Rent-a-lawyer?
Kaile Warren and his business, Rent-a-Husband, are under investigation by the Maine Office of Securities for investment fraud. A call to Judith Shaw, administrator of the office, confirmed that a probe into Warren’s activities has been under way for roughly a year, and could lead to civil or criminal charges if wrongdoing is found. “I cannot say when (the investigation) will be complete,” she wrote in an e-mail to Mainebiz. “Securities investigations are complicated and can involve multiple investors sometimes in many states so it can take time.”
If you haven’t followed the drama of Warren and his rags-to-riches story, here’s a quick recap: As a homeless man in Portland in the late 1990s, Warren says divine intervention gave him the idea for a home improvement company called Rent-a-Husband and its catchy tagline, “For those jobs that never get done.” Almost overnight Warren became a celebrity, appearing on morning talk shows and in national news articles. He wrote a book. He became the home improvement guru on CBS’ The Early Show. He was on Oprah three times.
Despite the national attention and brand awareness, the company was bleeding money, according to a three-part investigative piece by USA Today in October. Warren panned the article, claiming the journalist had an axe to grind.
A Windham resident and former town councilor there, Warren admits his business has struggled, blaming his heart disease and the recession, including a deal with Ace Hardware that fell through in 2008.
Now he’s facing claims from angry investors who funneled $2 million into his business. One investor claims Warren told her his company was worth $10 million in 2006, when Warren’s tax returns from 2005 show that the company’s revenue barely reached $115,000, while it lost $300,000, according to the USA Today investigation. Warren says the $10 million claim came from a now-defunct venture capital firm that invested $2.5 million in Rent-a-Husband.
Warren has continuously defended his innocence. “I have never misled an investor,” Warren told Portland news station WCSH 6 in October. Bet he wishes he were Mr. Fix-it now.
Whit Richardson
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