Maryland Homebuilder Agrees To Fork Over Nearly $600K, Resolving Allegations That It Pocketed Homebuyer Deposits w/out Proper Escrow/Surety Bond, Failed To Complete Construction, & Stiffed Subs In The Process, Leaving Customers To Make Double Payments To Avoid Mechanics' Liens

In Anne Arundel County, Maryland, the Capital Gazette reports:

• Anne Arundel County’s Fusion Modular Green Construction LLC has been ordered to pay nearly $600,000 for violating consumer protection laws.
  
  Attorney General Brian E. Frosh found the firm and its principals - William E. Sims III and Joshua S. Sims - entered into contracts with four families to construct new homes in Anne Arundel and Montgomery counties, but then failed to complete the project after collecting deposits and payments.
  
  The Attorney General’s Consumer Protection Division determined the firm and its principals failed to place consumers’ deposits and payments in an escrow account or establish a surety bond or letter of credit to protect consumers. The company also failed to pay subcontractors for work performed, leaving buyers to pay the bills to avoid potential liens being placed against their homes, officials said.
  
  The division’s final order also bars the home builder and its principals from acting as a home builder in Maryland unless they are properly registered under the state’s Home Builder Registration Act. The buyers whose homes were not completed may seek to recover actual losses of up to $50,000 through the Home Builder Guaranty Fund.
  
  Frosh urged new home buyers to verify that their builder is registered and confirm that they have a surety bond or letter of credit by contacting the Home Builder Registration Unit at 410-576-6573 or 877-259-4525, or by visiting http://www.oag.state.md.us/homebuilder.

Source: Anne Arundel County home builder must pay $600K in damages.

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(1) The State of Maryland has established a Home Builder Guaranty Fund that is overseen by the Consumer Protection Division of the state Attorney General's Office. This fund allows consumers to seek compensation for losses resulting from an act or omission by a registered builder who constructs a new home for a consumer.