Contractor Admits 'Robbing Peter to Pay Paul,' Police Say

A contractor who was paid more than $6,000 to renovate a bathroom in Northeast Bethlehem used most of that money to pay off personal debt rather than for materials needed for the job, police said.

Daniel N. Diaz, 42, of 5197 Spruce Road in Upper Milford Township, told police that he was “robbing Peter to pay Paul” in an effort to catch up to child support payments and other debts, according to an arrest affidavit.

Diaz was arrested Tuesday and charged with home improvement fraud, theft and receiving stolen property—all felonies. He is free on $20,000 bail following his arraignment before District Judge James Narlesky.

According to the arrest affidavit:

• Diaz was hired to renovate the bathroom by a homeowner on Barnsdale Road on Jan. 22. The terms called for Diaz to be paid $2,500 immediately, another $2,500 when the work started and $2,500 again when the work was completed. Work was to start on Feb. 4.
• On Feb. 3, Diaz called the victim to say the work could not be started on time because of a sick child.
• On Feb. 5, Diaz met with the homeowner and requested and received a check for $1,775, saying that the cost of the work would be more than he estimated and that he had ordered supplies from Home Depot, which would be ready within 10 days.
• Despite repeated calls from the homeowner, Diaz did not return to the home to work until March 3. At that point, Diaz removed molding and wallpaper and then told the homeowner that the drywall had to be replaced because of damage.
• Diaz requested and received another check for $1,050 for the additional work. Another check for $725 was given to Diaz later.
• On March 4, Diaz tore down the sheet rock and molding, then left the debris in the bathroom. When he did not return, the homeowner started calling him, but Diaz did not return the calls.
• On March 23, the homeowner hired a private investigator to find Diaz. The investigator found Diaz and presented him with a letter saying he owed the homeowner $6,050 or he must complete the work.
• As of April 7, Diaz had not returned, nor had he called the homeowner, who then filed a police report.
• Bethlehem police Det. Robert Toronzi visited Diaz’s home and found his live-in girlfriend, Natalie Mehefko, who had endorsed no less than three of the four checks that the victim had provided. Mehefko told police that Diaz owed her mother rent and that he had given her these checks to pay that debt.
• In a telephone conversation, Diaz admitted to Toronzi that he did not use the money to perform renovations. He said he was behind in child support payments and was “robbing Peter to pay Paul.” Diaz said he knew he could not pay the homeowner back and he avoided the calls because he did not know what else to do.
• Toronzi gave Diaz another opportunity to repay the debt, warning him that all of the money would have to be returned by April 29 or criminal charges would be filed. As of May 1, the money had not been returned.