Assets of Firm Frozen in Fraud, Theft Probe

Restraints against a West Los Angeles building firm under investigation for grand theft and fraud were extended by court order Friday to keep assets frozen and the company from entering into any further contracts pending trial.

Los Angeles Superior Court Judge Warren Deering granted a preliminary injunction against Delta Homes Inc., its president, Joseph Polifroni, and two employees, Eligio Arriola Pacana and Ludovico Monte de Ramos Salazar.

Polifroni and two other members of the firm were arrested in January on suspicion of taking money as down payments from property owners in Los Angeles and Orange counties to build homes that were almost never constructed, investigators said.

The California attorney general’s office then filed a civil case against Polifroni and several officers, charging violations of the state Business and Professions Code. Deering issued a temporary restraining order in that case Jan. 10.

The company has been under investigation for allegedly fleecing about 400 property owners out of $1 million or more by taking payments ranging from $2,500 to $20,000 from customers over the last three years, the Los Angeles district attorney’s office announced after the January arrests.

Friday’s civil court order prohibits Delta from engaging in any activity for which a contractor’s license is required and from advertising or soliciting any construction or improvement work.

The firm also is prohibited from withdrawing or spending any of its assets, collecting any money on pending construction contracts and from foreclosing or assigning for foreclosure any liens outstanding on construction projects.