Borrowed License Number, Abandoned Preschool Job
Dana operates 'QuickWire Low Voltage' without a Nevada contractor license. She bids a $9,500 job to install access control and cameras at a preschool. Her bid lists license number 0081234, which belongs to her friend Luis, a licensed low-voltage contractor. Luis allowed her to use the number 'for this one job' and did not supervise. Dana collects a $4,500 deposit by check made payable to her personal name. She installs 6 of 14 cameras, leaves exposed cable in a hallway, and stops answering calls. The preschool director discovers the license number belongs to Luis and that no permit was pulled. Dana says she will refund after 'the next job pays.' The director has photos, the bid, the check copy, and text messages. The preschool is due to open in three weeks.
1. Identify the violations and the parties who may be disciplined or prosecuted. Consider Dana, Luis, and any responsibility of the preschool.
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Dana's conduct implicates several violations:
- Unlicensed contracting: she contracted and performed low-voltage work without a license. Advertising, bidding, and collecting a deposit are all contracting activity.
- Fraudulent use of a license number: listing Luis's number on her bid misrepresents that she is licensed. If she knew it was false and used it to obtain money, that supports a fraud or theft referral, especially after abandoning the job.
- Abandonment and poor workmanship: six of 14 cameras, exposed cable, and no response.
- Permit violation: no permit was pulled.
Luis is also exposed. Lending a license-or allowing another person to use it-is prohibited and is separate grounds for discipline. 'For this one job' is not a defense; it is an admission. He also failed to supervise work performed under his number. The preschool is not a violator for being deceived, but it should have verified the license directly with the Board and obtained a written contract, license number, and insurance certificate. The Board can proceed against Dana for unlicensed activity and against Luis for license misuse; the local prosecutor may consider theft by deception.
2. What remedies and enforcement steps should the Board and the preschool pursue, and what penalties are realistically available?
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Practical enforcement has several tracks:
- Board complaint: the preschool should file a complaint with the Nevada State Contractors Board, attaching the bid showing Luis's number, the $4,500 check, photos, texts, and the contract. The Board can investigate unlicensed contracting and license misuse, issue a cease-and-desist order, cite Dana, and discipline Luis.
- Penalties: the Board can impose administrative fines up to the statutory maximum per violation, recover investigation costs where authorized, suspend or revoke Luis's license, and require corrective action. It cannot always order restitution in the criminal sense; the preschool may need civil court for that.
- Criminal referral: because Dana took a deposit and abandoned the job, the preschool can report suspected theft or fraud to local police. The check payable to her personal name is useful evidence.
- Civil remedies: demand letter, small claims or district court depending on amount, and a check for any recorded lien. The preschool should not pay more and should document the incomplete work.
Luis's argument that he did not know she would abandon the job does not cure the license-lending violation. His best mitigation is immediate cooperation, but discipline is likely. The preschool's three-week opening deadline makes prompt replacement by a licensed contractor a practical priority alongside the complaint.