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Posted at 3:46 PM ET, 08/26/2010

Md. atty. general fines Pr. Geo.'s developer

By Washington Post editors

A Prince George’s County developer has been ordered to pay more than $500,000 in fines and restitution for failing to place deposits made by homebuyers into an escrow account and for not having a sufficient surety bond to cover the deposits.

Attorney General Douglas F. Gansler said Thursday that the Consumer Protection Division issued the fines against McDaniels Homes and its owner, Derek A. McDaniels, for violating the state’s Custom Home Protection Act, the New Home Deposit Act and the Consumer Protection Act.

“The law in Maryland is very clear: Homebuilders must properly handle consumer deposits and they must honor their commitments to homebuyers,” Gansler said in a statement.

McDaniels could not be reached for comment. A number listed for McDaniels Homes was disconnected.

The Consumer Protection Division found that McDaniels and his company collected substantial deposits from at least 10 families toward the construction of homes in Prince George’s. McDaniels never began construction on the homes and did not return the money to the homebuyers, state officials said.

The order prohibits McDaniels and his company from operating as a home builder in the state until they meet the requirements set under the state Home Builder Registration Act and pay the $488,830.91 in restitution, $87,000 in civil penalties and $4,026.69 in other costs.

— Ovetta Wiggins

By Washington Post editors  | August 26, 2010; 3:46 PM ET
Categories:  Maryland  
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Let's see. He has $488K of customers money on houses he hasn't built. His home phone has been disconnected and he can't be found. I think a $500K fine on someone you can't find might as well be $500M.

Posted by: Jimof1913 | August 26, 2010 5:53 PM | Report abuse

Hope Gansler gets his man....

Posted by: 10bestfan | August 27, 2010 9:38 AM | Report abuse

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