Maryland home builder fined nearly $1 million for consumer fraud

In Maryland, a home builder from Prince George's County has been compelled to pay a significant fine of $955,500 due to violations of the state's Consumer Protection Act. This act is specifically designed to safeguard consumers from deceptive practices, and in this instance, the Finish Werks companies were found guilty of misappropriating consumer funds. The Attorney General's office identified that these companies collected over $1 million in deposits and progress payments for modular homes intended for construction across Anne Arundel, Baltimore, and Montgomery counties. However, they failed to complete the building projects, leaving many customers without the homes they contracted for. An extensive investigation revealed that the Finish Werks companies breached the Maryland Consumer Protection Act, as well as the Custom Home Protection Act and New Home Deposits Act, committing over 800 violations. It was disclosed that several of the homes contracted for had serious defects, and multiple subcontractors involved in the projects were left unpaid. This situation presumably represents a significant breach of trust between the builders and the consumers, particularly because homeownership is typically one of the largest financial investments individuals make in their lifetimes. Maryland Attorney General Anthony Brown emphasized the importance of trust in the housing market, stating that families should be able to rely on businesses to fulfill their obligations and deliver safe homes. The implications of the case extend beyond financial restitution; they highlight the accountability that builders must maintain in their operations and the ongoing commitment of the Attorney General’s office to protect Marylander’s investments. A Final Order was issued against Finish Werks and its owner, prohibiting them from acting as home builders unless they post a performance bond of $700,000 to ensure compliance with future contracts. Additionally, the order necessitates that over $720,000 be paid in restitution and economic damages to affected consumers, alongside civil penalties amounting to $235,000. Petitions for judicial review regarding the Final Orders are currently pending in four Home Builder Guaranty Fund cases as a result of the neglect and misdeeds of the Finish Werks companies, indicating the legal ramifications are still unfolding and may lead to further scrutiny of these builders in the future.