PR-09-04 -- PSC Directs Dealer to Leave Business and Pay Large Penalty

Contact: Kevin Kelly (573) 751-9300
FOR IMMEDIATE RELEASE -- JULY 3, 2008
JEFFERSON CITY---The Missouri Public Service Commission has placed Amega Sales, Inc. (Amega) on two years probation and owner Greg DeLine must give up his role in the day-to-day operations of the business under an agreement approved by the PSC.  In addition, Amega will pay a $50,000 penalty to the public school fund---the largest known penalty ever imposed by the Missouri Public Service Commission on a Missouri manufactured home dealer.  The commission’s vote was 4-1.
Amega will also be required, under the agreement approved by the PSC, to repair and bring into code compliance all existing inventory that is damaged.  Amega Sales and its owner must also establish an irrevocable letter of credit of approximately $70,000 to ensure any future claims from customers are addressed.  Amega must also buy back from a consumer, a manufactured home that was allegedly not the home that was ordered by the consumer.
Under the terms of the agreement, owner Greg DeLine will be required to resign any position as officer, director, manager or employee of any of Amega’s operations by December 31, 2008.  In addition, he is to divest, sell or transfer at least 60% of his ownership in Amega Holdings, Inc., and thereby at least 60% interest in Amega by December 31, 2008.  After that date, neither DeLine nor any other family member is to own more than 40% of Amega’s stock.
The agreement approved by the Public Service Commission, resolves issues in a complaint brought against Amega Sales, Inc. by the Director of the PSC’s Manufactured Housing and Modular Units Program.  The complaint alleged housing code violations.  Specifically, the complaint alleged that Amega sold or tried to sell damaged manufactured homes that did not meet the applicable federal Housing and Urban Development (HUD) code.  The complaint included three damaged homes that were allegedly sold by Amega’s Quality Preowned Homes and Columbia Discount Homes dealerships in Columbia, Missouri.
Amega Sales, Inc. is a manufactured home dealer operating five lots in Missouri under the names of Amega Sales, Inc., Quality Preowned Homes, Columbia Discount Homes, Mark Twain Mobile Home Sales, and Chateau Homes.

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Case No. MC-2008-0071
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