Next Generation Builders Los Angeles — The ADU Contractor That Vanished (2026)

Next Generation Builders was a Los Angeles-based ADU contractor that found clients through Instagram, collected large deposits, and then vanished — making it one of the clearest documented cases of the Next Generation Builders ADU scam in Los Angeles and across Southern California. One homeowner paid $200,000 for a two-story ADU that was abandoned mid-construction. Another paid $84,000 for a garage conversion and got a concrete floor and rough framing before workers disappeared. Homeowners who filed complaints with CSLB discovered those complaints weren’t even showing on the board’s website. The company’s bond expired. The license was suspended. And the people behind it stopped returning calls.

What makes this case instructive isn’t the scale — it’s the method. Next Generation Builders built its client pipeline almost entirely through social media. Professional Instagram posts. Polished before-and-after photos. The company looked legitimate online. It wasn’t. This is one of four case studies in our ADU Contractor Scams in California series.

Next Generation Builders operated out of Studio City, Los Angeles, and marketed ADU design and construction services across Southern California. The company’s primary sales channel was social media — Instagram in particular. The branding was polished. The content looked professional. Homeowners found the company online, reached out, and signed contracts for ADU projects ranging from garage conversions to two-story builds.

The NBC Los Angeles I-Team investigation, led by reporter Carolyn Johnson, documented the pattern: homeowners signed contracts, paid large deposits — far exceeding California’s legal limit of $1,000 or 10% — and then watched work stall or never begin. Phone calls went unanswered. Emails stopped getting responses. Projects sat half-built or untouched for months.

The I-Team tracked down two people tied to the company: Angelina Gorbaseva, listed as CEO and a 2018 graduate of USC, and Esteban Araya, who also claimed to be CEO on social media. Gorbaseva did not return the I-Team’s phone calls or texts. In a phone call with the I-Team, Araya told investigators to “be careful of putting out wrong information.” Meanwhile, homeowners reported that Araya was posting travel photos on social media while their projects sat abandoned.

The BBB confirmed in October 2024 that Next Generation Builders had not maintained the necessary licensing. CSLB suspended the company’s license after the bond expired. The company appears to have also operated under the name Polymath Development Group, Inc.

Period	What Happened
Operations	Next Generation Builders markets ADU construction across Southern California. Clients acquired primarily through Instagram and social media. Contracts signed with homeowners in Los Angeles, Whittier, and surrounding areas. Large upfront deposits collected — $84,000 to $200,000 per project.
Projects stall	Homeowners report work abandoned mid-construction or never started. Some homeowners wait years with nothing built. Communication becomes sporadic, then stops entirely. Some report the company conducts business exclusively through Zoom calls.
Complaints filed	Multiple homeowners file complaints with CSLB. The complaints do not appear on the CSLB website — homeowners checking the license online see no red flags. BBB complaints accumulate.
June 2024	CSLB suspends the company’s contractor license after the surety bond expires. The company continues to be unresponsive to homeowners.
Late 2024	NBC Los Angeles I-Team investigates and publishes findings. After the I-Team contacts CSLB, the board posts the previously hidden complaints. BBB confirms in October 2024 that the company lacks proper licensing. Angelina Gorbaseva does not respond. Esteban Araya posts travel photos on social media while projects remain abandoned.

Next Generation Builders didn’t find clients through the traditional channels most legitimate contractors use — referrals, local reputation, and repeat business. The company built its pipeline on social media, particularly Instagram. This is increasingly common in ADU contractor fraud and is worth understanding.

The structure:

• Professional social media presence. Polished Instagram posts. Before-and-after photos. Project renders. The visual quality of the content signaled legitimacy. Social media followers and engagement created a sense of credibility that didn’t require any actual verification of the company’s licensing, bond status, or track record.
• Direct-to-consumer sales. Homeowners found the company on Instagram, initiated contact, and moved quickly into contracts. There was no third-party vetting — no referral from a friend who’d had a good experience, no local reputation built over years of completed projects.
• Large upfront deposits. Contracts required deposits far exceeding the California legal limit of $1,000 or 10% of the contract price (Business & Professions Code 7159.5). One homeowner paid $84,000 on a $104,000 contract — over 80% upfront. Another paid $200,000 on a project before it was completed. These amounts gave the company enormous cash flow with minimal accountability.
• Remote operations. Multiple homeowners and reviewers reported that the company conducted business primarily through Zoom calls. Some reports indicated operations were managed from Colombia. There was no physical office where homeowners could show up and demand answers.
• Delay and disappearance. Once deposits were collected, the pattern was consistent: partial work or no work, followed by decreasing communication, followed by silence. Homeowners who tried to reach the company found phones disconnected and messages unanswered.

The NBC Los Angeles I-Team documented specific cases that illustrate the damage:

• Lily Rodriguez — $200,000. Rodriguez paid Next Generation Builders nearly the entire price of her two-story ADU project. Workers abandoned the job long before it was complete. She was left with an unfinished structure and no contractor to complete it.
• Aracely Reyes — $84,000. Reyes found Next Generation Builders on Instagram and hired the company to convert her Whittier garage into an ADU. The total contract was approximately $104,000. She paid $84,000 — $20,000 short of the full amount — and received a skeleton of a home: framing, a concrete floor, and rough plumbing. Then workers never came back.
• Additional homeowners. BBB complaints and online reviews document losses ranging from $9,000 to six figures. Some homeowners reported signing contracts and waiting years with no work performed. Others described partial construction abandoned without explanation.

Beyond the financial loss, homeowners faced a compounding problem: hiring a second contractor to finish or redo the work. A half-built ADU with no documentation of what’s been done, no open permits, and potentially substandard work is expensive and complicated to remediate. The cost of the second contractor often exceeds what a properly managed project would have cost from the start.

This case exposed a systemic issue with CSLB’s complaint system that every California homeowner should understand.

Multiple homeowners filed complaints against Next Generation Builders with CSLB. Those complaints did not appear on the board’s website. A homeowner checking the company’s license status online — doing exactly the right thing — would have seen no red flags. The complaints were filed but not publicly visible.

It was only after the NBC Los Angeles I-Team contacted CSLB and asked about the complaints that the board posted them and suspended the company’s license because the bond had expired.

This means:

• A clean CSLB record doesn’t guarantee there are no complaints. Complaints may have been filed but not yet processed or posted.
• Bond expiration is not always immediately reflected. The company’s bond expired, but the license status may not have been updated in real time.
• You should check more than just CSLB. BBB complaints, Yelp reviews, Google reviews, and a simple web search for “[company name] complaints” or “[company name] scam” will surface problems that CSLB may not yet show. The BBB flagged Next Generation Builders’ licensing issue in October 2024 — that information was available to anyone who searched.

CSLB processes hundreds of complaints. There is an inherent lag between when a complaint is filed and when it appears publicly. Do not treat the absence of visible complaints as proof that no complaints exist. Check multiple sources.

1. The company was found on social media, not through referrals. Instagram is a marketing platform, not a verification system. A polished Instagram feed proves a company can produce content. It says nothing about whether they can build an ADU, maintain a license, or finish a project. The best way to find a contractor is through referrals from people who’ve had work completed — not through ads or social media discovery.

2. Deposits exceeded California’s legal limit. California law caps the initial down payment at $1,000 or 10% of the contract price, whichever is less. Aracely Reyes paid 80% of her contract upfront. Lily Rodriguez paid nearly the entire project cost before completion. Any contractor asking for more than 10% upfront is violating state law. This is the single most reliable red flag in ADU contractor fraud.

3. No physical office. Homeowners reported that the company operated through Zoom calls and had no accessible physical location. A company that can’t be found in person is a company that can disappear without friction. Before signing a contract for a six-figure project, visit the contractor’s office.

4. Communication was remote and controlled. Zoom-only sales calls. Text-based updates. No in-person project walkthroughs. When a contractor controls the communication channel and keeps everything remote, you lose the ability to show up unannounced and see what’s actually happening on your project.

5. The bond had expired. A contractor’s surety bond is required by California law. When the bond expires, the license should be suspended. In this case, there was a gap between the bond expiring and the license being suspended. Homeowners who checked only the license status — and not the bond status specifically — may have missed this. When verifying a license at cslb.ca.gov, check both the license status and the bond status independently.

California requires every licensed contractor to maintain a $25,000 surety bond. Next Generation Builders let that bond expire — which should have been a disqualifying red flag for any homeowner who checked.

But even if the bond had been active, it wouldn’t have covered the losses. Lily Rodriguez alone lost $200,000. The total bond is $25,000. One victim’s losses exceeded the bond by 8x.

The bond amount has not been updated since 2007. For a detailed breakdown of how contractor bonds work and how to file a claim, see our surety bond guide.

1. Never hire a contractor found only on social media without CSLB verification. Instagram, TikTok, and Facebook are marketing platforms. They are not verification systems. A contractor can buy followers, post stock renderings, and look completely legitimate online without holding a valid license, maintaining a bond, or having completed a single project. Always verify at cslb.ca.gov before signing anything. For a step-by-step guide, see our license verification guide.

2. Check bond expiration — not just license status. Next Generation Builders’ bond expired before the license was formally suspended. There was a gap. When you check a license on CSLB, look at the bond section specifically. Confirm the bond is current, not just that the license is listed. An active license with an expired bond is a contractor operating outside the law.

3. Never pay more than $1,000 or 10% upfront. California Business & Professions Code 7159.5 caps the initial deposit at $1,000 or 10% of the contract price, whichever is less. Aracely Reyes paid 80%. Lily Rodriguez paid nearly 100%. If they had held to the 10% cap, their maximum exposure would have been $10,400 and $20,000 respectively — painful but survivable. The law exists to protect you. Use it.

4. Demand a physical office and in-person meetings. A six-figure construction contract conducted entirely over Zoom is a risk you don’t need to take. Visit the contractor’s office. Meet the project manager. See evidence of other completed projects in person — not just photos online.

5. Check for complaints before signing — beyond CSLB. CSLB complaints may not appear immediately. Search the company name on BBB, Yelp, Google Reviews, and run a web search for “[company name] scam” and “[company name] complaints.” The BBB flagged Next Generation Builders before CSLB did. A 30-minute search across multiple platforms is the cheapest due diligence you’ll ever do.

6. Tie payments to inspected milestones. After the initial deposit, every subsequent payment should be tied to a completed and inspected phase of construction. Pay for foundation after inspection. Pay for framing after inspection. Never pay ahead of verified progress. If the contractor asks for the next payment before the current phase passes inspection, stop and reassess.

7. Use a verified directory. Every builder in our verified directory has been checked against CSLB records for active licensing, current bond status, workers’ comp, and complaint history. Our LiveVerify system checks these records continuously — not just once at listing time. A company with an expired bond or hidden complaints would be flagged automatically. Browse verified builders in Los Angeles and across California.

What happened to Next Generation Builders in Los Angeles?

Next Generation Builders was a Studio City-based ADU contractor that found clients through Instagram and social media. The company collected large deposits — up to $200,000 per project — and then abandoned projects mid-construction or never started them. CSLB suspended the license after the bond expired. The company’s principals, Angelina Gorbaseva and Esteban Araya, stopped responding to homeowners and media inquiries.

Is Next Generation Builders still operating?

The company’s CSLB license was suspended after its surety bond expired. The BBB confirmed in October 2024 that the company lacked proper licensing. Homeowners and reviewers report that the company is unresponsive. The principals have not publicly addressed the complaints. Anyone contacted by Next Generation Builders should verify the license status at cslb.ca.gov before engaging.

How much did Next Generation Builders homeowners lose?

Documented losses range from $9,000 to $200,000 per homeowner. The NBC Los Angeles I-Team reported that Lily Rodriguez paid $200,000 for a two-story ADU that was abandoned, and Aracely Reyes paid $84,000 for a garage conversion that was left as a skeleton frame. Additional homeowners filed BBB complaints documenting similar losses.

Who owns Next Generation Builders?

The NBC Los Angeles I-Team identified two people tied to the company: Angelina Gorbaseva, listed as CEO and a 2018 USC graduate, and Esteban Araya, who also claimed to be CEO on social media. The company also operated under the name Polymath Development Group, Inc. Court records show discovery sanctions were imposed against Araya, Gorbaseva, and Polymath Development Group in a related lawsuit.

Why didn’t CSLB complaints show up on the website?

Multiple homeowners filed complaints with CSLB against Next Generation Builders, but those complaints did not appear on the board’s public-facing license lookup. It was only after NBC Los Angeles contacted CSLB directly that the board posted the complaints and suspended the license. CSLB processes hundreds of ADU-related complaints, and there is an inherent lag between filing and public posting. Homeowners should check BBB, Yelp, Google Reviews, and web searches in addition to CSLB.

How do I check if an ADU contractor’s bond has expired?

Go to cslb.ca.gov and enter the contractor’s license number. The license detail page shows both the license status and the bond information separately. Check that the bond is listed as current — not just that the license appears active. Next Generation Builders’ bond expired before the license was formally suspended, creating a gap where homeowners could have been misled by checking only the license status. For a full walkthrough, see our license verification guide.

Should I hire an ADU contractor I found on Instagram?

Finding a contractor on Instagram is not inherently dangerous — but hiring one based solely on their social media presence is. Instagram is a marketing platform, not a verification system. Before signing any contract, verify the CSLB license at cslb.ca.gov, confirm the bond is current, check for complaints on CSLB, BBB, and review sites, ask for references from completed projects you can visit in person, and visit the contractor’s physical office.

What is the maximum legal deposit for a contractor in California?

California Business & Professions Code 7159.5 caps the initial down payment at $1,000 or 10% of the contract price, whichever is less. For a $200,000 ADU, the maximum legal deposit is $1,000. Any contractor demanding more is violating California law. After the initial deposit, subsequent payments should be tied to completed and inspected milestones — not the contractor’s payment schedule.