Tiny House Company faces court battles from creditors after filing bankruptcy | cbs8.com

Feb 20, 2025

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SAN DIEGO — A local firm called "Tiny House Company" that filed for bankruptcy in August is facing ongoing court battles from creditors who claim they were scammed out of hundreds of thousands of dollars for houses that were never delivered.

Caroline and Jonathan Silva of National City are among those affected. They paid more than $64,000 in 2023 to the Tiny House Company and its CEO, David Flake, to build a house on their property. When the company failed to deliver, the Silvas decided to take matters into their own hands.

"I'm just excited because this is the best news that could have happened for the last almost two years," Caroline Silva said. "And just having this here, even though it's not completed, it's an unexplainable feeling."

The Silvas are now building their tiny house themselves in their backyard. They're making progress, with windows scheduled to be installed soon.

More than two dozen creditors are in a similar situation, hoping a bankruptcy trustee can locate the money that David Flake collected and deposited into his own bank account, according to court testimony.

During a recent Zoom hearing, which reporters were not allowed to record, Silva questioned Flake directly about her $64,000. Flake responded, "I didn't get anything... This money was spent on the company..." He added, "Caroline, I hope that you get some money back when they disperse it."

Silva expressed her frustration with the ongoing legal process. "Every time I have to see his face on that Zoom court date, I get very anxious," she said. "It kind of messes with me. But I just want to move on, and I don't want him to win. I don't want him to be able to get other people's money and live a lavish lifestyle."

In addition to the bankruptcy proceedings, Silva has filed a separate lawsuit against Flake, which is ongoing.

Flake, the former CEO of the Tiny House Company, blames his former business partner for the collapse of the company. Flake has filed his own lawsuit, which is set to go to trial next month. The attorney representing David Flake in the bankruptcy case declined to comment for this report.

Despite the setbacks, the Silvas are looking forward to moving on and eventually moving into their backyard tiny home. "We're just doing it on our own, and we're figuring it out. But, it's here!" Caroline Silva said.

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