SAN DIEGO — Caroline and Jonathan Silva were among the dozens of creditors who attended a virtual hearing Thursday in downtown bankruptcy court on the failure of the Tiny House Company in Vista and San Diego County.
“This is not a case of a bad company. This is just a bad case of someone who did not have any interest in actually building these homes,” said Caroline Silva, who said she does not expect to get her money back.
The South Bay couple said they paid more than $64,000 and never received their house.
For about an hour on Thursday bankruptcy court trustee, Leslie Gladstone, questioned the company's former CEO, David Flake, under oath.
“I was really impressed with her questioning, which made me feel like they will look into this further, because the math wasn't adding up. (Flake) received a lot of money from a lot of different people, and he didn't spend as much,” said Silva.
During the hearing, Flake told the trustee the Tiny House Company collected more than $700,000 in deposits in recent months; and received more than $400,000 from investors before declaring bankruptcy. Eleven customers never received houses, according to court testimony.
Last week, CBS 8 interviewed Megan and Wyatt Borklund, a Jamul couple, who said they lost more than $70,000 to the Tiny House Company.
“This was supposed to be our first house, because we're expecting our first kid in October. And now we just don't know what to do,” said Megan Borklund.
Silva has been posting for months about the company in an effort to get the word out, as the bankruptcy court will try to find out if any money is left for the creditors.
CBS 8 reached out to David Flake’s bankruptcy attorney, but so far, no comment from the former CEO.
Testimony in the bankruptcy hearing will continue October 2.
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