Contractors State License Board Revokes License of Once- Prominent Sacramento Area Restaurateur and Developer
Settlement requires restitution and repayment by company president
SACRAMENTO — The Contractors State License Board (CSLB) officially revoked the license of Stonegate Construction, Inc.’s license (#766777) on August 12, 2011. Stonegate Construction President and Responsible Managing Officer Abolghassen "Abe" Alizadeh signed and accepted the terms of a stipulated settlement agreement on August 5, 2011, in response to a CSLB investigation that concluded Alizadeh had diverted construction funds, and failed to pay subcontractors and materials suppliers.
As part of the agreement, Stonegate Construction’s license is revoked for at least one year. Before the license can be reinstated, or another license issued to Alizadeh, he must:
- Pay CSLB for the cost of its investigation and enforcement ($16,386.05);
- File a disciplinary bond valued between $15,000 and $125,000 for at least two years; and
- Prove that restitution has been made to subcontractors, or demonstrate that these debts were resolved civilly or successfully discharged in bankruptcy.
CSLB opened its investigation in 2009 after complaints were filed by more than 20 subcontractors and materials suppliers who had not been paid. CSLB partnered with the Franchise Tax Board, Board of Equalization, Employment Development Department, and Division of Labor Standards Enforcement, to whom Alizadeh also owed millions in unpaid fees and taxes. Alizadeh was arrested in January 2011 on grand theft and other felony charges related to that part of the investigation.
"CSLB hopes this sends a clear message that there will be serious consequences for licensees who do not follow state laws," said CSLB Registrar Steve Sands. "Mr. Alizadeh must be held accountable for these violations of state contracting and other laws before he is ever allowed to contract again."
The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. More information and publications about hiring contractors are available on the CSLB website or by calling 800-321-CSLB (2752). You can also sign up for CSLB email alerts at www.cslb.ca.gov. CSLB licenses and regulates California's more than 300,000 contractors, and is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2010-11, CSLB helped recover nearly $45 million in ordered restitution for consumers.
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