MOLD REMEDIATOR’S ASSETS FROZEN

Texas Attorney General John Cornyn filed suit in Houston against Mold Restoration Inc., a mold remediation company, to stop alleged
practices that have left many homeowners with unfinished restoration and increased damage to their houses. Although MRI was hired to provide services meant to correct severe household mold problems, the AG’s office contends that many affected Houston-area
residents have reported problems afterwards that are worse than those the company promised to clean up. Based on a lawsuit filed by Cornyn’s office, Harris County District Court Judge John Donovan granted a temporary restraining order freezing assets of MRI’s owners Richard L. and Robert M. Steffan. The order also restricts the use of MRI’s corporate funds. Cornyn alleges the company, with offices in Houston and Cedar Park near Austin, made false promises and engaged in fraudulent restoration work that caused structural harm to many residences. Their activities caused financial hardship to homeowners and to insurance companies that pay out large sums of money on these claims, the suit alleges. The AG also claims that instead of using insurance proceeds to rid homes of mold, the two owners lavishly spent consumers’ insurance funds for their personal uses. The alleged extravagances included furnishings for a home in Lakeway on Lake Travis near Austin, and repairs and provisions for
two luxury boats, plus expenses related to travel, boat parties, club memberships, liquor, speeding tickets, medical costs, trailer storage, skiing supplies and more. The asset freeze prohibits MRI and the Steffans from removing, transferring or concealing stocks, bonds, insurance policies, safe deposit boxes or trust agreements; or selling
real estate assets and recreational or other personal vehicles without prior court approval.