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Contractors Board Revokes License of Statewide Repair Company

Order targets Cal Repair Services, Inc.

SACRAMENTO — The Contractors State License Board (CSLB) has taken action against a company that performs thousands of electrical, plumbing and general repair calls each year in California. As the result of a complex investigation by the CSLB, Cal Repair Services Inc., has had its contracting license (#797241) revoked.Cal Repair Services, based in Glendale, at times did business under the name "Pick Red."

The Final Order from the Registrar of Contractors to revoke the license for five years follows a ruling by Administrative Law Judge Eric Sawyer. In that ruling, the judge determined that Cal Repair Services and CEO/President Zohrab Mkhitarian:

• Forged signatures on two different license application forms;
• Omitted or misrepresented material facts on three license applications forms;
• Failed to get necessary permits and inspections for work;
• Failed to identify and correct problems for a price stated on their contract;
• Departed from trade standards on repairs and billed homeowners for unnecessary repairs;
• Failed to complete projects and failed to repair damage caused by their work;
• Failed to provide a written description of work done prior to signing contract; and
• Failed to provide information to owner on Mechanics Lien Law

A number of consumers filed complaints with the CSLB against Pick-Red, Inc. (License #745375 that was revoked by the CSLB). Mkhitarian used to be Pick Red, Inc.'s General Manager and purchased the company during the period when its license was being revoked.

Under the new order, Cal Repair Services and the license of Mkhitarian and Responsible Managing Employee Jessie Kangho Young are revoked. In addition, Mkhitarian is prohibited from serving in an executive capacity with other CSLB licensees. Young is also prohibited from serving in an executive capacity with other CSLB licenses, except for an expired license he holds for another contracting company (#670171) which, if renewed, would be placed on probation and subject to specific terms and conditions. Cal Repair Services and Mkhitarian were also ordered to pay $46,446.13 to the CSLB for the cost of its investigation and prosecution. Of that amount, Young was ordered to pay $4,004.76. The order becomes effective August 10, 2005, pending Cal Repair Services' right to appeal.

"This was a very complex case that included a six-week long administrative hearing where Cal Repair Services had an opportunity to defend their actions," said David Fogt, CSLB's Chief of Enforcement. "We're pleased that Judge Sawyer agreed with the state's position that Cal Repair Services should lose its contracting license."

This case also highlights the importance to consumers of the CSLB's license look-up feature available via its website www.cslb.ca.gov and automated toll-free phone line (1-800-321-CSLB). "We had information available that told consumers that a disciplinary action had been referred to the Attorney General that could result in the company losing its license," said CSLB Registrar Steve Sands. "By investing a few minutes with us, consumers can make a more informed decision on contractors they choose to hire."

The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. The CSLB licenses and regulates California's 292,000 contractors, and investigates more than 20,000 complaints against contractors annually.

 

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