Countywide : Flood Victims Warned to Be Wary of Fraud

Flood victims are being warned to be wary of contractors who claim that a governmental agency has endorsed them to repair damaged property.

Officials say they have received reports that some contractors have been making the rounds in Orange County--sometimes targeting elderly residents--claiming the Federal Emergency Management Agency or the state’s Office of Emergency Services has authorized them to make repairs.

“I guess they see this as a business opportunity and they’re seizing the day,” said Dennis Bishop, supervising deputy for the Contractors State License Board.

“The elderly have to be especially careful,” he added. “Get things in writing. I can’t stress that enough. People are used to operating off a handshake. You can’t do that anymore.”

Linda Wilson, a spokeswoman for the OES Community Liaison Office in Laguna Beach, one of the cities that suffered flood damage during last month’s storms, said representatives from FEMA or OES have a wallet-size photo identification card and do not ask for money.

“If a contractor comes out and says, ‘I’m here to inspect your flood-damaged property and there will be a $150 charge for this,’ that’s not the way FEMA or the state operates,” she said.

Wilson said about five Laguna Beach residents have reported receiving calls from contractors falsely claiming to have endorsements from the state or federal government.

Bishop said his office is investigating reports of similar problems elsewhere in Orange County, but he declined to say where.

Pastor Herrera, director of Los Angeles County’s Department of Consumer Affairs, said disaster victims commonly neglect to ask for verification if a worker claims such credentials.

“I would really alert consumers to beware, absolutely,” he said.

Bishop said the licensing board has tried to educate the public about the problem, passing out information at city building departments and attending community meetings.

Between 45 and 50 people attended such a meeting in Laguna Beach on Tuesday night.