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The state attorney general's order that Lanham homebuilder Derek A. McDaniels pay more than $500,000 in restitution, fees and penalties for violating Maryland's Custom Home Protection Act marks the fifth major action the office has taken against homebuilders in the last year.

The Consumer Protection Division found McDaniels and his company, McDaniels Homes, guilty Friday of violating Maryland's Custom Home Protection Act and New Home Deposit Act by failing to place or maintain money paid by consumers into an escrow account or having a sufficient surety bond to cover the deposits and payments made. The state had already revoked McDaniels' license in 2008, following 13 complaints against the builder and 15 civil lawsuits.

McDaniels had built new and custom homes in Mitchellville, Bowie, Easton and Calvert County since 2001.

He was ordered to pay more than $448,830 to consumers and $87,000 in penalties.

Neither McDaniels nor anyone else affiliated with McDaniels Homes could immediately be reached for comment. Ronald Cherry, a Towson lawyer who represented McDaniels for part of the proceedings, declined to comment, but said Monday that he had sent McDaniels a copy of the order.

In July, the office took action against two other companies.

Arch Insurance of New York was ordered to pay $460,000 in consumer claims for providing bonding to a Virginia homebuilder that accepted deposits from consumers and never built their homes or refunded their money.

The Court of Special Appeals also upheld the state attorney general's order for John P. Seisman and his Modular Home Express of Crofton to pay $809,000 in penalties for selling modular homes without being registered as a homebuilder.

Richard E. Deise Jr. of Deise Custom Homes of Forest Hill and Jacquelyn Willis of Home at Last of Upper Marlboro also were required this year to pay more than $500,000 each for violations similar to McDaniels'.

In July 2009, the Consumer Protection Division settled on 30 homebuilder cases, totaling $22,000 in penalties. Most of the investigations came from the Prince George's, Baltimore and Washington counties areas.

"We have not discussed a clear pattern," said Steve Ruckman, spokesman for the attorney general's office.

He said lower demand for new homes and financial conditions of builders could be contributing to the violations.

"Those that have been struggling are more likely to be involved in this situation," Ruckman said.

Assistant Attorney General Jeston Hamer Jr., who prosecuted the McDaniels case, confirmed that at least 20 families filed complaints alleging McDaniels took tens of thousands of dollars in deposits and other payments but then failed to finish — or begin — construction.

Staff Writer Zoe Tillman contributed to this report.

lrobbins@gazette.net