Consumer Protection Division Charges Two Maryland
Maryland Attorney General Douglas F. Gansler announced today that
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 firstname.lastname@example.org.
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.