The founders of Anchored Tiny Homes are facing a 35-count criminal complaint alleging they took payments from customers for accessory dwelling units, then failed to do the promised work or provide materials. Sacramento County prosecutors allege Austin and Colton Paulhus billed customers and received about $1,046,433 despite performing no work on those projects. The complaint also alleges they diverted more than $653,000 from company accounts for expenses and activity unrelated to customer projects. It does not specify where that money went. More than 30 customers are named in the complaint. Among them is Oakland resident Alan Miller, whose family said in 2024 it was out $80,000 after being left with a partially built ADU. “We’re all holding the bag,” Miller said at the time. San Leandro resident Katie Lucas, another former customer, said she had been waiting for criminal charges. “It’s a relief to know that something is happening,” she said. “That somebody’s going to be held accountable for what they’ve done.” Customers began describing abandoned projects in 2024, after paying tens of thousands of dollars upfront. The company later failed, and California revoked its contractor’s license. Some customers were left to find new builders and pay again to finish work they had already funded. Colton Paulhus previously acknowledged that customers’ money was gone and described Anchored Tiny Homes as a failed business. Both brothers are seeking bankruptcy protection in federal court. Attorneys for the brothers did not provide a statement, and the Sacramento County District Attorney’s Office declined to discuss the pending case. The case was scheduled to be heard in Sacramento Superior Court the following week. The allegations have not been proven in court. California law generally limits a contractor’s down payment to $1,000, or 10% of the contract price, whichever is less.