On the couch with his family in Rohnert Park, Steve Sonza is just "Dad." But the medals and plaques on the wall behind them are a reminder he is also "Major Dad."
Sonza served 16 years in the California National Guard and recently retired. He said the decision was based on medical needs -- now 100% disabled due to post traumatic stress disorder and memory loss. So, when his family enlisted Anchored Tiny Homes to build a $330,000-plus accessory dwelling unit (ADU) in the backyard, it seemed smart to link the contractor directly to their bank account -- to ensure no payments were forgotten.
“They actually specify the payment schedule,” Sonza said.
The family says they got a state grant for $40,000, plus a home equity loan for more than $50,000 to pay Anchored Tiny Homes for initial plans and permits. It was going well, but then, on March 21, three huge, unscheduled and unauthorized bank transfers occurred, Sonza said.
“This is $100,000 to Anchored Tiny Homes. Then below that, another $100,000 to Anchored Tiny Homes.” And finally, “$21,000 to Anchored Tiny Homes," he said.
All the transactions took place on the same day. In total, more than $221,000 was transferred to Anchored Tiny Homes’ account.
“They took the money from our retirement savings. All of it, essentially,” Sonza said. "They drained it.”
In Sonza's backyard there has been zero construction. He pointed out the door and said, “This is where it’s supposed to be.” For their state grant, home loan, and retirement fund, the family has nothing new in the yard. He said they’re out $315,700.
Even if Anchored Tiny Homes had started building here, it never should have taken those big, advance payments. The California Contractors State Licensing Board said: “It is against the law for a contractor to collect payment for work not yet completed or for materials not yet delivered.”
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Sonza said he knows that now.
“It’s clear the law was broken,” he said. “Even if it was an accidental blip in [the company’s] system, they have to return the money as soon as they find out.”
Sonza said he repeatedly asked Anchored Tiny Homes for his money back.
“I tried to call and reach out to them,” he said. And what happened? “Nothing.”
Sonza was too patient with Anchored. By the time he gave up and asked his bank to reverse the unauthorized transfers, the bank said it was too late.
“That pains me to hear. That was probably one of the biggest red flags I saw nearing my departure,” said Chris Pace, former Chief Operating Officer at Anchored Tiny Homes.
Today, Pace works for a different ADU company. He says he quit Anchored in part because the company was illegally asking families to pre-pay for future work and materials.
“What was essentially told to me is we’re going to push out invoices to everybody,” he said.
People paid. Lots of them.
Pace’s boss, CEO Colton Paulhus, spoke freely on his podcast and elsewhere about how big his tiny home company had grown. He called it “a $100 million business.”
Pace disagreed.
“First and foremost, I don’t think there was $100 million,” he said.
Pace claims he saw the company inflate some figures. “There were some sales that would be canceled, but they would still take them and put them as a sale on the books,” he said.
Pace says he hasn’t filed any reports with law enforcement. But he thinks they should examine the business’s books.
“Oh, I think they’re going to find a lot of red ink,” he said. “I think they’re going to find a lot of bad investments.”
Pace pointed to questionable spending, like the CEO’s podcast: Three people on staff, plus travel expenses to meet social media influencers, he said, for a production that he thinks had no direct connection to the ADU business.
Asked if the podcast was a legitimate business expense, Pace replied: “I don’t believe so.”
Through a text message, Paulhus denied Pace’s allegations. He said payroll was $1 million a month but didn’t answer when NBC Bay Area asked how much he paid himself.
“It was a failed business, and I hate that it happened,” Paulhus said. “I feel horrible. I have to carry this for the rest of my life. I’m sick to my stomach.”
At Paulhus’s Fair Oaks office, there was no one present. However, state records show a new limited liability corporation registered with his name on it.
Contractor Launched LLC filed on July 31 -- just as ATH was imploding. And Hello Builder LLC registered last October. State records show it “formed in Delaware.” A bankruptcy attorney said Delaware is widely known to be friendlier to debtors than California.
Paulhus originally told NBC Bay Area the LLC was “nothing.” Then, in another message, “It was an idea to help contractors get business. “
The Sonzas said they were shocked to hear Paulhus has registered other businesses.
“Before he tries again, he should probably fix the issues right now,” Sonza said. “If these guys get away with this, there is something seriously wrong with our system."
The family is still upset about their empty backyard and their empty savings account and said the company stole from the couple's 4-week-old son.
It's unclear how many unfinished but partially- or fully-paid-for ADUs are sitting in people’s backyards, but Pace, the former COO, estimates as many as 400.
The state contractor board says it’s investigating. As of Thursday, the CSLB listed 10 consumer complaints. The status of one is newly set to "recommended for legal action." The nine other complaints indicate the state has an ongoing investigation for "probable violation."
Several homeowners said they’ve also contacted the FBI and district attorneys. One Bay Area district attorney’s office says it’s looking into the situation.
If you were a customer, you can share your story with the NBC Bay Area Responds team.
Nadia Moskop contributed to this story.
