VISTA, Calif. — CBS 8 is Working for You after receiving complaints about a local homebuilder called the Tiny House Company.
Two local couples alleged they lost tens of thousands of dollars after paying for tiny houses before the Tiny House Company filed for bankruptcy.
Megan and Wyatt Borklund planned to build a tiny house in his parent's backyard in Jamul. They contacted the Tiny House Company in Vista earlier this year and made a $20,000 down payment after meeting in person with the company’s CEO, David Flake.
“They showed us pictures of things they've done, and it looked really nice,” said Megan Borklund, who is expecting her first child in October.
“The first time we met Dave, we were telling him that we're having a kid, and he was nice. He was telling us about his kid and how he has grandkids,” said Wyatt Borklund
It wasn't until, the couple said, they made a second payment of $50,000 that they started to see red flags.
“We had asked for progress pictures and videos, just to know that things are being done. And, nothing would be done for weeks, and we kept getting excuses after excuses,” said Megan.
The couple said they received a text message in August informing them the company had filed for bankruptcy. They were left high and dry with nothing to show for their $70,000 investment.
“We've talked to two or three lawyers, and they tell us there's not really a chance we'll get all of our money back. We might get a little bit back, And, pretty much, there’s not a chance we’re going to get the house,” said Wyatt.
As it turns out, the Borklunds are not alone. Caroline and Jonathan Silva said they signed a contract with Tiny House Company in 2023. “I gave the Tiny House Company over $64,000 to build me a tiny home.
Now the owner hasn't given me back my money and the builder took my home,” said Caroline Silva in a video post on TikTok.
In May, the couple filed a lawsuit.
“Not only are we suing for breach of contract, but we are suing for fraud,” Caroline said in her TikTok post.
She has posted numerous videos on social media about the Tiny House Company and its CEO, David Flake.
“We made a website, davidflake.com,” she said.
Court records showed Flake is involved in an ongoing lawsuit with his former business partner over the Tiny House Company. Both sides are alleging fraud and theft from the now-closed construction firm.
The attorney in the bankruptcy case told CBS 8 that his client, David Flake, would have no comment for this report.
Meanwhile, a meeting of 27 creditors is set for September 12 in downtown San Diego bankruptcy court.
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