By Lookout Staff

December 11, 2009 -- An unlicensed Santa Monica contractor was convicted last week of bilking two customers of a total of $18,000 after he was prohibited from conducting work pending trial on similar charges.

Hosayn Mandi, owner of New Line Interiors, formerly located on Lincoln Boulevard in Santa Monica, was ordered to pay back the down payments he had collected for two remodeling jobs

Mandi had refused to perform any work or return the money, according to the City Attorney’s office.

He was also sentenced to three years probation and prohibited from doing any contracting work until he is licensed by the Contractor’s State Licensing Board (“CSLB”), City officials said.

In addition, Mandi must perform 80 hours of community service and pay $1,000 to the City’s Consumer Protection fund.

Mandi had vacated his storefront after City officials obtained a court order prohibiting him and his company from conducting any contractor’s business after he was charged in November 2008 with collecting a $15,000 down payment to remodel a kitchen, then pocketing the money without doing the work.

“This case and others we’re filing from the CSLB send a message to unlicensed contractors and consumers,” said Deputy Attorney Gary Rhoades. “Neither party in an unlicensed contractor case gets what they bargained for.

"In the long run, it’s cheaper for the contractor to get their license and it’s cheaper for the consumer to insist on licensed work,” Rhoades said.

The Consumer Protection Unit urges consumers to know their rights with contractors, including:

• The right to hire licensed contractors;
• The right to check a contractor’s license at www.cslb.ca.gov or 800-321-2752;
• The right to pay only 10 percent or $1,000, whichever is less, as a down payment;
• The right to a written contract that specifies project costs, the down payment, a payment schedule and start and completion date.

Contractor fraud ranks among the top five consumer complaints in California, according to the State Senate Oversight Committee. The widespread problem costs consumers nationwide more than $100 billion annually.

To report a consumer complaint against a contractor, call the CSLB fraud team at 562-345-7600 or go to www.cslb.ca.gov. For any contractor problems in Santa Monica, call the Consumer Protection Unit at 310-458-8336.