Don Mihalik of DMCM Builders – Fraud of KB Homes
Don Mihalik is one of the ex-board members of KB Homes, a notorious firm responsible for multiple deaths and frauds.
While at KB Homes, Don used his position to award projects to his criminal friend Edward Contino and put numerous lives at risk. Many victims of the KB Homes scam are suffering to this day.
Don Mihalik faced a lawsuit as well but to avoid paying anything to the victims, he declared bankruptcy. The ploy worked and he didn’t have to pay much (if anything) to get the case resolved.
That’s not all.
The bankruptcy was peculiar considering how he transferred a home for $1 before filing bankruptcy and transferred it back to himself a few years later for the same amount.
Here are the legal documents for Don’s bankruptcy:
To understand how dangerous Don Mihalik is, you must first understand his involvement in one of the biggest real estate scams of Florida, the KB Homes scam.
There are many people who are still suffering because of what went on there. The following points will shed more light on what happened and why you should avoid doing business with Don Mihalik:
KB Home Lawsuit: What Actually Transpired
KB Home is a homebuilding company based in the US. They used to be a Fortune 500 company from 2000 to 2008 and offer customers homebuilding services. Although they have been in the industry since 1957, they really made the news when hundreds of their customers began experiencing problems with their newly-constructed houses.
The company is receiving complaints even to this day about how poor their houses are.
Don Mihalik used to be on their board of directors and under his leadership, the company constructed numerous defective houses. Furthermore, he handed the contract to his friend who did the construction on behalf of KB Homes and ruined more houses.
The Florida Attorney General filed a KB Homes lawsuit for its gross negligence. As a result, the company had to spend $77 million to fix the shoddy construction of 1,688 houses it had built wrong.
Various victims came forward and highlighted how traumatizing it was to go through everything.
For example, Crystal Adamson shared that she was a first time buyer and it was supposed to be the American Dream. But it was only a nightmare for her for years.
Crystal had purchased a house in Don Mihalik’s KB Homes in 2009. She told the media that within a few months of the purchase, the house began falling apart in the literal sense of the word.
“I noticed carpet in the upstairs bedroom was wet. It looked like there was pollen on the carpet”, she told the media. She further said, “Over a few days it progressively got much larger and I lifted up the carpet and found all of this mold underneath”.
Moreover, Crystal wasn’t the only victim facing the issue of mold.
Thousands of KB Homes reviews highlight that they faced similar issues. A 9-year old girl died of the mold.
Victims like Crystal weren’t able to live in their homes because they were inhabitable. Not only were they paying for houses but had to spend money on additional reconstruction.
While the lawsuit has settled, it’s unclear how much every victim was able to get in restitution.
During all this, Don Mihalik was enjoying a lavish lifestyle, free from any consequences.
Don Mihalik’s Role in KB Homes
Don Mihalik used to be on the board of KB Homes alongside Frances Dolly Graziano and John Hibbert. They all signed off with the firm before the construction on all homes was completed.
Don and his pals did nothing to repair those houses either. Their excuse was they didn’t have the funds which is why they signed off.
Eventually, Don Mihalik even declared bankruptcy just so he could avoid paying anything in the KB Homes lawsuit.
A whistleblower revealed that Don had illegally removed more than $48,000 from the company’s funds to hire Eddie Contino. At the time, Eddie was an unlicensed contractor with a shady history.
Don Mihalik hired him to do the electrical work on the houses, which KB Home was supposed to do. Furthermore, it was revealed later that Don was getting kickbacks from Contino as well.
Because of his payment to Contino, the company wasn’t able to make certain payments in time. Later, Ann Quinn joined the board of directors at KB Homes and she said that the next year’s board would deal with the repairs.
However, many homeowners were still unable to live in their poorly constructed houses.
Moreover, the meeting where Don Mihalik and his friends decided to sign off with KB Home, was completely private. They didn’t tell the company owners that the homes were unfinished and that they were broke.
In the settlement agreement with the association, Don Mihalik and the rest said that all the work contemplated by the Settlement and Release Agreement dated October 12, 2012 was completed to the Association’s satisfaction.
In a secret board meeting, Don Mihalik and his friends decided to use the firm’s reserve funds to pay Edward Contino. Moreover, the receipts have no addresses and all of them are handwritten.
Here are the receipts:
Basically, Don hired Edward without a board vote to do work which KB was supposed to do. Edward Contino later revealed that he paid up to $20,000 in kickbacks to Don.
Later, the DBPR found that Willowbrook had violated several rules by paying Edward Contino through its reserve.
Even after all this had happened, the Association later elected Don Mihalik as its Vice President.
He resigned from that position rather quickly.
The Latest Venture of Don Mihalik: DMCM Builders
The KB Homes horror stories are still available online. However, Don Mihalik was able to get away with it unscathed through shady dealings and legal loopholes.
Recently, he has re-launched himself as the founder of DMCM Builders and Developers. He claims to be the Vice President of Business Development at DMCM Builders and Developers, LLC.
The company is based in Lakewood Ranch, Florida.
Clearly, you should not trust him or his company. There are many examples of scammers relaunching their firms to scam more people.
Don Mihalik is promoting himself as a real estate guru but fails to mention anywhere where he learned about this industry. The fact is, he played a huge role in the KB Homes fiasco but refused to do anything about it.
Instead of trying to help the hundreds of people, he fled and filed for bankruptcy to ensure he wouldn’t need to pay anything.
Beware of Don Mihalik.
Don Mihalik is a real estate fraudster who used legal loopholes and illegal tactics to avoid paying any repercussions for his involvement in the KB Homes horror stories. Avoid doing business with him and his firm, DMCM Builders.
- Shady history
- Involved in the KB Homes scam