Berliner Boersenzeitung - Maui Wildfire Survivors Report Major Losses to Troubled Rebuilding Contractors

Homeowners rebuilding after the 2023 Lahaina wildfire say they have lost tens or hundreds of thousands of dollars to contractors who stopped working, failed to explain where payments went or performed work that later required correction. A joint investigation by Honolulu Civil Beat and Inside Climate News found repeated complaints involving both licensed and unlicensed contractors in a community still struggling to recover from one of the deadliest U.S. wildfires in a century.

Raquel Utrillo said she hired a contractor in July 2024 to prepare her family’s property and install a prefabricated home for her mother and sister. Documents she shared with the news organizations showed payments totaling $640,000. She said work stalled soon after it began and that by early 2026 the contractor had stopped responding to her messages. Her family’s lot remained largely empty while neighboring properties moved further into reconstruction.

The investigation reviewed police reports, court filings, contracts and text messages. Lawyers, advocates, officials and homeowners described a broader pattern in which survivors faced unfinished jobs, missing funds and poor workmanship. Community leaders said the scale of misconduct is likely larger than the number of formal complaints.

Despite the complaints, the newsrooms found no announced criminal charges, license revocations, fines or injunctions against contractors for post-fire misconduct in Lahaina. Disaster-recovery fraud cases can be difficult and time-consuming to investigate, but officials had warned that major disasters frequently attract unscrupulous operators.

The 2023 Maui fires caused more than $5.5 billion in damage, destroyed over 2,200 structures, killed at least 102 people and displaced nearly 13,000 residents. Rebuilding has proceeded slowly. As of Aug. 13, about 580 homes, including single-family and multifamily units, had been rebuilt.

Survivors faced unusually difficult conditions when choosing builders. The fire created intense demand for a limited pool of licensed contractors on the island. At the same time, homeowners were managing insurance deadlines, tight budgets and uncertainty over temporary housing, creating pressure to sign contracts quickly.

Maui police released 10 post-fire reports in response to public-records requests that described contractor-related losses ranging from about $20,000 to more than $500,000. The reports were categorized as civil matters rather than criminal cases. Police indicated there were dozens of additional reports that might involve rebuilding disputes.

County Prosecuting Attorney Andrew Martin said his office had received dozens of tips about contractor fraud and urged residents whose police reports were classified as civil matters to contact prosecutors directly. He said the known complaints may represent only a portion of the problem.

Separate complaints have been filed with Hawaii’s Department of Commerce and Consumer Affairs and its Regulated Industries Complaints Office. The news organizations identified 14 additional post-fire RICO complaints involving contractors described by homeowners or advocates as repeat subjects of concerns. Those matters were still pending.

Contractor Fortunato “Jun” Corpuz of JC Contracting said complaints against his business largely reflected delays caused by shipping problems and material shortages and rejected comparisons with unlicensed contractors who intentionally exploit fire victims. State officials have said homeowners should use licensed contractors and have issued repeated warnings about fraud risks.

The rebuilding dispute has compounded the financial and emotional losses already borne by fire survivors. Residents and lawmakers, including state Sen. Angus McKelvey, have called for stronger oversight and more effective accountability as Lahaina’s reconstruction continues.

(F.Schuster--BBZ)