“Attorney General (AG) Lawrence Wasden has announced the conclusion of a consumer protection lawsuit against manufactured home retailer Hathaway Homes Group, LLC, and its former owner, Paul J. Hathaway,” the Idaho AG’s Office told the Daily Business News on MHProNews. “Judgments entered…in Fremont County District Court restrict Hathaway Homes and Hathaway from doing business in Idaho.”
Reporting on the same case, “More than a dozen former customers told the Post Register in recent years they were treated unfairly by Hathaway Homes Group. They said Hathaway cheated them in one way or another.” Hathaway declined comment.
According to the Idaho State Journal:
- “Hathaway Homes Group and All Terrain LLC (another company that Hathaway owned) and Hathaway himself are undergoing Chapter 7 bankruptcy liquidation.
- Recent court documents show continued liquidation efforts. Wells Fargo moved to repossess Hathaway’s office in St. Anthony. And auctions are being held for property that Hathaway owned through his businesses.
- The liquidations are attempting to repay the millions of dollars of debts that Hathaway owes to his former creditors, the largest of which (about $3.8 million) is owed to TAG Lending in Utah.
- According to an April 2018 court disclosure document, creditors had unsecured claims against Hathaway and his businesses totaling more than $8.2 million.”
Here is the balance of the media statement, continued from the above, from the Idaho AG’s office.
On March 29, 2019, Hathaway signed a settlement agreement with the Office of the Attorney General. The settlement and final judgment were filed for the court’s approval on April 9. Once approved and the final judgment signed, starting May 1, Hathaway will be prohibited from:
- advertising or selling new or used manufactured homes to Idaho consumers or misrepresenting his authorization to do so; and
- advertising or selling new or used manufactured homes from within Idaho, unless he’s properly licensed and works under a state-licensed business entity.
“The financial and emotional toll Mr. Hathaway’s alleged fraudulent actions have had on consumers cannot be quantified,” Wasden said. “While the conclusion of this case does not restore what consumers lost, it is intended to prevent Mr. Hathaway from causing others similar harm in the future.”
The Attorney General’s Consumer Protection Division started its investigation in early 2017. Hathaway customers reported hundreds of thousands of dollars in losses. Customers alleged that Hathaway Homes accepted their down payments for new, unbuilt manufactured and modular homes that were never ordered from manufacturers. Customers also alleged Hathaway misrepresented the conditions of his used homes and failed to perform the warranty work on his installed homes.
Wasden filed a lawsuit against Hathaway Homes and Hathaway under the Idaho Consumer Protection Act in September 2018. Hathaway Homes, which was under the control of a bankruptcy trustee, did not appear in the case, and a default judgment was entered on April 2, 2019. The default judgment prohibits Hathaway Homes from doing business in Idaho except to the extent necessary to complete the bankruptcy matter.
Wasden’s office will monitor Hathaway’s future business activities. Anyone who observes Hathaway violating the settlement may file a complaint with the office.
A prior report by MHProNews on this case can be accessed via the linked text-image box below.
This isn’t the only legal issue brewing in MHVille. MHProNews has been notified about allegations involving a major Manufactured Housing Institute (MHI) member. We’re providing that firm an opportunity to respond, before we proceed with a report.
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