[Kelse92]

Someone asked how to Avoid these types of situations.
Here's my tips from a couple of years in the house flipping biz:
Always avoid deposits when possible. If the deposit is for materials, buy your own materials.
Always buy your own materials (can't stress this enough)
Only accept people who will provide you licensing information (if applicable) and insurance up front.
If your gut tells you they're shady they probably are.
Check for local references. My favorite are in local real estate investment Facebook groups. They usually know the best people. (and the worst, in my area there an FB group just for posting the bad ones)
Make them sign a contract for services and a lien waiver if it's a longer-term more extensive project.
Deposit if it has do be done by CC is also a great protection.