State sues contractors after complaints from consumers

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The state Attorney General’s Office has sued two contractors, saying they did not meet contract requirements or finish repairs as promised. One of the defendants includes a company Fox59 received complaints about several months ago.

The defendants are Patriot Restoration of New Castle, LLC, in Henry County and Reliable Home Improvements, LLC, in Lake County.

Since November 2011, at least 27 customers signed contracts with Patriot Restoration of New Castle for roof replacements and other work. In the majority of cases, a representative came to customers’ homes and offered to work with insurance carriers to repair storm damage.

Homeowners paid for contracts that didn’t meet state requirements. The state also said the company didn’t finish the work or give refunds. The Attorney General’s Office filed the complaint in Henry County Circuit Court against company owners Richard Moghadam and Jennifer Collier. The company is accused of violating the Deceptive Consumer Sales Act, Indiana Home Solicitation Sales Act and Home Improvement Contracts Act.

A separate lawsuit filed in Lake County concerns Reliable Home Improvements and owners Eric D. Norwood and Joe Callahan. Five customers filed complaints after the company helped them obtain bank financing and then failed to fulfill contracts or give refunds.

The lawsuit says Reliable Home Improvements acted as a credit services organization by helping customers obtain credit that requires them to obtain a surety bond. The company is accused of violating the Home Improvement Contracts Act, Credit Services Organizations Act and the Deceptive Consumer Sales Act.

The state is asking for consumer restitution, injunctive relief, investigative costs and civil penalties.

The office filed another lawsuit against an Indianapolis heating, cooling, electrical and plumbing company accused of overstating the urgency of repairs. Mister Quik Home Services is accused of trying to boost sales by misrepresenting the need for a repair and overcharging for it.

In one case, a customer said Mister Quik told him an electrical breaker needed an immediate replacement, with failure to do so resulting in a fire. The replacement cost $2,600, and the homeowner later found out that most contractors would’ve charged about half that amount for the same repair.

In another case, a customer said the company told him that his house could burn down unless he installed a new electrical panel on his furnace. The homeowner paid more than $2,900 for the repair.

In both cases, the Marion County Department of Code Enforcement said the company needed a permit for the home repairs although Mr. Quik did not obtain the proper permits before completing the work. The state said the company’s contracts also failed to meet state requirements.

The complaint accused the company of violating the Indiana Deceptive Consumer Sales Act and Indiana Home Improvement Contracts Act. The state is seeking injunctive relief, consumer restitution, investigative costs and civil penalties.

18 comments

  • Someone

    I am a former employee of Patriot Restoration of New Castle. I advice all customers who have not had their homes repaired to full fledge sue Richard Moghadam. He has been trying to let his former employees take the fall for the scams and I want to be sure that all know we had nothing to do with it. We thought it was a legit company.

  • tc317

    I have no doubt Mr. Quick really means Quick Cash for them…lucky for me my insurance paid for it. I had my ground blow out on a Saturday afternoon, they were the second place I called but the only one who said say could be there same day. I knew i needed new wires pulled from the meter to the breaker box but they insisted the breaker panel needed replaced and my insurance should pay for it, of course I had to pay for it now and hope my insurance would cover all of it later. I agreed and he left to get parts, which i found out was Lowes. Mr. Quick quickly billed me $2000.00 for about $250.00 in parts from Lowes and 4 hours labor.

    • ryan

      That's not Mr. Quiks fault. You agreed to pay the $2000.00 bill for them to fix your problem and that's what they did. It doesn't matter what you later found out the cost was. You wanted your problem fixed and agreed to pay for it, that was your choice. They aren't forcing you to buy, you chose to. That's business, you shouldn't have had them do it then. Lets think about this no one else could get your problem fixed the same day but they did, they paid for parts, and labor for an employee on a Saturday afternoon…sounds to me like you got what you paid for quick service that fixed your problem that no one else could do as quickly.

      • guest

        Ryan is right, it's not like Mister Quik is a one man shop. You could get people that would charge more you could get people that would charge less. Was your problem solved once they were done? And they were the only one that could get to you that day. And your insurance paid for it too huh? it sounds like they completed all the work they said they would do, and at a price you agreed to prior to them starting the work I suppose? Some people you just can't please. I have had quotes from Mr. Quik some times they were higher some times they were lower. but the work i had them do was good and I have no regret about using them.

  • Someone

    Yeah he is quite a scam artist. I hope he is caught. If anyone sees a white van with an eagle in the back window, that is his van and he is wanted in several towns. Please turn him in. I am facing a felony charge for something I had nothing to do with. I didn't even have access to cashing any checks. What's worse is I am just now finding out that he made his own bank stamp to go ahead and get the checks cashed. He told the employees that we were ok and just a little behind and then he ran off. I hear he has another company started up. DO NOT GIVE A CHECK TO RICHARD MOGHADAM NOR JENNIFER COLLIER

  • former

    actually i worked for the company too, doing service. we weren't in the office. he just gave us line after line of bullshit and i stopped showing up after he wouldn't pay me.

  • jason

    The news fails to mention all details, yes mister quik is more expensive but a lot of the customers have used other contractors and the fix did not last. When asked why they do not call back that company they reply with, they can no longer reach the company or they will not fix it under warranty. With mister quik the price reflects a great warranty program, with panels its lifetime, while other new installs its 5 year. Parts do fail, things will go bad and no matter how many times that happens its fixed no charge no questions asked.

    • The other someone

      What happens when they take your money and dont do the work at all ? That isnt the parts fail that is your so called christian based company that failed

      • guest

        Well that would be a whole different issue. but the report never said anything about them not completing the work. Sounds like a case of buyers remorse to me.

      • carrie

        I am the person that was on the news im the one who got all this started they did take 4500 from me and bailed out then wouldnt answer the phone and when u did get a hold of someone they acted like they didnt know what was going on and said they had to call back and never do thats y jenny from fox 59 tried to contact them and she failed to they refused to talk and sent phone calls to voicemail they didnt even come start my house at all so maybe u might want to watch the news cast again before u get on here and dont know the facts

  • informed consumer

    We have been customers of Mr quik for several years and have always had responsive service and prices that came compared with other companies. And yes, we got other estimates for both jobs at our house and our business. We have referred a lot of friends and never heard anything but good outcomes. The company offers free estimates and good coupons. I've never felt pressured to pay for something and signed off on the charge before getting the work done. The media isn't telling the complete story but it wouldn't be exciting enough news if they did.

    • The other someone

      actually I was the one who got the story out to fox 59 news and they came to my house and they did look into it before they let it out to the media and no one could get in contact with richard or anybody at the company besides one worker and he said he didnt work there it wasnt his problem anymore. They took a lot of peoples money and didnt do the work and skipped out and didnt think twice about it and if it wasnt true why would they put on 59 news that they will have refunds for people and i havent seen a dime of my money back and several people hasnt either that is why charges are been brought up against them and good luck getting the warranty honored from them

      • The other someone

        Also I contacted his attorney on his web site and he couldnt get a straight answer from richard either hes the one who put together the paper for fox 59 for a response on refunds so before you get on here and say he has a good company shame on you for aging it on people need to know to watch out for them they are probably in Florida setting on the beach enjoying our money right now . I think you should just be glad he didnt get you to thats if your not part of the scam for all we know you can be richard on the other side of the computer u seem to be the only one to have stuff good to say about his company

  • News

    Reading Comprehension 101 the man is talking about the Mr. Quick Fix being a good company. Richard's company is a sham. The lawsuits going on right now prove it.

  • Fair and Balanced???

    I Find it interesting how bad the actual T.V. reporting was. It was completely one sided. Why did that guy call out mister quik in the first place? Was the issue repaired once they were done? If you look closely at that invoice on the news report it said that the panel was burning. Now if the Panel was actually starting to burn itself out there is a risk that it could be a fire hazard. I am curious as to how old the panel that was in there was. Was it on the fire hazard watch list. there are several Panels that are documented safety hazards. Or the Technician could have been blowing smoke out his hole and the home owner could be right. But the fact remains that Fox did an extremely poor job of reporting the facts. So much for Fair and Balanced.

  • Mr.Quik is Mr.Scam

    As a former employee of Mr Quik Electric, we were trained to use pressure sales and scare tactics to sell jobs to people and were "coached" if we left a call without a sell! People are getting scammed left and right and the ones that are completely happy, 1: really don't know what they need electrically or mechanically for their home because they are completely trusting the man in a fancy uniform and flashy van, 2: have the money to pay for the service so they don't have to deal with it themselves not realizing that they are getting overcharged greatly and sold things a lot of the time that they really don't need but lack the knowledge of mechanical functions in their homes and are too busy in their lives to check out what they are being told and just throw their money at them to do it for them. You can get the same quality from "Average Joe Electric" for one third the price and no pressure or scams to buy things you don't really need. We were told and taught selling techniques and phrasing to sell products to homeowners that basically played the "Fear" card. One of their favorites is "Great Fire Potential!" It's also pretty ironic that the Owners are avid church goers and profess to be active Christians. From what I studied and read in the bible, that's not how you do business nor how you treat your fellow human beings…by scaring them and pressuring them into doing as you wish…for Your Own Profit! I say go back through all of their records and invoices and interview all of those poor people that were made to feel like their houses were going to burn down if they didn't let them fix it right then. Knowing that if the customer has time to make a few calls for someone else to get a second or third opinion and estimate, they would lose the sell. Pressure them and make them think that there isn't a second to lose…"I wouldn't let my family spend another night in the house without it being fixed"…another phrase they taught. So, let them pay for their wrong doing. Homeowners do your research before you commit to sales and services! If the say, " You Need It Right This Minute", or your house and family are at risk, It really means, "I Want Your Money Right This Minute!" It's your Home, Do your own Homework!

  • myidzmom

    The state should sue all contractors when it is proven that the homeowners claims are valid. RUSSELL and PATRICIA VAUGHN bought their way out

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