HAMILTON COUNTY — A federal judge has ruled a Carmel construction contractor engaged in fraud.
On August 8, a federal judge handed down a $254,073 judgment against Jeffrey Rothbard in a case involving his former business partner, Martin Shrader.
Rothbard created SilverCreek Construction LLC, a residential construction company, in 2021 after serving time in federal prison for wire fraud.
Shrader met Rothbard in 2022 and agreed to invest in SilverCreek, eventually totaling $254,073.
“After Shrader’s infusion of capital, Rothbard used SilverCreek’s bank account as his own and to pay personal and household expenses, including his wife’s personal expenses,” read court documents.
SilverCreek is no longer operating.
Rothbard filed for bankruptcy in 2023, but according to the August 8 decision, the $254,073 judgment can’t be discharged in bankruptcy.
The judge ruled Rothbard obtained the funds through false pretenses and/or actual fraud.
“Rothbard grossly mismanaged what business SilverCreek did have and
left a wake of unhappy customers,” read the ruling. “There is simply no evidence to suggest that Rothbard ever intended to use the
Contributions for legitimate business purposes but instead fraudulently solicited Shrader’s investment for his own personal gain.”
Attorneys for Shrader and Rothbard declined to comment.
He has not been criminally charged in connection with SilverCreek Construction.
In November 2024, Hamilton County prosecutors said they did not have enough.
“We do not have a reasonable belief that there is sufficient admissible evidence to support a conviction beyond a reasonable doubt and as a result, ethically we cannot go forward,” said Joshua Kocher, Chief Deputy Prosecutor in Hamilton County, in an email to WRTV in November 2024.
WRTV Investigates told you about Jeff Rothbard in November 2024 when he agreed to surrender his real estate broker license for the next five years.
Indiana Attorney General Todd Rokita's Office filed a complaint against Rothbard alleging he failed to disclose prior criminal convictions when applying for and renewing his Indiana real estate broker license.
In 2011, Rothbard was convicted of Forgery, a felony, in Marion County and sentenced to probation.
In 2016, Rothbard was convicted of federal Wire Fraud.
In the 2016 case, federal prosecutors said Rothbard used his companies, GreenCity Finance and GreenCity Energy, to take commitment deposits from people who needed financing and instead Rothbard used the money to pay his living expenses.
Rothbard served time in federal prison and community confinement from September 2018 to April 2019, according to the Federal Bureau of Prisons.
In addition to working as a real estate broker, Rothbard has also worked as a general contractor.
After serving his sentence, Rothbard created two Indiana businesses — SilverCreek Residential in August 2019 and SilverCreek Construction in 2021.
Rothbard is listed as the manager of SilverCreek Residential and SilverCreek Construction, according to state records.
Benjamin Irvin of Fishers said he had no idea about Rothbard’s criminal background when he hired Rothbard in 2022.
“We were not aware,” said Irvin. “We had thought we had done good research.”
Irvin paid a $13,125 deposit for Rothbard and SilverCreek Construction to build a 260-square-foot addition and deck, records allege.
“We had gotten him from a recommendation from a neighbor who seemed to have a really good project,” said Irvin.
Irvin said Rothbard continued to ask for more money.
“He did not finish the job,” said Irvin. “He collected a bunch of money, but never actually ordered the materials that he said he had ordered."
Irvin filed a complaint with the Indiana Attorney General’s Office, which received at least four consumer complaints alleging Rothbard took thousands of dollars from each of them for construction projects but did not complete the work or return the money.
While investigating the consumer complaints, the Attorney General’s Office discovered apparent violations related to Rothbard’s real estate broker license.
In February 2024, the Indiana Attorney General’s Office filed a complaint alleging Rothbard failed to disclose his Forgery and Wire Fraud convictions when applying for his real estate broker license in 2014 and renewing in 2017.
The state alleged Rothbard answered “no” when asked if he’d ever been convicted of any offense.
In August 2024, the state reached a settlement agreement with Rothbard in which he agreed to surrender his real estate broker license for five years.
"It just seems like a slap on the wrist compared to the pain and damage he's caused,” said Irvin.
Rothbard did not admit to any wrongdoing in the settlement with the state, and it does not have any impact on his ability to do construction work.
“I don't think anyone is under the impression that they're going to see any money back, but I'd like to see his ability to take advantage of people put to an end,” said Irvin.
In November 2024, WRTV waited outside the federal courthouse to speak with Rothbard.
- WRTV: Kara Kenney with WRTV Channel 6. Can we ask you a couple of questions?
- Rothbard: About what?
- WRTV: About the people that say you owe them money.
- Rothbard: No.
- WRTV: Can you say anything about the state filing a complaint against your real estate license?
- Rothbard: (No response)
Rothbard’s bankruptcy filing means several civil lawsuits against Rothbard and SilverCreek Construction are on pause, including one filed by Yasser Ali of Indianapolis.
Ali’s lawsuit alleges SilverCreek failed to finish remodeling his house per their binding agreement and refused to return Ali’s $67,500 deposit.
“I want my money back,” said Ali.
Ali said his family was forced to live elsewhere in the meantime.
"Me personally, sometimes I couldn't sleep, I was like not even eating,” said Ali. “I was trying to hide my emotions to my kids. I was saying everything will be fine, but honestly, it was terrible."
Both the Ali and Irvin families say they had to pay another contractor to finish the job, which was more money out of their pockets.
The August 8 decision by the federal court likely means Rothbard will be able to discharge debts from other creditors through his bankruptcy.
TIPS FOR HIRING A CONTRACTOR:
- Get estimates in writing.
- Check for criminal charges or civil suits here
- Check for a contractor's license.
- Ask for references and call them.
- Ask to see examples of their work.
- Ask about insurance: personal liability, worker's comp, and property damage coverage.
- Pay wisely, not all upfront.
