September 23, 2002
Sean Caine, 410-576-6357
PROTECTION DIVISION ISSUES CEASE AND DESIST ORDER AGAINST VIRGINIA
General J. Joseph Curran, Jr. announced today that his Consumer
Protection Division has issued a cease and desist order against
a Virginia homebuilder who allegedly took money from a customer
to build a custom home in Maryland but never began construction,
and who is not registered as a homebuilder with the State of Maryland,
as required by law.
to the charges, Gregory Clements and Creative Custom Homes, Inc.
of Port Royal, Virginia, agreed to construct a house for Jerome
Homberg on property Homberg owns in Aquasco, Maryland. On March
17, Clements accepted $7,539 in partial payment from Homberg for
the $75,378 house and promised to begin construction. To date, Clements
and Creative Custom Homes, Inc. have not begun construction of the
home, nor refunded the $7,539 paid by Homberg.
Division alleges that Clements and Creative Custom Homes, Inc. violated
the Maryland Custom Home Protection Act by failing to place the
$7,539 into an escrow account or having a surety bond to cover the
deposit, and by acting as a home builder without being registered
with the Home Builder Registration Unit of the Consumer Protection
Division. The Division alleges that Clements and Creative Custom
Homes, Inc. violated the Consumer Protection Act by failing to build
the house as promised.
Division's ex parte cease and desist order immediately bars Clements
and Creative Custom Homes, Inc. from acting or offering to act as
a homebuilder in the State of Maryland. At a hearing in November,
the Division will ask for a final cease and desist order, as well
as an order requiring Clements and Creative Custom Homes, Inc. to
pay Homberg $7,539 in restitution and restitution to any other consumers
who have been harmed by unlawful practices. Also, the Division will
seek a $1,000 civil penalty per day of unlawful practice and the
costs of the investigation.
public hearing on the charges will be held at the Consumer Protection
Division, 200 St. Paul Place, Baltimore, on November 4 at 9:30 a.m.
Consumers who may have had problems with Gregory Clements and Creative
Custom Homes, Inc. are encouraged to call the Home Builder Registration
Unit immediately at (410) 576-6573 or toll-free 1-877-259-4525.