Consumer Protection Division Charges Two Maryland Home Builders

Maryland Attorney General Douglas F. Gansler announced today that his Consumer Protection Division’s Home Builder Registration Unit revoked the registration of two new home builders, Deise Custom Homes, LLC, of Bel Air and Capital Custom Homes, Inc. of Savage, Maryland, and filed charges against the companies for failing to comply with Maryland’s Home Builder Registration Act, Consumer Protection Act, and the laws governing deposits on new homes.

The Home Builder Registration Unit suspended the registration of Deise Custom Homes and filed a statement of charges against the builder and its principal, Richard E. Deise, Jr. for accepting deposits and payments from at least four consumers in Harford and Baltimore counties and then failing to complete construction of the homes, pay subcontractors, or refund deposits and advance payments paid by consumers. The company also failed to disclose to the Home Builder Registration Unit lawsuits filed by consumers and subcontractors concerning the company’s building activities. A hearing on the proposed revocation and statement of charges is scheduled for July 20, 2007 at the Office of Administrative Hearings. The Home Builder Registration Unit is seeking injunctive relief, restitution and civil penalties against the builder for the alleged violations of the law.

The Home Builder Registration Unit also suspended the registration of Capital Custom Homes and filed a statement of charges against the builder and its principals, Kenneth S. White and Kirk A. J. Ervin for accepting deposits and payments from consumers in Prince George’s County, and then failing to begin or complete construction of the homes or refund payments paid by consumers. In one instance, a consumer paid the company $34,000 for a home that was never begun. The company failed to report to the Home Builder Registration Unit that one of the principals of the company filed for bankruptcy and that there were other outstanding lawsuits including judgments against the company and its principals. The Home Builder Registration Unit is also seeking injunctive relief, restitution for consumers and civil penalties against the builder. The hearing is scheduled for August 24, 2007 at the Office of Administrative Hearings.

“The law in Maryland is very clear: home builders must register with the State and they must honor their commitments to home buyers,” said Attorney General Gansler. “My office will seek severe sanctions against builders who fail to properly handle consumer deposits and who do not operate their businesses fairly and honestly.”

Consumers who may have had problems with homes built by these or other builders should contact the Home Builder Registration Unit at (410) 576-6573 in Baltimore or call toll free at (877) 259-4525. Consumers can also email that unit at homebuilder@oag.state.md.us. They can also check to see if a builder is registered over the Internet at www.oag.state.md.us/homebuilder or by contacting the Home Builder Registration Unit.