Fresno County DA & CA Contractor s State License Board s (CSLB) Statewide Investigative Fraud Team (SWIFT) Sting Operation

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1 Fresno County DA & CA Contractor s State License Board s (CSLB) Statewide Investigative Fraud Team (SWIFT) Sting Operation October 22, 2009

2 FOR IMMEDIATE RELEASE October 22, 2009 NEWS ADVISORY Contact: Edith Treviso Senior Deputy District Attorney Worker s Compensation Fraud Unit (559) FRESNO COUNTY DA & CA CONTRACTORS STATE LICENSE BOARD STING OPERATION WHO: Fresno County District Attorney Elizabeth A. Egan Chief Deputy DA Barbara Dotta Northern Contractor s State License Board Senior Investigator Jeff Miller DA Worker s Compensation Fraud Unit Senior Deputy DA Edith Treviso & Senior DA Investigator Pat Oh WHAT: Details will be announced of a two-day undercover sting operation in Fresno County by the District Attorney s Office and the Contractor s State License Board s (CLSB) Statewide Investigative Fraud Team (SWIFT). On October 21 st and 22 nd, members of the SWIFT Team posed as homeowners at a sting house and invited suspected unlicensed contractors to bid on projects including landscaping, fencing and concrete. Unlicensed contracting is part of California's estimated annual $60 to $140 billion dollar underground economy. These individuals do not pay taxes, have insurance or bonds. It is not unusual for them to be involved in other illegal activities as well. WHEN: TODAY, Thursday, October 22, :00 p.m. County of Fresno Office of the District Attorney Elizabeth A. Egan, District Attorney WHERE: Northeast corner of N. Concord Dr. and E. Deer Creek Lane at Dominion Park in Fresno. ###

3 County of Fresno Office of the District Attorney Elizabeth A. Egan, District Attorney NEWS RELEASE FOR IMMEDIATE RELEASE October 22, 2009 Contact: Edith Treviso Senior Deputy District Attorney Worker s Compensation Fraud Unit (559) FRESNO COUNTY DA & CA CONTRACTORS STATE LICENSE BOARD STING OPERATION FRESNO, CA -- District Attorney Elizabeth A. Egan in conjunction with the Senior Investigator Jeff Miller of the Northern California Contractor s State License Board (CLSB) Statewide Investigative Fraud Team (SWIFT) announced today, October 22, 2009, the results of a two-day undercover sting operation in Fresno County. On Wednesday and Thursday, October 21 st and 22 nd, members of the SWIFT Team posed as homeowners at a sting house and invited suspected unlicensed contractors to bid on projects including landscaping, fencing and concrete. When suspects bid more than $ for a job, they were arrested by District Attorney and CLSB investigators and cited to appear in Fresno County Superior Court. California Law requires all contractors to possess a State Contractor s License for home improvement jobs that are valued at $ or more in labor and materials. As part of the sting, investigators from the Fresno County District Attorney Workers Compensation Fraud Unit identified employers who may be in violation of Workers Compensation Insurance laws. In California, employers who fail to obtain Workers Compensation coverage for their workers can be cited for a misdemeanor, punishable by imprisonment in the County Jail for up to one year, or by a fine of up to double the amount of premium that would have been due had they secured insurance, or both. ###more### 2220 Tulare Street, Ste. 1000, Fresno, CA 93721, /Fax:

4 Individuals contracting without a license are engaging in unfair and unlawful business practices in violation of California s Unfair Competition Laws (BP 17200, 17500), which are punishable by both civil penalties and injunctions. These cases are referred to the Fresno County District Attorney Consumer Protection Unit for prosecution. On the first day of the sting, 13 individuals were cited for not having a license, and 1 was cited for not carrying Worker s Compensation coverage. District Attorney Egan stated, The District Attorney s Office does not just prosecute cases, we protect and inform the public before they get hurt or become victims of fraud. It s tough enough in this housing market without being ripped off. There are risks for homeowners when they hire illegal operators. Unlicensed contractors often do not possess the skills and training to adequately complete the jobs they bid on. Unlicensed contractors frequently abandon jobs for which they have received payment without completing, or even starting, the job. The requirement that a contractor carry worker s compensation insurance protects the home owner as well as the contractor s employees. An uninsured contractor can result in the homeowner being responsible for the medical expenses of any worker that is injured on the job. Homeowners are encouraged to visit the California Contractors State License Board website to check on the status of the license of any licensed contractor at before entering into an agreement with a contractor. The CSLB urges consumers to follow these tips when dealing with a building contractor: Hire only licensed contractors and ask to see the license. Don t rush into decisions and don t hire the first contractor who comes along. Verify the contractor s license by checking on-line at Don t pay more than 10 percent down or $1,000, whichever is less. Don t pay cash, and don t let the payments get ahead of the work. Get three bids, check references, and get a written contract. Contact the CSLB if you have a complaint against a contractor. ###end### 2220 Tulare Street, Ste. 1000, Fresno, CA 93721, /Fax:

5 The CSLB urges consumers to follow these tips when dealing with a building contractor: Hire only licensed contractors and ask to see the license. Don t rush into decisions and don t hire the first contractor who comes along. Verify the contractor s license by checking on-line at Don t pay more than 10 percent down or $1,000, whichever is less. Don t pay cash, and don t let the payments get ahead of the work. Get three bids, check references, and get a written contract. Contact the CSLB if you have a complaint against a contractor.

6 By law, all contractors who perform work that totals $500 or more (labor and materials) must be licensed by the CSLB. In addition, applicants undergo a background check and fingerprinting. Homeowners don't realize the risk they take when they hire someone who is not licensed to do work in their home.