Wicomico Co. Home builder ordered to pay defrauded home buyers
Maryland Attorney General Brian Frosh announced on Monday that his Consumer Protection Division issued a final order finding that a home builder from Wicomico County violated the Consumer Protection Act and other laws protecting new home buyers in Maryland.
The AG’s office is reportedly requiring the builder to pay restitution, economic damages, penalties, and costs, amounting to $524,185.35.
According to the release, the Division found that Bryan Edward Adkins of Atlantic Bay Homes entered into contracts with six families to build homes in Wicomico and Dorchester Counties. However, apparently after taking large deposits and payments from the customers, Adkins failed to begin or complete construction of the homes, pay subcontractors, or return the money paid. Officials say in two instances, he took more than $170,000 from the customers and then failed to provide anything of value.
The Division also reportedly determined that Adkins did not provide proper protection for consumers’ deposits and payments by either placing them in an escrow account or maintaining a surety bond or letter of credit for their protection and failed to disclose to the Division’s Home Builder Registration Unit the filing of lawsuits and the entry of judgments, including a criminal conviction for failing to return the advance payments of one of the consumers.
The Division’s final order bars Bryan Edward Adkins and Atlantic Bay Homes from acting as a home builder in the State of Maryland unless he meets requirements set by the Division in order to be registered as a home builder under Maryland’s Home Builder Registration Act.
The Division also authorized these consumers to obtain recovery from the Home Builder Guaranty Fund for their actual losses resulting from the builder’s failure to complete their homes. Under Maryland law, consumers may seek recovery from the Guaranty Fund for actual losses of up to $50,000 resulting from the failure of a registered builder to complete their home.
“Before any money changes hands for a new home, you need to protect the biggest investment of your lifetime,” said Attorney General Frosh. “Make sure that your home is built by a registered home builder and that any deposits are protected by an escrow account, bond or letter of credit.”
The Attorney General encourages new home buyers to check whether their builder is registered by contacting the Division’s Home Builder Registration Unit at (410) 576-6573 or toll-free at (877) 259-4525, or by visiting this website. New home buyers may also verify whether builders have a surety bond or letter of credit by contacting the Home Builder Registration Unit.
