On November 30, 2009, the SEC filed a complaint against Home Solutions of America, Inc. and other individual defendants. According to the SEC: "During 2005 and 2006, in the aftermath of Hurricane Katrina and other weather-related disasters, the company issued press releases and made Commission filings falsely boasting of multimillion dollar contracts and robust financial results. As a result, HSOA's stock price, then quoted on the NASDAQ, reached a peak... in May 2006. Thereafter, HSOAQ's stock price plummeted in light of large insider stock sales, public allegations of fraud, the filing of private securities suits and the Company's public announcement that it would restate its financial statements for the first and second quarters of 2007."

On November 30, 2009, the SEC announced that it filed a civil injunctive action against Home Solutions of America, Inc. and several executives "for lying about nonexistent business deals in the wake of Hurricane Katrina, and fraudulently inflating the company's stock price before the company's CEO sold millions of dollars in company shares."

On November 30, 2009, the SEC announced that it charged hurricane restoration company Home Solutions of America, Inc. ("Home Solutions") and several executives, including the company's former CEO Frank Fradella ("Fradella"), for lying about non-existent business deals in the wake of Hurricane Katrina and fraudulently inflating the company's stock price before Fradella sold millions of dollars in company shares. Of the seven individual defendants named in the SEC's complaint, four agreed to settle. The remaining defendants--Home Solutions, Fradella, Home Solutions' former CFO Jeffrey Mattich, and Brian Marshall, the company's former vice president--are charged with violations of the antifraud, reporting, books and records and internal control provisions of the federal securities laws. The SEC seeks permanent injunctive relief, financial penalties, full disgorgement with interest, and officer and director bars.

On December 18, 2009, Home Solutions consented to the entry of an Agreed Interlocutory Judgment. Home Solutions waived findings of fact and conclusions of law and waived any right to appeal from the Agreed Interlocutory Judgment. The Agreed Interlocutory Judgment provided that, "upon motion of the Commission, the Court shall determine whether it is appropriate to order a civil penalty ... and if so, the amount(s) of the civil penalty."

On December 3, 2018, the United States District Court for the Northern District of Texas issued a final judgment as to the defendant Home Solutions of America, Inc., restraining and enjoining the defendant from violating various provisions of the securities laws.