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CBS 7 Eye-Team Investigation: To Catch A Contractor

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Uploaded by on Jul 15, 2008

They show up at your door promising quality work at a cheaper price. But are they licensed? Can you trust them? That's why state investigators are in west Texas.

They're looking for people who claim to know how to install electrical wiring or air-conditioning units, but don't have the proper paperwork.

We start our investigation breaking down numbers:

In the last six months, the state has received more than 500 complaints on unlicensed contractors.

Stings, like the one you're about to watch, helped shut down about 100 businesses working illegally- and some of those are right here in West Texas.

"What we're looking for is to catch unlicensed air conditioning/electrical contractors who are out- trying to install equipment in people's homes when they don't have the experience or the insurance or the license required to do the job."

We spent weeks fumbling through newspapers, dollar savers and stacks of classifieds, complying a list of unlicensed AC guys and electricians. Now, state investigators posing as homeowners are ready to reel them in.

One after another they walk through, promising a job only a licensed contractor can do.

"They could take the money and run. They could install it improperly. You could end up having to repair your home."

Under the watch of our hidden cameras, 25-year-old Danny Leyva of Midland pulls up to our sting house ready to collect cash on an AC installation job he said he could do for $4800.

This is what investigators fear: an unlicensed contractor coming into your home and handing you a bid- without a license number, a cell phone number, or a business name.

"Hi Danny, Melissa Correa with CBS 7 News... Just wondering what you're doing, coming out here collecting cash on a job you're not licensed to do?"

We checked the state database, Leyva has applied for his license but he hasn't received one.

"I did tell them it would be here in a week and a half. So I'd have my license."

We reviewed the footage. Leyva never once mentioned to investigators he was waiting on a license. In fact, he said he might be able to start sooner.

"How do we know this is the only job you've been bidding on without a license? "

That's not true. He's also under investigation by the City of Odessa for another unlicensed job, but we'll get to that later.

"What do you think about starting of on the wrong foot Danny? "

Danny Leyva walks away without our cash and a hold on that AC license he was waiting on. Just giving a bid is enough for the state to open an investigation and charge you with a fine up to $5,000.
It happened to Danny Leyva and Raul Zamora of Odessa.

Zamora bid $2,400 on electrical job sight unseen. Records show Zamora's unlicensed and uninsured, yet he's advertising for work in the paper. His bid, advertisement and conversation with investigators are enough for an investigation to begin.

Then, there's Alonzo Aranda.

"Hi Alonzo. Melissa Correa with CBS 7. We caught you on camera giving a formal AC bid and wanted to see if we could get a copy of your license with the state."

Records show in 2001 Alonzo applied for a license but didn't receive one.

"Right now, you can't do these jobs- I mean you can't come out here giving a formal bid. You don't have your license."

Yet we catch him on camera offering a bid for $4,600 dollars.

"They insist. But I explain to them that I can't do anything without a license. But they insist. They tricked me. They lied to me."

"Alonzo I'm the lead investigator with the Texas Department of Licensing and Regulation. We didn't make you do it. You told us that you've done this for 10 years. You've given bids to other customers. These are video goggles. We have you on audio and video. You sat there and you lied to me."

Even with all our proof Aranda says he came out here with no intention of breaking the law.

"So on that paper, on that bid when we look at it- is it gonna say that you're not gonna do that work until your licensed?"

But there's nothing that says he is waiting on a license. He too is now under investigation...


While the state was able to catch some unlicensed contractors, they didn't get all of them. So bottom line, it's up to you to know who you're hiring.

What can happen to you and your home if you hire an unlicensed contractor... plus details on the second investigation into Danny Leyva.


for more information:

www.license.state.tx.us/

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  • Home owners are always trying to get a better deal. Some, actually deserve to lose their money cause they are too cheap to pay the right price.

  • ...they are probably in the country illegally anyway!

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