Roofing company accused of stiffing customers, abandoning offices, ruining professional reputations

ELMHURST, Ill. (CBS) -- A couple of months ago, a former employee of a roofing company contacted CBS News Chicago with a complaint.

CBS News Chicago began an investigation, and discovered a massive multi-state operation that has left homeowners out of tens of thousands of dollars each in many cases. Customers said contractors from the company, Orange Elephant Roofing & Solar, seemed simply to disappear into thin air.

Kirby Reese got $25,725.34 in insurance money to fix the roof of her southwest suburban home after storm damage this past spring. She hired Orange Elephant—a company with a website that shows they do work in six cities across the country, including the Chicago area.

The Charleston and Columbia, South Carolina; Fort Worth, Texas; Denver, Colorado; and Oklahoma City, Oklahoma markets also appear on the Orange Elephant website.

Where did Reese's nearly $26,000 go?

"I guess that's the question," Reese said. "I have no idea."

The reason she has no idea is because she says no work was ever completed.

"They never even applied for the permit, so like, they were never going to do this build," Reese said.

Former Chicago Orange Elephant managers break down red flags

Former manager Stephen Cox first brought the apparent Orange Elephant collapse to our attention. His first red flag that the company was in trouble was a fairly major one.

"I actually got kicked off an airplane because their credit card bounced," Cox said.

Cox left Orange Elephant months ago, and claims he was owed about $19,000.

CBS News Chicago met Cox and Mike Schmalz, the former general manager of the Chicago Orange Elephant office, at Reese's home.

"It was a company that expanded too quickly, and then took on too much debt, and then went under," said Schmalz.

In May, Schmalz sent a resignation email to Orange Elephant executives. In the email, he expressed concern about his personal reputation in the roofing business—which he wrote had been jeopardized by his association with Orange Elephant.

"Some suppliers told me they weren't getting paid on time. Financing didn't go through directly through our branch—it was kept corporately," said Schmalz, "so as general manager, we were kept in the dark."

This turned out to be a widespread problem, according to 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," Cox said.

In search of the principals of Orange Elephant

Not only were contractors not getting paid, but homeowners never got roofs.

Cynthia Sanoguet of Chicago Heights handed over $5,000 and got nothing in return. Carolie Lenior of South Carolina gave Orange Elephant two checks—totaling more than $11,000, and also got nothing. Alexis Tecosky also lives in South Carolina, and she is out nearly $12,000.

Tecosky sent CBS News Chicago a video of an Orange Elephant South Carolina office. The door was open, but no one was there. It was simply abandoned.

So CBS News Chicago went to the local Orange Elephant office—located in an office building at 925 Route 83 in Elmhurst. CBS News Chicago went in the front door and climbed the stairs—only to find file folders full of customer documents abandoned right in the hallway.

Nary a person was to be found.

Back outside, a sign on the door directed questions about Orange Elephant to two names and phone numbers—one belonging to Jake Kelly, the other to Natalie Ricketts. CBS News Chicago called both.

Kelly is the chief executive officer of Orange Elephant. CBS News Chicago did get Kelly's voicemail, but he never called back.

CBS News Chicago also tried several email addresses for Kelly and even reached out to attorneys who are representing him—with no answer.

Ricketts is the director of accounting for Orange Elephant. We know this because she promised a refund of $7,212.20 to South Carolina homeowner Audrey Keller.

Despite that promise in August, and an estimated refund date in October, Keller has yet to see a dime.

Ricketts did eventually call back, and said she was not part of management—rather, she "handled spreadsheets." She said she had no clue money was being taken for jobs that weren't being performed.

Ricketts said she "feels awful" for wronged customers, but she is "not the one responsible."

Meanwhile, the State of Illinois revoked Orange Elephant's business license in July of this year. But the company took a check for more than $15,000 from Evergreen Park resident James Kowalik in August.

Former Chicago Orange Elephant managers step up for those who lost out

Back at Reese's house, work is being done—albeit not by Orange Elephant. Cox and Schmalz have started their own companies, and are trying to help as many customers as possible—including Reese.

"I was like don't worry, Kirby, we'll take care of it," said Schmalz.

Schmalz is not making a profit on the jobs abandoned by Orange Elephant, but he said it is the right thing to do.

"I've been so lucky," Reese said. "I just feel terrible for the other people that really have nowhere to turn to."

By some estimates, there are about 350 consumer victims of Orange Elephant across the country—with 180 in Illinois. This does not include subcontractors and suppliers, who are also out countless thousands of dollars.

Orange Elephant is also facing several lawsuits.

The Illinois Attorney General said it has also received more than a dozen complaints about Orange Elephant so far.