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For Immediate Release

Media Contact:
David Paulson, 410-576-6357

AG Gansler's Consumer Protection Division Secures Settlements
27 Home Builders throughout Maryland pay fines, satisfy legal obligations

BALTIMORE, MD ( Jan. 10, 2012) - Attorney General Douglas F. Gansler announced today that his Consumer Protection Division's Home Builder Registration Unit entered into settlement agreements with 27 home builders who have agreed to pay penalties totaling $26,000 to settle allegations that they operated without being registered, failed to disclose required information to the Unit in their registration applications, or otherwise violated Maryland's building laws.

"Home builders must be registered before they can enter into contracts to build homes for consumers in Maryland," said Attorney General Gansler. "Home buyers can protect themselves by checking with us before they sign a contract with any builder. Make sure you're dealing with a company that is in good standing with state laws designed to protect consumers."

The Attorney General encourages all new home buyers to check whether their builder is registered by contacting the Division's Home Builder Registration Unit at (410) 576-6573 or toll-free at (877) 259-4525, or by visiting the Attorney General's website at

In one recent case, the Division settled allegations that NVR, Inc. t/a NV Homes and Ryan Homes improperly included provisions in its contracts with Maryland consumers that excluded the implied warranty protections required by Maryland law. The builder also improperly excluded consequential damages as a remedy for consumers. The company has revised its contracts and has agreed to review warranty claims and complaints filed in 2009 that may have not been appropriately resolved. The builder has also agreed to arbitrate those claims or complaints with the Division's Arbitration Program that remain unresolved after its review.

In another case, the Division settled allegations that Rachuba Home Builders, LLC and its principals failed to build consumers' homes in Carroll County for the agreed-upon price, failed to use consumers' progress payments to build the homes and pay subcontractors or suppliers, used contracts that attempted to exclude consequential damages and implied warranties, and failed to provide information to the Home Builder Registration Unit in their applications to renew their registration as a home builder. In the settlement with the Division, the builder and its principals agreed to arbitrate any unresolved consumer complaints through the Division's arbitration program and to obtain a performance bond before acting as builder in the State of Maryland.

Other settlements were with the following builders:

  • Arbutus Rentals, LLC

Carroll County

  • Braun Builders, LLC

Charles County

  • Crew's Custom Building, LLC

Queen Anne's County

  • Cypress Construction, LLC

Anne Arundel County

  • Design Alternatives, Inc.

Baltimore County

  • Deutsch Gilden & Sons, LLC

Prince George's County

  • Dominion Carpentry Inc.

Calvert County

  • Eagle Rock Construction, LLC

Garrett County

  • Eric Paugh Contracting, Inc.

Garrett County

  • Flaim Bros. Inc.

Prince George's County

  • Gothic Enterprises Inc.

Anne Arundel County

  • H. F. Payne Construction, Co., Inc.

Frederick County

  • High Caliber Homes, Inc.

Anne Arundel County

  • J. Square Construction, Inc.

Calvert County

  • Larry A. Sawyer

Worcester County

  • Leon Builders LLC

Baltimore City

  • O'Shea Custom Contracting, Inc.

Baltimore County

  • Pulte Home Corporation


  • R.P. Williams Construction Inc.

Harford County

  • Robert Harrison Fargher t/a Fargher Development

Anne Arundel County

  • Robert L. Cropper t/a R.C. Home Improvements

Wicomico County

  • Rosemary Street, LLC

Anne Arundel County

  • Sturbridge Associates LLC

Anne Arundel County

  • Sweeney Builders, Inc.

Carroll County

  • Zoppo Construction, Inc.

Baltimore County

The settlements prohibit the companies from acting as home builders in the State unless they first register with the Home Builder Registration Unit and they comply with other Maryland laws governing home builders.


Attorney General of Maryland 1 (888) 743-0023 toll-free / TDD: (410) 576-6372
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