An El Dorado Hills resident said she lost $222,000 after hiring Anchored Tiny Homes for a construction project that was never completed.
Janet Kaufman is among those who say they lost money to the now-defunct company. Its co-founders, brothers Austin and Colton Paulhus, each face 35 felony charges. The two appeared virtually before a Sacramento County judge on Wednesday, Oct. 14, marking the first time the defense responded in the criminal case, ABC10 reported.
Prosecutors allege the brothers billed customers approximately $1,046,433 for 13 construction projects while performing no work and supplying no materials. The charges include conspiracy, diversion of construction funds and willful theft of employee wages.
Kaufman told ABC10 she does not expect to recover her money but feels encouraged by the prosecution.
"I feel very confident that justice on the way … with the DA that's involved, with the investigator involved, with everybody that we have interacted with in the courthouse," Kaufman said.
Carlos Lubiano, a subcontractor who performed work for the Paulhus brothers, said he is still owed nearly $100,000 in unpaid invoices. He told ABC10 he has lost hope of recovering the funds but views the court proceedings as a form of accountability.
Blair Goss, attorney for Austin Paulhus, told ABC10 that a business failure does not necessarily mean fraudulent or criminal activity occurred. He said he sympathizes with creditors who lost money but questioned whether the company's collapse supports criminal charges.
Colton Paulhus' attorney declined an interview, ABC10 reported.
The Fair Oaks-based company once promoted itself as a builder of accessory dwelling units, or ADUs, across Northern California. It filed for Chapter 7 bankruptcy in Sacramento federal court on Sept. 30, 2024, listing more than $12.8 million in debts owed to more than 870 creditors, according to Hoodline. Prosecutors also allege the brothers diverted more than $653,000 from company accounts for expenses unrelated to customer projects.
California's Contractors State License Board had already revoked the company's license before the criminal complaint was filed. Board records showed nine disclosable complaints against the business, alleging it took too much money upfront and abandoned projects, Hoodline reported.
The judge ordered Austin and Colton Paulhus to return to court on Jan. 12, when they are expected to appear in person. The Sacramento County District Attorney's Office declined to comment on the case, ABC10 reported.
