Colorado Construction Trust Fund Charges Can Destroy Your Business
Have you heard of the Colorado Construction Trust Fund Statute?
It was implemented with the supposed goal of protecting contractors and subcontractors by making sure that they get paid. That sounds great. After all, no one wants to put in a lot of hard work and get stiffed by someone over them in the hierarchy.
Unfortunately, the way the law works in practice is that it creates a lot of extra work for businesses. It forces them to create trusts for any monies they receive and pay contractors and suppliers out of those trusts. If you neglect to create these trusts or make a mistake in their creation – even if you pay the necessary parties in another way – you can potentially face a criminal charge.
To make matters worse, many smaller contractors have no idea this law even exists. This means that you can find yourself suddenly facing charges for something you did not even know you needed to do.
As a Denver criminal attorney who has been fighting to protect people’s rights for years, Kimberly Diego has seen this over and over since the law was created. She knows how much of a negative impact being charged can have on a small business owner – both personally and professionally. She always strives to handle these matters quickly and efficiently, with an eye toward protecting your time, your pocketbook, and your reputation.
It starts with understanding the law itself.
Fighting Construction Trust Fund Charges Requires a Denver Criminal Attorney Who Knows the Law
“(1) All funds disbursed to any contractor or subcontractor under any building, construction, or remodeling contract or on any construction project shall be held in trust for the payment of the subcontractors, laborer or material suppliers, or laborers who have furnished laborers, materials, services, or labor, who have a lien, or may have a lien, against the property, or who claim, or may claim, against a principal and surety under the provisions of this article and for which such disbursement was made.
(2) This section shall not be construed so as to require any such contractor or subcontractor to hold in trust any funds which have been disbursed to him or her for any subcontractor, laborer or Uncertified Printout material supplier, or laborer who claims a lien against the property or claims against a principal and surety who has furnished a bond under the provisions of this article if such contractor or subcontractor has a good faith belief that such lien or claim is not valid or if such contractor or subcontractor, in good faith, claims a setoff, to the extent of such setoff.”
What exactly does that mean? Say you are a contractor working to build a house for someone. To do the job, you have to use subcontractors and suppliers. Anytime the client pays you for part of the job, the law requires that money be placed in a special trust and that all subcontractors and suppliers involved in that specific part of the job be paid before you do anything else with it.
If you first pay off a utility bill and then pay your subcontractors and suppliers, that is a violation. If you do not place the money in a trust but instead pay it directly to your subcontractors and suppliers, that can be a violation if you are unable to prove that you paid them. If you take money from one trust to pay a contractor involved in a different part of the job, that can be a violation. And, of course, if you simply take the money and do not pay, that is a violation.
How do “violations” work? They fall under § 18-4-401 – Colorado’s theft statute… with one big difference. Regular theft in our state clearly requires that the person committing it does so with intent. In other words, you have to be intentionally trying to deprive someone of their property in order to be convicted. It is not enough that your child shoved a toy into your purse and you walked out of the store with it. You had to know it was there and decide to leave anyway.
Not so with construction trust fund theft. Even if you are merely ignorant of the law and had no intention of not paying your subcontractors and suppliers, you can be charged and convicted.
What will you be up against if you end up facing a charge?
Construction Trust Fund Theft Penalties Mirror Regular Theft Penalties in Colorado
Since construction trust fund theft falls under our state’s theft statute, so do the potential penalties that you can face if you are charged with this act.
Here’s how the penalties break down:
Value under $50 – Class 1 petty offense. Up to 6 months in jail and $500 in fines.
Value between $50 and $300 – Class 3 misdemeanor. Up to 6 months in jail and $750 in fines.
Value between $300 and $750 – Class 2 misdemeanor. Up to 12 months in jail and $1,000 in fines.
Value between $750 and $2,000 – Class 1 misdemeanor. Up to 18 months in jail and $5,000 in fines.
Value between $2,000 and $5,000 – Class 6 felony. Up to 18 months in prison and $100,000 in fines.
Value between $5,000 and $20,000 – Class 5 felony. Up to 3 years in prison and $100,000 in fines.
Value between $20,000 and $100,000 – Class 4 felony. Up to 6 years in prison and $500,000 in fines.
Value between $100,000 and $1,00,000 – Class 3 felony. Up to 12 years in prison and $750,000 in fines.
Value over $1,000,000 – Class 2 felony. Up to 24 years in prison and $1,000,000 in fines.
Beyond these very serious consequences, you also have to worry about what charges like these will do to your business and your reputation. That is why it is so important to aggressively battle all accusations – and to get started as soon as possible.
Start Battling Your Charges Today with a Skilled Denver Construction Trust Fund Lawyer
Ready to fight back and protect your good reputation? Work with Kimberly Diego and she will use every legal tactic possible to get your charges reduced, dropped, or dismissed and make sure that your rights are protected. She is relentless in her defense, and she gets results.
However, she cannot begin unless you reach out first. All it takes to get started is a quick phone call or email. Or you can fill out our online contact form and we will get back to you.
I had no experience with the justice system when I got my charge and would have been COMPLETELY lost in court without Kimberly there to get me through the process! I was certain I would at least get probation and fines, but Kim actually got my case dropped in the end! I couldn't believe it! I had other lawyers tell me I was in for much more but Kim went above and beyond to get the job done with the utmost integrity and professionalism! I would highly recommend her to anyone needing an attorney. Thanks again, Kim!
Oct 7, 2015
by Annie on
hen I started looking for a criminal lawyer to help with my husband's criminal case, I went through many initial consultations with other lawyers which resulted in me getting turned away because they felt our situation was hopeless. When I contacted Kimberly via email to ask if she thought she could help, I had barely just sent out the email when I saw a response from her. She told me she was confident she could help us, and she just made me feel so positive about everything. Kimberly has always been quick to respond, and she is great at mixing her professionalism with her compassion for the law and helping people get through their issues. I never doubted that she would help my husband get his open warrant lifted while he could not appear in person. We currently live in Brazil and we needed his warrant lifted in order for us to be able continue the immigration process, and despite all of the odds against us, she still did it! I highly recommend her services if you are looking for someone who is personal and professional, good at what they do, and not afraid to take on difficult cases. My husband's case is not yet finished completely yet, but we know Kimberly will get us through it!
Oct 7, 2015
by G. on
I retained Kimberly Diego to represent me in a criminal case in 2010. I found her to be a very competent criminal defense attorney. She was able to assist me in getting my case dismissed. She knows the ins and outs of the Colorado courts and is able to offer sound advice based on that knowledge. Her fees were both reasonable and fair. I would highly recommend Ms. Diego.
Oct 7, 2015
by Stephanie on
My husband & I are very happy in having chosen Kimberly Diego as our attorney. She negotiated and got the best outcome for my husband's case. I recommend anyone needing legal help contact Kim as she not only is professional but also takes a personal interest in her client's and their final outcome. Again Kim thank you for your excellent representation!
Oct 7, 2015
by Robert on
We contacted Kimberly Diego for a DUI that involved some very difficult circumstances with law enforcement officers. Upon dealing with this very serious situation, I knew that it was going to be complicated and difficult to get through. I was facing my 3rd DUI conviction, yet the law enforcement officers in this case acted unethically. Kimberly was diligent in hiring two key investigators to gather information that would benefit my case, and in the end all the work aided in the DUI charge being dropped. Although my wife and I never want to go through a situation like this again, we would recommend Kimberly for a defense attorney. Her focus, will to not quit, and focus to the detail that was necessary for my case, were all key in her work with me. Kimberly is very busy yet we learned quickly that she was doing the work necessary to be ready for our court date. We highly recommend Kimberly!
Oct 7, 2015
by Dean on
I was truly fortunate to have Kimberly Diego as my Lawyer. She seems to practice law because she believes in the judicial process. Her negotiation skills and knowledge put me at my best advantage with respect to defending myself. It was evident in court that she was a trustworthy expert, and enabled me to enter a fair and reasonable plea. Her representation gave me confidence, and helped put my life back on track, a sort of reform that jail time or longer probation could never have accomplished. Moreover, Ms Diego is a realist, but still took on challenge. She went above and beyond what any other lawyers I spoke with could not even fathom. She did what was necessary to represent me in all aspects of my defense needs. Finally Ms Diego was efficient and worked quickly keeping the amount of billable hours to a number I could afford. I highly recommend Ms Diego as a defense lawyer.
Oct 7, 2015
by Brent on
Hello Kim, I wanted to thank you for representing me with my recent incident in the Boulder area. You wasted no time in contacting the court to address my case. We we received feedback from the court about my case, you were not satisfied with their statement for my outcome. You took the case back to them, and you presented reasons for them, to offer me a better deal. I believe I received the best outcome I could possibly receive, for my situation. If I have another opportunity to use you again, I would certainly not hesitate, in calling you for my representation. Thank you again, for your help.
Oct 7, 2015
by Sekou on
Kimberly is a true professional. Shes professional, but not cold and strictly business. Kim took time to listen and ask questions and never being in a position in which i needed a lawyer, she actually made me feel as though i was a friend of hers that was in trouble and in need of her help. Kim was there for me and with her help and true professionalism the "other side" resorted to dropping all charges. Im am grateful that i made that call to Kimberly Diego and i would highly recommend her to represent you in court. Again thank you Kimberly, although i would NEVER want to go through it again, im glad to have met you, im happy to have had you represent me and consider you a friend
Oct 7, 2015
by Travis on
I contacted Kim concerning a case, which involved Indecent Exposure charges. Throughout the entire episode, she remained professional and courteous. I found her fees to be reasonable and fair. I was prepared to plea to the lesser charge, in exchange for a dismissal of the Indecent Exposure charge. After she explained she got both charges dismissed, I raised both my hands in triumph.
Oct 7, 2015
by Wayne on
Thank you so much for handling our daughters shoplifting case. The results were better than we expected. The professionalism and courtesy you showed in handling our case, and the updates and keeping us informed were always well timed and more than adequate. If I ever have the need (or anyone I know has the need) for a shoplifting attorney, I will definitely choose you or recommend you. GREAT JOB!!!"
For a Free Consultation
Ready to take the first step towards protecting your future? Contact Kimberly Diego to schedule a free 45-minute consultation, where you can explore the unique circumstances of your case and determine your options. You can call Ms. Diego via phone at 720-257-5346, or simply fill out a free case review form to have a representative from the Law Office of Kimberly Diego contact you promptly.
Ms. Diego works with clients in the Denver metro area and beyond, including Boulder, Brighten, Broomfield, Castle Rock, Lakewood, Englewood, Aurora, White Ridge, Arvada, Westminster, Thornton, Northglenn, Fort Collins, and Colorado Springs. She has experience defending clients in all counties, including Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson, and Lakewood.
Domestic violence is an issue many Coloradans have to deal with. Because of this, our state takes crimes involving domestic violence very seriously, and being found guilty of a crime involving it can have a major impact on your life going forward.
That’s why it’s necessary for all Colorado residents to understand what the law says about domestic violence. Having a little understanding of our laws can help you navigate
In Colorado, sex crimes are very serious. That’s why if you get charged with one, it’s something you should take very seriously – no matter if it’s a misdemeanor or a felony charge.
Some sex crimes in the state get charged as misdemeanors. Others get charged with felonies. The level at which a sex crime gets charged impacts the types of penalties you can face if you are found guilty
Getting arrested for driving under the influence in Colorado automatically saddles you with a DUI arrest record.
The police create this report and it becomes a part of the public record. That’s why it’s vital to understand what an arrest record is and how it can impact your future – whether you are ultimately convicted of a DUI in the state or not. Read on to find out what you