Attorney General's News Release

January 13, 2006

Nixon cracks down on home repair fraud in St. Louis area with lawsuits against two remodelers

St. Louis — Two home repair and remodeling businesses in the St. Louis area fraudulently took tens of thousands of dollars from homeowners for work that was shoddy or never completed, Attorney General Jay Nixon says. Nixon filed lawsuits this week against Affordable Roofing and its former owners, John Boggs and Michael Ellis; and against Thermal Exteriors and it owners, Steven and Dianne Ernst, to recover restitution for dozens of consumers who did not receive the services they paid for.

"Homeowners paid thousands of dollars to have work done on their houses, only to have it performed in a shoddy manner or to have the work never completed," Nixon says. "These home remodelers are bad apples who need to pay back every penny to consumers who were ripped off."

The Affordable Roofing suit, filed in St. Louis County Circuit Court on Jan. 12, alleges that owners Boggs and Ellis required consumers to sign a written contract for services and materials and required an initial deposit for the home repair work. The defendants then allegedly either failed to perform the contracted services or did so in an inferior manner. Consumers were defrauded out of $3,000 to $4,000 on average, with one homeowner losing more than $15,000.

Boggs and Ellis also did not provide, or refused to provide, refunds for their consumers. Consumers who attempted to contact Boggs and Ellis were unable to because the defendants kept changing phone numbers and business addresses. Ellis now lives in Seymour, Ind., and Boggs lives in Louisville, Ky.

In the Thermal Exteriors suit, filed in St. Louis City Circuit Court on Jan. 11, Nixon asserts that owners Steven and Dianne Ernst required consumers to pay cash up front for installation of replacement windows and siding but:

• Failed to finish the jobs.
• Failed to work in a competent and commercially reasonable, workmanlike manner as their advertisements promised.
• Made misrepresentations and omitted material facts in market and contract negotiations.
• Repeatedly failed to respond to calls, letters, or e-mails complaining and requesting the work be completed or that refunds be issued.

The Attorney General’s Office has received complaints from 16 St. Louis-area consumers who say they paid Thermal Exteriors a total of more than $13,000.

Nixon is seeking a permanent injunction against the defendants in both cases that prohibits the companies from continuing to engage in such unlawful business practices. The lawsuits also require the defendants to pay full restitution to all consumers from whom they received payment; requires the defendants to pay a civil penalty of $1,000 per violation and 10 percent of the total restitution ordered against them to the state; and requires the defendants to pay all court and investigative and prosecution costs of the case.

Nixon emphasized the following commonsense rules Missourians should remember before hiring a contractor:

• Get several written estimates from local firms.
• Ask for references and call them.
• Get all guarantees in writing.
• Don’t pay more than one-third of the total price for a down payment.

Consumers who believe they have been victims of home repair fraud may call the Attorney General’s Consumer Protection Hotline at 800-392-8222 or visit his Web site at www.ago.mo.gov.

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