The Bayport contractor whose homebuilding business imploded one year ago amid debts and complaints over unfinished houses has put his business into Chapter 7 bankruptcy protection, court documents show.
John Sharkey told the court in the filing that his company, Sharkey Design Build LLC, which did business as GreenHalo Builds, had less than $50,000 in assets and between $500,001 and $1 million in liabilities. His attorney said the business has no money left to pay its creditors.
The collapse of his business in August of last year marooned at least a dozen homeowners with unfinished houses and left a trail of debts to subcontractors and legal firms; it also scratched a 46-house development in Baytown Township that was just about to break ground.
The business billed itself as a green-home builder, and its finished projects included high-efficiency appliances, solar panels and construction techniques meant to save energy. It nearly built several homes on the St. Croix River in St. Croix Falls, Wis., before public outcry about the homes' proximity to the riverfront forced Sharkey to cancel the project.
The state Department of Labor and Industry revoked Sharkey's contractor license shortly after media reports recounted what his customers were facing.
Some 18 lawsuits have been filed against Sharkey's company, said his attorney John D. Lamey III of Oakdale, but the company never paid out any money "because there was no money left." Now that Sharkey has filed for bankruptcy, a court-appointed trustee will examine the company's records in detail. Lamey said the court-appointed review will prove that Sharkey didn't pocket people's money, but spent it on necessary business expenses.
"We're opening the books," said Lamey.
Sharkey has signed several "confession of judgment" statements that allow his customers to file for relief from a state-run pool of money meant to help people when homebuilding projects go awry. The state's Contractor Recovery Fund has a $550,000 limit per contractor, however, so if the claims against Sharkey go higher than that figure, his customers will see a prorated share of the available funds. The fund also has a cap of $75,000 per homeowner.
The bankruptcy filing was long expected, and Sharkey himself indicated a year ago that it would happen.
Lamey said Monday that Sharkey filed for bankruptcy for his business to put an end to continued litigation in state court.