Former contractors behind Anchored Tiny Homes face 35 felony charges

Following investigations by the Contractors State License Board (CSLB) and Sacramento County District Attorney's Office, two brothers behind former company Anchored Tiny Homes have been charged with 35 felony counts related to unfinished accessory dwelling unit (ADU) projects. Colton Paulhus and Austin Paulhus, who graduated from Granite Bay High School in 2008 and 2012, respectively, each face 33 counts of diversion of construction funds, one count of conspiracy to commit a crime, and one count of employee wage theft. Their charges come after CSLB investigated more than 200 consumer complaints across 18 California counties alleging abandoned ADU projects, unpaid subcontractors, payments in advance of work performed or often not performed, and funds paid by homeowners that were not used for the homeowners' projects. A settlement conference hearing initially scheduled for last week has been continued until Jan. 12, 2027. Due to the volume and severity of the allegations, CSLB pursued a criminal investigation against Anchored Tiny Homes and took the most serious administrative enforcement action it could by filing an accusation with the California Attorney General's Office seeking revocation of its contractor's license. CSLB revoked Anchored Tiny Homes' license in November 2024. After the revocation, CSLB continued to receive and investigate consumer complaints, and in collaboration with the Sacramento County District Attorney's Office, began referring cases for possible criminal charges. "CSLB remains committed to protecting consumers from financial harm and ensuring integrity within California's construction industry," the agency said in a statement. "The Board's investigative and enforcement efforts play a critical role in reducing and preventing unlawful activity and unprofessional conduct in California's construction industry." According to CSLB, contractors building ADUs must follow home improvement payment law restrictions regarding down payment and additional payments, known as progress payments. Down payments should never exceed $1,000 or 10 percent of the project's total cost, whichever is less. Any additional payments cannot exceed the value of the work performed or material delivered. For ongoing information and updates, visit www.cslb.ca.gov.