Missouri Attorney General Jay Nixon has filed suit against a Kansas City business that reportedly promised new homes for 10 families, took more than $600,000 from them and never finished the work. Nixon says The Home Group Inc. engaged in unfair and unlawful business practices related to the sale of manufactured and mobile homes.
Nixon filed suit in Ralls County Circuit Court against The Home Group and its officers, Jack Donahoo of Independence; Connie Donahoo, of Independence; Dean Casutt of Kansas City; and Bryan Thompson of Cleveland, Mo.
At least 10 consumers signed contracts with The Home Group for the purchase of homes. The consumers made down payments to the business and obtained construction loans totaling $1.3 million. The proceeds from the construction loans were to be withdrawn solely for expenses related to completion of the consumers’ home projects.
According to the lawsuit, The Home Group fraudulently obtained more than $600,000 from the construction loan accounts for purposes other than the completion of the home projects. As a result of The Home Group’s unfair and unlawful business practices, the consumers’ construction loan accounts have been substantially depleted and the projects are not finished.
“Families were led to believe they would move into their new home within a few months. Instead, this business slammed the door on their dreams,” Nixon said. “We’re going to get the money back for these families, and prevent more Missourians from going through this frustrating experience.”
Nixon seeks restitution for all consumers taken by the company’s deceptive practices and civil penalties of up to $1,000 per violation of Missouri’s consumer protection laws. In addition, Nixon is asking the court to order The Home Group to abide by the law and pay for the costs of the investigation and litigation.
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