Picking up the pieces of shattered dreams

On the front page of this week’s East Bernard Express (and Wednesday’s Wharton Journal-Spectator) is a major story about a homebuilder who suddenly closed up shop and left town, leaving behind about two dozen unfinished homes in a six-county area..

When David and Victoria Pfuntner of East Bernard sent out a letter to clients, subcontractors, and creditors on July 25 saying that Pfuntner Custom Homes was going out of business, it created a firestorm of worry, frustration, anger, and panic. Families in Wharton, Fort Bend, Austin, Brazoria, Colorado, and Fayette counties suddenly found themselves not only with incomplete homes, but also liens and threats of liens on their property from subcontractors who had not been paid for their work.

That week I started getting emails, phone calls, and messages on Facebook regarding the issue. For the next couple of weeks I kept open communication with several of the families impacted by the Pfuntners actions while they debated how best to take their story public. Complicating matters was a communication from David Pfuntner to them threatening to sue anyone who publicly defamed him. It was an idle threat with little to no teeth, but it still caused some to press the pause button. Finally, we set a time for a Zoom call and everyone who could join us had their say.

It was heartbreaking to hear their stories. One family lives cramped in a travel trailer on their property and every morning they come out to see the empty concrete slab where their home should be under construction. Another family of four is living temporarily in a one-bedroom house.

Nearly every single family involved found that money from their escrow accounts was taken to pay subcontractors but many of the payments were never made. That left the subcontractors to place liens on their property. They are now left with homes they cannot live in, partly consumed construction loans, and debts for work done that should have already been paid.

And as anyone knows who has ever moved or had a home built, there is plenty of stress with the timing of everything and all the logistics involved. Now finances and timetables have been thrown out the window. Attorneys are getting involved, and that isn’t cheap.

All indications are that Pfuntner Custom Homes, LLC will file for Chapter 7 bankruptcy. My best guess is the Pfuntners will as well since they are named in at least one lawsuit and more are sure to follow.

The big question right now is if there were any criminal violations by the Pfuntners or if it all falls as a civil matter. It may be both, I can’t say for sure. I do know that at least two sheriff’s offices are investigating.

In the weeks that I spent working on this story between other stories, I scoured the internet and other sources for ways to contact the Pfuntners. They had practically become ghosts online, removing their websites, taking down their social media accounts, and disconnecting their phones.

Some of the families had email addresses that I tried without success. I also tried reaching the attorney listed in a lawsuit by one of the families, but I received no answer. David Pfuntner has reportedly started two more LLCs (limited liability corporations) and I tried contacting one of them, again without response.

I wasn’t very comfortable running the story without giving him a chance to comment, but I felt I had been more than reasonable in my attempts to reach him. I’d still welcome the chance to hear his side. I’m sure a lot of people would.

I doubt that will happen because if his attorneys are worth their salt they’ll have him buttoned down tight. I do invite the Pfuntners and/or their legal representatives to reach out and provide comment. I really do want to know their side of the story.

I also want to hear from the subcontractors. Many of them are small business owners who have been severely impacted by this. Their story needs to be heard.

I want to thank the families that have been working with me on this for their boldness in coming forward and their patience with the process. There was a lot of fact-checking and verification that went into this and the story went through many drafts before it wound up in print.

My heart goes out to the families involved. I know they are going through a lot and it’s not their fault. I urge them to hang tough and be persistent and patient. Truth and justice will prevail, it just won’t happen overnight. I hope and pray that they will be able to get their lives back together, their homes built, and this mess worked out to their satisfaction.

Joe Southern is the managing editor of the Wharton Journal-Spectator and the East Bernard Express. He can be reached at news@journal-spectator.com.