Many states also have contractor fraud statutes that allow for prosecution of contractors who take payment for work but then dont complete the work or return the payment. 

This post seems to reference Texas, which is easier to deal with than say Washington where you could be criminally prosecuted for contacting someone in pre-foreclosure.

And the posters unwavering belief that somehow these Feds are going to drop all investigations, prosecutions, politicking, taking coffee breaks, etc. and jump on their complaints putting the “full force” of the Federal government down on the subject company and its managers and feed them to the lions.   

Waier is prosecuting this case.Central District of California | Former CEO of Orange County-Based Private Equity Fund Charged with Conning Investors Out of $62.5 Million via Bogus Promissory Notes | United States Department of Justice

Santarelli skimmed from some investors to make interest payments to others, authorities said.The investigation is continuing by Homeland Security Investigations and the FBI, and is being prosecuted by Chief Assistant United States Attorney Jennifer L.

She is working on a very large case and this information would certainly point her in more directions of evidence for prosecution. 

Would you want to give your money to someone that may get prosecuted by the SEC and throw your deal into chaos? 

That is now being prosecuted in several states.

. :-)(*Here) Equity skimming and taking advantage of certain groups, not only is bad form, it's prosecuted.  

Waier is prosecuting this case.