Calif. sting nabs illegal contractors

Pool & Spa News, August 6, 2004 by Rebecca Robledo

California's Contractors State License Board caught 13 pool builders in a sting operation targeting unlicensed contractors.

Conducted at a Sacramento-area home in June and July, the operation yielded six unlicensed contractors. Seven others were cited for lesser charges. If convicted, the unlicensed contractors each face a 4 six-month sentence in county jail or a $1,000 fine, said Stuart Rind, senior special investigator with the CSLB.

Some of the unlicensed individuals claimed to work as "consultants" who merely assist owner-builders--that is, homeowners who oversee the construction of their own pools. "A lot of times, it's a haven for people who've had licenses in the past. Maybe they had them revoked or suspended," Rind said. "They think they can go out and operate under the guise of a consultant without being detected, when basically they're doing the same thing they did when they were licensed."

While they don't own a construction unit, those marketing themselves as consultants still need the same licensing, Rind said. Those who just design the pool and turn construction over to the homeowner don't need a license.

Approximately 27 builders had been called to a home, where officials posed as a married couple seeking a bid. When unlicensed individuals presented actual contracts, they were arrested by local police.

The sting occurred as complaints about unlicensed pool contractors continue to mount in California. "This year, there have been more of them out there operating than in my memory," said Don Burns, president/CEO of SPEC, a lobbyist for the California industry, which helped prepare the operation.

There was also a noticeable increase in the number of owner-builders pulling permits, Rind said.

Homeowners complain that they're left holding the bag when pools don't pass inspections, or that they must pay more than the consultant originally quoted, Rind explained. In some cases, the so-called consultants would actually choose the subcontractors, who then charged more than originally quoted by the consultant.

David Fogt, CSLB's chief of enforcement, said two causes may contribute to the increase in complaints: The refinance boom that has expanded the market and the drastic increases in workers' compensation rates. "Workers' comp. rates are pushing some business underground, meaning [they are] not paying the required taxes or workers' compensation premiums and don't have the proper contractors' licenses," he said. "Those businesses paying their full share are concerned about their competitors, who may not be."

Others may sincerely believe that they can operate as consultants without licenses.

The local industry was key to setting up the sting, which was months in the making, Burns said. Builders looked for unlicensed activity, investigated when they became suspicious, provided the information to CSLB and even found a home to conduct the operation. "From my experience, the industry sort of looks the other way," Burns said. "Now it's gotten to be such a plague that enough industry people are deeply concerned ... and they're taking an active interest."

CSLB plans to share its findings with the Sacramento press, which lately has devoted a lot of ink and film to the problem of unlicensed contractors of all kinds, Burns said.

Fogt said that stings have been held in other industries too. Rind encouraged California contractors to contact the CSLB if any unlicensed activity is detected.