A Harford County home builder has come under fire for allegedly duping buyers, resulting in a hefty penalty exceeding $1 million, as reported by Maryland's top legal aide. The Korey Homes Building Group, LLC, along with previous co-owners Korey Wayne Smith and his father Kenneth W. Smith, have been accused of violating the Maryland Consumer Protection Act through what has been described as a 'Ponzi-like scheme'.
As per the announcement by Attorney General Anthony Brown, and detailed by FOX Baltimore, the company is said to have accepted funds for home construction but then either failed to deliver or produced homes plagued by defects. While Maryland law obligates builders to safeguard consumer deposits in escrow, or through a surety bond or letter of credit, Korey Homes did neither, exploiting customer trust and savings.
Additional penalties include more than $300,000 in civil fines and reimbursement of over $115,000 in costs, as WMAR-2 News covered in their reporting. The final verdict from the Attorney General's Consumer Protection Division also distinctly bars the company and both Smiths from any deceptive trade practices and from acting as home builders in the state unless they post a $500,000 bond beforehand.
Victimized consumers are encouraged to contact the Attorney General's Mediation Unit for support. For those trying to ensure they are dealing with reputable builders, the Attorney General's Home Builder Registration Unit stands available as a resource for verification.
