MHD Announcement: Force Nets Three Arrests in Unlicensed Sales Sting

The Manufactured Housing Division (“MHD”), in combined efforts with the Montgomery County Sheriff’s Office (“MCSO”) conducted an undercover operation at 21180 U.S. 59 South, New Caney, Texas, known as Factory Direct Homes.

The MHD contacted the MCSO requesting assistance in pursuing charges against the business owner and sales employees of Factory Direct Homes for selling manufactured homes without a license, a Class B Misdemeanor under section 1201.609 of the Texas Occupations Code. An investigation had been previously initiated by the MHD after a number of complaints had been filed against Factory Direct Homes for questionable business practices. The complaints lead to the owner’s retailer’s license renewal being denied, which automatically suspended the two sales person’s licenses.

Since the invalidation of the licenses, the MHD continued to receive information that Factory Direct Homes remained in operation, even after having been fined $5,000.00 and advised that their license was invalid.

After MHD investigators met with the MCSO, a proactive operation called “Operation Doublewide”, was organized and implemented to determine if Factory Direct Homes was indeed operating and selling homes without the proper licensing. On June 4, 2008, undercover officers from the MCSO Burglary and Theft Division entered the sales office of Factory Direct Homes under the assumption that they were interested in buying manufactured homes. The undercover operation resulted in a sales transaction between the sales persons and undercover officers when the sales persons accepted money as a down payment for one of the manufactured homes.

All the information obtained previous to this operation as well as the sales transaction that occurred during the operation, lead to the issuance of a search warrant and the arrest of the business owner and the sales associates. All three suspects were arrested and charged with one (1) misdemeanor violation. The owner was also had two other felony arrest warrants for Securing Execution of Documents by Deception. As a result of the search warrant, numerous business records were seized. These business records will be analyzed by the MHD.

Arrested:

• Douglas James Birdsell, W/M, DOB, 03-02-65, Total Bond $ 35,500.00;
• Ronald M. Lee, W/M, DOB, 09-07-46, Bond $ 500.00;
• Horace Anthony Rickman, W/M, DOB, 06-10-53, Bond $ 500.00;