Missouri takes action against KC real estate firm Tri-State Holdings-32

The Missouri attorney general’s office has issued a temporary restraining order against a Kansas City real estate company for allegedly running an illegal house-flipping business that victimized mostly low-income buyers.

The order was issued against Tri-State Holdings-32 LLC. Its principal owner, Brandon Miller, could not be reached for comment.

The Missouri attorney general’s office said it had identified at least 22 consumers who had purchased homes from Tri-State and had reported losses totaling about $35,000.

A lawsuit filed in Jackson County Circuit Court said Tri-State bought homes at delinquent tax auctions and offered to renovate them, resolve back taxes and transfer the properties to new owners for an upfront payment of $500 plus additional payments of $399 per month.

The average price of the homes offered for sale was in the $30,000 to $40,000 range.

The attorney general’s office alleged Tri-State failed to complete renovations and, in some cases, back taxes were not resolved. The state also alleged the company sought to evict consumers for failure to pay on houses that the company had not renovated to make habitable.

Also named as a defendant in the suit is Tony Caldwell, who allegedly created advertisements for Tri-Sate and Miller. He could not be reached for comment.

The state’s restraining order prohibits Tri-State from marketing or selling homes, evicting consumers from homes or removing personal property. The state is also seeking a permanent injunction and restitution.

This story was originally published March 19, 2015 at 3:21 PM with the headline "Missouri takes action against KC real estate firm Tri-State Holdings-32."