October 9, 2023 – SACRAMENTO, Calif. – The Contractors State License Board (CSLB), in collaboration with the San Mateo and Santa Clara County District Attorneys' Offices, led a successful undercover operation targeting unlicensed contractors in the Bay Area.
CSLB's Statewide Investigative Fraud Team (SWIFT), along with law enforcement partners, conducted the day-long investigation in September after identifying potential suspects who were then invited to bid on various home construction projects at a predetermined location. Two people were served with criminal charges for illegal contractor activities. These two individuals both had outstanding warrants for contracting without a license and were arrested at the scene.
Unlicensed contractors arrested in this operation may also face additional charges for advertising their construction services without the required license. Under California law, it is illegal to advertise construction or home improvement work without having a valid license in the classification being advertised. When advertising contract services, unlicensed persons must specifically disclose their lack of a license and may not bid on a job with a value of more than $500, including labor and materials.
Registrar David Fogt reiterated CSLB's commitment to consumer protection: “Our primary goal is to protect consumers from the risks associated with unlicensed contractors. As part of this effort, we make it a priority to educate the public on the importance of hiring licensed contractors and verifying their license before entering into a construction contract.”
He also highlighted state law that imposes limits on down payments and down payments for home improvement projects. Deposits are limited to 10% of the total project cost or a cap of $1,000, whichever is less. Advance payments may not exceed the value of the work performed. Failure to comply is considered a misdemeanor, potentially punishable by one year in prison, a $5,000 fine, or both.
For more information or to report suspected unlicensed contractor activity, please visit the CSLB website at www.cslb.ca.gov or contact CSLB toll-free at 1-800-321-CSLB (2752). For ongoing information and updates from CSLB, connect with us on Facebook, Twitter, Instagram and YouTube.
Photos: San Carlos Sting Operation
About CSLB: CSLB operates under the auspices of the Department of Consumer Affairs and is licensed and regulated approximately 285,000 contractors in California.
Source: CSLB
