BPC 7027.3 – Fraudulent Use of a Contractor’s License Number

Fraudulent Use of Contractor’s License Number – Table of Contents

• BPC 7027.3 Overview
• BPC 7027.3 Sentencing
• BPC 7027.3 Defending
• Fraudulent Contractor’s License – Hire Us

BPC 7027.3 – Overview

It is unlawful for a person, licensed or not, to willfully and intentionally defraud another for goods and services, with another’s contractor’s license number that does not belonging to the person defrauding or misrepresenting their identity as a contractor associated with the license number.

What is the definition of Fraudulent Use under Business and Professions Code 7027.3 BPC?

Defrauding means intending to misrepresent or not disclosing a material fact of any manner for the purpose of having another rely on that misrepresentation or non-disclosure to their detriment for another’s person gain. Altering refers to intending to grossly change a characteristic or identity of a designation. As applied to Business and Professions Code 7027.3 BPC, the accused is intending to misrepresent that they are: a contractor that is licensed to transact business; a contractor that is licensed under an original number but using another license number to ascribe to another identity to transact business; or an associate of a contractor under a license by employment or contract to transact business; for personal gain for the detrimental reliance of another; and might be doing so by altering the designation of a State issued license card to achieve the same for person gain for the detrimental reliance of another.

What is the definition of a contractor’s license under Business and Professions Code 7027.3 BPC?

The State of California requires that anyone doing business as a contractor be licensed by the Contractors State License Board (CSLB). Under the CSLB a contractor is any person who offers, accept, author, pitch or submit a bid, by themselves or as subcontractor in connection with any project or development to: construct, alter, repair enhance, detract, improve, transport, demolish any building, highway, road, parking facility, railroad, excavation, any structure, scaffolding, improvement in connection with any project or development; or having the capacity to clean: the grounds, preparation of removal of construction zones, lane closures, flagging, traffic diversion, installation, repair, maintenance; or in calibration of: monitoring equipment for underground storage tanks; fabrication into: any structure project, development, or improvement described as merchandise.

What is the mental state required for a violation of Business and Professions Code 7023 BPC?

The mental states required for a violation of Business and Professions Code 7027.3 BPC is willfully and intentionally. Willful is the conscious desire to complete an act on purpose without the regard of knowledge to its ability to create substantial injury to others; and reasonably understanding the circumstances that might result. Intentional is the conscious desire to complete an act on purpose, without the need to understand its unlawful character; with the reasonable understanding of the circumstances that might result. As applied to Business and Professions Code 7023, the State must prove beyond a reasonable doubt that, the accused is either: a contractor or subcontractor licensed under the CSLB; or one purporting to be a contractor or subcontractor licensed under the CSLB; using another’s license as ascribed from the CSLB; or alerting a license number as presentment as ascribed from the CSLB; or fictitiously representing an identifier to another as a license number as ascribed from the CSLB; to induce another to conduct business for profit to the detriment of another; for personal gain; while understanding the reasonable circumstances that might result.

BPC 7027.3 – Sentencing

A violation of Business and Professions Code 7027.3 BPC can be charged as a misdemeanor or felony. As misdemeanor penalties include confinement not exceeding 1 year in jail with fines not exceeding $1000 dollars. As felony penalties include confinement exceeding 1 year in jail with fines not exceeding $10,000 dollars.
A penalty for a second offense is a penalty of 90 days additional jail time toward the initial punishment and a minimum fine of $4500 dollars ; including a civil assessment from the CSLB of $200 dollars a day per employment. Further noncompliance or violations include licenses suspension and disgorgement of any wage or compensation associated with the violation.

What is an example of a violation of Business and Professions Code 7027.3 BPC?

Lou’s Plumbing was open for business. Jake and Sam were hired. Both placed on their employment application that they were plumbers licensed in the State of California. And had the licenses to prove it. Lou believed them because of their references. Jake and Sam’s first assignment was Brentwood Homes a $ 2 Billion Dollar Development that needed a 5-year commitment. It was their dream job. As they came, the developer got along with them well, and decided to advance a portion of the project to the tune of $ 3 million dollars. Jake spent his portion on a new home. Sam purchased a few classic cars and placed the rest for his children’s college fund. The developer called the CSLB and discovered that Jake was using another person’s license number that was his former employer; and Sam was a license contractor without a bond who created a license number that was coincidentally associated with one of the developer’s past associates. The developer called Lou, and the police. Lou, Jake, and Sam were arrested.

BPC 7027.3 – Defenses

• Voluntary waiver or Consent – The victim, although discovering the incident, voluntarily waived the violation or incident and agreed for modification, clarification of subsequent remedies to allow the accused to correct the license issue; with the desire to continue the business.
• Repudiation – The accused knew of the misrepresentation but before significant detriment was conducted to the victim the accused notified all parties and returned a significant portion of the consideration received.
• Necessity

Fraudulent Use of a Contractor’s License Number – Hire Us

If you are charged with a violation of Business and Professions Code 7027.3 BPC, call The Esfandi Law Group, APLC. Contact Los Angeles criminal defense attorney Seppi Esfandi, principal attorney of The Esfandi Law Group, APLC.

Need a Criminal Defense Attorney? CALL NOW: 310-274-6529

Seppi Esfandi is an Expert Criminal Defense Attorney who has over 20 years of practice defending a variety of criminal cases.