Six men face felony charges after an undercover sting caught them submitting $1.27 million in illegal construction bids to fire survivors in Pacific Palisades without valid contractor's licenses, the L.A. County District Attorney's Office announced.
The arrests come as reports of fraud hit closer to home. An Altadena homeowner rebuilding after the Eaton Fire reported losing thousands of dollars to an unlicensed contractor, according to NBC San Diego. The homeowner's name and the exact amount lost have not been publicly disclosed.
For Pasadena residents whose homes were damaged or destroyed in the January 2025 Eaton Fire, the message from prosecutors is blunt.
"As residents in Pacific Palisades and Altadena rebuild from the catastrophic wildfires in January 2025, we have a message for criminal contractors: Stay out of Los Angeles County," District Attorney Nathan Hochman said.
The sting
On April 15 and April 16, 2026, investigators with the California Contractors State License Board's Statewide Investigative Fraud Team posed as clients seeking demolition and accessory dwelling unit (ADU) construction work in Pacific Palisades. Six men responded to online ads and submitted bids totaling up to $1.27 million. None held a valid contractor's license or had a pending application with the CSLB.
Five defendants face up to three years in prison and fines of up to $10,000. A sixth, Raymond Joshua Castorena, faces up to six years due to a prior strike offense. Three defendants pleaded not guilty on June 26; arraignment for the remaining three was set for Tuesday, July 8, 2026.
What rebuilding homeowners should know
California law caps the down payment on any home improvement contract at $1,000 or 10 percent of the contract price, whichever is less. That cap explicitly covers rebuilding in declared disaster areas, according to the CSLB. For example, on a $500,000 rebuild, the legal maximum deposit is $1,000.
Any contractor who demands more upfront is breaking the law.
Licensed contractors must display their license number on all advertising. If a flyer, business card, or online ad doesn't list a CSLB number, that's a red flag.
Residents can verify any contractor's license for free at cslb.ca.gov using the "Check a License" tool. The lookup shows whether a license is active, suspended, or revoked, plus bond information, workers' compensation status, and complaint history.
Under California Business and Professions Code section 7031, unlicensed contractors cannot collect any payment through civil court. Homeowners who paid an unlicensed contractor may have legal recourse to recover their money.
How to report
The CSLB operates a Disaster Help Center hotline for Southern California fire survivors: 800-962-1125. Residents can also report suspected unlicensed activity online at cslb.ca.gov or by calling 1-800-321-2752.
The L.A. County District Attorney's Office maintains a dedicated unlicensed contractors operations page at da.lacounty.gov, which tracks enforcement actions in fire zones.
The CSLB's next "Get Licensed to Build" workshop is scheduled for Friday, July 10, 2026, at 10 a.m. via Webex.
