STORM2K

Part I: Unlicensed A/C contractors busted

By BRAD WATSON / WFAA ABC 8

As air conditioning season kicks into gear, those seeking to keep cool inside may be just the target for unlicensed contractors who can create costly disasters.

Julius Matthews and Diane Smith of Plano said they know just how costly and risky an unlicensed air conditioning contractor can be.

"When we thought it wasn't right was when [we] kept calling him out and he would come out graciously, but then after maybe the tenth time he stopped responding to the calls," Smith said.

A friend referred the contractor who installed what he said was a new condenser. However, instead he put in a used one that was too small and didn't cool the house. He also put in a thermostat they didn't need.

After $2,000, the house is still hot. They called a licensed repair firm that did the job correctly for another $2,000.

It turned out to be an expensive financial lesson.

The state estimates there are thousands of unlicensed contractors in Texas.

To catch some of them, undercover investigators with the Texas Department of Licensing and Regulation set up a sting at a house in Mesquite and invited News 8 to cover the sting as long as the investigators were not identified.

They set out a dummy condenser unit with severed power and Freon lines stuck in the ground near some recent foundation work.

They set up a circuit breaker box and called people with advertisements in newspapers and ad sheets looking for air conditioning and electrical work.

"We'll be getting bids from unlicensed electricians on running a line to the condenser," said one of the Texas investigators. "We'll be getting bids from unlicensed air conditioning contractors for replacing the unit."

Marvin White was one of the people who answered the call.

White holds no electricians, air conditioning or plumber's license according to state records.

Yet he prepared a bid to install a new air conditioning condenser, the air conditioning power line to a circuit breaker box and cut into a gas line at a home.

While White insisted he didn't need a permit to do the work when confronted, the city said he does.

But White told state investigators he makes plenty of bids for work.

"Sometimes I get tied up on large projects," he said. "I can't break away. That is the reason why yesterday I couldn't get out here and get back. It's good to be busy."

State investigators said the first clue that a worker may be unlicensed is when the contractor's state license number is nowhere to be found as the law requires.

Working with un unlicensed contractor can be costly because insurance companies sell liability coverage only to those with a license.

Investigators said the work of an unlicensed contractor on air conditioning, electric and gas lines could also be deadly.

"That could cause a fire," an investigator said. "You could have a gas leak. There are numerous problems that we could have with that individual installing the unit."

There are tips for finding if a contractor is licensed. Look for the license number on the fender of the contractor's vehicle, which is where state law requires it.

The law also requires that the license number be printed on all estimates.

http://www.wfaa.com/sharedcontent/dws/w ... c802d.html
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Part II of this story to be posted tomorrow.

Part II: Sting catches unlicensed contractors

By BRAD WATSON / WFAA ABC 8

With temperatures in North Texas over 90 degrees, many homeowners will soon be looking for someone to keep their strained air conditioners running.

However, authorities warn that they should beware of unlicensed contractors out there offering to do the work.

Unlicensed contractors can often do shoddy work that ends up costing homeowners thousands of dollars.

Undercover investigators for the Texas Department of Licensing and Regulation set up an undercover sting to catch unlicensed air conditioning and electrical contractors at a Mesquite home.

Ray Fallberg was among those who came to the Mesquite home. Fallberg pulled up with air conditioning condenser units in his truck, which he said he was ready to install for a fast $975.

"I pick them up at a supplier," he said. "...I filled up my barn with them and I still have a few more left. I ran that ad a few weeks ago and I guess I sold 30 units."

As part of the sting, the investigators told Fallberg the unit at the home needed replacing and a power line would have to be run from the unit to the breaker box.

Fallberg thought a new furnace was needed as well and offered to do all the work for a check made payable to him for $2,400.

"He doesn't even know what size unit even needs to go in here," the investigator said. "The unit could be undersized, oversized and he just wants to come in here and thrown any old unit in. That's definitely a danger to the public."

State records showed Fallberg held no air conditioning or electrician's license.

However, Fallberg said he was licensed and worked for RES Mechanical, which he said was an air conditioning company. But TDLR said they have no record of an RES Mechanical and the investigator gave Fallberg a stern warning.

"You need to cease all air conditioning contracting from this moment on because you are in violation of state law and our rules," the investigator said.

Fallberg agreed to stop doing air conditioning work.

TDLR said consumers should also watch out for contractors wanting something other than a straight deal.

The state shows no record that Curtis Hilton holds an air conditioning or electrician's license. Yet, before News 8 cameras, Hilton offered in writing to do electrical work, but told the investigators he was reluctant to leave a paper trail since he was asking for government disability payments.

"But I can't show you any income right now because I'm applying for SSI, an application," he said. "But I'll send you a receipt. I'll give you an estimate on that."

Believing that an insurance payment would cover the repairs, Hilton proposed splitting it.

However, two days later Hilton's memory turned cloudy and he denied he proposed to do electrical work without a state license.

"I haven't even issued a bid," he said. "I just told them that their unit was messed up. I haven't given a proposal."

TDLR said they plan to file complaints against Hilton and Fallberg that could result in stiff fines.

"That's the way they operate, to fly under the radar," an investigator said. "They don't show receipts, invoices or have anything that could actually draw attention or be some kind of piece of evidence in a court of law."

Part III: More unlicensed contractors confronted

By BRAD WATSON / WFAA ABC 8

The state estimates there are thousands of unlicensed air conditioning and electrical contractors working across Texas.

While unqualified contractors can do damage to homes, may rip customers off and can face fines worth thousands of dollars, they continue to take the risks because of the money to be made.

To crack down on unlicensed contractors, investigators from the Texas Department of Licensing and Regulation set up a sting at a Mesquite house.

Undercover investigators posed as investors who wanted to fix up the house and resell it. They invited unlicensed air conditioning and electrical contractors who placed newspaper advertisements to bid on repairing a condenser and placing a power line from the unit to a breaker box.

Mike McConnell was contractor that offered the investigators a bid for work.

"Well, I can do that," said Mike McConnell. "I don't have a license though."

When confronted on why he was offering to do work he wasn't licensed to do, McConnell took off.

TDLR said they will file a complaint against him and it could result in a fine up to $5,000 per violation.

TDLR also seeks court injunctions for repeat offenders and some of the worst violators go to jail.

Lewis Williams was another contractor the state had no record of holding an electricians license. Yet, he came out and took apart the air conditioning unit, looked it over and offered to do the work for $500. He left the panel off and wires exposed.

"An average homeowner would probably not have the first clue how to put that equipment back together that he had taken apart, which could have put them in harm's way," an investigator said.

Williams also took off when he was confronted about not having a license.

Investigators said people looking for air conditioning and electrical work should be sure the people doing the job are qualified.

"You do risk a very potential fire hazard and possibly bodily injury to you or your family," the investigator said.