Contractors cited for operating illegally in Merced, state investigators say

During an undercover sting operation in Merced, investigators cited 13 people for operating without a license and other illegal activity related to contract work, the Contractors State License Board reported Tuesday.

The sting on March 16 and 17 led to four misdemeanor citations for lack of workers’ compensation. Licensed contractors are required to have insurance for any employee who works under their license. If the contractor does not have workers’ compensation insurance and an employee gets injured on a consumer’s property, the consumer may be liable, the board said.

Merced-based contractors cited for one or more violations were George Mack Jr., Ignacio Lujan Paz Sr., Ramon Romulo Lopez and Ramon Wilfredo Diaz.

The contractors from Atwater were John Lester Beavers, Jesse Edward Diaz, Cary Allen Matson and Mark Handley Cope.

Also cited were Juan Carlos Sosa Hernandez of Turlock, James Randolph Gonzales Sr. of Madera, Francisco Cordero Rodriguez of Chowchilla, Erick Richard Gove of Fresno and Fausto Tirado-Mojica of Chula Vista.

Diaz, who said he operates under the business name of “AAA 1 Work,” denied any wrongdoing in a brief interview Tuesday with the Sun-Star.

“I was entrapped,” he said. “I never represented myself as a contractor. I do plan to fight this in court.”

One employee who arrived with an unlicensed contractor was discovered to be a registered sex offender after Merced County District Attorney’s Office investigators ran a background check, according to investigators.

Investigators from the board’s Statewide Investigative Fraud Team made calls to suspected unlicensed contractors using leads from local newspapers and online bulletin boards, according to a news release. Suspects were invited to place bids on construction projects at a single-family home near Applegate Park Zoo. Bids ranged from $500 for exterior painting to $6,500 to install stone tile in the kitchen and family room, the news release said.

A state-issued contractor license is required for any home improvement job that is $500 or more in combined labor and material costs. First-conviction penalties for contracting without a license can result in up to six months in jail and up to a $5,000 fine. A second conviction carries a mandatory sentence of 90 days in jail.

Twelve of the 13 people cited on unlicensed contracting charges also were given a citation for illegal advertising. Nine were cited for soliciting an excessive down payment. It is illegal to ask for or accept down payment for a job larger than 10 percent of the contract price or $1,000, whichever is less.

Those cited are scheduled to appear in Merced County Superior Court on July 5 and 6.

The board said consumers can verify a contractor’s license at www.cslb.ca.gov or www.CheckTheLicenseFirst.com, or via an automated phone system at 800-321-2752.

This story was originally published March 22, 2016 at 12:00 PM with the headline "Contractors cited for operating illegally in Merced, state investigators say."