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GC/carpenter
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Discussion Starter · #1 ·
Sex Offenders, Convicted Felons Snagged in Contractors
State License Board Statewide Sting
California Blitz highlights serious risks consumers take when hiring unlicensed contractors

SACRAMENTO – Seventy-five people may face criminal charges after being caught in six simultaneous statewide undercover sting operations conducted this week by the Contractors State License Board (CSLB). Among those arrested during CSLB’s fall California Blitz were two registered sex offenders; two individuals with several prior felonies including robbery, rape, burglary and drug possession; three who had an active arrest warrant; and several caught using contractor license numbers not belonging to them. Three of the suspects were taken to jail. One vehicle was towed.

“Homeowners should be nervous when they hear the background of some of the people we caught in these stings,” said CSLB Registrar Steve Sands. “Unlicensed, illegal activity that puts homeowners at risk and legitimate contractors at a competitive disadvantage will not be tolerated.”

“The Department of Insurance works closely with our state law enforcement partners to make sure that all businesses comply with the workers' compensation laws, so that no business enjoys an unfair competitive advantage by violating the law", said Insurance Commissioner Dave Jones.

Investigators from CSLB’s Statewide Investigative Fraud Team (SWIFT), along with partners from a variety of state and local law enforcement agencies, conducted stings on October 9 and 10, 2013, in Clovis (Fresno County), Ontario (San Bernardino County), Roseville (Placer County), and Seaside (Monterey County). One-day stings were conducted October 9, 2013, in South Lake Tahoe (El Dorado County) and October 10, 2013, in the area burned in the recent Silver Fire near Banning (Riverside County).

SWIFT investigators posed as homeowners seeking bids for home improvements such as painting, electrical, plumbing, landscaping, flooring, drywall, fencing, concrete, and tree removal work. Of the 75 individuals arrested, 72 now may face misdemeanor charges for contracting without a license (Business and Professions Code section 7028). The penalty for a conviction is up to six months in jail and/or a fine of up to $5,000.

Fifty-six suspects also may be charged with illegal advertising (Business and Professions Code section 7027.1). State law requires contractors to place their license number in all print, broadcast, and online advertisements. Those without a license can advertise to perform jobs valued at less than $500, but the ad must state that they are not a licensed contractor. The penalty is a fine of $700 to $1,000.

Ten others may be charged with requesting an excessive down payment (Business and Professions Code section 7159.5). In California, a home improvement project down payment cannot exceed 10 percent of the contract total or $1,000, whichever is less. This misdemeanor charge carries a maximum penalty of six months in jail and/or up to a $5,000 fine.

Thirteen of the phony contractors also were issued Stop Orders (Business and Professions Code section 7127). CSLB investigators can halt job site activity when any person with or without a contractor license does not have workers’ compensation insurance coverage for employees. Failure to comply with a Stop Order can result in misdemeanor charges and penalties, including 60 days in jail and/or up to $10,000 in fines.

Blitz totals may increase as some suspects are expected to provide their bids to undercover investigators via email or fax at a later date. A majority of those caught this week were identified through illegal ads posted on craigslist.org.
 

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Excellent, but too bad it's "racist". I mean they had to have some form of ID, right? We've been told over and over that having to produce some form of ID is "racist", so can't all of this be thrown out over all those "violations of people's civil rights"?

Wait, this is california, so now illegals can get drivers licenses, aka state/national IDs. And the repercussions against an illegal in this country is what again? lol.

This stuff is funny and yeah, I know this is a contractor board, but if you don't think this orwellian buffoonery doesn't affect you and your business, you are fooling yourself.

Speaking of which, the max 1K down is more misguided race to the bottom thinking. So a painter doing a house and a cabinet guy doing a kitchen are both 'entitled' to 1K max down? :yawn:
 

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Super Moderator
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If its a smaller job (under 10k) its 50% down, 50% upon completion.
 

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Stuck in the Past:)
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Nice. Spend a pile of money going after some guy trying to make a living, but do nothing about the millions of illegals raping this state on a daily basis. Oh wait, we're not doing nothing...we're giving them driver's licenses That's sensible.
 

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If a painter gives a bid for lets say $3000, he can get $300 max down payment. That doesn't even cover the materials.
Case in point--our overlords have no sandra fluking idea what they're doing. But that's never stopped them before....and they keep adding on and on and on....

I think it was Will Rodgers that said, "if stupidity got us into this, why can't it get us out?"
 

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steex said:
This part sucks.
But can't you just add to your contract another payment due at start of project and materials stored offsite? The 10% or 1000 would pay sales and the payment on start would pay materials and partial up to next payment schedule
 

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stacker of sticks
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But can't you just add to your contract another payment due at start of project and materials stored offsite? The 10% or 1000 would pay sales and the payment on start would pay materials and partial up to next payment schedule
That's how I would do it, 10% 3 days before start of work, and 40% the first day
 

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GC/carpenter
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Discussion Starter · #15 ·
You are not allowed to collect any payment for work that hasn't yet been completed. It's against the law in Cali to let payments get a head of the work. It's called front loading and is illegal.

Here's an excerpt from CSLB.

Consumers also should be aware that their contractor cannot “front load” the contract by asking for project funds in advance. That means a person should never pay for work before it is completed, or for materials before they are delivered to the property. Make sure the written contract contains a progress payment schedule that outlines project phases, with all costs and estimated completion dates.
 

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jlsconstruction said:
****ty prison town, any family here?
Yes sir the electric chair was well known in auburn. I've got most of my family there still.

So on a note back to the thread. What protects the contractor from the client. So many other industries get paid up front or at least 50% upfront before starting anything or providing a service. Yet construction, in most instances, assumes the most liability yet only allows 10%. Then I guess I would raise the price so much that I was paid well in advance to completion.
 

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stacker of sticks
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You are not allowed to collect any payment for work that hasn't yet been completed. It's against the law in Cali to let payments get a head of the work. It's called front loading and is illegal.

Here's an excerpt from CSLB.

Consumers also should be aware that their contractor cannot “front load” the contract by asking for project funds in advance. That means a person should never pay for work before it is completed, or for materials before they are delivered to the property. Make sure the written contract contains a progress payment schedule that outlines project phases, with all costs and estimated completion dates.
California blows
 
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