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Contractors State License Board Turns Up Heat on Illegal and Deceptive Internet Advertisements

New warning after second wave of multi-state enforcement operations

SACRAMENTO — For the second time in three months, the California Contractors State License Board (CSLB) has teamed up with contracting boards from around the country, as well as the National Association of State Contractors Licensing Agencies (NASCLA), to draw attention to illegal and deceptive ads on popular Internet bulletin boards like craigslist.

The agencies are warning consumers who are looking for a contractor and who use craigslist or other similar websites about the extreme risk of hiring someone whose only goal is to rip them off.

"While craigslist serves as a valuable free tool for legitimately licensed and insured contractors, the number of illegal and deceptive ads is growing like wildfire," said CSLB Registrar Steve Sands. "As a result, it's difficult, if not impossible, for consumers to figure out who's legitimate and who isn't."

Last week, contractor boards in seven states (Arizona, California, Nevada, Oregon, Rhode Island, South Carolina, and Utah) conducted enforcement operations, targeting illegal craigslist ads. Three undercover sting operations took place in California (San Jose, Hanford, and Mission Hills).

CSLB investigators posed as homeowners and asked for home improvement bids on projects that included roofing, landscaping, painting, and fencing. All home improvement jobs valued at $500 or more (combined labor and material costs) must be conducted by a company or person with a contractor license issued by CSLB.

A total of 36 individuals were arrested and now face misdemeanor charges of contracting without a license (Business and Professions Code section 7028). Two of those arrested are registered sex offenders; another is a convicted felon for statutory rape. One individual was caught in a CSLB sting in 2010 and now faces a mandatory 90-day jail sentence if convicted a second time.

Thirty of the individuals also will be charged with illegal advertising (Business and Professions Code section 7027.1). State law requires contractors to place their license number in all print, broadcast, and online advertisements. Those without a license can advertise to perform jobs valued at less than $500, but the ad must state that they are not a licensed contractor.

A number of others will be charged with requesting an excessive down payment (Business and Professions Code section 7159.5). In California, a down payment cannot exceed 10 percent of the contract total or $1,000, whichever is less. The misdemeanor charges carry a maximum penalty of six months in jail and/or up to a $5,000 fine.

Eight of the phony contractors also were issued Stop Orders (Business and Professions Code section 7127). CSLB investigators can halt job site activity when any person with or without a contractor license does not have workers' compensation insurance coverage for employees. Failure to comply with a Stop Order can result in misdemeanor charges and penalties, including 60 days in jail and/or up to $10,000 in fines.

The issue of illegal online advertising isn't new. CSLB addressed the problem with craigslist in 2006 and 2007. As a result, craigslist has a link to contractor license information at the top of its "Skilled Trade Services" page, and to the California Department of Consumer Affairs website.

The company also added an additional step into the advertisement posting process that requires the user to indicate whether he or she is licensed. Regrettably, unlicensed operators quickly found a way around the requirement and now the process is virtually useless. CSLB has tried, unsuccessfully, to have craigslist address these concerns. In addition, unlicensed operators also are advertising in different sections of the website; a number of targets from last week's sting had ads in the "Household Services" section.

Following are the results of California's three undercover sting operations:

San Jose Sting (Santa Clara County) 11 NTAs

SUSPECT'S NAME	WORK CLASSIFICATION	VIOLATIONS
Oscar Alberto Romero	C-13 - Fencing	Contracting without a license, illegal advertising
Ervin Kolasinac	C-15 - Flooring and Floor Covering	Contracting without a license, illegal advertising
Nicolas Teodorico Silvestre, Jr.	C-54 - Ceramic and Mosaic Tile	Contracting without a license, illegal advertising
Nicholas Paul Garcia	C-27 - Landscaping	Contracting without a license, illegal advertising
Rick George Candelaria*	C-54 - Ceramic and Mosaic Tile	Contracting without a license, illegal advertising
Cesar Marrujo	C-33 - Painting and Decorating	Contracting without a license, illegal advertising
Thomas Robert Meier	C-54 - Ceramic and Mosaic Tile	Contracting without a license, illegal advertising
Gregory Yhip*	C-15 - Flooring and Floor Covering	Contracting without a license, illegal advertising
Rudy Cruz Ucelo	C-33 - Painting and Decorating	Contracting without a license, illegal advertising
Son Quoc Tran	C-15 - Flooring and Floor Covering	Contracting without a license, illegal advertising
Leon Vernon Fisher	C-23 - Ornamental Metal	Contracting without a license, illegal advertising

* Denotes Registered Sex Offender

Hanford Sting (Kings County) 14 NTAs

SUSPECT'S NAME	WORK CLASSIFICATION	VIOLATIONS
Miguel Hernandez Cortez	C-33 - Painting and Decorating	Contracting without a license, illegal advertising, excessive down payment, stop order-workers' comp.
Benjamin Enos Cordeiro	D-49 - Tree Service	Contracting without a license, illegal advertising, stop order-workers' comp.
Ricky Dean Hudson	D-49 - Tree Service	Contracting without a license, illegal advertising, stop order-workers' comp.
Edward James Heinz**	C-13 - Fencing	Contracting without a license, illegal advertising, stop order-workers' comp.
Avelino Cervantes Castellanos	D-49 - Tree Service	Contracting without a license, illegal advertising
Joshua Allen Caetano	D-49 - Tree Service	Contracting without a license, illegal advertising, excessive down payment
Jordan Michael Torres	D-49 - Tree Service	Contracting without a license, illegal advertising, excessive down payment
Edgar Valencia Padilla	C-33 - Painting and Decorating	Contracting without a license, illegal advertising, excessive down payment
David Rodarte	C-39 - Roofing	Contracting without a license, illegal advertising, stop order-workers' comp.
Bradley Martin Wright	C-13 - Fencing	Contracting without a license, illegal advertising, excessive down payment, stop order-workers' comp.
Cameron Clark Waller	C-13 - Fencing	Contracting without a license, illegal advertising, excessive down payment, stop order-workers' comp.
Francisco Calderon Lopez	D-49 - Tree Service	Contracting without a license, illegal advertising, excessive down payment, stop order-workers' comp.
Enrique Flores Montelongo	D-49 - Tree Service	Contracting without a license, illegal advertising, excessive down payment
Arnoldo David Flores	D-49 - Tree Service	Contracting without a license, illegal advertising, excessive down payment

** Denotes Repeat Offender

Mission Hills Sting (Los Angeles County) 11 NTAs

SUSPECT'S NAME	WORK CLASSIFICATION	VIOLATIONS
Ivan Fuller	C-33 - Painting and Decorating	Contracting without a license, illegal advertising
Juan Garcia Miranda	C-33 - Painting and Decorating	Contracting without a license
Miguel Angel Garcia	C-33 - Painting and Decorating	Contracting without a license
Luis Mario Ruiz	C-15 - Flooring and Floor Covering	Contracting without a license, excessive down payment
Carlos Alberto Yanes-Nolasco***	C-15 - Flooring and Floor Covering	Contracting without a license, excessive down payment
Jack Lee Wright	C-33 - Painting and Decorating	Contracting without a license
Joe Raul Carrion	B - General Building	Contracting without a license, illegal advertising, excessive down payment
Fabian Martinez	C-33 - Painting and Decorating	Contracting without a license, illegal advertising, excessive down payment, stop order-workers' comp.
Ovendya Mantsur	C-29 - Masonry	Contracting without a license
Carlos Alex Trujillo	C-33 - Painting and Decorating	Contracting without a license, illegal advertising, excessive down payment
Carlos Prado	C-33 - Painting and Decorating	Contracting without a license, illegal advertising

*** Denotes conviction for statutory rape

CSLB urges consumers to follow these tips before hiring anyone to work on his or her home or business:

• Look for the contractor's state license number. California law requires it to be in all forms of advertising.
• If the contractor doesn't have a state license, the ad must state that fact.
• In California, unlicensed people can't take jobs valued at $500 or more (combined labor and materials).
• Don't be misled by unlicensed contractors who give you a business or "handyman" license number.
• Before you call anyone for a bid, check the license number on CSLB's Instant License Check feature to make sure the license is in good standing, and that employees are covered by workers' compensation insurance.
• Contractors are required to have their plastic pocket license or Home Improvement Salesperson registration card with them. Ask to see it when getting your bid.
• Ask to see a photo ID to verify the person's identity.
• Get at least three bids, check references and previous work, and get a detailed written contract.
• Don't pay more than 10 percent or $1,000, whichever is less, as a down payment.
• Don't pay in cash, and don't let payments get ahead of the work.

The California 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 CSLB's website or by calling (800) 321-CSLB (2752). You also can sign up for CSLB email alerts. CSLB licenses and regulates California's 300,000 contractors, and is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2011-12, CSLB helped recover nearly $36 million in ordered restitution for consumers. .

June 20, 2012 Consumer Alert

Online Bulletin Board Safety Tips

 

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