound up being fraudulent, photos of completed projects, and reassuring promises of quality work with minimal disruption to residents.

The contract was signed in February 2019 for $300,000—a substantial investment for the community. Following what they believed was standard industry practice, they paid a 50% deposit ($150,000).

The Nightmare Starts

Work began with apparent momentum. The contractor brought in milling equipment and began removing the existing asphalt surface. Residents endured the inconvenience, believing their patience would soon be rewarded with smooth, attractive new pavement.

In March 2019 on the day of milling, the contractor requested an additional progress payment of $75,000, claiming they needed to secure materials. The HOA, having already seen work begin, complied with the request, bringing their total payment to $375,000—75% of the project cost.

The Ordeal

Then, the unthinkable happened. The contractor failed to show up to perform the paving not once- but twelve times!

Workers would arrive only to move equipment around every few days and leave to work on other projects.

More disturbing still, residents began noticing the contractor using their property as a dumping ground for debris from completely unrelated projects—hundreds of tons of broken asphalt, concrete, and dirt were deposited in the back parking lot.

Days turned into weeks. Weeks turned into months. Phone calls went unanswered. The community was left with unusable parking areas, dangerous conditions, and growing frustration.

A Referral Is Given: Steven Brahney's Assessment

In October 2019, nearly eight months after work had begun, I was called to assess a situation based on a referral from another property manager familiar with the circumstances. What I discovered was shocking, even for someone experienced in the industry. When I met with the board trustees and they recounted their story, I honestly thought I was being pranked—like I was on a hidden camera show and someone was attempting to play a joke on me.

Unfortunately, it was no joke; it was entirely real. As I listened to the board share their accounts, I found myself thinking, "This is the kind of scenario you hear about where homeowners get scammed out of a $3,500 deposit for a driveway." The trustees explained how, each time the paving contractor was supposed to show up to pave the area, he had a different excuse: broken equipment, flat tires, a broken-down asphalt plant, equipment operators who failed to show up, and unfinished jobs from the day before.

The most outrageous situation involved the contractor receiving a $150,000 deposit. He later managed to obtain an additional $75,000 by claiming that his grandson was in the hospital and he needed the funds to buy materials due to his medical expenses. The trustees, believing his story, cut him another check for $75,000. However, just as before, he failed to show up to pave the next day (as promised) after receiving the money.

Here is a quick synopsis of the project:

• The property had been used as an equipment storage site for the contractor's other projects.
• Hundreds of tons of construction debris from unrelated jobs had been illegally dumped on the property.
• Not only had the paving work never been completed, but the milling had left the property in a dangerous, unusable condition.
• The contractor had changed company names multiple times, making legal recourse more complicated.

I documented the entire situation in an 8-minute video, capturing the project's extensive damage and abandoned state—visual evidence of a scam that had cost the community $225,000 and months of inconvenience.

The Revelation: This Wasn't a One-Time Scam

Perhaps most disturbing is that this wasn't an isolated incident. The same contractor, operating under various business names, has continued this pattern of behavior for years. As of March 2025, they remain active in Monmouth and Ocean Counties, potentially targeting other unsuspecting property owners.

Red Flags That Should Have Raised Alarms

In hindsight, several warning signs were present that commercial property owners should recognize:

1. Excessive Upfront Payment Demands

The Warning Sign: The contractor required a 50% deposit as a condition to schedule the job, followed quickly by another substantial progress payment.

The Reality: Legitimate commercial paving contractors requiring a deposit only require it the day work starts, not weeks ahead of time, with subsequent payments tied to specific, verifiable completion milestones.  This protects the property owner/manager, if the contractor fails to start work, payment can be stopped on the check.

2. Missing or Vague Documentation

The Warning Sign: The contract lacked specific timelines, material specifications, and clearly defined payment schedules tied to completion percentages.

The Reality: Professional paving contracts for commercial properties should include detailed scope of work, exact materials to be used (including thickness specifications), precise timelines, and objective completion milestones.

3. Equipment and Personnel Inconsistencies

The Warning Sign: Different crews appearing sporadically, equipment being removed and returned without explanation.

The Reality: Legitimate contractors maintain consistent crew presence throughout a project and communicate clearly about any schedule changes.

4. Using Your Property as a Base of Operations

The Warning Sign: The contractor storing equipment overnight and using the property for activities unrelated to the contracted work.

The Reality: Professional contractors secure proper staging areas for equipment or negotiate these arrangements formally, with appropriate compensation to property owners.

5. Debris Dumping

The Warning Sign: Materials from other jobs appearing on the property.

The Reality: Ethical contractors properly dispose of debris according to local regulations, never using client properties as dumping grounds.

6. Name and Entity Changes

The Warning Sign: Different company names appearing on equipment, paperwork, or in communications.

The Reality: Legitimate businesses maintain consistent branding and clearly disclose any parent companies or subsidiaries.

How Commercial Properties Can Protect Themselves

1. Verify, Then Trust

• Search not only the company name but the OWNERS name on Google
• Confirm the contractor's business registration with the NJ Division Of Taxation to ensure they can legally transact business in New Jersey
• Verify their commercial general liability insurance (request a certificate naming your property as an additional insured).  Due to "ghost policies" and contractors fabricating insurance certificates with PDF software, require, the insurance certificate come, directly from the agent's email- not the contractors.
• Check for judgments or liens against the company through the NJ Department of Banking and Insurance
• Request commercial references specifically from similar properties in your area (Brick, Toms River, Point Pleasant, etc.)
• Visit their physical business location before signing any contract.  Insist on visiting their office.

2. Structure Payments Strategically

• Limit initial deposits.  If a contractor requires a deposit as a condition to schedule your project, make sure its not more than 10% of the contract amount.
• Create a payment schedule tied to specific, verifiable milestones:
  • 40-50% upon first day of work for milling and site preparation
  • 40% upon completion of paving and line striping
  • 10% retention held until completion of walk through by stakeholders and contractor, sign off, and warranty paperwork

3. Document Everything

• Take dated photos of your property before work begins
• Maintain a daily log of contractor presence and activities
• Record all verbal communications in writing via follow-up emails
• Take photos of license plates of all contractor vehicles
• Document any equipment or materials stored overnight

4. Include Protective Contract Clauses

• Lien releases to protect against liens at a later date from material suppliers
• Prohibition against using the property for storage without written permission
• Clear debris removal requirements and penalties
  
  

5. Conduct Regular Inspections

• Schedule formal walkthroughs at each payment milestone
• Consider hiring an independent paving consultant for large projects
• Document any deviations from the contracted specifications
• Address concerns immediately in writing

Signs of a Reputable Commercial Paving Contractor

In contrast to the warning signs above, here's what to look for in a legitimate commercial paving partner:

1. Transparency: Willingness to provide detailed references from similar commercial properties in your specific area (Ocean County, Monmouth County)
2. Documentation: Properly licensed, insured, and willing to provide proof of workers' compensation coverage
3. Specificity: Detailed proposals that include exact material specifications, thicknesses, and application methods
4. Industry Involvement: Membership in industry associations such as the National Asphalt Pavement Association or NJ Asphalt Pavement Association
5. Longevity: Established business history under the same name in the community
6. Communication: Responsive, professional communication and willingness to explain technical aspects of the work

Ocean and Monmouth County Resources for Commercial Property Owners

If you believe you've encountered a paving scam, report it immediately:

• Ocean County Consumer Affairs: 732-929-2105
• Monmouth County Consumer Affairs: 732-431-7900
• NJ Division of Consumer Affairs: 973-504-6200
• Ocean County Prosecutor's Office: 732-929-2027
• Monmouth County Prosecutor's Office: 732-431-7160

A Better Path Forward

September 2019

July 2020

The Brick Township HOA eventually recovered and completed their paving project with a reputable contractor, but not before suffering significant financial loss, property damage, and community disruption.

Their experience serves as a powerful reminder that when it comes to commercial paving projects, due diligence isn't just important—it's essential.

By recognizing the warning signs of potential scams and implementing proper protections, property managers and HOAs throughout Ocean and Monmouth Counties can ensure their paving investments enhance rather than damage their communities.

Remember: In commercial paving, as in most things, if an offer seems too good to be true, it probably is.

Steven Brahney is the founder of FixAsphalt.com, specializing in commercial paving solutions for property managers, shopping centers, and commercial properties throughout New Jersey. With over 25 years of experience, Steven helps property managers protect their investments through quality paving solutions and education about industry best practices.

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