California Construction News staff writer
The former owners of California contractor Anchored Tiny Homes face a combined 35 felony charges following investigations into more than 200 consumer complaints involving unfinished accessory dwelling unit (ADU) projects across the state.
They face 33 counts of diversion of construction funds, one count of conspiracy to commit a crime and one count of employee wage theft.
The complaints, spanning 18 California counties, alleged abandoned ADU projects, unpaid subcontractors and payments collected from homeowners before work was completed or, in some cases, performed.
Investigators also alleged that money paid by homeowners was not used for their respective projects.
The charges follow investigations by the Contractors State License Board (CSLB) and the Sacramento County District Attorney’s Office. A settlement conference hearing initially scheduled for last week has been postponed until Jan. 12, 2027.
The CSLB pursued a criminal investigation because of the volume and severity of the allegations. It also filed an accusation with the California Attorney General’s Office seeking revocation of Anchored Tiny Homes’ contractor’s licence. The licence was revoked in November 2024.
The board continued to receive and investigate complaints after the revocation and worked with the Sacramento County District Attorney’s Office to refer cases for possible criminal charges.
The CSLB reminded contractors undertaking ADU projects that California law restricts payments collected from homeowners under home improvement contracts.
Down payments cannot exceed $1,000 or 10 per cent of the total project cost, whichever is less. Subsequent progress payments cannot exceed the value of work performed or materials delivered.
