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• 06/29/2007

CSLB Press Release - 06/29/2007

CSLB Puts the Heat on Phony Tulare County Contractors

CSLB teams up with Tulare County District Attorney's Office to fight scammers

VISALIA, CA — Nearly two dozen illegal operators took the bait Thursday at a sting operation near the College of the Sequoias in Visalia that was conducted by the Contractors State License Board (CSLB) in cooperation with the Tulare County District Attorney's office. Members of the CSLB's Statewide Investigative Fraud Team (SWIFT) posed as homeowners and invited suspected unlicensed contractors to the house to bid on various home improvement projects, including roofing, painting, drywall, rain gutters, tile, concrete and electrical. The enforcement action targeted suspects from earlier complaints, illegal advertisements and local law enforcement leads.

Thursday's sting resulted in 21 operators being arrested and given "Notices to Appear"(NTA) before Tulare County Superior Court on August 1, 2007, to answer misdemeanor charges of contracting without a license, advertising violations, and selling contracting services without being registered with the CSLB (Business & Professions code: 7028, 7027.1, 7027.3, 7114 ). One licensed contractor was cited for aiding and abetting for allowing relatives who are not registered with CSLB to represent his company and bid on jobs. The charges carry a maximum of six months in jail or a $1,000 fine for the first offense. A second violation carries a mandatory 90-day jail sentence.

Of the 23 unlicensed operators who arrived at the sting house to provide bids, three were parolees, including one registered sex offender. One of those parolees was booked into Tulare County Jail. Another felon, who was caught in a prior sting in the Visalia area, was cautious about the sting house when he arrived and chose not to enter the property. Felipe Hernandez, who has operated illegally for some 20 years in the region, was arrested on a $20,000 arrest warrant for Failure to Appear after District Attorney investigators staked out his house. Hernandez is suspected of bilking local residents in excess of $300,000 for substandard work or unfinished projects. He was also booked into Tulare County Jail.

By law, all contractors who perform work that totals $500 or more (labor and materials) must be licensed by the CSLB. Unlicensed operators are part of a multi-million dollar underground economy that takes jobs away from legitimate contractors, and tax dollars from schools, roads and law enforcement. Illegal operators rarely have workers' compensation or liability insurance. Homeowners have little recourse if something goes wrong with an unlicensed operator.

Many times phony contractors, who are skirting the law by not being licensed, have problems with the law in other areas. "It is not unusual to find people with criminal backgrounds trying to sell themselves as a contractor," said CSLB Registrar Steve Sands. "Homeowners may think they are saving money by hiring someone who is unlicensed. But you never know what type of individuals you are inviting into your home and what their real motives are."

The CSLB conducts sting operations on an almost weekly basis, to highlight the dangers to consumers who hire unlicensed workers, and to educate unlicensed workers about California laws. In this operation, investigators were targeting repeat offenders, subjects of complaints and blatant violators of advertising law. Contractors need to disclose whether they are unlicensed, or display their license number in their ad if they hold a valid California contractors license.

Before hiring any contractor, homeowners should go online or call CSLB's automated phone system to verify that he/she holds a valid license. These resources also provide details about the contractor's license history, as well as bond and personnel information.

The CSLB urges consumers to follow these tips when dealing with a building contractor:

• Hire only licensed contractors and ask to see the license;
• Don't rush into decisions and don't hire the first contractor who comes along;
• Be especially hesitant when approached by someone offering home improvement services door-to-door;
• Verify the contractor's license status by checking online at www.cslb.ca.gov; or via CSLB's automated phone service at 1-800-321-CSLB(2752);
• Don't pay more than 10% down or $1,000, whichever is less;
• Don't pay cash, and don't let the payments get ahead of the work;
• Get three bids, check references, and a written contract; and
• Contact the CSLB if you have a complaint against a contractor

ARREST DETAILS

The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. The CSLB licenses and regulates California's 310,000 contractors, and investigates more than 20,000 complaints against contractors annually. In fiscal year 2005-06, the CSLB helped consumers get more than $36 million in restitution.