The day after Christmas, the company announced in a filing with the Securities and Exchange Commission that it had fired Scott Sewell, a New Orleans businessman and influential Republican political operative, from his post as head of one of Home Solutions’ major subsidiaries. Sewell and others claim that Fradella and other company officials have made millions selling their Home Solutions stock after making misleading announcements that caused the share price to rise substantially. In his letter, Sewell writes that he was denied information about the precise relationship between Home Solutions and American Renaissance, even though he was a Home Solutions board member. Home Solutions announced that the company had gotten “informal inquiries” from the SEC and Nasdaq about the contracts and that the company had decided to hire a law firm itself to investigate the matter. Among other findings, according to Sewell’s letter, the firm discovered “certain company management engaged in significant undisclosed related-party transactions, that work reported to have been done by the company may not actually have occurred, that phantom receivables were reported in the company’s SEC filings and used in the corporate bank line of credit borrowing base, that false documents were presented to auditors to substantiate those receivables, and that false public statements and press releases had been made. Read More