Online Ads Lead CSLB to Unlicensed and Uninsured Workers in Sacramento County

    Thirteen individuals caught contracting illegally, all facing court appearance

    SACRAMENTO - A quick sift through online advertisements led Contractors State License Board (CSLB) investigators to more than a dozen workers contracting illegally in Rancho Cordova. CSLB urges homeowners to think twice before hiring an unlicensed worker who advertises online, or anywhere else, because it's likely they are uninsured and unexperienced.

    On August 1-2, CSLB's Statewide Investigative Fraud Team (SWIFT) went undercover as homeowners and contacted alleged unlicensed individuals to bid on home improvement projects at a single-family home near Mather Airport. Thirteen suspects bid on projects from remodeling the kitchen and painting the interior and exterior of the home to plumbing.

    The Rancho Cordova Police Department and Sacramento County District Attorney's Office were on site to process background checks while SWIFT issued citations for violations of state contractors' license law.

    Twelve individuals were cited for illegal advertising. Licensed contractors must display their license number in all advertisements; unlicensed contractors must state in all ads that they do not have a license. The penalty for violating the advertising rules for unlicensed contractors is a fine of $700 to $1,000 (Business and Professions Code (BPC) §7027.1).

    In addition, ten individuals placed bids ranging from $1,150 to $5,300, well above the $500 legal threshold for contracting without a license in California (BPC §7028). First-conviction penalties for contracting without a license include up to six months in jail and/or up to $5,000 in fines. A second conviction can carry a mandatory sentence of up to 90 days in jail. Penalties are more severe with each successive violation.

    "It's very likely that unlicensed workers don't carry any insurance, leaving homeowners on the hook for any injuries or property damage that can occur on their property during the project," said Dave Fogt, CSLB Registrar. "The best way to find a licensed and qualified contractor is to use our online Find My Licensed Contractor feature to download a list of experienced and insured workers in your area."

    The undercover operation also resulted in two people receiving a third citation for requiring an excessive down payment (BPC §7159.5). It's illegal for contractors to ask for more than 10 percent down or $1,000 for home improvement projects, whichever is less.
    Lastly, one of the suspects did not carry workers' compensation (WC) insurance policies to cover those working for him (Labor Code §3700.5). This resulted in a "stop order" (a legal demand to cease all employee labor at a job site), as the unlicensed individual brought his hired help with him to the home.

    All offenders were ordered to answer to misdemeanor charges on October 3, 2018, at 8:30 a.m. at the Sacramento County Superior Court (MAP), 720 9th street, Sacramento, CA 95814.

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

    DAY 1

    SUSPECT NAME
    BUSINESS NAME
    CITY OF RESIDENCE    		LICENSE
    CLASSIFICATION    		ALLEGED
    VIOLATIONS
    Fernando Gastelum
    Sacramento    		C-27 LandscapingContracting without a license,
    Illegal advertising
    Julio Martinez
    Sacramento     		C-36 PlumbingContracting without a license,
    Illegal advertising,
    No workers' compensation
    Joseph Lavalley
    Galt    		C-33 Painting and DecoratingContracting without a license,Illegal advertising
    Luis Lopez
    Elk Grove    		C-54 Ceramic and Mosaic Tile Contractor Contracting without a license,Illegal advertising
    Robert Perkins
    Vacaville    		C-33 Painting and DecoratingContracting without a license,Illegal advertising
    Lorenzo Lopez
    Sacramento    		C-33 Painting and DecoratingIllegal advertising
    Francisco Jimenez
    Placerville    		C-27 LandscapingContracting without a license,Illegal advertising
    Sullcaray Faustino
    Sacramento    		C-33 Painting and DecoratingContracting without a license,Illegal advertising

    DAY 2

    SUSPECT NAME
    BUSINESS NAME
    CITY OF RESIDENCE    		LICENSE
    CLASSIFICATION    		ALLEGED
    VIOLATIONS
    Gerardo Zaragoza
    Sacramento    		B- General Building Illegal advertising
    Leslie Nixon
    Galt    		C-33 Painting and DecoratingIllegal advertising
    Pete Veillagomez
    Rocklin    		D-6 Concrete-Related Services Contracting without a license,Illegal advertising,
    Excessive Down Payment
    Marcos Vigil
    Sacramento    		C-33 Painting and DecoratingContracting without a license,Illegal advertising,
    Excessive Down Payment
    Alexander Tomolillo
    Sacramento    		B- General Building Contracting without a license

    The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. CSLB licenses and regulates almost 290,000 contractors in California and is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2017-18, CSLB helped recover over $50 million in ordered restitution for consumers.


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