Austin and Colton Paulhus, the twin founders of Anchored Tiny Homes, now face 35 felony charges each in a case that has left hundreds of Californians without the homes they paid for. The brothers appeared virtually in court on October 14, declining to enter a plea, while prosecutors allege they misappropriated over $1 million across 13 projects. They are also seeking bankruptcy protection in federal court, a move that complicates any immediate restitution for victims.
The alleged scheme operated on a simple, devastating model: take the money, break the promise. Jan Truelock, a retired nurse from Roseville, paid $40,000 in January 2023 for a 450-square-foot backyard unit. She waited 12 months—the promised timeline—only to find her backyard empty and the company silent. When she demanded a refund, Anchored offered a paltry $5,000, claiming $17,000 vanished into "materials" Truelock never saw. She settled for $25,000, still short of her original outlay, and had to hire a different contractor to finally build the space.
Truelock’s case is the tip of a massive iceberg. More than 200 complaints poured into the California Contractors State License Board (CSLB) across 18 counties. Katie Lucas paid $211,000 in 2022 for a home for her mother-in-law and grandmother in San Leandro. Work started, then stalled. Contractors later told Lucas they had never been paid. Renee Kumamoto lost $168,000 intended for her cancer-stricken father’s home; construction never began, and the company dissolved two weeks after her final payment. A Facebook group for victims swelled to over 1,000 members, a digital testament to the scale of the failure.
California’s Contractors State License Board revoked Anchored’s license in November 2024, but the damage was already done. The Statewide Law Enforcement Association (CSLEA) notes that complaints continued even after the shutdown. Investigators worked with the Sacramento County District Attorney’s Office to refer the cases for criminal prosecution. The complaint details the brothers allegedly taking $653,000 from company accounts for expenses unrelated to construction. Each brother faces 33 charges for misuse of funds, one for conspiracy, and one for wage theft.
Truelock, who eventually got her home built by another firm, Imkat, believes the only appropriate punishment is prison. "Accountability at this juncture would be prison time for Colton and Austin," she told Realtor.com. Austin’s lawyer, Blair Goss, told NBC Bay Area that his client is willing to cooperate but refused to say if he would testify against his brother. The next settlement conference is set for January 12, but for the 200 affected families, the question remains stark: will they ever see their money again?