Attorney General’s Office conducts civil inquiry into possible ‘scheme’ bilking new homeowners for repairs

Attorney General James Uthmeier’s Office has been conducting a civil inquiry into two entities that his Office says could be violating Florida’s Racketeer Influenced and Corrupt Organization (RICO) laws.

Deputy Attorney General for Civil Enforcement Jason Hilborn sent two letters this month to KIS Consulting in Jacksonville, a firm that specializes in stucco amenities and additions to homes, and the Florin Roebig law firm in Palm Harbor.

Hilborn raised questions about “an alleged scheme” dating back to 2023 where KIS representatives went to neighborhoods across Florida and advised residents they can get compensation for any defects in their new homes.

“KIS goes door-to-door in newly constructed neighborhoods with the aim of pursuing construction defect claims related to stucco. KIS asserts to homeowners that engineering reports have identified defects in the builder’s installation methods,” Hilborn’s letter states.

The letter goes on to say KIS officials then turn over claims to the law firm. Lawyers ask for typical settlements with various home developers totaling about $100,000 for repairs. When the case is settled, homeowners usually end up with only about $8,000 to $10,000 after fees and administrative costs.

“This leaves the homeowner with a fraction of the alleged repair costs for the home. Most troubling, no repairs have actually been made, and the homeowner is left with a defect claim on their property with limited resources to repair the alleged defect,” Hilborn said.

Jeremy Redfern, Deputy Chief of Staff for Uthmeier’s Office, said both the law firm and stucco company have until Friday to respond to the inquiry. He said KIS has engaged in some discussions, but the Attorney General’s Office has not heard from Florin Roebig representatives.

“We see this as predatory and going out and making these big promises,” Redfern said, noting that the case involves no criminal allegations thus far. “RICO can be very serious and it comes with a lot of (civil) penalties.”

He added that the Attorney General’s Office is expecting a full explanation or they will proceed with civil litigation against both entities.

“We’re ready to start the actual legitimate investigation if we don’t hear from everybody and our concerns aren’t addressed by Friday,” Redfern said.