"That [false claim] caught our attention real quick," Flagg said Tuesday. "People like this can come into a community and make as much as $10,000 in a day."

Bituminous Paving offered a "bargain price" for work it would do immediately, but the work looked of poor quality and the approach was riddled with lies and violations of state law, the chief said.

Under state law, paving contractors must be registered in the state, provide written contracts and estimates of work, and allow a three-day grace period in which customers may cancel the signed contracts, before work can begin, Flagg said.

He did not know whether the victims recovered their money or whether others were scammed.

"I would just caution people to pay close attention to this," Flagg said, "and to make sure they know the law, and their rights, before they agree to any business dealings."