Sting Targets Bogus Contractors in Sacramento Area

News from Contractors State License Board:

Eleven individuals were caught and may be charged with contracting without a license after a two-day sting operation conducted in Sacramento by the Contractors State License Board (CSLB). Among the suspects were two who didn’t let past contracting violations stop them from continuing to violate state contracting laws.

The undercover sting conducted by CSLB’s Statewide Investigative Fraud Team (SWIFT) took place at a single-family home in the Natomas area of Sacramento, with the assistance of theSacramento County District Attorney’s Office. Four misdemeanor illegal contracting citations were issued on August 27, and seven on August 28, 2015.

CSLB stages sting operations year-round to crack down on unlicensed contracting, which feeds a multi-billion-dollar underground economy in California, and creates unfair business competition for licensed, law-abiding contractors.

Using a list of suspected unlicensed contractors developed mostly from online ads, local pamphlets, and a newspaper, SWIFT investigators posed as homeowners seeking bids for various home improvement projects that included fencing, painting, a concrete driveway, and tankless water heater installation.

The bids received by investigators averaged about $2,300, with a high bid of $4,000. Any project that is $500 or more in combined labor and material costs must be performed by a state-licensed contractor (Business and Professions Code (BPC) section 7028). Penalties for first-time unlicensed contracting convictions include up to six months in jail and/or up to $5,000 in fines.

Two men cited at the Sacramento sting were no strangers to CSLB. One had been caught in a 2012 sting operation in El Dorado County, was given a probation term and a fine, and had been previously denied a contractor license. He also is a registered sex offender. The other man, on probation for a 2014 unlicensed contracting conviction, tried to pass off a contractor license that did not belong to him.

“Time after time, the stings we conduct show that property owners need to be very careful about who they’re allowing in and around their home and family,” said CSLB Registrar Cindi Christenson. “It’s very easy to use CSLB’s website to see if a bidder is a legitimate contractor who has undergone a background check, and has the necessary experience.”

All suspects were issued a Notice to Appear in superior court for contracting without a license. Ten of the 11 were cited for illegal advertising (BPC 7027.1). Contracting law requires unlicensed operators to state in all advertising that they arenot licensed; the penalty is a fine of $700 to $1,000.

Suspects are scheduled to appear October 21 or 22, 2015, in Sacramento County Superior Court.

CSLB encourages consumers to always “Check The License First” by visiting www.cslb.ca.gov or calling its toll-free automated line: 800.321.CSLB (2752). Also, visit CSLB’s website for tips about how to hire a contractor and to sign up for CSLB Email Alerts.

The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs.CSLB licenses and regulates about 285,000 contractors in California, and is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2014-15, CSLB helped recover nearly $68 million in ordered restitution for consumers.

NOTE: All suspects are presumed innocent until their case is resolved.