The owner of an Arizona construction company accused of leaving customers with unfinished work has blamed a salesperson and an operations manager for the collapse of the business, during questioning at a bankruptcy hearing.
Brandon Scott Holtzman, a 50% owner of Holtzman Construction, appeared under oath in Phoenix on Monday, November 9, alongside his lawyer. Customers and subcontractors questioned him about deposits, permits and projects which had not been completed.
Holtzman said a salesperson had sold several large projects on terms that made them unprofitable, allegedly to secure commissions. He claimed an operations manager then allowed the jobs to pass through the company’s internal system as if they were profitable.
“The gist of what happened was that there was one person in the company that was selling large projects to multiple homeowners,” Holtzman told the hearing. He said the salesperson sold work which was not profitable, while the operations manager allowed it to appear viable.
Neither employee was an owner or manager of the companies, according to Holtzman’s testimony. He also said the system used to assess the projects was one he had created himself, rather than a commercially available product.
Holtzman Construction bankruptcy questioned by customers
Several customers challenged Holtzman over payments they said had been taken despite delays or a failure to begin work.
One customer said officials in Pinal County had been waiting for months for information about a building permit, while the company had already accepted payment. Another asked why a large deposit had been taken for work involving a disabled veteran.
A third customer questioned why clients had not been told the company could not start their projects while deposits were still being collected. Holtzman replied that the company had encountered unexpected difficulties.
The companies filed for Chapter 7 bankruptcy on October 2. The filings covered Holtzman Construction LLC, Holtzman Remodeling LLC, Holtzman Holdings LLC and Holtzman Staffing LLC. ([bkalerts.com](https://www.bkalerts.com/recent-bankruptcy-cases/arizona-bankruptcy-court/2%3A26-bk-10067/bankruptcy-case-holtzman-construction-llc?utm_source=openai))
Holtzman told the bankruptcy trustee, Eric Haley, that company leaders realised they could not pay their debts around two weeks before the filing. He said the business was no longer receiving money from new projects, although it was still taking progress payments on existing work.
He also said no internal investigation had been carried out into possible misappropriation of funds. Company vehicles and other property were said to be at a location known to the bankruptcy auctioneer.
Joel Sannes, the lawyer representing the companies in the bankruptcy proceedings, has said creditors are owed about $8 million. He attributed the failure to a lack of oversight over commission-based sales and whether projects were being priced profitably. ([azfamily.com](https://www.azfamily.com/2026/10/06/homeowners-face-millions-unfinished-projects-tempe-contractor-declares-bankruptcy/?utm_source=openai))
Holtzman said he had overseen the business until temporarily stepping away in May 2025 because he “needed a break”. He also told the hearing that he was not operating another construction company.
However, a California contracting licence remains active for a Holtzman Construction LLC linked to a person named Brandon Scott Holtzman, according to records cited during the investigation. Holtzman’s testimony did not address that licence in detail.
The Arizona Registrar of Contractors has said the companies’ licences were cancelled and that homeowners may still be able to pursue complaints despite the bankruptcy. Eligible residential customers can seek up to $30,000 per residence from the state’s Recovery Fund, subject to a maximum of $200,000 against an individual contractor’s licence. ([roc.az.gov](https://roc.az.gov/recovery-fund?utm_source=openai))
The bankruptcy process will determine how the companies’ remaining assets are distributed among creditors, while customers and subcontractors continue to seek answers over money paid for work that was never completed.
