Attorney General's News Release

May 20, 2004

Nixon cracks down on home repair and improvement fraud, files nine lawsuits throughout Missouri

Jefferson City, Mo. — Attorney General Jay Nixon took aim at home repair and improvement fraud today, filing suit against nine businesses located in eight Missouri cities. Nixon sued four businesses in the St. Louis area, two in Kansas City, one in Fulton, one in Jefferson City and one in Springfield.

Nixon alleges all the businesses defrauded consumers and violated Missouri's consumer protection laws.

"By taking legal action against home repair fraud across the state, we're sending a message to anyone who even thinks about ripping off Missouri homeowners — don't try it," Nixon says. "You'll get caught and you'll end up paying much more than you'll ever make."

In the St. Louis area, Nixon filed suit:

• In St. Louis County Circuit Court against Michael L. Olson Jr., 2085 Splendor, Florissant, who does business as A to Z Pool and Spa; and against Dean Simon, 73600 Catalina Way, Palm Desert, Calif., who does business as Simon Construction Co.
• In Franklin County Circuit Court against Keith Michael Kennon, 255 State St., Washington, who does business as Missouri Paving and Asphalt Maintenance.
• In St. Charles County Circuit Court, against Thomas Duane Smotherman Jr., 1029 Wake Court, Wentzville, who does business as TS Construction.

In Jackson County Circuit Court in Kansas City, Nixon took action against:

• Alex L. Rivera and Elizabeth Rivera, both of 717 Bennington, Kansas City; and Siboney L. Rivera and Lidia L. Rivera, both of 505 Cypress Ave., Kansas City, all doing business together as Total Renovations.
• Charles Polley, who does business as A-1 Construction and Exteriors. Nixon filed a motion for contempt against Polley for violation of a 1998 judgment.

In central Missouri, Nixon sued:

• Eric Shane Mathews, of Fulton, doing business as Mathews & Sons Construction. The lawsuit was filed in Callaway County Circuit Court.
• Michael Gayle Gilley, 1518 E. McCarty St., Jefferson City, who does business under the names A1 Affordable Services, Affordable Services and A-1 Affordable Appliance. The lawsuit was filed in Cole County Circuit Court.

In the case against Olson, Nixon alleges the swimming pool installation company defrauded numerous consumers, several for tens of thousands of dollars. One person who complained to the Attorney General's Office says she paid $27,050 for a swimming pool that was never completed. Others complained they put money down and work never began. Yet others state Olson did shoddy work on their pool installation.

Nixon alleges Olson broke the Missouri Merchandising Practices Law in many ways including misrepresentation by accepting deposits and then not delivering the pool equipment; making false promises by telling consumers work would be performed in a quality manner; misrepresenting when work would begin; and failing to provide refunds to consumers whose work was not completed.

The Attorney General is seeking restitution for customers defrauded by Olson. The lawsuit also asks for an injunction preventing Olson from owning, managing or operating a residential swimming pool business and barring Olson from further violations of the Missouri Merchandising Practices Act.

In the case against Keith Kennon, doing business as Missouri Paving and Asphalt Maintenance, Nixon alleges the Franklin County business collected substantial payments from consumers when they signed a contract with him, then failed to finish the driveway projects. In some cases, consumers say he performed no work at all. Other consumers complained about debris left on their property that Kennon never cleaned up. Many consumers left phone messages that were never returned. Consumers say they asked for refunds and did not get them.

In the other case filed in St. Louis County, Nixon seeks an injunction against Dean Simon, who did business as Simon Construction in St. Louis County. Simon, who now lives in the state of California, sold roofing, siding and other construction services. In most cases, he asked consumers to sign a contract and put them on a payment plan. Many consumers complained to Nixon that they made sizable down payments and Simon did not perform the work. Consumers asked for refunds and did not receive them. The lawsuit also alleges Simon committed several other violations of consumer protection laws.

In St. Charles County, Nixon sued Thomas Smotherman Jr., of Wentzville, the owner of TS Construction. The lawsuit states Smotherman violated consumer protection laws by contracting with homeowners to provide home repair services, then failed to perform the work or provided only some of the services promised. Nixon also alleges Smotherman unfairly charged homeowners a deposit for materials, then failed to buy the materials and/or performed only some of the work or none at all.

In the suit against American Modern Exteriors in Greene County, Nixon alleges the company misrepresented its services to consumers by telling them their home repair services would be completed by a particular date; telling consumers they would receive refunds; and promising home repair services would be provided. Numerous consumers told the Attorney General the company did not follow through on these promises.

In the lawsuit against Mathews in Callaway County, Nixon alleges the contractor advertised metal buildings, garages and pole barns in daily newspapers in Jefferson City and Fulton. Numerous consumers paid Mathews thousands of dollars in advance for services and materials and did not receive the buildings they were promised. Mathews continued to advertise in the newspapers even though he knew he could not provide the contracted services and/or the materials.

In the lawsuit against Gilley in Cole County, Nixon alleges he accepted deposits, then did not finish the projects and in some cases did not perform any work. The lawsuit also states Gilley told consumers that used appliances he sold them were in good working order, when in fact they were not. Gilley also charged consumers for appliances and installation, then did not deliver the product or delivered an appliance that was different from the one purchased. Gilley also falsely told consumers their used appliances included a warranty.

In the suit against Total Renovations in Jackson County, Nixon claims the company defrauded consumers who contracted for services after responding to ads in the yellow pages and in newspapers for home repair and home improvement services. After consumers contacted them, the Riveras provided bids or estimates for repair work. The Riveras required their customers to sign a contract and to pay for some or all of the repair work up front. Numerous consumers complained to the Attorney General that Total Renovations took their money but did not complete the work, including two consumers who say they each paid the Riveras $12,000.

The lawsuit alleges the Riveras continued to advertise even though they were unable to provide services for which they had contracted and/or provide the contracted materials. The suit also alleges Total Renovations continued to enter into more contracts with other consumers even though they knew they could not provide the services and/or materials.

In the suit against Charles Polley, Nixon alleges Polley violated a 1998 permanent injunction by providing guarantees and failing to honor them; failing to respond to consumers' calls regarding concerns about his work; telling consumers no down payment is required and then demanding a down payment at the time of the contract; promoting his services and guarantees without providing the Attorney General's Office with a copy of a bond or letter of credit; failing to submit quarterly reports to the Attorney General's Office; and several other violations of the court order. The Attorney General also states Polley violated a 1987 permanent injunction by failing to honor guarantees on workmanship.

Nixon asks the court to schedule a show cause hearing and for a judgment holding Polley in criminal contempt and/or civil contempt. The suit seeks an appropriate punishment for Polley, which may include a fine.

In all of the lawsuits filed, Nixon is seeking restitution for consumers. The Attorney General also is asking the courts to issue injunctions prohibiting the businesses from further violations of Missouri's consumer protection laws.

Home repair fraud is consistently one of the top complaints to the Attorney General's Consumer Protection Hotline. Nixon's sweep of home repair businesses is part of his effort to tackle this problem.

"We're working hard to uncover unscrupulous home repair companies, but the best defense is a good offense," Nixon says. He urged Missouri consumers to follow these rules before hiring a contractor:

• Get several written estimates from local firms.
• Ask for references and call them.
• Get all guarantees in writing.
• Don't pay more than one-third of the total price for a down payment.
• Consider writing the check directly to the supplier if a contractor asks for an advance on supplies.

Consumers who believe they have been victims of home repair fraud may call the Attorney General's Consumer Protection Hotline at 1-800-392-8222 or file a complaint.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818