Home Solutions' Permit Problem

Besides the murky nature of the future sites, Blue Diamond itself remains a puzzle to investors.

Press releases from Home Solutions say Blue Diamond and Holowchak have worked on several New York City projects, including 60 Spring St. in Manhattan and 700 Pacific St. in Brooklyn.

Both of these condo projects were built by Leviev Boymelgreen, one of the largest development firms in New York City. Shannon Lynch, a representative for Leviev Boymelgreen, says Holowchak was a director of construction on both projects as an employee of the firm's internal construction division from 2002 to 2004. According to Home Solutions' press release, Blue Diamond was founded in 2000.

Lynch says Leviev Boymelgreen has never heard of Blue Diamond or SD Contracting. Holowchak, for his part, claims he was never an actual employee of Boymelgreen, but a hired consultant working under the Blue Diamond name.

Curiously, another project that Holowchak and Blue Diamond worked on of late, according to the Home Solutions press releases, is 142 North 6th Street. For some odd reason, Home Solutions didn't mention in its press release that this is a project that it also will be working on under its big contract win, as Holowchak confirmed.

It sure will be interesting to see what the two other future sites Blue Diamond and Home Solutions will look like -- once the building permits are filed, of course. And if the permits aren't filed, investors will be wondering just how rigid those contracts with Blue Diamond are. For now, Home Solutions' management isn't saying.

Be sure to watch Nick Yulico's video take on this story for TheStreet.com TV.