California Construction Fraud Attorneys
California construction fraud attorneys handling contractor fraud, billing fraud, material substitution, and related claims.
Construction fraud takes many forms — contractors who take deposits and disappear, billing for work never performed, substituting inferior materials, and falsifying lien waivers. Whether you're a victim of construction fraud or defending against false fraud allegations, the stakes are high.
Why It Happens
Construction fraud occurs because the industry involves large sums of money, complex projects, and relationships built on trust. Fraudulent contractors exploit this trust. False fraud allegations arise from payment disputes where one party tries to escalate a contract dispute into a criminal or civil fraud claim.
Construction fraud in California is actionable under multiple statutes: Business and Professions Code §7160 (contractor fraud — abandonment, failure to complete, fund diversion, false statements); Penal Code §484 and §487 (theft by false pretenses and grand theft — criminal prosecution); Penal Code §484b (diversion of construction funds — felony if over $2,350); Penal Code §532 (false financial statements); and Civil Code §3294 (punitive damages for fraud, oppression, or malice). Civil fraud requires proof of: (1) misrepresentation of a material fact; (2) knowledge of falsity; (3) intent to induce reliance; (4) justifiable reliance; and (5) resulting damage (Lazar v. Superior Court). The statute of limitations for civil fraud is 3 years from discovery (CCP §338(d)). The California False Claims Act (Government Code §12650) applies to fraud on government construction contracts and allows qui tam suits with treble damages. CSLB complaints for fraud can result in license revocation and criminal referral to the Attorney General.
What's at Risk
- Criminal prosecution for contractor fraud
- CSLB license revocation for fraud-related violations
- Punitive damages in civil fraud cases
- Personal liability for corporate officers in fraud cases
- Reputational damage that affects future business
- Paying large deposits to unlicensed or unvetted contractors
- Not verifying contractor license status with the CSLB
- Failing to document all payments and work completed
- Not requiring lien releases with each payment
- Ignoring early warning signs of contractor fraud
A property owner paid $280K to a contractor who completed only $40K of work and then abandoned the project. The contractor had also filed false lien waivers. We pursued civil fraud claims, obtained a judgment for $280K plus punitive damages, and worked with law enforcement to file a CSLB complaint that resulted in license revocation.
Past results do not guarantee future outcomes. Every case is different.
Frequently Asked Questions
- We pursue civil fraud claims against fraudulent contractors
- We defend against false fraud allegations in contract disputes
- We coordinate with law enforcement on criminal fraud cases
- We pursue CSLB complaints against fraudulent contractors
- We recover damages through litigation and asset recovery
Construction fraud is a crime — report it before the evidence disappears.
Fund diversion and contractor abandonment claims have time limits. Preserve your evidence and call us immediately.
Start Your Case Review (949) 666-8797
Ready to Discuss Your Case?
Start with GLG’s intake team. We will review your information and coordinate the appropriate next step.