Ohio Attorney General Dann Seeks to Stop Home Improvement Fraud

Alleges multiple violations of consumer protection laws

February 5, 2008 -- COLUMBUS - Ohio Attorney General Marc Dann filed three lawsuits today to stop home-improvement companies from violating the Consumer Sales Practices Act, the Home Sales Solicitation Act , and the Magnuson Moss Warranty Act. All of the suits were filed in the Franklin County Common Pleas Court.

The first suit was filed against Appleby Painting, Inc., 4517 Swenson Street, Hilliard, and Troy Appleby, individually. The suit charges that owner Troy Appleby’s entire method of conducting consumer transactions is unconscionable in that Appleby routinely failed to deliver the services for which consumers contracted and paid, and that the services he did perform were shoddy. Additionally, Attorney General Dann accuses Appleby of violating Ohio law by failing to disclose certain warranty information, failing to honor warranties, and failing to properly inform consumers about the terms and conditions for refund of their deposits.

The Attorney General’s investigation found that Appleby’s business is not registered with the Ohio Secretary of State to do business in Ohio, yet it solicits Central Ohio homeowners for home-improvement services by telephone, Internet, and advertisements at local trade shows. However, homeowners who entered into contracts with Appleby claim they often received sub-standard home improvements or none at all.

Attorney General Dann’s suit seeks to hold Appleby liable for these illegal acts and to enjoin him from committing further violations. Additionally, it asks for a fine of $25,000 for each offense, as well as the reimbursement of affected consumers for any losses they incurred as a result of Appleby’s unfair, deceptive and unconscionable acts and practices.

Ohio Attorney General Marc Dann also filed a lawsuit against Ohio Homeowner’s Rehab LLC (OHR), which also does business under the name OHC, LLC. It has had business addresses at 89 Eastpointe Ridge Dr., #118, Columbus and 77 East Wilson Bridge Road, Ste. 206, Worthington.

“My office will aggressively pursue punishment for companies that solicit low-income and elderly consumers with deceptive practices like we have seen in this case,” said Attorney General Dann. “Consumers were mislead into believing that they would be eligible for government grants to fund their projects, causing them to take out mortgage loans for pay for work that was never performed.”

The suit alleges that OHR, violated the Consumer Sales Practice Act by making misleading misrepresentations along with violations of the Home Sales Solicitations Act by failing to provide consumers with the required three day right to cancel their transactions. Consumer complained that their home improvements were made in a shoddy manner, while others claimed the home improvements were not performed at all.

Attorney General Dann asked the court to stop OHR from any further business practices that violate Ohio laws. He also asked for consumer restitution and penalties of up to $25,000 per violation.

The third suit Attorney General Dann filed was against The Concrete Crew Company of Gahanna, and its owner, Dennis Ranke, Jr, who has also done business under the name The Columbus Construction Crew, LLC. The suit alleges violations of the Consumer Sales Practices Act along with violations of the Magnuson-Moss Warranty Act.

“I am committed to stopping home improvement fraud which is causing Ohio consumers to lose money and equity in their homes,” said Attorney General Dann.

The suit alleges that The Concrete Crew Company has committed unfair and deceptive acts against consumers through false and misleading statements, frequent inability to complete transactions, and shoddy services. The home improvement contractor violated Ohio consumer protection laws by routinely accepting money from consumers for goods and services, and then failed to complete the work or refund the money. The suit also alleges that the company often performed shoddy services and failed to honor promised warranties.

The suit asks that The Concrete Crew Company be permanently enjoined from further business practices that violate consumer laws. It also asks for restitution for harmed consumers, civil penalties and costs.

Source: Ohio Attorney General