Don Mihalik Real Estate Scam Allegations Fact-checked (2024)

Originally Syndicated on June 14, 2024 @ 6:27 am

Don Mihalik was once on the board of KB Homes, a corporation notorious for its involvement in numerous scams and fatalities.

Don assigned jobs to his criminal acquaintance Edward Contino when he was employed at KB Homes. This endangered a lot of lives. Many of those who were duped by the KB Homes fraud are still experiencing problems.

Don Mihalik was sued as well, but to avoid having to pay the plaintiffs, he declared bankruptcy. The strategy paid off, and he paid little to nothing to resolve the dispute.

Furthermore.

He sold a house for $1 before going bankrupt, then a few years later he sold it back to himself for the same amount.

A sample of the court documents that Don Mihalik used to declare bankruptcy is provided below: 

The fact that Don Mihalik was a part of the KB Homes scam, one of the largest real estate scams in Florida, should tell you how dangerous he is.

Many folks are still in pain as a result of what transpired there. More information on what transpired and the reasons you shouldn’t work with Don Mihalik is provided below: 

KB Homes Catastrophe and Don Mihalik’s Role

An American company called KB Home constructs houses. They were a Fortune 500 house-building assistance firm from 2000 to 2008. Even though they have been in operation since 1957, they gained significant media notice when hundreds of their clients began experiencing issues with the homes they had just constructed.

The company continues to receive complaints about how subpar their homes are even now.

They used to have Don Mihalik on their board of directors, and during his tenure, the company built a lot of substandard residences. In addition, he offered his friend the contract, who disregarded even more rules while building the homes for KB Homes.

Due to extreme negligence, KB Homes was sued by the Florida Attorney General. As a result, the company was forced to pay $77 million to correct the improper work that it had done on 1,688 homes.

Several victims expressed their fear of going through everything in their own words.

Crystal Adamson, for instance, mentioned that she was a first-time buyer—the American Dream, as it was intended to be. Still, she spent years just daydreaming about it.

Crystal purchased a house from KB Homes, owned by Don Mihalik, in 2009. She claimed to the media that shortly after she purchased the property, it began to collapse.

Furthermore, Crystal wasn’t the only one who experienced mold issues.

KB Homes has received thousands of reviews, all of which point to the same issues. A nine-year-old child died from mold.

Victims like Crystal were unable to reside in their homes due to their extreme conditions. They had to pay for additional repairs in addition to the cost of the residences.

The amount that each victim was able to recoup remains unclear even after the litigation is ended.

Don Mihalik lived in luxury and was worry-free throughout this entire time. 

Don Mihalik’s Position at KB Homes

Former members of the KB Homes board of directors included Don Mihalik, Frances Dolly Graziano, and John Hibbert. They all signed off with the corporation before the construction of every home was completed.

Additionally, Don and his buddies took no action to repair those houses. They claimed that their lack of funds was the reason they gave up.

Don Mihalik even declared bankruptcy to avoid paying any money in the case against KB Homes.

According to a whistleblower, Don allegedly stole more than $48,000 from the business without authorization to hire Eddie Contino. Eddie had a troubled past and was unlicensed when he worked as a contractor.

Don Mihalik employed him to complete the electrical work on the residences, which was meant to be completed by KB Home. It was eventually discovered that Don was receiving payment from Contino as well.

He handed Contino money, which prevented the business from making several payments on schedule. Ann Quinn then became a member of the board of directors at KB Homes, and she promised that the board would handle the repairs the next year.

Many people were still unable to live in their subpar homes despite this.

Don Mihalik and his buddies also made the decision to depart from KB Home during a closed-door meeting. They kept the fact that the residences were unfinished and unpaid from the business owners.

In the settlement agreement with the association, Don Mihalik and the others stated that all of the work specified in the Settlement and Release Agreement of October 12, 2012, was completed to the association’s satisfaction.

During a covert board meeting, Don Mihalik and his associates resolved to use the company’s reserve cash to compensate Edward Contino. In addition, all of the receipts are handwritten and lack addresses.

In essence, Don, without the board’s approval, recruited Edward to perform tasks that KB was meant to complete. Afterward, Edward Contino claimed to have paid Don up to $20,000 in bribery.

Afterward, the DBPR discovered that Willowbrook’s payment of Edward Contino out of reserve violated several regulations.

Don Mihalik was eventually selected as the Association’s Vice President despite all of this.

He left that position somewhat abruptly. The name of Don Mihalik’s most recent company is DMCM Builders.

The scary tales from KB Homes are still available to read online. However, Don Mihalik’s use of legal evasion and dubious practices allowed him to get away with it without facing consequences.

He is currently the founder of the recently established business, DMCM Builders and Developers. He claims to be the Vice President of Business Development at DMCM Builders and Developers, LLC.

The company’s main office is located in Lakewood Ranch, Florida.

You cannot trust him or the company he owns. There are several instances of con artists relaunching their enterprises to defraud more individuals of their money. 

KB Homes Victims Call for Justice!

In an attempt to establish himself as a real estate authority, Don Mihalik never discloses the source of his expertise. He played a major role in the KB Homes debacle but took little action to address it.

Rather than providing aid to the hundreds of individuals, he fled and filed for bankruptcy to avoid any financial obligations.

With the assistance of DMCM Builders, he is now getting back on track. He is not someone you should do business with because many con artists rebrand to commit additional fraud.