MUSKEGON COUNTY, Mich. — Muskegon area home builder Todd Allen was arraigned Tuesday, Jan. 28 on three counts of fraudulent use of building contract funds. Allen, 45, is the owner of Allen Home Builders with a showroom and sales office on E. Apple Avenue in Egelston Township.
Doors to the business were locked Tuesday, and blinds to the office were drawn.
Muskegon County Prosecutor D.J. Hilson reviewed a lengthy Michigan State Police (MSP) investigation into Todd Allen's bank records. He concluded Allen violated Michigan law pertaining to the use of building contract funds.
"You can only spend it on material or labor costs on that particular project," Hilson said. "You can not use it for any other personal gain."
Hilson says the investigation conducted by detectives with the Michigan State Police Rockford Post is centered on bank records.
Hilson believes Allen used bank draws intended for the construction of an unfinished home near Montague for other purposes.
"From looking at the bank records and some canceled checks it appears as though some of this money may have gone to some other projects as well as personal expenses," Hilson said.
Allen was arrested and lodged in the Muskegon County Jail on Jan. 13. He posted a small bond and is waiting for his next scheduled hearing in Muskegon County District Court.
State Police detectives continue working to determine the exact amount of money allegedly misused by Allen.
Hilson said customers who may have had problems in recent months with Allen Home Builders should call the Rockford post of the MSP.
In court records, Allen lists a home address in Allendale.
Attempts by 13 ON YOUR SIDE to reach Allen for comment were unsuccessful.
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