JEFFERSON CITY — Missouri Attorney General Andrew Bailey announced today a court ruling that will return over $131,000 to homeowners in Clay County after a contractor failed to provide promised home repairs.
In addition to the restitution, Cory Richards, the contractor, has been ordered to pay more than $17,000 in civil penalties.
The judgment marks a significant victory for the state's efforts to protect consumers from fraud.
Richards had collected more than $100,000 in upfront payments from 17 different homeowners, with the promise of performing renovations and repairs.
However, the work he delivered was either never completed or was of poor quality. His failure to meet contractual obligations violated Missouri law, according to the Attorney General’s office.
"As Attorney General, I will always fight to protect Missouri consumers," Bailey said in a provided statement. "My Consumer Protection team thoroughly investigates complaints of fraud and takes swift action to obtain justice for Missourians who have been ripped off. Our aim is not only to hold bad actors accountable but to deliver full restitution to all affected."
The court ordered Richards to repay the full amount of $131,022 to the homeowners, compensating them for the funds they lost in the fraudulent scheme, according to the Oct. 8 final judgment filed in Clay County Circuit Court.
Additionally, Richards is prohibited from advertising, selling or providing home repair and remodeling services in Missouri.
The ruling also bars him from operating or owning any business in which he controls customer funds, effectively preventing him from engaging in similar deceptive practices in the future.
"This case comes before the Court following an interlocutory partial default judgment, as well as a bench trial on damages," Clay Circuit Court Judge Timothy J. Flook wrote. "Having considered the evidence adduced at trial, the Court hereby makes the interlocutory partial default judgment of September 26, 2024, final and finds that the evidence presented in at the trial on damages set forth evidence supporting an award of restitution, penalties and injunctive relief against Defendant."
The case highlights the state’s commitment to consumer protection and cracking down on fraudulent contractors who exploit homeowners.
Flook ordered Richards to pay $17,000 to the state, which is $1,000 per consumer. He was also ordered to pay 10% of the restitution, or $13,102.20 to Missouri to the credit of the Merchandising Practices Revolving Fund.
Flook ruled in favor of the state, finding that Richards was deceptive in connection with the sale of general contracting services and false promises. He ruled that Richards' unfair practices breached state law.
The Attorney General’s Office encourages Missouri residents who believe they have been victims of scams to come forward.
"Consumers who feel they have been scammed by contractors or other service providers should not hesitate to contact my office," Bailey said. "We are here to ensure that those who violate Missouri law are held accountable."
The judgment against Richards serves as a warning to other contractors that fraudulent business practices will not be tolerated, Bailey said.
Clay County Circuit Court case number: 23CY-CV00028