All in the family

Scam may be repeat of history

By Joy Hampton

November 13, 2009 — People in Oklahoma want to know where Grant Cole, manager of Xite Homes and Oklahoma New Homes Direct, has gone. Some believe he may have fled the state or even the country.

Last week, multiple material mechanics liens were filed against Rogers County properties Oct. 26 and 27. Subcontractors alleging non-payment by Oklahoma New Homes Direct and Xite Homes of Broken Arrow filed multiple liens against various properties in Rogers County including sites in Claremore, Verdigris and Catoosa.

Tulsa media reports as many as 40 area home buyers could be affected.

The Rogers County Sheriff’s Office confirms the “preponderance” of cases were in Tulsa County. Those cases were forwarded to Broken Arrow.

Now, sources say the Federal Bureau of Investigation has taken over the case.

The FBI will not confirm or deny any investigations, but no warrant for any individual named Grant Cole has been issued at this time.

A web site for Xite and Oklahoma New Homes has shut down and two phone numbers associated with the businesses are nonfunctional. One number is no longer in service and the other is a perpetual busy signal.

Homeowners say they are victims of an apparent scam by company manager Grant Cole. Subcontractors including electricians, plumbers and carpenters have been left empty-handed after providing goods and services with their only recourse to file liens against the other victims, home buyers.

The alleged home contracting scam may be a repeat of a scam run in Georgia a little over a decade ago.

In 1997, Stuart Clay Cole was charged with theft-by-conversion in Clayton County, Georgia for taking nearly $500,000 in deposits for new homes, most of which were never started as reported by the Atlanta Business Chronicle. Stuart Cole was also known as Stewart Cole.

In Oklahoma, most of the homes are near completion, but subcontractors have not been paid. Their recourse is to file a lien against the property. The home buyer, not Cole, is responsible for settling that debt.

The Oklahoma projects may have moved further along than those in Georgia did due to the Xite Homes name. In previous years, Xite was a legitimate business.

One Claremore couple, Jeremy and Erinn Bisceglia, were named in multiple liens. Jeremy said he and his wife saved for a home and carefully checked out the company before doing business with them. Now, said Jeremy, they may end up paying close to double for their home.

For the Bisceglias and many others like them, Cole stole a dream and crushed hopes of financial stability they had worked hard to achieve. Their new Claremore residence is approximately six weeks from completion, but with the money gone, work has stalled.

It’s a story being told by Xite and Oklahoma New Homes customers across Northeast Oklahoma.

Back in Georgia, most of the homes sold by Stuart Cole a decade ago were never even started. In Feb. 1998, Cole pled guilty and agreed to an 8-year prison sentence according to the Atlanta Business Chronicle.

Federal Bureau of Prison records show Stuart Clay Cole was released Feb. 16, 2005.

Sources in both states say Stuart Clay Cole is the brother of Grant Cole.

It’s the same old scam with a slightly different face.

Meanwhile, Stuart Cole is being investigated by the U.S. Postal Service for running a child support collection agency scam in multiple states, including Georgia. The alleged child support fraud, a scheme that involved the collection of money from parents who owed child support but without forwarding that money on to the children and custodial parents to whom it was due.

Persons associated with that business allegedly fled to Broken Arrow to work for Oklahoma New Homes Direct.

Now, Grant Cole has apparently fled Oklahoma.

In the alleged child support scam, Stuart Cole reportedly used the name Mr. Grant as an alias at times.

“He’s around five-foot-five or five-six and red-headed but it’s a toupee,” said the Georgia informant.

Stuart Cole is described as hot-tempered but personable and able to sell anything to anyone. Stuart would be in his 50’s.

Grant Cole is described by Oklahoma sources as around five-foot-eight with salt and pepper hair and likely in his mid to late 40’s.

The scam is hauntingly similar.

In Oklahoma, home buyers feel they have little recourse.

“We had heard about them through word of mouth. We did all we could to check them out,” said Jeremy Bisceglia. “We’re hoping we don’t lose it all... It’s a nightmare, is what it is. How do we salvage this? How do we deal with this?”

While the feds won’t confirm involvement in this investigation, Gary Johnson, FBI public affairs officer, said white collar crime takes time to investigate. Crimes involving bank fraud or interstate commerce would come under their jurisdiction. In cases where an arrest warrant is issued, the Bureau has the contacts and power to pursue criminals even outside of U.S. borders, he said.

Anyone with information on potential federal crimes locally should call the FBI’s Tulsa office at 918-664-3330.

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