Prosecutors and defense attorneys offered starkly different portraits of Avi Schwalb as his criminal trial opened Tuesday, with the state depicting him as the architect of a multimillion‑dollar remodeling fraud scheme and his lawyer insisting he was a late‑arriving father trying to clean up his son’s collapsing business.
The opening statements kicked off the criminal trial against Schwalb, who, along with his son Sean and other former employees of the business, face more than 50 charges of theft, money laundering, and the violation of Colorado’s organized crime act.
- Scroll through the timeline below for Denver7 Investigates’ extensive coverage of Schwalb Builders, or view the timeline by going here
A grand jury indicted Avi and the other defendants in December 2024. That indictment was later amended in March 2025 to add more than a dozen charges.
The trials of the other defendants who are still facing charges are pending. Sean Schwalb has seen repeated delays in his case and is set to be arraigned on March 2.
The indictment alleges that Schwalb Builders would solicit business from customers, take in money, and either fail to perform the work or abandon jobs after demolition, leaving homes unlivable. In several cases, victims paid more than $100,000 toward the project, but did not receive any money back.
The indictment also states that the investigation uncovered that customer checks were deposited into Schwalb Builders’ account and then transferred to a business account for Avi’s Remodeling. The indictment alleges that more than $1 million was transferred between the two accounts, and that the funds would be spent within a matter of days, not on the customers’ projects.
Denver7 Investigates has followed the complaints and later criminal charges against Schwalb Builders and those involved in the business for more than two years.
Prosecutors brought up multiple victims, including Kevin and Noelle Collins, who first spoke to Denver7 Investigates in January 2024. The Collins family gave Schwalb Builders more than $200,000 for a home renovation project, only to have their home left uninhabitable.
They only recently moved back into their home after help from a Better Business Bureau program called Restoring Trust.
Attorney reacts to defense strategy
Jason Krueger, who represents the Collins family and others suing members of the Schwalb family in civil court, was watching opening statements and said the defense’s approach was clear.
“The defense strategy is clearly to blame another party who’s not present and who’s not at trial in this criminal proceeding, which is Avi Schwalb’s son, Sean,” Krueger said. “Interestingly, in the civil trial against Mr. Schwalb’s wife, she blamed Avi, and now Avi is sitting in trial. He’s blaming his son.”
Krueger noted that testimony from prior cases could pose challenges for Avi’s defense, such as another lawsuit in which Avi testified that he shares a bank account with Sean and would loan him money for business operations.
“All of those things, legally, are probably enough to tie Avi Schwalb up in the conspiracy and then the crimes as well, even if he had never talked to a customer," Krueger said. "Whether or not a jury understands that is the question.”
Krueger also reacted when Avi became visibly emotional during opening statements, as the defense described him as being taken advantage of by his son.
“What would you do if your only professed love is your son, and you have to throw them under the bus to save yourself?” he said. "But it’s probably his only viable defense."
Krueger also said the defense strategy appears designed to connect with the jury on a personal level.
“Trial techniques are imperfect, but sometimes you’re left with few options, and those options are to appeal to a jury’s emotions,” he said. “By pointing to his son and saying he was blinded by his love as a father, we'll see if that bears out with the jury.”
The trial against Avi Schwalb is set to last three weeks and will include testimony from construction clients and experts who prosecutors say will connect Avi's and Sean’s bank accounts.
Avi’s defense attorney said Avi was not controlling the funds transferred into accounts linked to Avi’s Remodeling, and that Sean controlled them all.
