Keith Loria Jul. 6, 2010, 2:55pm
BALTIMORE (Legal Newsline) - Maryland Attorney General Doug Gansler announced on Tuesday that his office has reached a $460,000 settlement with a bonding company that allegedly took deposits for new homes that were never built.
Arch Insurance Company, the bonding company for Equity Homes LLC, settled with Gansler and will provide restitution to consumers who had used the Fairfax, Va.-based Equity Homes. Equity Homes went out of business in February 2008 after accepting consumer deposits but without building new homes or providing refunds on the deposits, Gansler says.
As required by Maryland state law, Arch Insurance Company had obtained a $500,000 bond from Equity Homes, which was intended to protect deposits and other payments received from consumers, Gansler says.
"Under Maryland law, a home builder is liable to consumers if it fails to build consumers' homes," Gansler said. "I am pleased that consumers were protected under Maryland law and that we were able to help get consumers their money back."