News Summary
The Nevada Contractors Board is taking action against unlicensed contractors in response to numerous homeowner complaints about scams. John Pereyda has been identified for operating without a valid license and leaving projects incomplete after receiving significant payments from clients. Victims have reported substantial financial losses, with some estimates exceeding $120,000. The Board is also calling for legislative support to impose stricter penalties on unlicensed contractors to protect consumers. Homeowners are advised to verify contractor licenses to mitigate the risk of fraud.
Las Vegas, Nevada – The Nevada Contractors Board has announced it is taking action against unlicensed contractors following multiple reports from homeowners who have fallen victim to scams. John Pereyda has been identified as operating without a valid license and is accused of misrepresenting himself as a licensed pool and spa contractor. Homeowners have reported that after making significant payments, Pereyda abandoned their projects, leaving them with substantial financial losses and incomplete work.
Among the victims, Recon Salazar reported losing approximately $60,000 after paying over $30,000 to Pereyda, who failed to complete any of the work. Another victim, known as Roxy, estimated her losses to be between $116,000 and $120,000, citing extensive damages to her home resulting from incomplete renovations. Both individuals have filed complaints with the Nevada Contractors Board; however, as Pereyda is unlicensed, the Board lacks the authority to take action against him.
The emotional impact on victims has been severe, with many experiencing depression and anxiety due to their financial distress. Barbara Ojito, another local resident, revealed she lost $8,000 to unlicensed contractor Martin Lagunas, who left her porch renovation unfinished. Lagunas has since faced a misdemeanor charge for operating without a license and pleaded guilty, agreeing to pay restitution to Ojito.
The Nevada Contractors Board has identified more unlicensed contractors, with 21 individuals publicly listed for taking large payments without delivering services. Each year, the Board issues around 250 citations related to unlicensed contracting activities. The construction industry in Nevada has grown by 27% since 2020, leading to an increase in unlicensed contractor scams as homeowners seek renovation services.
In response to the rising trend of scams, Nevada legislators are proposing Senate Bill 16. If passed, this bill would enable the Contractors Board to prevent individuals from obtaining a contractor’s license for one year if they submit unlicensed bids exceeding $1,000. This legislative move aims to reinforce the enforcement against unlicensed contractors and protect consumers.
Reports to the Contractors Board have risen sharply, with around 1,900 compliance complaints and 700 criminal complaints filed annually. Victims of these scams often find themselves without recourse from Nevada’s Residential Recovery Fund if they have paid unlicensed contractors. With the increasing prevalence of fraud in the construction sector, it is crucial for homeowners to verify contractor licenses and ensure payments are made only to licensed companies to mitigate the risk of falling prey to scams.
Steven Jones is another unlicensed contractor currently under investigation for reportedly abandoning multiple home renovation projects after receiving substantial payments. He has denied accusations of fraud, claiming that disputes over payments with clients led to project delays and eventual abandonment.
Despite the ability for the Contractors Board to impose fines of up to $50,000 on unlicensed contractors, industry experts argue that such penalties are not a deterrent for those engaging in million-dollar projects. As the number of complaints continues to escalate, the Board is urging homeowners to remain vigilant and to report any unlicensed contractors they encounter.
The Nevada Contractors Board emphasizes the importance of conducting thorough background checks on contractors before hiring them, advising homeowners to always verify licenses and to be cautious with payments to avoid becoming victims of fraud.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Las Vegas Sun
- Fox 5 Vegas
- Moneywise
- Wikipedia: Construction Contract
- KTNV
- Encyclopedia Britannica: Contract Law
