Follow this link for the KVUE News report about Peter Stucky, a Williamson County homebuilder who agreed to a lifetime ban on building homes or working in the homebuilding industry. Duane Waddill, executive director of the TRCC (Texas Residential Construction Commission), happily took credit for protecting Jarrell homeowners and will surely use this case as an example of “the good work TRCC is doing.” But the story doesn’t end there. Waddill wants to appear like he’s helping these homeowners because his job is on the line. He needs examples of his agency providing public benefits. As far as we know, however, this is the first time the TRCC has banned anyone from building in Texas. The ban wasn’t even a TRCC enforcement order. Stucky was indicted on 37 felony charges ranging from fraud to theft of services and perjury. He faced criminal charges and a sentence up to 20 years in prison, so his attorney cut a deal to get judicial leniency. During a mandatory sunset review, a Sunset Commission Staff Report recommended abolishing his agency, saying it was ineffective and doing more harm than good. A 2006 report by Texas Comptroller Carole Keyton Strayhorn said this “builder protection agency” should be blasted off the bureaucratic books. Both reports are posted at www.homeownersoftexas.org/TRCC-Reports.html, along with a list of people providing overwhelming public testimony against the agency. The TRCC portrays itself as helping homeowners, but the staff report, Strayhorn report, and overwhelming public testimony say otherwise. KVUE described the TRCC as “the state agency which licenses home builders and remodelers.” That misleading information almost certainly came Waddill. The TRCC does NOT license builders and remodelers; it only “registers” them. The agency lacks the regulatory enforcement authority that licensing would provide. That’s why Homeowners of Texas has introduced a bill to abolish the TRCC and replace registration with licensing under a different agency: the Texas Department of Licensing and Regulation. KVUE also misled viewers by saying the homeowners still have liens on their homes from unpaid subcontractors and that the liens would be satisfied once the home is sold. What they SHOULD have said is those subcontractors could legally foreclose on the property and would not get paid unless they did so. Because Stucky filed for bankruptcy protection, legal judgments could result in homeowners only receiving pennies on the dollar from what is owed them. Courts may not be able to touch Stucky’s 61-acre ranch worth $1.8 million. Additional stories on this topic follow. 10:22 PM CST on Wednesday, February 18, 2009
Peter Stucky, 53, was indicted Wednesday by a Williamson County grand jury on 37-counts ranging from fraud to deception and theft of service. Stucky has also been banned from building homes in Texas for life by the Texas Residential Construction Commission (T.R.C.C.), the state agency which licenses home builders and remodelers. [ HOT: Texas does not license homebuilders; it just “registers” them.] "I don't want anybody in Texas to have to go through what these homeowners have gone through" said Duane Waddill, the executive director of the T.R.C.C. At least 22 homeowners listed in the indictments from Jarrell, Georgetown and Taylor say that they received notices from sub-contractors saying there were liens against their homes and that some of them owed $8,000. "Scared me to death! I went immediately to the lumber company and I said I don't know you, I've never been in here, why do you say I owe you money?" asked Bill Frazier, a Jarrell homeowner living in the Sonterra subdivision where Stucky built 168 homes. The Sonterra Neighborhood Association complained about the liens to the Williamson County District Attorney and to state agencies looking for help. The title company's insurance is expected to pick up the tab on those liens. However, unpaid subcontractors will only see the money the're owed when the houses in question are resold. As of Wednesday evening Peter Stucky was not in custody and his attorney didn't return our call. Builder Banned for Lifehttp://www.myfoxaustin.com/dpp/news/7_on_your_side/ Pete Stucky can build no more in the
lone star state. The Texas Residential Construction
Commission approved the ban against Stucky and his
business Affiliates LLC. Since last year 7 On Your Side followed Stucky's story. Ever since homeowners in Williamson County told us how many of their houses faced liens because sub-contractors said Stucky left them with bills he could not pay. Neighbors filed complaints with the TRCC. The state could have made Stucky take the stand. “Mister Stucky wanted to avoid that hearing,” said Waddill. “He didn't want to have to come testify, and to avoid that testimony and to avoid being on the stand, we were determined that he was going to agree to something greater that just a revocation to get out of the business. And he did.” “It is unusual,” said Paulo Flores, Chairman of the TRCC. “I'm pretty sure this is the first time we've faced, where someone came to us and agreed to a lifetime ban.” We called Stucky who claimed to not know anything about the ban and said if lawyers worked it out that was their business. He refused to comment any further. But on the order his attorney signed on behalf of Stucky and affiliates. According to the TRCC this lifetime building ban is not only a first for Texas, but possibly a first for any state in the country. Stucky's legal troubles are far from
over. He was arrested late last year on misdemeanor
perjury charges accused of signing legal documents saying
there were no unpaid debts on several houses he
built. A 20 year building ban issued to a Travis County builder was the closest to ever come to a lifetime ban. Builder barred from industryby Fred
Afflerbach | Business
Writer, Temple Daily Telegram,
2/13/2009 A state commission on Wednesday banned Jarrell homebuilder Pete Stucky from working in the residential construction industry for his lifetime. The Texas Residential Construction Commission said Stucky and his affiliates victimized dozens of homeowners when he failed to make repairs that were under warranty and hid the fact some properties he built and sold had liens against them. This is the first time the commission has banned anyone for life. The president of a homeowners’ association in the community where Stucky built dozens of homes says this story is much deeper. Bill Gravell, president of Sonterra Homeowners Association, said Stucky, 53, is avoiding debtors by filing bankruptcy while living in a $1.8 million, 61-acre estate complete with horses and racetrack. Meanwhile, the contractors who built the homes and the people who bought them are left out in the cold. “It’s rags to riches, on the backs of first-time homeowners … and on the backs of small business owners,” Gravell said. “That to me is the tragedy.” The unpaid contractors have taken big hits, or gone out of business, and filed liens against Stucky and his company. But it’s the homeowners who are now saddled with those liens. And folks who bought Stucky’s homes who have warranty problems have nowhere to go for redress. Senior citizen Chuck Ford’s home came with doors that wouldn’t properly shut, cabinets that looked like they’d been cut with a chainsaw, and a dryer vent that leaked hot air between walls. Ford said a foreman showed up and told him: “If we wanted anything corrected we’d have to pay more money. At that point I knew I had a problem.” Ford paid for some repairs himself, but others remain unfinished. He said estimates for needed repairs reached $9,000. Last October, Stucky signed a 50-page bankruptcy document in Waco federal court that shows liabilities of $1 million. Large and small contractors are listed. Stucky referred comment to Bruce Burleson, his Belton attorney. Burleson said Stucky was bankrupt, out of business, and had already surrendered his license. He would not comment further. [ HOT: Texas does not license homebuilders; it just “registers” them.] Association president Gravell has followed Stucky’s business dealings for about two and a half years. They met when Stucky was living in modest rental housing working for the Sonterra development. Today, his 61-acre ranch on FM 487 near Florence is listed for sale at ranchinvestments.com for $1.79 million. Not long after Gravell started “raising a ruckus,” he said Stucky paid him a personal visit. “He said, ‘You’re playing in my sandbox. You’re upsetting people and things in my sandbox and you need to stop it.” Gravell recalled on Thursday. Leonardo Sierra, a framer living in Jarrell, said Stucky owes him about $50,000 for work performed. As a result, he stopped construction on the two-story home he’s building for his family of seven children. They remain in their mobile home. Roger Gallamore painted interiors, exteriors and did trim work for Stucky’s company. He said the $13,000 in unpaid invoices has been disheartening and devastating to his family. “We’re the ones that can’t afford to take the beating. It’s crippled a lot of us financially,” Gallamore said. And the homeowners who carry those liens face a dilemma if they want to sell - pay the liens, or try to work out something with the title company. According to the TRCC, Stucky built homes in Taylor, Jarrell and the Belton area. Prices ranged from $80,000 to about $180,000 An Austin TV station reported Williamson County sheriff’s officers arrested Stucky for perjury last fall and he could go before a grand jury within a couple weeks. “We are encouraged and only believe this is the beginning of his end,” Gravell said. Central Texas homebuilder accused of not paying bills, defrauding homeowners
http://www.statesman.com Peter Stucky was indicted by a grand jury on 37 federal counts, including theft of service. By Miguel Liscano, AMERICAN-STATESMAN STAFF, 2/19/2009 A Williamson County grand jury has indicted a Central Texas homebuilder on 37 felony counts that, in part, accuse him of selling homes without paying about $200,000 for construction services from numerous subcontractors. Peter Stucky, 53, was indicted on one count of theft of service, 21 counts of securing execution of a document by deception and 15 counts of misapplication of trust funds. The charges range from a state jail felony, punishable by up to two years in state jail, to a second-degree felony, which carries a maximum of 20 years in prison. He was also recently charged with six counts of perjury, a Class A misdemeanor punishable by a year in jail. "It's good that somebody's trying to make him own up to this," said Gary Smith, a subcontractor who says he is owed money. "It ain't fair to treat people the way he did." Williamson County District Attorney John Bradley said state District Judge Burt Carnes is expected to issue an arrest warrant for Stucky in the next few days. An attorney for Stucky could not be reached for comment. The indictment concerns 28 homes built in the Mallard subdivision in Taylor and the Sonterra subdivision in Jarrell, Williamson County sheriff's Detective Wade Knutson said. The charges come one week after the Texas Residential Construction Commission permanently barred Stucky and his company Affiliates LLC from working in the construction industry in Texas. It was the first lifetime ban the commission has issued, it said. "We've been working in concert with the county, with the criminal law enforcement authorities out there," commission Executive Director Duane Waddill said. "I am certainly pleased with their actions." Waddill said he started receiving complaints from residents in the Sonterra subdivision last year about liens filed on homes built by Stucky. He found that Stucky had been signing affidavits that said all bills for work done on the homes had been paid. But in some cases, the bills hadn't been paid, and a lien was placed on the homes by a subcontractor. Signing the affidavits led to the misdemeanor perjury charges, Knutson said. "I should not have to pay for the construction materials to build this house," said Karen Carter, who had an $8,000 lien placed on her home by a lumber company. "It should have already been done." The liens, which add up to about $200,000, were filed by more than a dozen subcontractors, including Jarrell-based Gary Smith Heating & Air, according to the indictment. Smith said that he worked on about 160 homes with Stucky and stopped getting paid last summer. "Whenever somebody has their business phone cut off and you can't get a hold of anybody, you know what's going on," Smith said. He said he thinks he will get some of the money he is owed, but he does not know how much. "I don't know what's in the works from here on out," he said. "It's waiting and seeing at this point." mliscano@statesman.com; 246-1150 Additional material from staff writer David C. Doolittle. Inspection fees waived for home complaints
By
Philip
Jankowski, Taylor Daily
Press, 9/4/2008
The Texas Residential Construction Commission will likely waive all inspection fees incurred on homes built by Affiliates LLC and First Home.
Commission Executive Director Duane Waddill made the announcement during a packed meeting at the Sonterra development in Jarrell to homeowners from Taylor, Jarrell and Belton.
Scores of homeowners raised their hands when asked whether the $250 fee for an independent investigation was prohibiting them from filing complaints.
“Because of the size and the scope of this, we will be waiving all [inspection] fees, I can tell you right now,” Waddill said.
He provided further advice to the audience of more than 150 on how to pursue complaints of shoddy construction by First Home and Affiliates LLC as well as how to participate with ongoing investigations being conducted by the Williamson County Sheriff’s Office and Taylor Police Department.
The basic message was to send any and all documentation of correspondence with Pete Stucky, owner of Affiliates LLC and First Home, to the TRCC. Criminal investigators are especially interested in homeowner’s closing paperwork because of signed affidavits indicating that all contractors had been paid.
More than 150 lien claims, totaling $426,612, have been filed by unpaid contractors on homes built by Pete Stucky. As much as $410,000 in additional liens could potentially be filed, Pastor Bill Gravel Jr., president of the Sonterra HOA said.
Waddill and the audience set a loose deadline for Friday to get all paperwork to the TRCC, hoping to accelerate the complaint process.
On hand at the meeting were investigators from Taylor PD and the sheriff’s department as well as lawyers representing the Sonterra Homeowners Association, the Sonterra Municipal Utility District and TRCC. Gravel led the meeting, making sure it did not deteriorate into attacks on Stucky.
Gravel shared some of the more sordid stories surrounding homes built by Stucky, including one involving Karen Carter, a wheelchair-bound woman who purchased a house from First Home in Jarrell. Carter bought her home under the condition that her doorways would be widened for her wheelchair. However, after purchasing the home, she was told altering her doorways would void her warranty.
“When I first met Karen, she was crying because she had tried to stand up twice before she crawled into her bathroom,” Gravel said.
As the meeting went on, several homeowners shared their woes with TRCC Executive Director Waddill. Stories of cracked walls, faulty foundations, unstable fences and bad sodding pervaded the questions.
Waddill urged all homeowners to make necessary repairs. If the TRCC finds in their favor, money spent on renovations will be reimbursed, he said. [HOW? Stucky has filed for bankruptcy protection.]
“We want you to make your house as livable as possible,” Waddill said. Stucky did not attend the meeting, though his legal representation was present.
Affiliates LLC intends to file bankruptcy in the coming weeks, Stucky’s lawyer Bruce Burleson said, which could lead to several unpaid contractors being left out to dry until the house is resold.
Waddill said bankruptcy judges tend to pay off homeowners first in these circumstances.
The possibility of repairs not being reimbursed irked several attendees after being shown an aerial photos of Stucky’s ranch in Florence. The multi-acre facility contains a private horse racing track, a large home, stables, a barn, a mock up of an old western town and a five-car garage.
“He could sell one of those horses and pay off a bunch of bills,” a homeowner wishing to remain unidentified said.
Burleson characterized the collapse of First Home and Alliance LLC as a consequence of Mallard Park developer Kallison abruptly stopping all transactions with Stucky. Stucky had arranged to build on lots prior to purchasing the land from Kallison. He had built more than 100 homes when Kallison suddenly stopped signing over the land, leaving homes built by Stucky unpaid for.
“It caused a domino effect that led to us not being able to pay suppliers,” Burleson said.
Taylor homeowner Amantha Saverse said her house had about six inches of rebar sticking out of the side of the foundation. She had reservations about purchasing the home after it was built in less than 30 days, but the $100 move-in price tag was too good to balk at.
“I had a bad feeling from the start,” Saverse said. “It was too good to be true.”
Dan Gattis Jr., who represents Sonterra HOA and Sonterra MUD, said there are several ongoing lawsuits between Stucky and Sonterra. “It’s literally the biggest mess I’ve ever seen,” Gattis said.
KXAN News (and reports from other media outlets) Source: www.txcn.com/sharedcontent/dws/txcn/austin/stories/021809kvuefraud-bkm.2cbf0984.html
TRCC issues its first
lifetime ban to builder
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