Monday, April 27, 1998 | 11:44 a.m.
Del Papa said Monday the lawsuit was filed in Washoe County District Court against the National Affordable Housing Coalition, owners Craig and Linda Meyer, and the company's chief financial officer, Scott Krieger, all of Reno.
The lawsuit alleges that since October 1996 the company has solicited people to pay $10 to attend seminars where they got a sales pitch to ante up another $500 to join a home buyer's "network."
Del Papa said the $500 fee included admission to a workshop where people got bogus information on financing, credit counseling, home warranties and affiliations with government housing programs.
The attorney general said up to 20,000 of the memberships may have been sold across the country, and no more than 900 of the buyers were able to buy homes - mostly without the help of the coalition.
"Consumers who bought into the promises made by the National Affordable Housing Coalition are asking to get the services they paid for or their money back," Del Papa said. "As it stands, the National Affordable Housing Coalition promised the American dream but delivered the American nightmare."
The lawsuit seeks an injunction against future deceptive advertising, restitution to customers, and civil fines of $2,500 apiece from each defendant for each deceptive act.
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