Attorney General's News Release

March 10, 2000

Nixon asks court to stop deceptive home remodeling, consolidation loan practices of Kansas business

Kansas City, Mo. — Attorney General Jay Nixon today sued an Overland Park, Kan., couple who Nixon said had defrauded Missouri consumers by misleading homeowners through the use of "consolidation" loans and by doing overpriced work of poor quality that often was finished long after the promised completion date and only after repeated complaints by the consumers.

Nixon said his office has received more than 25 complaints about Harris and Faith Poulikidis and their businesses, U.S. Home Service Inc. and Roofing and Siding Plus Inc., which also are named as defendants. Many of the homeowners were elderly, disabled or had low incomes; some paid as much as $25,000 each for the remodeling work.

In addition to poor workmanship, the couple told consumers they could obtain financing for the consumers that would pay for the remodeling and help them consolidate other debts. The Poulikidises would receive the loans and then not pay the other debts, often instructing the consumers to make misrepresentations to the lending institutions in connection with the loans.

"The homeowners have not only found themselves deeper in debt, the work they paid for was of poor quality and was completed only after repeated calls and complaints from the consumers," Nixon said. "This taking advantage of consumers who are in a weaker position has to be stopped."

Nixon is asking the Jackson County Circuit Court to order the defendants to pay restitution to eligible homeowners, pay penalties and costs to the state, and provide the state with a list of all projects for which they have contracted. Nixon also wants the court to prohibit the defendants from telling consumers they can help them obtain loans for anything other than the services performed, and require them to provide full disclosure of the consumers' rights to the consumers.

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