A League City couple was indicted last month on charges of defrauding 21 people of almost $500,000 in a construction scam, prosecutors said.
Gregory G. Goodnight and Josephine F. Fox, also known as Josephine Goodnight, of League City, were indicted in the 212th District Court on June 18, according to court records.
The two were arrested June 20 with bond set at $100,000 each, said Austin Fletcher, a Galveston County assistant district attorney who prosecutes major fraud cases.
Fox, 55, has been released on bond and Goodnight, 54, as of July 15, remained in custody at the Galveston County Jail, according to the jail docket.
The two are accused of fraudulently entering into contracts with 14 households in League City for renovation of their homes, according to the indictments. Those services included contracting for and beginning work on electrical, plumbing, flooring and other services, then leaving jobs incomplete, Fletcher said.
“They advertised on Facebook, Yelp and in The Galveston County Daily News, making it look as if they had their own employees to do the work, but subcontracted out the work,” Fletcher said. “Clients found out later they hired subcontractors.”
The pair advertised services under the company name Knight Construction and Renovation Inc., Fletcher said.
The indictments represent a year’s worth of investigation, he said.
People filed complaints individually or as a household, either to law enforcement or directly to the district attorney’s office, Fletcher said. Fraud cases generally require that prosecutors be able to prove a repeated pattern, and few of them make it to this stage, he said.
“In my time and experience working in Galveston County, this is the largest case of its type, the largest dollar amount for a contractor,” Fletcher said.
Goodnight and Fox registered their business for incorporation in Wyoming and have been in Texas since 2013 or 2014, Fletcher said. The repairs to homes not completed occurred beginning in 2016, according to the indictments.
“I can’t get into that too much except to say that time period falls before and after Hurricane Harvey,” Fletcher said.
Both have first court appearances scheduled in mid-August, Fletcher said.
Anyone who thinks they may have been defrauded and has not come forward is encouraged to contact local law enforcement or the Galveston County District Attorney’s office, Fletcher said.
“We’re still looking for more victims,” Fletcher said.