FAIR OAKS, Calif. — Unpaid invoices totaling to nearly $100,000 are all Carlos Lubiano has left to prove he worked jobs for Anchored Tiny Homes (ATH) and never got paid.
"It's been weeks now since we've heard anything. A little disappointing, but at the same time, we have to move forward, right?" he said.
Last month, ABC10 reported a Fair Oaks-based company was accused of mishandling money, leaving construction projects unfinished and many people without paychecks. Now, the company faces more legal problems.
After ABC10 first reported on issues with ATH last month, the company's CEO announced the company was closing and considering bankruptcy options. They were seen clearing their Fair Oaks office on Sunday.
"All of this happened in a year, a little over a year and these franchises were still being sold weeks ahead of the shutdown," said Attorney Peter Lagarias.
Lagarias represents more than 10 franchise owners across the country. News of the company's closure left these owners wondering, what's next? They said Anchored Tiny Homes boasted about its expansion and even teased new locations.
"The last thing you would have expected is that they couldn't finish jobs and the subcontractors were apparently not being paid and were placing liens," said Lagarias.
ABC10 learned the company is also facing at least two lawsuits, filed in Sacramento Superior Court. One case involves two retired Sacramento women, 68 and 77 years old respectively. They hired ATH in July 2022 and paid $343,948.88 on a project that is still unfinished. The other case involves a former employee accusing ATH of wage theft. While Lagarias couldn't confirm with ABC10 if he's working on more lawsuits on behalf of the franchise owners, he said his clients have dealt with similar issues.
"Some of the franchisees were veterans and they were enticed to enter because they get a discount for having served their country," he said.
ABC10 reached out to CEO, Colton Paulhus, but did not get a response. The Contractors State License Board provided ABC10 with this comment regarding complaints to the company:
“CSLB has an open investigation into Anchored Tiny Homes (1078940). The 10 disclosable complaints can be found on the license detail’s Complaint Disclosure page. These complaints involve alleged violations of abandonment, departing from trade standards, departing from plans or specifications, failing to timely pay a subcontractor, receiving/requesting more money than work completed, lack of reasonable diligence, and no written change orders.
One of the complaints has been referred to legal action, which includes alleged violations of departing from trade standards, abandonment, failing to report the employment of a registered salesperson, violating home improvement contract requirements, receiving/requesting more money than work completed, and failing to provide required notices regarding insurance.
The legal action is being referred to the California Attorney General’s Office for an accusation to revoke Anchored Tiny Homes’ contractor’s license.”