Attorney General's News Release

December 5, 1996

Judge orders St. Louis man who kept money intended for low-cost housing to pay penalties, $11,815 in restitution

Jefferson City, Mo. — A St. Louis judge on Wednesday (Dec. 4) ordered M. Brett Young, director of Allied Housing Inc., to repay more than $11,000 to five families who had paid him as much as $7,900 to help them obtain low-cost housing.

Attorney General Jay Nixon filed suit against Allied Housing, Brett Young, and David Young in October 1995 seeking restitution after they failed to obtain the properties for the consumers and then did not give them refunds. At the time, Nixon obtained a temporary restraining order freezing the assets of Allied Housing.

St. Louis City Circuit Judge Robert Dierker Jr. also ordered Brett Young to pay a $5,000 penalty to the state of Missouri and $1,182 (10 percent of the restitution amount) to the state to pay for investigative costs. Young also is prohibited from acting as a real estate broker or salesperson without a license.

Allied Housing advertised on the radio to low-income people that it would help them buy, or lease with the option to buy, low-cost housing. Nixon charged that Allied's contracts with the U.S. Department of Housing and Urban Development (HUD) for such housing expired, and that Allied failed to close on the HUD properties.

Allied then failed to refund money to customers, Nixon said. Most customers had paid $650 in earnest money and an application fee, but in one case, a customer also paid more than $7,000 as down payment.

Consumers who wish to file a complaint about Allied Housing should contact the Attorney General's Consumer Protection Hotline at 800-392-8222.

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