Harris County attorney sues home improvement company, alleging 'business model built on fraud'

HARRIS COUNTY, Texas (KTRK) -- The Harris County Attorney's Office has filed a lawsuit against Kitchen and Barh Décor (KBD) amid claims that the remodeling company is using a business model built entirely on fraud and scamming more than 100 people out of tens of thousands of dollars.

County Attorney Christian Menefee filed the lawsuit against Elias and Celeste Haddad and employee Jonathan Neil for allegedly scamming customers through fraudulent home renovation services and using "high-pressure sales tactics" to persuade them.

Menefee said customers tipped them off after they were allegedly ordered to pay up-front for renovations with cash or even loans. In some cases, according to the contract, KBD took the money and cut off contact with customers entirely, or when customers were provided, they repeatedly delayed the start date, used substandard materials, or left customers with partially demolished kitchens and bathrooms.

"This company built their entire business model on fraud. They promised big discounts if folks paid upfront, took their money, and then never delivered on the work. And for those that didn't have the money upfront, they pushed them to take out loans," Menefee said.

Now, the county is looking for a court order to stop KBD from continuing its practices.

While most customers probably won't be able to get their money back, Menefee is asking those who were victims to contact his office.