Nexus EnergyHomes, Inc. was sued by Maryland Attorney General Brian Frosh on Friday after the company allegedly violated consumer laws by accepting deposits to build new homes, but then not beginning or completing construction of the houses.
The company, which is owned by Michael Murphy and Vincent Paul Zanecki, also allegedly failed to refund money to consumers who put down deposits for homes in Talbot and Frederick, Maryland, or to pay subcontractors for completed work.
The suit also alleged that Nexus EnergyHomes failed to disclose to the state's Home Builder Registration Unit that consumers and subcontractors had sued the company and received court judgments.
"Maryland law is very clear that builders must protect deposits and honor their commitments to homebuyers," Frosh said. "Consumers who put money down for a new home should have confidence that their investment is secure."
Frosh alleged the company violated the Custom Home Protection Act, the Consumer Protection Act, the New Homes Deposit Act and the Maryland Home Builder Registration Act.
The attorney general is seeking restitution for consumers, as well as civil penalties and investigative costs.