Settlement Reached in Bankruptcy of Maui’s Aloha Package Homes

File photo by Wendy Osher.

By Maui Now Staff

A settlement has been reached in a personal bankruptcy case filed by the Maui operator Mary Virginia Parsons of Aloha Package Homes, LLC, according to information released by the state Department of Commerce and Consumer Affairs.

Under the agreement, $171,261 in restitution and prejudgment interest was reportedly approved for payment to seven Maui residents who filed consumer claims against the defunct Maui business.

The US Bankruptcy Court also approved $24,000 in civil fines and penalties in favor of the state, and $9,286 in attorney fees and costs to the state.

According to information released by the state, consumers claimed that the business failed to complete their contracts on the purchase of prepackaged homes.

State officials say an investigation conducted by the Office of Consumer Protection determined that the business and operator were found to be in violation of several state consumer protection statutes, including failure to promptly honor and acknowledge cancellation requests.

“OCP is very pleased that we were able to help these Maui consumers bring closure to this matter,” OCP Executive Director Bruce Kim said in a press release.

Individuals can check a business online at DCCA’s website or at the Better Business Bureau to see if a complaint history exists.