The Contractors State License Board and El Dorado County District Attorney’s Office collaborated to perform an undercover operation that led to seven criminal citations in the South Lake Tahoe area.
The operation targeted unlicensed contractors who charged clients unreasonable amounts of money, according to a social media post Thursday by the board.
Suspects were invited to submit bids for various residential construction projects at a designated property as part of the operation, according to the board. The legal limit for the submitted bids was $500.
The suspects’ bid amounts varied, ranging from $1,500 to more than $8,000, the board said. Any bids exceeding the limit would be considered violations of contracting without a license.
Contracting without a valid license is a misdemeanor offense in California, but felony charges are filed should anyone illegally use another person’s contractor license or try to mislead consumers into believing that he or she is a licensed contractor, according to state law.
Penalties include up to $15,000 in fines and potential imprisonment.
The seven individuals also demanded excessive down payments for jobs, according to the board. California law says contractors are limited to requesting no more than 10% of the project cost or $1,000, whichever is less, and a violation of this may result in fines or imprisonment, the board said.
The board said the seven unlicensed contractors who were cited may face additional charges for advertising their construction services without possessing the required license. An unlicensed contractor that discloses they are unlicensed can only provide bids and perform work for jobs valued at less than $500 including materials and labor.
“(The board) remains steadfast in its efforts to safeguard homeowners from the dangers posed by unlicensed contractors,” said David Fogt, the Contractors State License Board registrar. “We urge homeowners to take a few minutes to verify a contractor’s license before proceeding with any construction project in California.”