I think Jlynn summed it up pretty well . . . Still, even if this guy is as bad as is stated here it is only breach of contract. It doesn't make him a fraud rather, just a person who doesn't honor contracts. Fraud is entirely different in terms of elements that must be proven. I think that term is used far too loosely everywhere and gives rise to defamation actions. Be careful in making those statements. Just a bit of forewarning and trust me when I say, I am not condoning anything he may have done. It makes it much harder for us to do business despite our credentials.
Looks like the FTC believes he has done more than breached contracts. Here's a link to the Complaint http://www.ftc.gov/os/caselist/0823141/080910lhcrcomplaint.pdf
They're alleging he breached contracts in fancy terminology. By extension, they're also saying he violated the CROA. The complaint, on its face, looks rather weak. However, I have no idea how well they can prove up their allegations. They must have something to have gone after him.
