Hathaway Homes

Prefabricated homes and RVs are seen on the Hathaway Homes’ lot on Dec. 6. John Roark/jroark@postregister.com

(Boise) - Attorney General 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. Judgments entered this week in Fremont County District Court restrict Hathaway Homes and Hathaway from doing business in Idaho.

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.

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