Builder Cheated All Around, Manager Says

GALVESTON (CN) - After Hurricanes Katrina and Rita, Meritage Homes built defective homes in the Rain Song development in Texas City, falsified inspection reports to defraud buyers, state agencies, insurers and lenders, and fired a construction manager who tried to fix the defects, Robert Halloway claims in Galveston County Court. He says Meritage built the homes under its assumed name, Legacy Homes, and fired him because it wanted to sell the defective homes for a quick profit from the hurricane victims' insurance money.

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