DENVER — The proprietor of Holy Floor Tiny Houses, an Englewood-based nonprofit that builds and delivers properties to folks throughout the nation, is again in court docket.
Matt Sowash, who was sentenced to 5 years in jail in 2009 for bilking greater than $400,000 from traders for his novice poker league, now faces a number of lawsuits filed by prospects who allege he breached contract and by no means delivered their homes after they paid him.
Denver7’s companions at BusinessDen first reported on the scenario. Reporter Justin Wingerter mentioned he interviewed greater than 12 of Sowash’s prospects, who’ve strikingly related experiences with the corporate.
“So the tales are very related,” Wingerter mentioned. “Individuals paid, and nonetheless they do not have a home, which they both have half paid for or, in lots of instances, fully paid for.”
In line with a lawsuit filed within the U.S. District Courtroom of Colorado, 24-year-old Clara Davis, a trainer in New York, alleges she wired her life financial savings of greater than $40,000 in January for a tiny residence Sowash promised her by August.
The lawsuit states when Davis “arrived at Defendant’s manufacturing facility, Defendant’s representatives advised Plaintiff that her tiny residence was one to 2 years not on time, and that there have been 100 seventy (170) tiny properties that also wanted to be constructed earlier than work on hers may even get began.”
Holy Floor Tiny Houses has an F score on the Higher Enterprise Bureau, with eight complaints. A number of prospects made allegations made similar to these in Davis’ lawsuit.
Whereas a number of prospects are upset, the corporate isn’t a rip-off, because it has delivered many properties on time to its prospects.
When Denver7 tried to achieve Sowash for remark Thursday at his firm’s warehouse, a safety guard knowledgeable him a information crew was on the gate and advised Denver7 Sowash didn’t want remark. However a number of months prior, Sowash did converse to Wingerter at size concerning the points the corporate is dealing with.
“His rationalization was that the development business went downhill — bought very tough final yr, building prices went up — all of which is true. Definitely, they have been beneath contract to purchase, or to construct, quite, greater than 100 properties that they ended up shedding cash on,” Wingerter mentioned. “One of many points with Holy Floor Tiny Houses is that they are at the moment taking in cash to construct prior orders. In order that they’re reliant on new capital, on folks shopping for a house now, in order that they will construct orders that they took in a yr or two in the past, and that is a really dangerous enterprise mannequin, to be reliant on new capital to fill all of the orders. And it is a harmful proposition for any enterprise.”
Whereas a number of prospects discover themselves in an aggravating scenario, Vivi Gloriad, a neighborhood actual property agent and a former buyer of Sowash’s, mentioned he delivered on his promise for her tiny residence.
“He advised me that he may have it delivered inside eight weeks, which he did comply with via on. I’ve obtained my tiny home,” Gloriad mentioned.
Glad together with his product, Gloriad thought of working with Sowash on a bigger venture to construct tiny properties in an effort to curb homelessness within the Denver space — a dialog that she halted when she realized of Sowash’s pending authorized points.
“I do know he is bought some issues previously he has to work on. And so till that occurs, we’re not going to have the ability to work collectively. My fame is every thing,” Gloriad mentioned.
Denver7 reached out to Sowash’s lawyer Thursday, who has but to reply.