The Oregon Department of Consumer and Business Services revoked the license of Fuqua Homes of Bend to sell manufactured homes, and fined the company $155,000 for failing to deliver on purchased homes or refund deposits to customers. The department, through its Building Codes Division, also decertified the company from producing homes.
Following an investigation prompted by consumer complaints, the department's Division of Finance and Corporate Securities (DFCS) found the company had closed its manufacturing facilities in February 2011 but was still accepting customers' deposits for home purchases. The company collected $500,000 through 26 deposits for the purchase of structures that were never built. Fuqua Homes accepted the deposits between October 2008 and August 2011.
"When violations of state law are discovered, it's important for the department to take steps to ensure the fraud won't continue," said Patrick Allen, acting director of the Department of Consumer and Business Services.
The $155,000 penalty was for 26 violations ($5,000 each) for accepting the deposits and failing to either deliver on the homes or refund the money, and five violations of fraud at $5,000 each.
In one case, Fuqua Homes told a customer it would give him a discount if he paid for the home in full before production; the customer lost nearly $137,000 for a structure that was never built.
"This is a reminder that consumers should investigate a company before making a major financial purchase," said David Tatman, administrator of DFCS. "While most businesses are honest and reputable, it's still important to check with state regulators or the Federal Trade Commission about complaints."
Fuqua Homes was operating a factory in Bend and a Eugene Super Sales Center in Coburg.
Fuqua's president and owner, Phillip R. Daniels, has been barred for five years from obtaining a license as a manufactured structure dealer or from working in an administrative or managerial capacity for any time of manufactured structures dealer.
Tatman urges consumers to verify the license of a dealer and investigate companies they are working with. Those who sell manufactured homes must be licensed in Oregon. Call the Division of Finance and Corporate Securities at 1-866-814-9710 (toll-free) or visit