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A luxury homebuilder currently under indictment is now reportedly facing at least three lawsuits from clients who allege the builder sold them homes with defective plumbing, cracked walls and pest infestations.


According to court documents, homeowners are suing Roy Gabbay and his company, RG Homes, for breach of contract and violations of the Texas Deceptive Trade Practices Act.

In a lawsuit filed last December, homeowners Paul and Mary Ann Smith sued RG for breach of contract; the following month, Lance and Kathy LaFleur sued RG claiming their home showed poor workmanship, and alleging further how the builder engaged in fraud and negligence.

A related lawsuit brought by RG homeowners Joseph Martinez and Rikki Rock-Martinez against John Daugherty, Realtors and two of its agents alleges the agents colluded with RG Homes to ensure they could receive a $108,000 commission on the sale.

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The three lawsuits in recent months are just a few of the complaints RG Homes buyers voiced over the years:

Numerous buyers claimed their RG homes come problems ranging from mold in the walls, cracks in the concrete, leaks in the pipes and pests, such as roaches and rats.

Many of these buyers also sued RG and Gabbay, while others agreed to arbitration.

Last month, a Harris County grand jury reportedly indicted Gabbay for falsifying data on a government document claiming a home he built passed inspection.

Unlike most complaints regarding builders, which are typically brought by the individual homeowners, the charges came filed by the Bellaire Police Department, eventually taken up by assistant district attorney Valerie Turner, head of the office’s consumer fraud division.

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RG Homes may be known to locals for building homes in the $1.2-$1.8 million range in some of Houston’s more well-to-do neighborhoods; however, area officials are reportedly coming down on the builder, including recently halting a project in Bellaire for failure to provide valid insurance and registration.

This is a shoddily-developing story.

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