California Business & Professions Code Section 7027.3 BPC: Fraudulent Use Of A Contractor’s License Number

1. Definition and Elements of the Crimecontractor’s license fraud

The California legislature has taken steps to punish those who hold themselves out to be licensed contractors and fraudulently use a contractor’s license number. Under California Business and Professions Code Section 7027.3 BPC, fraudulent use of a contractor’s license number is a serious crime that can be charged as a felony and may even result in prison sentences being imposed.

To prove that a defendant is guilty under California Business and Professions Code Section 7027.3 BPC, a prosecutor would have to prove the following:

  1. The defendant willfully and intentionally used, with intent to defraud, a contractor’s license number which did not correspond to the number on a currently valid contractor’s license held by the defendant.
2. Related Offenses

Other similar or related offenses include:

  1. Contracting without a License – California Business and Professions Code Section 7028 BPC

  2. Forging or Possessing a Fraudulent Public Seal – California Penal Code Section 472 PC

  3. Diversion of Construction Loans – California Penal Code Section 484b PC
3. Examples

A man has informally worked in construction for most of his life but is not a licensed contractor. The man wants to bid on a potentially lucrative construction project, but is required to provide a contractor’s license number as part of the registration project. The man’s friend, who is a licensed contractor, allows the man to use his license number in the bidding process. This man could be prosecuted for fraudulent use of a contractor’s license number in violation of California Business and Professions Code Section 7027.3 BPC.

In another example, a man is a general contractor who is fully licensed by the Contractors State License Board. For an upcoming project, he hires several subcontractors who he believes are all licensed as well. The man has collected license numbers from each of his subcontractors which he keeps on file. During an audit, it is discovered that one of his subcontractors was using a fraudulent contractor’s license number. The man would not be guilty under California Business and Professions Code Section 7027.3 BPC because he did not willfully or knowingly use a fraudulent number, as is required by the statute.

4. Defenses to Fraudulent Use of a Contractor’s License Number

As discussed above, the defendant would not be criminally liable for using a fraudulent contract’s license number if the defendant’s conduct was not willing or if the defendant did not know that the license number was fraudulent. In addition, the defendant would not be guilty of this offense where there was no intent to defraud.

5. Penalties

Fraudulent use of a contractor’s license number is what is considered a “wobbler” crime. When reviewing the case, a prosecutor can elect to file either felony or misdemeanor level charges against the defendant. When considering what level of charges to file, a prosecutor will review factors such as the defendant’s criminal record and extent of damages suffered by the victim, if any. If charged with a felony, a defendant can potentially be sentenced to serve up to three years in a California state prison facility. If the case is filed as a misdemeanor, the maximum penalty that a defendant may face is up to a year in jail. In either case, the defendant would potentially have to pay restitution to any victim for any and all losses incurred.

6. Criminal Defense for Fraudulent Use of a Contractor’s License Number Cases

If you are being investigated for fraudulent use of a contractor’s license number, or have been charged criminally with this offense, it is critical that you discuss you case with a Los Angeles Criminal Defense Attorney as soon as possible. Los Angeles Criminal Defense Lawyer Michael Kraut is a former Deputy District Attorney with over 14 years of prosecutorial experience, during which he prosecuted white collar offenses like this as part of the District Attorney Office’s elite Major Fraud division. Mr. Kraut understands that charges like this can be devastating to one’s professional reputation and works hard to ensure his client’s receive the most comprehensive representation possible. In many cases, Mr. Kraut is able to intervene before charges have been filed in order to have the charges significantly reduced or dropped entirely.

For more information about fraudulent use of a contractor’s license number, and to schedule your free consultation, contact Los Angeles Criminal Defense Lawyer Michael Kraut at the Kraut Law Group located at 6255 Sunset Boulevard, Suite 1520, Los Angeles, CA 90028. Mr. Kraut can be reached 24/7 at 888-334-6344 or 323-464-6453.

Share |
Featured on CNN
ABC News
NBC News
Los Angeles Times
CBS News
The New York Times
Us Weekly
Entertainment Tonight
Good Morning America
Legal Broadcast Network
Avvo Rating 10.0
Client Reviews
Michael Kraut is outstanding! He genuinely cared about my case and instructed my mom and I throughout the entire process. He was very clear on what he needed in order to receive the best results. He kept us updated until the end. I thank him so much for getting my charges rejected. I highly recommend him to anyone with legal needs! Shaquan
I contacted Michael with concern for my personal and business reputation. He was very reassuring and confident the entire time. After about 3 weeks it was determined that no charges were being filed by any agency and I was in the clear of any investigation. One thing that is amazing is just how FAST Michael is at replying to phone calls, texts, and even emails! We are talking under 30 minutes in most cases. That is unheard of for most attorneys! Michael is incredible and not your typical run of the mill attorney. For best results hire him if you feel like you might be under investigation or could face charges. Even if you know you are innocent it is best to take care of the smoke before it becomes a fire. Brad
Michael Kraut is-hands down-the best criminal defense attorney and I can't begin to thank him for all that he did for me and my family. I reached out to him in the middle of the night and less than a couple hours later, he had gotten back to me and scheduled a meeting. He's a no-nonsense attorney who knows how to get the job done! From the second we retained him, I had peace of mind in knowing that we were in the best hands possible. If Michael Kraut couldn't get it done, I knew that it couldn't be done at all. You can't put a price tag on your freedom. He was worth every single penny. Lida
Michael Kraut is an outstanding attorney. He was extremely professional, and straightforward, yet sensitive with my case. I am confident I made the right choice by hiring Michael. I highly recommend him to anyone seeking a truly experienced lawyer. Daniel
Michael Kraut - I cannot thank you enough for all that you did for ​my son. When I came to you I read that you used to be a district attorney but I never knew how much that meant until I watch you in court. I knew it took 3 months but the final day when I heard the judge say that all charges were dismissed it was all worth it! I will always be grateful for all that you did for us. A.N.