$1.5 Million in Penalties Are at Stake for a Texas Roofing Company Accused of Exploiting Homeowners
A roof is one of a home’s most important protections, and repairing it can mean handing over thousands of dollars in savings or insurance money. It’s a significant investment, one homeowners expect to leave their properties safer, not their finances in jeopardy.
However, a North Texas roofing company was found liable for misleading customers, including people aged 65 and older, about necessary repairs and promised work that wasn’t completed.
On Oct. 8, Texas Attorney General Ken Paxton announced that his office had secured a judgment against Rubinsky Roofing LLC and its owner, Gilad Rubinsky.
The ruling goes beyond financial penalties. It also orders the company to account for customers’ payments and establishes a process for people who lost money to seek repayment. Customers will need to take action in a timely manner, however.
The Roofing Company Found Liable for 27 Violations
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Paxton’s office first sued Rubinsky Roofing back in May, following reports of deceptive business practices.
According to the court’s final judgment, the company and its owner were found liable for 27 violations of the Texas Deceptive Trade Practices Act. Five involved consumers aged 65 or older.
The court found that the defendants misrepresented whether customers’ roofs needed repairs or replacement. They also accepted payments for work they failed to begin or finish on time, without disclosing important information about their ability or willingness to complete the projects.
Neither defendant filed an answer to the lawsuit. As a result, the court entered a default judgment on Oct. 5, treating the material allegations in the state’s complaint as admitted. The court imposed $1.52 million in civil penalties, of which $1.25 million is for violations involving consumers aged 65 and older.
The judgment also permanently prohibits the company and its owner from repeating the deceptive practices. Future roofing contracts must specify when work will begin and end, with written explanations required for delays.
What Happens to Homeowners Who Lost Money?
Rubinsky Roofing and its owner must deposit $500,626.64 into a separate account reserved for consumer repayment. They remain responsible for eligible losses even if the total exceeds that amount.
The defendants must also compile a list of customers who paid for roofing services, including how much they paid and whether the promised work was completed, partially completed, or never begun.
Texas’s Consumer Protection Division will contact potentially affected customers with instructions on how to seek repayment. Consumers will have 90 days from the date the notices are sent to submit documentation supporting their losses.
Getting a court judgment is one thing. Recovering money spent on unnecessary roofing work or services that were never delivered is another. Homeowners must still document their losses, and the court’s order does not establish that any refunds have already been paid.
