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Brian Gross being placed under arrest by the state license board’s Statewide Investigative Fraud Team.

Valley Springs man arrested in consumer fraud sting operation

   Brian Gross, 48, of Valley Springs, is back in the Amador County jail, this time with no bail. Gross was one of 10 people allegedly caught in Contractors State License Board undercover sting operation Jan. 19 at a Pine Grove home.

   The sting was also conducted with investigators from the Amador County District Attorney’s office.

   Gross is no stranger to the state license board’s Statewide Investigative Fraud Team, known as SWIFT. SWIFT investigators and the Amador County District Attorney’s office arrested Gross on Oct. 1, 2010. He pleaded guilty to one felony count of fraudulent use of a contractor license number and one misdemeanor count of failing to purchase workers’ compensation insurance for employees on March 2, 2011. He was sentenced May 5, 2011, to four years felony probation.

   In addition, the license board revoked his general contractor license on June 1, 2010, for failure to pay administrative citations issued for asking for excessive down payments, failing to secure building permits, and other violations of contracting law. State law prohibits asking for or receiving a down payment larger than 10 percent of the contract price or $1,000, whichever is less.

   Investigators, posing as homeowners, sought bids for general construction and painting projects at a Pine Grove multi-level house on seven acres. The 10 who reportedly bid more than the legal threshold of $500 for labor and materials will appear in court for contracting without a license. They will face an additional misdemeanor charge for illegal advertising. State law requires contractors to place their license number in all advertisements. Those who do home improvement jobs valued at less than $500 may advertise, but their ads must state that they are not a licensed contractor.

   The nine other suspects who received notices to appear March 19 in Amador County Superior Court are Ruben Cervantes Ayala, 44, Placerville; Matthew Martin Pederson, 28, Rancho Cordova; Kenneth Jerell McCloud, 65, Pioneer; Richard Paul Reinoehl, 60, Pine Grove; Luis Fernando Leyva-Martinez, 36, Placerville; Benjamin Joseph Smith, 22, Pine Grove; Steven David Garrett, 53, Sutter Creek, and Kenneth Lawrence Griffin, 53, Pine Grove.

   “Hopefully Mr. Gross and the others caught at the Pine Grove sting get the message that CSLB and the Amador County DA’s office take the state’s consumer protection laws very seriously,” said CSLB Registrar Steve Sands. “California homeowners considering hiring a contractor should review Ten Tips to Make Sure Your Contractor Measures Up to familiarize themselves with contracting laws and their rights as consumers. Before signing a contract, they should consult CSLB’s online instant license check to ensure the contractor has a valid license and workers’ compensation insurance if they have employees.”

   The license board website is at www.cslb.ca.gov.

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