Elmhurst, Illinois– Orange Elephant Roofing & Solar has come under fire as complaints from customers pile up. An investigation by CBS News Chicago claims that the company has left multiple homeowners, subcontractors, and suppliers out tens of thousands of dollars each in multiple states. This comes after a former employee reached out and complained.
One example of a customer paying thousands without any work to show for it is Kirby Reese. The Illinois homeowner paid nearly $26,000 in insurance money to Orange Elephant for roof repairs after storm damage, but claims the company never performed any work saying that “They never even applied for the permit.”
Other homeowners, such as Cynthia Sanoguet, Alexis Tecosky and Carolie Lenior, also reported paying thousands to Orange Elephant and receiving nothing in return. Apparently even subcontractors were left unpaid. According to former manager Stephen Cox, “We were being told that everything’s getting better, you know, people were paid, and we come to find out the subcontractors all over the nation—like from South Carolina, here—no one was getting paid,”
The unraveling of Orange Elephant’s operations came to light after former Chicago branch managers, Stephen Cox and Mike Schmalz, stepped forward. In an interview with CBS News Chicago, Cox, who left the company months ago, revealed early signs of trouble—like company credit cards being declined.
“It was a company that expanded too quickly, took on too much debt, and went under,” explained Schmalz.
In an email to the company’s executives before his resignation, Schmalz expressed concerns about unpaid suppliers and damage to his personal reputation. “Some suppliers weren’t being paid on time,” he said, adding that finances were controlled centrally, leaving local managers in the dark.
The issue of unpaid bills extended beyond homeowners. Subcontractors and suppliers across the country reported they weren’t receiving payments for completed work.
CBS claims that the company has abandoned offices and in one instance, found an abandoned office with customer files left behind and no employees present. Some 350 victims of Orange Elephant have been estimated, not including suppliers and contractors. The company’s business license was reportedly revoked by the State of Illinois in July of this year and they face multiple lawsuits.
Meanwhile, former employees Mike Schmalz and Stephen Cox have started their own companies and are working to assist affected customers.
