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Temecula Contractor Caught in Statewide Sweep

The contractor, whose identity has not yet been released, was arrested as part of "Operation Underground."

A Temecula contractor was one of dozens to get caught in a statewide sweep looking for contractors who allegedly under-reported payrolls to skip paying higher workers' compensation insurance and taxes.

Uninsured, untaxed, unlicensed, and unregulated activity is referred to as the underground economy, according to the Contractors State License Board (CSLB).

Investigators from the CSLB, Department of Insurance, and Employment Development Department partnered together for the sweeps that were conducted June 20 and 21. “Operation Underground” caught three contractors in Riverside County that were attempting to hide the number of employees on their payrolls, most likely as a way to avoid paying more in insurance premiums and state withholding taxes, officials said. 

Because of ongoing investigations into the cases, the contractors can not yet be publicly identified.

"Participants in the state’s underground economy are harmful to everyone," said CSLB Registrar Steve Sands in a statement. "Anyone who neglects their responsibility to comply with state contracting, insurance, and payroll requirements drives up premiums. At the same time, legitimate licensed contractors struggle because illegal operators underbid them."

When hiring a contractor, the CSLB urges consumers to ask to see licenses and photo ID to verify identities and always check license numbers against the CSLB’s Instant License Check website to ensure that the licenses are in good standing and employees are covered by workers’ comp insurance. Also, don’t pay in cash, or before the work is completed.

JJ Mclure July 12, 2012 at 01:39 PM
stop the fake claims by illegals
Brenda July 12, 2012 at 02:37 PM
You are correct there JJ, LOL, as much as I hate to agree. A friend owned a mfg. co. and was taken on two Work/Comp claims by illegals. BEFORE, he got the letter 3 mo. after hiring saying their social security numbers didn't match up. Its goes on for another 2 or 3 months while you send in a copy of the social security card again to find out ILLEGAL. These guys have it down to a science to get "injured" within days of the first letter AND it keeps them in the country. Even with pictures of them going back and forth to Mexico, playing on baseball leagues, other pictures tumbling around with other guys and kids, playing soccer, these guys had attorneys, got paid the weekly checks, all doctors bills, continued to add more things, sinus's, ears, any and everything. Then stress for having their pictures taken by investigators both here and in Mexico, LOL. Not a darn thing the friend could do, and both ended up with around 50k settlements after open cases for like 3 yrs. Raising his workers comp to a high risk after years of no claims, or very minor ones, and it nearly drove him out of business, also having to put in a large deposit. How in the world they can get away with this stuff is remarkable. Its sad that we loose companies daily due to the rip off costs to run one, more out of work. :/ You have to run a business to know exactly how much it costs in every possible fee, taxes on everything, operating licenses. Also Pops, what regular work force makes 200k?
Brenda July 12, 2012 at 02:45 PM
If our spectacular Government would respond to our problems like an accountant or from a business mans view point we would not be in the position we are in. Simple, if we lower all these costs, fee's, taxes, operating licenses for every type of machinery that puts out a puff of exhaust(LOL), workers compensation costs, payroll taxes, just everything, most people could make their business's profitable and work, keep people employed. Also new companies could open and afford to stay in business, creating more jobs. The Government would still collect all the same amount of "MONEY" and at the same time provide jobs and help our economy overall in the big picture. But, no, they think like politicians. The more they charge for all these things through City, Country, State, Federal fee's, the more companies close, the more unemployed we have, and unfortunately the more illegal activity goes on like these contractors willing to try anything to just stay in business for Godsake. I seriously doubt this man wanted to lie on figures, and I serious doubt it made him a millionaire, but did manage to keep him and a few workers in business and with a job. This is just a sad story, not some already corrupt CEO making millions a year trying to make millions more. :/
No Incumbents July 15, 2012 at 09:15 PM
Clearly the powers that be are doing all in their power to eliminate our jobs and the means for anyone to earn a living, That is the preparation to force the American Citizens to become slaves of the Government. They are purposely eliminated the middle class and building Fema camps like crazy.
KB July 16, 2012 at 01:34 AM
Check yelp for contractor ratings.

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