SPOKANE, Wash. – At least a dozen people in Spokane are claiming they collectively lost over $200,000 to a contractor. The contractor, Sterling Scholar, owner of The Penguin Guys, is accused of taking payments for unfinished projects and not paying subcontractors.
NonStop Local has been investigating these claims for a month. Scholar no longer holds an active license in Washington State. The investigation by local police is ongoing.
Christine Saftner, one of the affected individuals, shared her experience. “If you can’t trust the BBB to give you a name then who can you trust,” she said. Saftner paid nearly $40,000 for a porch that was never built.
Cameron Nakashima from the Better Business Bureau (BBB) confirmed that The Penguin Guys were accredited until December 9, the day before the story aired. He explained that the BBB conducts thorough vetting, including background checks and license verification, but sometimes businesses slip through the cracks.
“I’d never heard of this company before you brought it to my attention, this is not a reputable company,” said Joel White, Executive Officer of the Spokane Home Builders Association. He noted that similar cases occur four to six times a year.
White advised that before signing a contract, individuals should ensure they are working with a registered contractor. He acknowledged that even registered contractors can face challenges, saying, “Sometimes when they start a project and when they understand the cost is they are upset.”
Nakashima outlined several red flags to watch for when hiring a contractor: refusal to provide referrals, cash-only deals, high-pressure sales tactics, and high upfront deposits over 50%. He emphasized, “We try to connect people with businesses they can trust and we also show you businesses they cannot trust.”
The police are asking anyone with similar experiences with The Penguin Guys to contact Crime Check.
For more information on how to protect yourself from contractor fraud, visit the Better Business Bureau and the Spokane Home Builders Association websites.
