CSLB Undercover Sting Highlights Importance of Consumers Looking at All Home Improvement Ads

    Illegal ads lead investigators right to more than one dozen suspected unlicensed contractors

    SACRAMENTO – A quick sift through business cards posted at local home improvement stores and online ads were all Contractors State License Board (CSLB) investigators needed to identify more than a dozen alleged unlicensed painters to call them out to an undercover sting operation in Anaheim.

    On August 22-23, CSLB's Statewide Investigative Fraud Team (SWIFT) joined forces with the Anaheim City Attorney's Office and Anaheim Police Department to conduct operation at a single family home near the city's Convention Center.

    SWIFT investigators posed as homeowners and reached out to alleged unlicensed contractors. Thirteen individuals agreed to go out to provide a bid on painting both the interior and exterior of the home.

    The suspects' bids ranged from $1,500 to $3,800, well above the legal threshold for contracting without a license.

    In California, it's illegal for an unlicensed person to perform contracting work, including painting, on any project valued at $500 or more in combined labor and material costs. As a result, the suspects could now face a misdemeanor charge of contracting without a license (Business and Professions Code (BPC) §7028). First-conviction penalties include up to six months in jail and/or up to $5,000 in fines. A second conviction carries a mandatory 90 days in jail. Penalties are more severe with each successive violation.

    All individuals could face an additional charge 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. (BPC §7027.1) The penalty for violating the advertising rules for unlicensed contractors is a fine of $700 to $1,000.

    CSLB urges homeowners to be on the look-out for some simple advertising clues that can help them avoid hiring someone who is unlicensed. "Licensed or unlicensed, advertising rules apply to both sides," said CSLB Registrar David Fogt. "Consumers should look for the six or seven-digit license number on the ad, or a brief statement that they are not licensed. If you don't see either, assume they're not licensed." Consumers should then look up the license number on CSLB's website to verify its accuracy.

    Consumers can also use the new online, "Find My Licensed Contractor" feature to download and/or print a list of qualified licensed contractors in their area.

    All suspects caught in last week's sting are scheduled to appear in court on November 27-28, 2018 at 8:30 am at the North Justice Center, 1275 N. Berkley Avenue, Fullerton, CA 92832 (MAP).

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

    DAY 1
    SUSPECT NAME
    CITY OF RESIDENCE    		 LICENSE CLASSIFICATION ALLEGED VIOLATION
    Edgar Arturo Velazquez
    Anaheim    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Javier Silva Araujo
    Garden Grove    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    William Wineberry, Jr.
    Pomona    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Luis Cuestas
    Moreno Valley    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Ezequiel Ortiz Martinez
    Anaheim    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Reyes Zamudio Alejo
    Santa Ana    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Edgar Daniel Betancourt
    Anaheim    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising

    DAY 2
    SUSPECT NAME
    CITY OF RESIDENCE    		 LICENSE CLASSIFICATION ALLEGED VIOLATION
    Alfredo Legorreta Lopez
    Midway City    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Efrain Jara Cervantes
    Paramount    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Francisco Cabrera Perulero
    Hemet    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Michael Ron Venegas
    Corona    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Francisco Ramirez Gonzalez
    Anaheim    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising
    Hugo Martinez Martinez
    Los Angeles    		 C-33 Painting and Decorating Contracting without a license,
    Illegal advertising

    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.


    Archives: 2020 2019 2018