Citron Sends Formal Letter to SEC Regarding Home Solutions

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Citron Research has been publishing skeptical stock critiques for close to 7 years. In that timespan, we have never received such volumes or such vicious “hate mail” as we have from the shareholders of HSOA. To those who think their interests are served by shooting the messenger, and in pursuit of the truth, we have sent a letter to the SEC regarding our information on Home Solutions of America.

We recommend that ALL shareholders read this letter, which includes:

I. A documented history of fraud committed by Home Solutions

II. The document that Home Solutions does not want you to see –a trail of blatantly unscrupulous business practices.

III. The singularly strong and detailed warnings from Home Solutions’ auditor

IV. Financial statements that roll the fraud from one quarter to the next.

In our opinion, shareholders have a lot more to worry about than that $75,000 monthly lease payment to Brian Marshall for use of his Gulfstream 3.

Reduced to a single word, it is: Fraud — Pronunciation[frawd] – deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage

The detailed representations in Scott & Scott’s class action suit revision filed in March 2007 should also be of substantial concern to shareholders. Scott & Scott is firm with substantial credibility and expertise in class action suits. Detailed ongoing fraud accusations are most unusual in class action suits of this kind, and cannot be made or taken lightly, especially with the kind of detail provided.

sec-letter-on-home-solutions-of-america.pdf

The following links are supporting documentation for everything in the letter to the SEC

LINKS to supporting documents on Home Solutions compilation.

1. Blue Diamond Group Corp established as contractor June 11.

http://a810-bisweb.nyc.gov/bisweb/ContractorQueryByNumberServlet?allisn=0000035490&requestid=1

2. SD Contracting Group has identical policy numbers for workman’s comp, disability, and general liability as Blue Diamond.

http://a810-bisweb.nyc.gov/bisweb/ContractorQueryByNumberServlet?allisn=0000035106&requestid=1

3. SD Contracting Group registered to David Goldwasser

http://appsext8.dos.state.ny.us/corp_public/CORPSEARCH.ENTITY_INFORMATION?p_nameid=3354623&p_corpid=3356177&p_entity_name=%53%44%20%43%6F%6E%74%72%61%63%74%69%6E%67%20%47%72%6F%75%70&p_name_type=%41&p_search_type=%42%45%47%49%4E%53&p_srch_results_page=0

4. Goldwasser in Federal Bureau of Prisons Database

http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=NameSearch&needingMoreList=false&LastName=goldwasser&Middle=&FirstName=david&Race=U&Sex=U&Age=&x=0&y=0

5. Press Release removing SD Consulting

http://biz.yahoo.com/bw/070518/20070518005359.html?.v=1

6, 7, and 8. Tampa Project and Fireline links

http://phoenix.bizjournals.com/dallas/stories/2007/06/25/story7.html

http://phoenix.bizjournals.com/tampabay/stories/2007/06/18/daily6.html

http://www.bizjournals.com/dallas/stories/2007/06/04/daily31.html

9, 10. Fl Corps to Roy Marshall

http://www.sunbiz.org/corichr.html  (search for documents P03000046337 and P03000046180)

11. Roy Marshall link

http://citronresearch.com/wp-content/uploads/2007/06/roy-marhsall.doc

12. Class Action Link

http://citronresearch.com/wp-content/uploads/2007/06/hsoa-class-action.pdf

13. 10-K Link for auditor’s note

http://www.sec.gov/Archives/edgar/data/855424/000095013407006030/d44688e10vk.htm