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Contractors State License Board Goes Undercover to Catch Unlicensed Contractors in South Napa Earthquake Sting Operation

Quake victims reminded to stay vigilant as unlicensed contractors ignore warnings

Quake victims reminded to stay vigilant as unlicensed contractors ignore warnings SACRAMENTO – Within hours after a strong earthquake struck the Napa Valley on August 24, 2014, the Contractors State License Board (CSLB) began warning unlicensed contractors they could face felony charges if they illegally tried to take advantage of earthquake victims.

The warnings came with a promise that CSLB would partner with other law enforcement agencies to target phony contractors. Last month, CSLB joined local District Attorney offices to conduct checks of active construction sites. This week, investigators from CSLB’s Statewide Investigative Fraud Team (SWIFT) and the Napa County District Attorney’s Office (DA) conducted an undercover sting operation.

The two-day operation took place on October 7-8, 2014 at a quake-damaged home near Fuller Park in Napa.

SWIFT investigators, posing as homeowners, called a list of potential suspects to solicit bids for quake repairs to masonry and drywall. Bids ranged from $3,000 for labor only to $10,000 – well in excess of the state’s $500 legal limit where a CSLB-issued license is required.

CSLB caught eight phony contractors who gave bids for the quake repairs. CSLB will request that the DA file felony charges against them. Business and Professions Code section 7028.16 makes contracting without a license in a state or federally declared disaster a felony. Punishment may include a fine of up to $10,000 and up to three years in state prison, or both. The suspects who may face felony charges were not arrested and are not being identified at this time.

Four other unlicensed contractors who provided bids for non-earthquake work were arrested and must now go to court to answer misdemeanor charges of contracting without a license (Business and Professions Code section 7028).

Three of those four will also face a misdemeanor charge of illegal advertising. (Business and Professions Code section 7027.1). State law requires contractors to place their license number in all advertisements. Those without a license can advertise for jobs valued at less than $500, but the ad must state that they are not a licensed contractor. Punishment for the misdemeanor charges may include fines of up to $10,000 and/or up to 16 months in county jail.

CSLB staff has been an active and visible presence in the Napa Valley disaster areas since the earthquake, meeting with victims, posting hundreds of warning signs, and conducting enforcement operations. CSLB is working hard to warn consumers and discourage rip-off artists.

“Our experience tells us that illegal operators flock to disaster areas weeks after the initial event, when many consumers are receiving insurance checks,” said CSLB Registrar Steve Sands. “Our advice to consumers is to not rush into any rebuilding project. You are already a victim of the earthquake; don’t become a victim of a non-licensed contractor doing shoddy work and making promises he can’t keep.”

CSLB will continue to be aggressive in going after phony contractors in the weeks and months ahead.

To become licensed, a contractor must have at least four years of journey-level experience and pass two licensing exams. California contractors must carry a license bond, and provide workers' compensation insurance for their employees. A homeowner could be liable if workers who aren't covered have an accident while on their property.

The following suspects facing misdemeanor charges are scheduled to appear in Napa County Superior Court, Department D, on November 18, 2014 at 8:30 a.m.

SUSPECT NAME CITY OF RESIDENCE	LICENSE CLASSIFICATION	ALLEGED VIOLATIONS
Juvertino Corona Aleman Corona Drywall Santa Rosa	C-9 – Drywall Contractor	Contracting without a license
Miguel Morales Napa	C-29 – Masonry Contractor	Contracting without a license, Illegal advertising
Adan Palmas A&I Landscape & Fencing Napa	C-13 – Fencing Contractor	Contracting without a license, Illegal advertising
Efren Segura E.S. Handyman & Landscaping Napa	C8 – Concrete Contractor	Contracting without a license, Illegal advertising

CSLB encourages disaster victims to always “Check The License First” by visiting www.cslb.ca.gov or calling CSLB’s Disaster Hotline Monday through Friday from 8 a-m to 5 p-m at 800.962.1125, or CSLB’s automated line: 800.321.CSLB (2757).

The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. CSLB licenses and regulates about 290,000 contractors in California, and is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2013-14, CSLB helped recover nearly $51 million in ordered restitution for consumers.

 

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