Columbus Dispatch
Homeowners file third lawsuit against Dominion
By Jill Riepenhoff
The Columbus Dispatch
Friday, February 24, 2006
Disgruntled home buyers filed a third class action lawsuit this week against builder Dominion Homes.
In the latest civil action, the homeowners accuse top executives including chief executive officer Douglas G. Borror and his brother, David, of offering them charity down-payment grants that give the illusion that buyers are getting something for nothing. David Borror is corporate executive vice president.
The grants, obtained by Dominion through the nonprofit Nehemiah Corp. of America, were wrapped into house prices.
"This case is about the gift that keeps on taking," says the lawsuit filed yesterday in U.S. District Court.
The Borrors and other executives conducted company business through a "pattern of fraud, false certifications and similar criminal acts which mislead, defraud and cheat home buyers," the lawsuit says.
The suit was filed by Amy and Scott Rudawsky and Michelle and Jeff Beard, homeowners in the Village at Polaris Park in southern Delaware County near the Polaris Fashion Place.
Those two couples also filed a lawsuit against Dominion in federal court on Tuesday for secretly converting their Federal Housing Administration loans into subprime mortgages generally given to borrowers' with poor credit.
Two other couples, who live in subdivisions on the Far West Side, filed a class-action lawsuit on Tuesday claiming that Dominion inflated house prices to recoup financing incentives, including down-payment grants. The suit was filed in Franklin County Common Pleas Court.
"We believe that the lawsuits are without merit and we will defend ourselves vigorously," senior vice president Thomas L. Hart said today in a written statement. "Recent media coverage has mischaracterized our efforts, and we are eager to set the record straight in the court of law, where everything is documented on the public record."
The lawsuits could affect thousands of buyers who financed their houses through Dominion Homes Financial Services.
The company's business practices also are under investigation by the Ohio Attorney General's office and the U.S. Department of Housing and Urban Development. Dominion's default rate on government-backed loans is twice the state and national average.
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