Las Vegas Sun

March 29, 2024

State may close two Henderson mobile home firms

The licenses of two mobile home companies in Henderson have been suspended over allegations of fraud that may amount to $1.5 million, the state Attorney General's office said.

A 10-count complaint was filed against AA Manufactured Homes Inc., its associated company Advantage Homes and dealers and salesmen Timothy Woods, Timothy Wirth and Wesley Boyd. A hearing is set for Aug. 16 by the state Manufactured Housing Division in Las Vegas to determine if the licenses should be permanently revoked.

It alleges the dealers made "substantial misrepresentations" in the sale of the homes; failed to disclose all the terms and conditions of a sale; were "deceitful, fraudulent or dishonest" in their dealings; and violated the regulations by failing to have a responsible managing employee on the premises.

"Obviously, we deny the charges," said Roger Croteau, an attorney for the companies. "We're investigating the allegations, and we will be responding in a very short period of time."

The companies have temporarily ceased all operations.

Deputy Attorney General Leslie Nielsen said typically prospective purchasers would visit the businesses at 320 Boulder Highway in Henderson and sign releases to do a credit check or a credit application. But there was no agreement to buy any of the mobile homes, Nielsen said. The people would give their Social Security numbers on the documents.

The complaint said the mobile home dealers would forge the signatures of the would-be-purchasers on retail installment contracts. The state complained the dealers would then assign the interest in the contracts to CIT Group and Green Tree Financial Corp. Those two financial companies, in turn, would pay off the mobile home dealers.

Then the two financial firms would contact the would-be-buyer and try to collect the monthly payment, the state alleges.

Nielsen said other buyers complained the dealers sold them mobile homes with serious title problems including unsatisfied prior liens.

Many of the victims were saddled with debts of up to $67,000 for mobile homes they never purchased, the state alleged.

The two companies were licensed by the state in October 1997. They will not be able to sell any mobile homes until after the hearing.

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