LAKE COUNTY, Calif. – A Thursday enforcement sweep conducted by state and local officials to look for unlicensed contractors operating in the Valley fire area resulted in the arrest of a Hidden Valley Lake man.
Matthew Jonathan George, 28, was arrested on a felony charge of contracting without a license in a disaster area and received a citation for a misdemeanor charge of illegal advertising, according to the Contractors State License Board.
George was booked into the Lake County Jail, with bail set at $15,000. Jail records showed he later posted the required portion of bail and was released.
His booking sheet showed he is tentatively scheduled to appear in Lake County Superior Court on Jan. 18.
Contracting without a license in a disaster area is a felony and has a potential penalty of up to three years in state prison and a fine of up to $10,000, according to the report from the Contractors State License Board on the enforcement action.
“It is unfortunate when unscrupulous people show up in disaster areas to try and take advantage of people when they are vulnerable,” said Contractors State License Board Registrar Cindi Christenson. “We are doing whatever we can to help protect these victims, so unlicensed contractors should know we will be looking for them.”
The Contractors State License Board said three teams targeted different parts of the disaster area, including Cobb Mountain, Hidden Valley Lake and Middletown.
The teams consisted of members of the board's Statewide Investigative Fraud Team, or SWIFT, along with investigators from the Lake County District Attorney's Office investigative unit and California Department of Insurance. The Lake County Sheriff’s Office provided support for investigators during the operation.
The three teams collectively visited more than 100 sites looking for illegal activity, the Contractors State License Board said.
District Attorney Don Anderson said the sweep began at 9 a.m. Thursday, winding up by mid-afternoon. He said several people were contacted during the operation.
Officials said a licensed contractor reported George’s alleged illegal activity to the Contractors State License Board several days before the sweep took place.
Evidence confiscated during George’s arrest suggested he had 10 pending contracts from Valley fire victims worth a total of $100,000, officials reported.
Investigators also saw several yard signs posted in the area advertising George’s services illegally. State law requires unlicensed contractors to state in all advertising that they are not licensed, according to the state's report.
As a condition of licensure, state officials said contractors must carry workers' compensation for all employees except for themselves if they certify they have none. This coverage insures that if a worker is injured on the homeowner's property, the consumer is not held liable.
Contractors State License Board spokeswoman Ashley Caldwell told Lake County News that the agency conducts an average of one sting operation or construction site sweep each week throughout the state, and conducts at least three statewide blitzes each year with efforts to protect consumers and tackle the underground economy.
“We are aware that some unscrupulous contractors may try to take advantage of consumers during times of desperation, so we make it a priority to conduct outreach and enforcement activity in disaster areas,” she said.
In addition to this week's enforcement activity, Anderson said his office is continuing to follow up on reports of price gouging impacting fire victims, although so far no cases have developed.
State officials said the unlicensed contractor sweep also is being used as an opportunity to educate homeowners about the importance of checking out contractors before hiring them, and to let licensees know where they can report suspected unlicensed activity if they see it.
The Contractors State License Board's free publication “After a Disaster, Don't Get Scammed!” includes tips on rebuilding such as:
– Don't rush into repairs, no matter how badly they are needed.
– Get at least three bids. Don’t hire the first contractor who comes along.
– Be cautious about door-to-door offers of repair services and fliers or business cards that are left at your property.
– Ask friends, family, and associates for recommendations about contractors they have hired.
– Never pay in cash.
– Even for the smallest job, get proof that the person you are dealing with has a contractor license for the type of work that needs to be done.
– Get a written contract that details every aspect of the work plan.
Visit the Contractors State License Board's Disaster Help Center for more tips on rebuilding after a natural disaster.
The agency encourages consumers to always “Check the License First” by visiting www.cslb.ca.gov or calling the Contractors State License Board’s toll-free automated line 800-321-CSLB (2752). Also, visit the Contractors State License Board Web site for tips about how to hire a contractor.
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