Harford County homebuilder charged with violating laws protecting homebuyers

Oct. 5—Maryland Attorney General Anthony G. Brown has announced that the state Consumer Protection Division's Home Builder Registration Unit filed charges against a Harford County homebuilding company for failing to comply with the Consumer Protection Act, New Home Deposits Act, Custom Home Protection Act and Home Builder Registration Act.

According to the statement of charges, Korey Homes Building Group, LLC of Forest Hill and its principals, Kenneth W. Smith of Bel Air and his son, Korey Wayne Smith of Greenville, South Carolina, accepted hundreds of thousands of dollars from consumers who contracted with the company for the construction of custom homes in the county. The company failed to complete construction of their homes.

The charges state that Korey Homes and the Smiths violated the laws protecting new home purchasers in the state by, among other things, breaching the trust created for the benefit of the buyer, misappropriating money paid by consumers to Korey Homes, making false and misleading statements, and failing to state material facts. Korey Homes and the Smiths also are accused of failing to disclose required information in the application to register as a homebuilder, according to a news release from the Maryland Attorney General's Office.

Attorney information for the Smiths was not available.

"The decision that families make to build a house that they can call home requires significant time, commitment and money, but it's also the opportunity to fulfill a dream for many Maryland families," Brown said in the release. "In using their hard-earned money to create a new home, consumers should be able to trust their builder to recognize the magnitude of this decision and to lawfully provide the services they promised."

A hearing on the Statement of Charges against Korey Homes and the Smiths is scheduled for 9:30 a.m. on Dec. 6 at the Office of Administrative Hearings, 11101 Gilroy Road, Hunt Valley.

Consumers who have had problems with this builder or others should contact the Home Builder Registration Unit at 410-576-6573 in Baltimore or call toll free at 877-259-4525. The Attorney General's Office encourages new home buyers to check whether their builder is registered by calling the Home Builder Registration Unit or visiting marylandattorneygeneral.gov/pages/cpd/homebuilder.

Consumers having custom homes built can also make sure the builder is protecting their deposit by insisting that their builder provide, as required by law, a waiver of lien from each subcontractor as evidence that the builder is using their money to pay the subcontractors, according to the Maryland Attorney General's Office.