Builder jailed for bad business practices

June 30, 2011, 02:55 AM Daily Journal Staff Report

The builder and former Green Building Exchange CEO accused of bilking two Pacifica homeowners of thousands of dollars through incomplete home projects was sentenced to 18 months in jail and ordered to pay more than $400,000 in restitution. A prosecutor argued that Michael George Schaeffer, 52, deserved two years and eight months in prison but Judge Jack Grandsaert opted for a lesser jail term followed by three years of supervised probation. He must also pay one homeowner $269,231.33 and the other $132,813.00. Schaeffer, who had been out on a $50,000 bail bond, was immediately taken into custody. A jury convicted Schaeffer April 15 of two felony counts of diverting funds and misdemeanor counts of contracting without a license and accepting a down payment greater than $1,000. Prior to jury deliberations, the judge granted the defense request to dismiss two counts of felony grand theft. Prosecutors say Schaeffer collected thousands of dollars for the two remodels but abandoned the projects before completion. One house was gutted to the point of being uninhabitable and another renovated without permits, according to the District Attorney’s Office. Schaeffer made a splash in local sustainable building circles with his own contracting work and as CEO of the Green Building Exchange in Redwood City. A year after opening, the exchange filed for bankruptcy, claiming nearly $1 million in debt, and moved out of Redwood City. Schaeffer is also facing a similar court trial in Santa Clara County. Submitted by Jim Alex