Attorney General's News Release

September 27, 1999

Nixon sues Blue Springs contractors to stop home-improvement loan scheme

Kansas City, Mo. — Attorney General Jay Nixon today filed suit against two Blue Springs contractors who Nixon said used fraudulent bids to help consumers obtain home-improvement loans, kept all the loan proceeds and failed to complete work or performed shoddy work.

Nixon is seeking a permanent injunction from the Jackson County Circuit Court against Robert Faris and his son, Matthew Faris, who did business as Faris Construction. Nixon says the two men told Kansas City area homeowners they would help them apply for home-improvement loans in excess of the amount the contractors would charge for their work. Homeowners were told they could keep the extra loan proceeds to use for other purposes.

With the consent of the homeowner, the Farises would use a fraudulent bid sheet with inflated costs to obtain a home-improvement loan, using the consumers' homes as collateral. The Farises would then cash the checks and keep some or all of the loan proceeds. The homeowner would then be required to pay back the loan. In addition to keeping the proceeds, the two men often failed to perform any work, complete work or performed shoddy work.

"This is really a case of double-fraud," Nixon said. "The Farises would use the homeowners to defraud the banks, and then turn around and defraud the homeowners of the fraudulently obtained loans."

The two men also are being investigated by federal agencies.

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