Avatara Services, LLC Samuel C. Cody Avatara Services LLC commits fraud and misappropriates funds that are supposed to go to subcontractors Asheville, North Carolina

My company recently did business with Avatara Services, LLC and Samuel C. Cody (CEO).  Avatara is a disabled veteran owned company that bids on Federal Government contracts with the Veterans Administration (in particular).  My company entered into a contract with Avatara in good faith, with the expectation that we were dealing with a company and company owners that were operating with high morals and ethics.  We could not have been more wrong!

After the work was completed by my company and the Veterans Administration paid Avatara in full for the work we had done, we quickly realized that Avatara and Sam Cody had misappropriated our funds and in essence had committed fraud.  We found out from the Avatara CFO, that Avatara had taken the monies paid by the VA and used it to pay their internal payroll, versus disbursing funds appropriately to their subcontractor, per the terms of our contract.

After attempting to reach Sam Cody on several occasions, we decided to send a legal letter.  That prompted a response from Sam Cody, saying that he had another 30 days to pay us.  We decided to wait and have been waiting for roughly 120 days, without a penny being paid to us from Avatara.  Avatara has tried to borrow money (unsuccessfully), and they have been putting us off, while trying to get someone to let them borrow money.  We have decided today to file a lawsuit and appropriate judgements and liens in an effort to get some of our money back (our attorney takes 33%).  I would recommend to NOT do business with this company.  They are fraudsters and do not live up to their responsibilities to pay subcontractors.  Instead they steal their subcontractors money and move on to their next victim.