Posts Tagged ‘home solutions of america fraud’

Home Solutions of America: Where Is the SEC?

By: ispeculatornew | Date posted: 01.20.2008 (1:25 pm)

The management of Home Solutions of America has been misleading investors for their own self interest for the last couple of years while the Securities and Exchange Commission has been negligent in its duty to protect investors.

I first took notice of Home Solutions of America when the company’s stock price made a run from around a dollar to five dollars in 2005. The stock price benefited when a few hurricanes hit the Gulf Coast that year (Home Solutions of America provides restoration and construction services).

The stock price stalled for a couple of quarters but then jumped all the way up to fourteen dollars on improved earnings and announcements of new contracts. The peak of this rise coincided with a press release stating a subsidiary of Home Solutions of America had been awarded a contract by American Renaissance Homes to be the exclusive provider of delivery and installation services for modular housing in New Orleans and surrounding areas. However, it was found out by that American Renaissance Homes was established and funded by Home Solutions of America only five days before the press release was issued. Also, insiders sold a huge amount of shares right after the press release was issued. (more…)