Delaware sues Ryan Homes, alleges consumer fraud

Delaware officials today sued the owner of Ryan Homes, a Herndon, Va.-based building company with upscale home developments in South Jersey, Chester County and other East Coast markets, alleging it took thousands of dollars from homeowners in a southern New Castle County development for projects "that were never built."

"We have no comment," said Dan Malzahn, spokesman for Ryan owner NVR Inc.

From Delaware's statement: "Attorney General Beau Biden announced today that his office has filed a 39-count consumer fraud lawsuit against NVR, Inc., which does business under the name 'Ryan Homes.' 

"Ryan Homes built several sections of homes in the Odessa National development, in Townsend, Delaware, where the alleged fraud took place.  The civil suit, filed today in New Castle County Superior Court, seeks civil penalties of $10,000 for each violation of Delaware's Consumer Fraud Act, restitution for 39 home buyer victims, punitive damages, and investigative costs.

"The lawsuit alleges multiple misrepresentations in the sales of homes, including promises of amenities that were never built, mischaracterization of mandatory golf course fees as homeowners association fees, telling buyers that mandatory golf course fees were for the construction of promised amenities, failing to identify the existence of additional fees which were maintenance fees, withholding information about deed restrictions," and "telling some buyers that they could "opt out" of certain mandatory fee obligations...  Buyers purchased homes with more fees and restrictions and fewer amenities than Ryan Homes had promised."