A builder in Colorado owes $6 million to clients who never received the promised tiny homes after he allegedly wasted the money on race cars, real estate and luxury trips, according to new bankruptcy filings.
Matthew Sowash, president and CEO of Holy Ground Tiny Homes, failed to deliver tiny homes to 189 buyers and spent hundreds of thousands on seemingly personal purchases, KDVR reported.
The nonprofit company spent more than $400,000 to buy and repair race cars and other vehicles, plus $35,000 on real estate in Colorado and Alaska, according to an 81-page report filed Friday and obtained by the local Fox affiliate station .
He spent another $32,000 on meals and $55,000 on trips to Las Vegas. Only $10,000 of the travel expenses “appear to be related to the delivery of the tiny houses,” according to the court filing.
Matthew Sowash failed to deliver tiny homes to 189 buyers and spent hundreds of thousands on seemingly personal purchasesFOX 31
The nonprofit company spent more than $400,000 to buy and repair race cars and other vehicles, plus $35,000 on real estate in Colorado and Alaska.FOX 31
Sowash’s legal team claimed the trip to Las Vegas was part of an “employee recognition benefit.”
The spending spree occurred between October 2020 and August 2022, at the same time the nonprofit was collecting deposits from customers for tiny homes they never received, KDVR reported.
Holy Ground Tiny Homes filed for bankruptcy in October 2022 and Sowash now has until September 22 to submit a plan for how the company will change, according to the outlet.
The spending spree occurred between October 2020 and August 2022, at the same time the nonprofit was collecting deposits from customers for tiny homes that they never received. FOX 31
The small housing company was operating at a loss, according to the report.FOX 31
Lawyer Joli Lofstedt, assigned to the bankruptcy investigation, said the company “would need to almost double the sales price of the tiny houses.
“The manager does not have the information or experience to assess whether there is a market for tiny houses at such high sales prices,” the station reported.
According to the report, the small housing company was operating at a loss. It spent $4.4 million on materials to build houses that it then sold for just $2.6 million in 2021 and did even worse the following year: it spent $5.3 million on materials for houses sold for $2 million. dollars, according to the document.
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Source: vtt.edu.vn