Sutter County Undercover Sting Operation Exposes Unlicensed Contractors
SACRAMENTO, CA – The Contractors State License Board (CSLB) recently conducted a successful undercover operation aimed at targeting unlicensed contractors. This two-day operation took place in Yuba City in August and resulted in the identification of multiple individuals engaged in illegal contracting practices.
In carrying out the sting operation, CSLB’s Statewide Investigative Fraud Team (SWIFT) coordinated efforts with Sutter County District Attorney investigators and the Yuba City Police Department through the Yolo County Workers’ Compensation Fraud Unit. Suspected unlicensed contractors were invited to submit proposals for various construction projects at a specified location.
As a result of this operation, 11 individuals were served notices to appear in criminal court and may now face legal repercussions, including hefty fines and a potential jail sentence.
All individuals implicated submitted bids surpassing the legal threshold of $500 for contracting without a license, with amounts ranging from $1,000 for painting to $13,500 for concrete work. California law prohibits bidding and/or contracting for construction work exceeding $500 in value, including labor and supplies.
The suspects could also face additional charges for illegal advertisements. Licensed contractors are required to include their license number on all business-related materials (such as advertisements, vehicles, business cards). The civil penalty for not complying with this requirement could lead to a $1,000 fine for a first-time offense.
Four individuals also asked for an excessive down payment ahead of starting the work. Under California law, contractors are strictly limited to requesting no more than 10% of the home improvement project cost or $1,000, whichever is less. Violating this provision constitutes a misdemeanor offense, punishable by substantial fines of up to $5,000 or a potential one-year county jail sentence, or both.
“Contracting without a valid contractor’s license is classified as a misdemeanor in California, carrying significant penalties that include fines up to $15,000 and potential incarceration,” stated CSLB Registrar David Fogt. “CSLB is committed to enforcing license requirements to ensure consumers are protected from unlicensed individuals who have not met experience requirements and do not have workers’ compensation insurance for employees.”
In collaboration with partner agencies across the state, CSLB will continue working to safeguard the wellbeing of California’s homeowners by enforcing the law, advocating for consumer protection, and preserving the integrity of the construction industry.
For further information or to report suspected unlicensed contractor activities, 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.
