California Professional License Defense Blog

Los Angels county District Attorney Steve Cooley held a news conference today discussing the more than 50 people who were charged in a $3 million dollar child-care fraud scam. Demetrius Eugene, 36 is the alleged ringleader and is accused of setting up 6 bogus child-care facilities under the name Home Sweet Home Day Care, Inc. around Los Angeles County and possibly other California counties.

Cooley said Eugene listed family and friends as child-care providers in a “welfare to work” program. This state run program pays day care providers for taking care of children for those on welfare so they can get back into the workforce. Eugene allegedly then recruited welfare qualified candidates in order to collect state funds. These candidates then signed fake attendance cards at the Los Angeles headquarters of Home Sweet Home in return for $300 per child.

Among those charged was Kmond Day, 32 who received his day care license shortly before he was convicted of drug trafficking and sent to prison. According to authorities, Day and his wife received over $400,000 in state funds.

Deputy District Attorney James Baker who is working on this case says this ring is one of hundreds of child-care fraud complaints referred to the Department of Pubic Social Services in the county.

The California State Contractors Licensing Board has recently added increased protection for consumers in Orange County, Los Angeles county or anywhere in California who are engaged in new construction or remodeling projects. Below are a few of the most important new laws for consumers to be aware, all taking effect January 1, 2008

- Business and Professions Code Section 125.6 prohibits discrimination by licensed contractors toward prospective clients. In addition to the already established discrimination based on race, color, sex. religion, ancestry, disability, marital status, natural origin this section also added clients medical condition and sexual orientation.

- Under California Civil Code Section 2782, General contractors and subcontractors working under a residential construction contracts can be held liable for construction defects, injury or negligence regardless of whether or not that language is included in the contract.

- Registrar of Contractors will be authorized to order restitution for any consumer who is an “injured party” resulting when a licensed contractor aides an unlicensed person or who allows an unlicensed person to use his or her license. Currently, licensed contractors who violate this law are already subject to civil monetary penalties and disciplinary action against their license pursuant to Business and Professions Code Section 7114.

- Landscape Contractors licensed by California Contractors State License Board will be able to enter prime contracts to construct and install outdoor cooking centers and fireplaces. This is provided that the projects are already included in the residential landscape project and the fireplace is not attached to the dwelling. Currently, landscapers are authorized to be the prime contractor for pool, spa or hot tub projects. BP 7027.5-