CSLB Sacramento County Undercover Sting Exposes Fraudulent Use of Contractor Licenses

    Twenty-eight suspects caught contracting allegedly illegally in Folsom operation

    SACRAMENTO – Last week, investigators from the Contractors State License Board (CSLB) Statewide Investigative Fraud Team (SWIFT) went undercover in Folsom to catch unlicensed contractors in the act. Among the 28 suspects who came to bid on home improvement work were Pedro Martin Vargas Paez, Kyle Raymond Ferreira, and Howard Franklin Muniz III. Each of the three suspects was caught allegedly advertising a license number that does not belong to him and now face possible felony charges.

    On November 27-28, 2018, with help from the Sacramento County District Attorney’s Office, SWIFT investigators invited alleged unlicensed contractors to bid on home improvement projects at a single-family home near the Mercy Hospital of Folsom. Twenty-eight unlicensed suspects came to bid on projects, such as painting, tree removal, flooring, fencing, laying concrete, and installing drywall.

    Bids from the 28 individuals ranged from $1,000 for labor to install new flooring to $7,500 for painting the interior of the home – well over the legal threshold for contracting without a license.

    In California, it's illegal for an unlicensed person to perform any contracting work on a 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(b)). First-conviction penalties include up to six months in jail and/or up to $5,000 in fines.

    Three of the suspects, who have been caught in previous stings and were convicted, could face second conviction penalties, which may result in 90 days in jail and a fine of 20 percent of the contract price or $5,000, whichever is greater (BPC §7028(c)).

    Paez, Ferreira, and Muniz could face an additional felony charge for illegally using a contractor license number that does not belong to them, which carries a fine of up to $10,000 and/or a one-year jail sentence (BPC §7027.3).

    Twenty-four others could face an additional misdemeanor charge for illegal advertising. Licensed contractors must display their license number in all advertisements and all 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.

    “These individuals are not only contracting illegally, but they are taking an extra step to swindle consumers by leading them to think they are legitimately licensed,” said CSLB Registrar David Fogt. “Homeowners should ask to see the contractor’s ‘pocket license’ or their representative’s ‘Home Improvement Salesperson’ registration and a photo ID. All contractors are issued pocket licenses that show the type of trade for which they are licensed, and the license expiration date.”

    Consumers can also use CSLB’s free online tools like ‘Find My Licensed Contractor’ to find a licensed contractor in their area and the ‘Check a License’ feature and avoid the headache of hiring someone who could potentially take advantage of them.

    In addition to these violations, four people were cited 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.

    One person could face additional penalties for lacking the proper workers’ compensation insurance policies (Labor Code section 3700.5). California law requires that all employers carry workers' compensation insurance, even if they have only one employee. This suspect also received a “stop-order” – a legal demand to cease all employee labor at a job site for violating workers’ compensation laws.

    All offenders from the Folsom sting were ordered to appear in court at a future date and time at the Sacramento County Superior Court, 720 9th Street, Sacramento, CA 95814.

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

    FOLSOM DAY 1 – NOVEMBER 27, 2018
    SUSPECT NAME
    CITY OF RESIDENCE    		 LICENSE CLASSIFICATION ALLEGED VIOLATION
    Daniel Jay Vago
    Jackson    		 C15 - Flooring and Floor Covering Contractors Contracting Without a License,
    Illegal Advertising
    Richard Stebbins
    Sacramento    		 C-8 - Concrete Contractor Contracting Without a License,
    Illegal Advertising,
    Excessive Down Payment
    Todd D Hodges
    Citrus Heights    		 C33 - Painting and Decorating Contractor Contracting Without a License,
    Illegal Advertising
    Pedro Martin Vargas Paez
    Sacramento    		 C-13 Fencing Contractor Contracting Without a License,
    Illegal Advertising,
    Illegal Use of Contractor’s License Number
    Kyle Raymond Ferreira
    Grass Valley    		 C54 - Ceramic and Mosaic Tile Contractor Contracting Without a License,
    Illegal Advertising,
    Illegal Use of Contractor’s License Number
    Iulian Rodin Plaiasu
    Bella Vista    		 C-61 Limited Specialty Classification
    D-49 Tree Service Contractor    		 Contracting Without a License,
    Illegal Advertising
    Ricardo David Perez
    Sacramento    		 C-13 Fencing Contractor Contracting Without a License,
    Illegal Advertising
    Chistien Raymond
    Sacramento    		 C-13 Fencing Contractor Contracting Without a License,
    Illegal Advertising
    Andrew Benjamin Nix
    Carmichael    		 C15 - Flooring and Floor Covering Contractors Contracting Without a License,
    Illegal Advertising
    Steven David McAllen
    Carmichael    		 C15 - Flooring and Floor Covering Contractors Contracting Without a License,
    Illegal Advertising
    Juan Fernando Xiloj Marcos
    Sacramento    		 C33 - Painting and Decorating Contractor Contracting Without a License,
    Illegal Advertising
    Howard Franklin III Muniz
    Antelope    		 C-61 Limited Specialty Classification
    D-49 Tree Service Contractor    		 Contracting Without a License,
    Illegal Advertising,
    Illegal Use of Contractor’s License Number
    Timothy Fries
    Sacramento    		 C9 - Drywall Contractor Contracting Without a License,
    Illegal Advertising,
    Excessive Down Payment,
    No Workers’ Compensation Insurance
    Thomas John Nafziger
    Sacramento    		 C9 - Drywall Contractor Contracting Without a License,
    Illegal Advertising
    Jefferey Alan Isbell
    Sacramento    		 C-13 Fencing Contractor Contracting Without a License,
    Illegal Advertising
    Manuel Vincent Lopez
    El Dorado    		 C-13 Fencing Contractor Contracting Without a License,
    Illegal Advertising

    FOLSOM DAY 2 – NOVEMBER 28, 2018
    SUSPECT NAME
    CITY OF RESIDENCE    		 LICENSE CLASSIFICATION ALLEGED VIOLATION
    Don Hill
    Sacramento    		 C-23 Ornamental Metal Contractor Contracting Without a License,
    Illegal Advertising
    Darren Daniel Lang
    Citrus Heights    		 C-61 Limited Specialty Classification,
    D-49 Tree Service Contractor    		 Contracting Without a License,
    Illegal Advertising
    Damon William Eckert
    Fair Oaks    		 C-61 Limited Specialty Classification,
    D-49 Tree Service Contractor    		 Contracting Without a License,
    Illegal Advertising
    J Jesus Sanchez Gonzalez
    Sacramento    		 C-13 Fencing Contractor Contracting Without a License,
    Illegal Advertising
    Daniel Jonathan Nicholson
    Sacramento    		 C-13 Fencing Contractor Contracting Without a License
    Kenneth A. Donald
    Sacramento    		 C-13 Fencing Contractor Contracting Without a License,
    Illegal Advertising
    Eric Goodwin Hall
    North Highlands    		 C33 - Painting and Decorating Contractor Contracting Without a License,
    Illegal Advertising
    Jeremy Ray Gravert
    Roseville    		 C-13 Fencing Contractor Contracting Without a License,
    Illegal Advertising,
    Excessive Down Payment
    Phil Randolph Zacarias
    Rocklin    		 C-8 - Concrete Contractor Contracting Without a License,
    Illegal Advertising
    Eliseo Alonso-Andres
    Sacramento    		 C33 - Painting and Decorating Contractor Contracting Without a License
    Ashley Lynn Koss
    San Francisco    		 C33 - Painting and Decorating Contractor Contracting Without a License,
    Illegal Advertising
    Erick Sosa
    Sacramento     		C33 - Painting and Decorating Contractor Contracting Without a License,
    Illegal Advertising,
    Excessive Down Payment

    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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