In a striking legal battle, two Ohio residents have taken action against a financial institution and a solar energy company over alleged fraudulent practices related to the sale and financing of solar panel systems. On November 10, 2025, Charles Pacheco and Sheryl Krause Pacheco filed a complaint in the United States District Court for the Northern District of Ohio against Cross River Bank and Sunlight Financial LLC. The plaintiffs accuse these entities of engaging in deceptive business practices that left them with significant financial burdens.
The lawsuit stems from an agreement the Pachecos entered into with Power Home Solar, LLC (PHS), which has since filed for bankruptcy. The couple claims they were misled by PHS’s false promises about the efficiency and cost-effectiveness of their solar energy system. According to court documents, PHS assured them that their electric bills would be drastically reduced or eliminated entirely due to the system’s output. However, these promises turned out to be exaggerated and scientifically impossible. In addition to being misled about the product’s capabilities, the plaintiffs allege they were victims of high-pressure sales tactics that included misleading information about federal tax credits.
Compounding their grievances, the Pachecos assert that Cross River Bank and Sunlight Financial conspired with PHS in a hidden finance scheme that inflated the cost of their solar panel system by nearly 300%. They claim this scheme involved undisclosed fees embedded in their loan agreement with Cross River Bank and Sunlight Financial. The plaintiffs argue that this arrangement violated several laws, including the Truth in Lending Act and Ohio’s Consumer Sales Practices Act.
The plaintiffs are seeking rescission of both their sales and loan agreements along with compensatory damages exceeding $75,000. They also demand punitive damages for what they describe as fraudulent misrepresentation, breach of contract, negligence, civil conspiracy, and violations of consumer protection laws. Their complaint outlines multiple counts against Cross River Bank and Sunlight Financial for failing to uphold their obligations under various legal statutes.
Representing Charles and Sheryl Krause Pacheco are attorneys Andrew R. Burton from Schulman Roth & Associates Co., LPA., Stacie L. Roth, Richard D. Reinbold from Schulman Roth & Associates Co., LPA., and Robert J. Tscholl from Robert J. Tscholl LLC. As of now, no judge has been assigned to oversee Case No: 1:25-cv-2440.
Source: 125cv02440_Pacheco_v_Cross_River_Bank_Complaint_Northern_District_Ohio.pdf
