A Colorado builder owes $6 million to a client who never received a promised tiny house after he allegedly splashed cash on race cars, real estate and luxury trips, according to a new bankruptcy filing.
Matthew Sowash, president and CEO of Holy Ground Tiny Homes, failed to deliver tiny homes to 189 buyers while spending hundreds of thousands on seemingly personal purchases, KDVR reported.
The nonprofit company spent more than $400,000 buying and repairing race cars and other vehicles in addition to $35,000 in real estate in Colorado and Alaska, according to an 81-page report filed Friday and obtained by local Fox affiliate stations.
It spent another $32,000 on meals and $55,000 on a trip 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 fails to deliver tiny house to 189 buyers while spending hundreds of thousands on seemingly personal purchasesFOX 31
The nonprofit company spent more than $400,000 buying and repairing race cars and other vehicles in addition to $35,000 in real estate in Colorado and Alaska. Fox 31
Sowash’s legal team claimed the Vegas trip was part of “employee appreciation benefits.”
The spending occurred between October 2020 and August 2022, the same time the nonprofit collected deposits from clients 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 present a plan on how he will revive the company, according to the outlet.
Those expenses occurred between October 2020 and August 2022, the same time the nonprofit collected deposits from customers for tiny houses they never received. Fox 31
The tiny house company was operating at a loss, according to the report. Fox 31
Lawyer Joli Lofstedt, who was assigned to the bankruptcy investigation, said the business “needs to almost double the sale price of the small house.
“Trustees do not have the information or expertise to assess whether there is a market for tiny houses at such inflated sales prices,” the station reported.
The tiny house company was operating at a loss, according to the report. It spent $4.4 million on materials to build a home that later sold for just $2.6 million in 2021 and even worse the following year — spending $5.3 million on materials for a home that sold for $2 million, the filing said.
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Source: thtrangdai.edu.vn/en/
