A woman waited months for her tiny home to be delivered before hiring a private investigator.
The Holy Ground Tiny Houses founder had no assets in his name.
Court records show that Matt Sowash has filed for Chapter 11.
A woman hired a private investigator to find out why her tiny home hadn't been delivered months after she paid almost $50,000.
The founder of Holy Ground Tiny Houses is facing lawsuits after being accused of failing to deliver homes.
After transferring $46,504 to Sowash in April for an 8 foot by 28 foot home to be built on their property, they were told to expect it in July.
An assistant told her that it could take more than two years for the home to be delivered.
She told the outlet that she hired a private investigator to dig up the truth about his finances.
Sowash told NBC in September that he wouldn't file for bankruptcy because he couldn't watch everyone lose their homes.
He was unsure if he could build the 250 homes that had been paid for.
He wrote in an update to customers that this had been a week of change. I am sorry for this situation. The only way to make sure the business is safe and that everyone gets their money back is to file for Chapter 11.
A lawsuit was filed against him in a New York state court.
Sowash told NBC that he was unable to make the payments on the $400,000 loan he took from Kinetic.
Dowling, a disabled Army veteran who lives near Colorado Springs, told NBC he was sleeping on friends' couches because the 30-foot house he ordered with a $22,000 down payment didn't arrive in July.
Dowling said that nobody should ever do business with Sowash.
The allegations against Sowash are being investigated by the police department in Colorado. Insider did not get a response from the police department.
In 2009, Sowash was sentenced to five years in prison for defrauding investors of more than $500,000 and was also found guilty of stealing $140,000 from three people who thought he was looking for investment opportunities for them.
While in jail, he discovered an interest in tiny homes and built his first one in his garage.
Sowash did not reply immediately.
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