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Remodeling OKC CALL 405-246-9915 OKC Renovations
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Raleigh, N.C. The state Attorney General's Office filed suit Monday against a Burlington company that authorities accuse of taking upfront payments from customers for kitchen remodeling jobs and then not finishing the work.
The lawsuit seeks to ban American Kitchen Corp. and owners Robert Selfors and Tyler Justin Sheets from offering home repair or home improvement services to North Carolina homeowners and to force them to pay refunds to consumers who paid for work that was never completed.
Businesses that take your money up front have an obligation to get the job done, Attorney General Roy Cooper said in a statement. Using payments from new customers to finance existing jobs is bad business and not sustainable.
5 on Your Side reported two weeks ago on problems customers were having with American Kitchen.
American Kitchen is now closed, according to Cooper, but up until last month, it required customers to pay deposits of as much as $19,000 on kitchen makeovers before hiring subcontractors to do the work. The lawsuit states that the firm couldn't pay the subcontractors to complete existing jobs without recruiting new customers to pay more advance deposits.
"The business was not unlike a Ponzi scheme and was destined to fail, leaving its newest customers high and dry," the suit states.
The unpaid subcontractors and suppliers have filed liens against several customers homes, many of whose kitchen remodeling jobs remain unfinished, he said.
Sheets couldn't be reached for comment Monday. Selfors, who is also the pastor of The Kirk Church in Raleigh, said he wasn't aware of the lawsuit.
"It's not a crime to go out of business and not a crime to try twice in the same business and fail," Selfors said, adding that it's "unfair that people feel they were scammed."
The state Consumer Protection Division has received complaints from 38 homeowners who have lost about $300,000 total to American Kitchen, he said, adding that the company's owners previously ran a company called Kitchen Carolina that operated using the same business model and shut down in a similar manner in 2009.
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AG wants to ban kitchen remodeler from NC
RALEIGH (WTVD) --
Cooper said the owners of American Kitchen took thousands of dollars upfront from consumers but failed to complete jobs and should be barred from business and ordered to pay refunds.
Cooper filed suit in Wake County Superior Court against American Kitchen Corporation and its owners Robert Selfors and Tyler Justin Sheets seeking to ban them from offering home repair or home improvement services to North Carolina homeowners.
Cooper said he is also asking the court to require them to pay refunds to consumers who paid for work that was never completed.
"If you plan to hire a contractor to work on your home, beware of anyone who demands large fees upfront," Cooper warned.
According to Cooper's complaint, American Kitchen required advance deposits of as much as $19,000 before the work began.
Cooper alleges American Kitchen then hired subcontractors to do the remodel work but the company could not pay the subcontractors to complete existing jobs without recruiting new customers to pay more advance deposits.
Cooper's Consumer Protection Division has received complaints from 38 homeowners who have lost a total of approximately $300,000 to American Kitchen.
To report problems with a home improvement company or contractor or ask questions before hiring one, contact our Consumer Protection Division at 1-877-5-NO-SCAM.
Get more home improvement tips or file a consumer complaint at ncdoj.gov.
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Attorney General files suit against kitchen remodeling company
By Hannah Sawyer and Ed Mahon
Daily Record/Sunday News
Think Loud Development, LLC, has been awarded a $5 million state grant for the construction of an office building and data and telecommunications center, Gov. Tom Corbett's administration said Monday.
Think Loud, which includes some original members of the band Live, in 2012 announced plans to renovate the former Bi-Comp building in York, and then in 2013, the group said it would also bring a data center to the area - one of several to be built on a fiber optic line in the Northeast.
A news release from the Corbett administration states that the money will be used for the renovation and construction of a nearly 54,000 square foot office building and data and telecommunications center, which "will cater to enterprise, small to medium-sized businesses, healthcare, as well as carrier and wireless customers."
"That's big, and that's what you want in the city," said Leonardo McClarty, director of economic and community development for York.
Bill Hynes, CEO of Think Loud Development, said in an email that the grant is for the 210 York Street property and the "surrounding campus" near Santander Stadium.
Hynes later said additional state funding is expected for the project, which he described as partially complete. Hynes said the state program provides reimbursement.
The grant comes from the state's Redevelopment Assistance Capital Program, which awards money to projects "based upon their job-creation potential, their economic impact, as well as their viability and construction readiness," the release states. The 210 York Street project, which has involved converting an old printing warehouse into office space, is expected to transform the neighborhood, as well as "create or retain nearly 700 jobs and infuse more than $2 billion in tax revenue to the community," the release states.
Corbett praised the project, saying in a statement that Think Loud "saw the promise that its involvement in downtown York could bring to revitalizing the community. This project will serve as a technology hub and bring good paying jobs back to the downtown."
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Think Loud receives $5 million state grant for data center
