Local Contractor Gets Probation for Scamming Hatfield Residents Out of More Than $500,000

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A local contractor who was facing nearly three-dozen felony charges stemming from deceptive business practices has been sentenced to probation following a plea agreement with Montgomery County prosecutors.

Paul Bauder, 61, of Hatfield, was sentenced to five years’ probation on Friday after pleading guilty to a misdemeanor count of theft by deception and seven counts of receiving advance payment for services and failing to perform. Those charges were initially filed at the felony level, but later reduced to misdemeanors, court records show.

Additional felony counts of deceptive business practices, theft by deception, receiving stolen property, and false statements to induce agreement for home improvement services were dropped in exchange for Bauder’s plea. A felony count of dealing in proceeds of unlawful activities was previously dismissed at Bauder’s preliminary hearing.

Bauder is the owner of Hatfield-based Paul Bauder Construction Inc.

Court records show Bauder is required to pay $10,000 in restitution by the end of June and must make monthly payments of at least $2,000 for each month after until full restitution has been made. He is eligible for early termination of probation once restitution has been completed.

The charges followed a multi-year investigation by the Hatfield Township Police Department.

The investigation began in November 2019, when a Hatfield Township resident approached police to report an issue they were having with a contractor, identified in the complaint as Bauder. The victim stated they had provided Bauder with $362,485 between July 2018 and August 2019 for a variety of work to their home, but the work was left incomplete and Bauder had ceased all communications with the victim, the report states.

The victim added that the work that was finished ended up failing inspection, and they had to hire a second contractor to finish all the work that Bauder left unfinished, according to the complaint.

Investigators said an additional five victims in Hatfield Township came forward to express nearly identical circumstances, in which Bauder accepted up-front payment then abandoned the unfinished projects and ceased to respond to communication efforts on behalf of the victims, according to the complaint.

In total, the six victims paid Bauder a combined $531,717, with none of the projects being completed, police said.

Investigators also spoke with one of Bauder’s former employees — a foreman who worked for Bauder for approximately two years — who told police that his crew would often begin large jobs, but Bauder would pull them from the jobs prior to completion and never send them back out to finish the work, the report states. The foreman also stated that he had paid Bauder $13,500 to purchase a Ford F250, however Bauder kept the both the money and the vehicle, police said.

A review of Bauder’s business bank accounts showed purchases at restaurants and credit card bills, as well as student loans, airport fees, out of state hotel accommodations, ski resorts, golf courses, gym memberships and a stock car racing experience, investigators said.

Bauder was arraigned on all charges on April 20, 2021.

Bauder Faces Additional Charges in Lower Gwynedd, DUI Case Resolved

Court records show Bauder also resolved an open DUI case on Friday, stemming from a traffic stop in May 2020 in Hatfield Township. Bauder was sentenced to five days’ house arrest, six months’ probation, and a $500 fine after pleading guilty to one misdemeanor count of DUI – second offense.

Additionally, Bauder is awaiting formal arraignment on felony charges of deceptive business practices, theft by deception and receiving advanced payment for services and failing to perform, after he allegedly scammed a Lower Gwynedd resident out of more than $100,000.

Investigators said between April 2021 and September 2021, the victim issued seven checks at Bauder’s request totaling $111,580. The funds were to be used for supplies, materials and other necessities to complete the work, however police said there was no record of those items ever being purchased and the work either never began or was left incomplete.

To read more about that incident, click here.

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