A new state consumer protection agency has barred a contractor from the city of Orange from marketing energy loans, saying he falsely peddled his services to homeowners in Los Angeles and San Bernardino counties as part of a “no-cost” government-funded program, the agency said Tuesday, March 30.
John Jacob Berry of Orange-based Community Solar Inc. signed a consent order with the state Department of Financial Protection and Innovation agreeing to halt work under the Property Assessed Clean Energy Programs, or PACE. The order also applies to companies operating as Premier Community Construction, PACE Consulting Agency Inc., The PACE Program of California and PACE Marketing & Communications.
PACE offers financing to homeowners for energy improvements to their homes, like installing solar panels, with loan payments added to the owners’ property taxes. The program has been plagued by allegations of contractor fraud and abuse.
The new financial protection department was created as part of the California Consumer Financial Protection Law, which took effect this year. The new agency replaces and expands the authority of the Department of Business Oversight.
The state agency ordered Berry and his companies to stop offering PACE financing to consumers and to stop using “PACE” in its business names, websites, marketing materials or communications.
The agency said Berry and his companies deceived homeowners by making it appear that The PACE Program of California was a state government agency. Letters sent to homeowners used a Capitol Mall address in Sacramento that turned out to be a virtual office vendor’s address, the consent order says.
Even after losing their authorization to market PACE loans last year, Berry’s companies continued to use the PACE name in their business and on company websites, the state agency said.
Berry couldn’t be reached for comment.
