Bad contractor: Inside Toronto's epidemic of renovation fraud fraud

**"On a summer evening in July2021, Amin went for a walk after dinner, as he often did. He had been living in Lorne Park, a quiet and green neighborhood in the southeast of Mississauga, for more than ten years, sharing a modest house with his immediate family and parents who often stayed with them."

While walking past some of the larger homes in Lorne Park, Amin noticed details that could serve as inspiration for his next home. Amin (who agreed to talk to me on the condition that I not use his real name) dreamed of buying a larger home suitable for multi-generational living for his family. When he started looking in earnest, in 2020, his real estate agent convinced him to also consider vacant lots along with existing homes.

By fall, the perfect lot had appeared: a lot in Port Credit, just five minutes east of his current residence. The 7,500-square-foot lot was big enough to build a 4,200-square-foot house and a roomy backyard. Overjoyed, Amin took out a loan, mortgaging his current home, and bought the lot. Now he was looking for the perfect contractor for his perfect home.

Finding a contractor

He had been gathering quotes since early summer, but couldn't find a good fit. Most contractors said the rough finish, the phase of construction that includes everything but interior trim, would cost about $575,000 and take seven to ten months. Amin was hoping for a shorter time frame-the sooner he could build a new house, the sooner he could sell his place in Lorne Park and use the profits to pay off his loan.

Looking down the street, Amin noticed a two-story house under construction. The large front entrance, large windows, and four-pitched roof gave it a modern colonial look that he liked. A few signs and two white vans parked on the lot advertised a company called SUM ICF Sip Forming Drain and Concrete. Amin pulled out his phone and called and then texted the number listed, explaining that he would like to discuss a possible project.

Meeting with the contractor

A few minutes later, he received a call from a man with a deep voice and a thick Eastern European accent: Mike Borak, the owner of the company. The men set up a meeting for the coming week at a construction site. In his late 50s, beardless, about six feet tall and 230 pounds, Borak met Amin at a construction site in Lorne Park a few days later. Dressed in work pants and construction boots, he led Amin on a tour of the house, which belonged to a man named Joseph Abishedid. Borak assured Amin that he could build his house faster and cheaper than other contractors: the rough finish would cost $515,000 and take only three months. The entire project, he said, would be completed by spring 2022, and he provided Amin with a written estimate along those lines.

ICF utilization

Instead of using wood, Borak planned to save time and money by using insulated concrete forms known as ICFs, which are pre-assembled polymer walls that fit together like a jigsaw puzzle. Borak seemed knowledgeable and experienced - he told Amin that he had moved to Canada from Serbia at a young age and had worked in the construction industry for three decades. The timing sounded perfect to Amin, but he remained cautious. This project would eat up all his savings. Was the lower estimate and shortened timeline too good to be true?

Decision and implications

He decided to approach Abishedid, the owner of the house he liked so much. Abishedid said that Borak was a great guy and a highly skilled worker who knew everything about construction. Amin talked to another of Borak's clients who was building next to Abishedid, and the latter also gave positive feedback about Borak. Amin then consulted with his attorney. After a month of vetting and deliberation, he was satisfied and made a deal with Borak.

When hired, Borak requested a deposit of $110,000. Covid was still causing supply issues, he said, and he needed to start ordering materials immediately. Amin handed over the money, and Borak gave him a receipt. In October 2021, Amin received a building permit from the city of Mississauga, and the project moved quickly after that.

When the excavation was completed, Borak asked Amin for another $90,000 to pay for the windows and doors he had imported from Serbia. Amin was pleased with the progress of the construction and Borak's overall hard work, so he paid. But a few weeks later, Amin began to have doubts about his contractor. He went with Borak to the supplier to look at the plumbing materials, and they estimated them at around $50,000.

Later, Borak told Amin that as a contractor, he could get a 50% discount from the same supplier, and he would gladly pass the saved money on to Amin. Suddenly intrigued, Amin asked Borak why he didn't just take the full amount and keep the extra money for himself. Borak's response was, "I am fair and very honest." After handing over $200,000, Amin wrote a check to the branch of MB General Construction Ltd., a subsidiary of Borak's SUM ICF. Borak returned it, saying that the check should be made out to him personally.

When Amin objected, Borak said it was the only way to get a discount. Amin reluctantly agreed, trying to suppress his anxiety. Although he was reluctant to give Borak more money so soon - he had already spent $200,000 - he felt he had no choice if he wanted him to continue the project.

Amin's concerns only grew stronger after a few months. In the spring of 2022, a month after his initial project deadline, Borak failed two city inspections regarding the foundation and the filling of the basement (when the soil excavated during the digging process is reused to support the structure). When Amin asked for an explanation, Borak claimed that the city inspector was overly zealous.

In fact, Borak acted unilaterally, ignoring the initially approved city plans and cutting corners wherever possible. It was difficult to get the new plans approved, but after they were finally approved, Amin allowed himself to feel some relief that things seemed to be finally coming together.

Then, in November 2022, the project came to a halt again. Borak stopped showing up at the construction site. When Amin called him, he made excuses: he was sick, it was raining, he was waiting for materials. Then, in December, Borak left for Serbia, telling Amin that he would be back in two weeks and would continue working upon his return. Two weeks passed, then three and four, but there was still no sign of Borak. Amin called and texted him in a panic, asking for updates, but Borak never responded.

The crew that Borak hired to work with ICF continued to show up, but they lacked materials to work with, and Borak still hadn't paid them or answered their calls. "We've been in this business for 41 years, and he's the worst, most unscrupulous person we've ever dealt with," said one of Borak's suppliers.

Formation of a WhatsApp group

When Borak finally showed up in February 2023, Amin was furious. He pressured Borak to speed up the construction, but the pace remained slow. By spring, a year after the original deadline, the crew had only completed the lower half of the exterior walls - 10% of the total work. Amin was fed up. He fired Borak, started buying materials himself, and hired a subcontractor to finish the basement level.

And, most importantly, he started gathering contact information about other Borak clients by visiting the mentioned sites and asking to speak with the owners. By mid-April, Amin had collected contact information for 11 Borak clients. He added them all to a WhatsApp group that he named Mike Action Group and sent a message. Amin explained that he was reaching out because Borak had not fulfilled his obligations and that he himself had lost $235,000, ending up with nothing but a hole in the ground.

Amin half-expected to be told to leave, that he was the only complainer, and that the chance of getting justice through WhatsApp was a pipe dream. He was wrong. The incoming messages varied in their content.