Merced undercover sting catches contractors without a license

An undercover sting operation conducted last week by the Contractors State License Board in Merced nabbed a dozen contractors operating illegally, which can undercut law-abiding, licensed contractors, the board announced.

The Merced County District Attorney’s Office and California Highway Patrol assisted the board’s Statewide Investigative Fraud Team during the operation on Aug. 14 and 15.

According to a news release, those cited were Merced-based suspects Roger Robert Allshouse; Jose Gonzales; Joseph Santillan; Miguel A. Santiuste of Spray Creations; Raymond Carbajal Jr. of Ray’s Handyman Services; Colby Lavern Dirickson of CLD Fencing; and Reynaldo Contreras Magadan of MCR Gardening.

Citations were also given to Sergio Valdez-Novoa of Fresno; Fernando Aguirre Ambrocio of Aguirre’s Painting in Madera; and Joseph Louis Signorelli, Felix Ramon Zaragoza and Alexander Daoud Gevarges, all of Modesto, the release stated.

Investigators used Craigslist and print advertising to seek out suspected unlicensed contractors, according to a news release. The team posed as homeowners and used home improvement projects ranging from $1,150 to $7,750 as bait.

All 12 suspects were cited for contracting without a license, as well as an additional charge of illegal advertising. State law prohibits unlicensed contractors from advertising for construction-related work valued at $500 or more, although it is legal to advertise for jobs less than that if the ad states the contractor is not licensed.

First-time convictions for contracting without a license are punishable by up to six months in jail and/or up to $5,000 in fines. Penalties are more severe for repeat violations.

Two people were cited for failing to have workers’ compensation insurance for employees. One person was given a citation for charging an excessive down payment, which cannot exceed $1,000 or 10 percent of the contract amount, whichever is less.

The team also caught one suspect who previously was convicted of attempted murder and is on probation.

“It isn’t uncommon for CSLB investigators to find people with serious criminal records during our sting operations,” said Cindi Christenson, the board’s registrar. “This is why it’s so important to only consider licensed contractors and check their license status on the board’s website before hiring anyone.”

Suspects were issued a notice to appear in Merced Superior Court on either Oct. 20 or 22, the board said.

This story was originally published August 20, 2015 at 3:06 PM with the headline "Merced undercover sting catches contractors without a license."