Warning to Fire Victims: Con Artists on the Loose

Deft and persistent, insurance adjusters, contractors, handymen and con artists have descended upon this blackened and battered community with a pressing urgency that puts even the media to shame.

The problem worsened this week when someone duplicated and distributed police passes that allowed residents, the press and “bona fide” workers into burned-out neighborhoods, Police Chief Neil J. Purcell Jr. said. With a fake permit for a ticket, a stream of less scrupulous types slipped in as well.

“Before we knew it, we had the hillsides up there crawling with people bugging the residents, soliciting them for work to be done,” he said. “They’re all over the place. They’re just all over the place.”

In some cases, Purcell said, con artists have even managed to persuade residents who have just lost their homes to part with some cash as well.

“Agreements were made and money was given up front and they haven’t seen the people since,” he said. “Basically, it’s just preying on the vulnerability of the people.”

City Manager Kenneth C. Frank said, “We’ve got more consultants bugging us than we do newspaper people.” In fact, when he returned to his own destroyed home in the Mystic Hills neighborhood just one day after the Oct. 27 fire, a public adjuster--an independent contractor who handles insurance claims for a fee--was there waiting for him.

“Those guys had gotten in somehow,” Frank said.

Gene Carter, a Brawley resident who also owns a Canyon Acres house that was gutted in the fire, said he has been receiving telephone calls from people identifying themselves as attorneys.

“I get calls all day long from these vultures from Florida,” Carter said. “They hunt you down. How did they find out that the Carters were the owners of this property and then track us down in Brawley?”

Paula Watkins, regional deputy for the state Contractor’s Licensing Board, said her office has been collecting business cards and brochures from the Laguna Beach area, and “we intend to look into all of this.”

“I can just see the vultures now,” Watkins said, “and they’re not just from California. They come from Oklahoma, Nebraska, just about all over the United States.

“You will get legitimate people coming by,” Watkins said, “but my suggestion is always find out if they have a license. And remember, if it’s a deal too good to be true, don’t do it.”

Residents pressured by unsolicited general contractors to “sign now” should keep in mind that legally, contractors pushing hard for money up front are limited in the amount they can collect, she advised. According to the state Business and Professions’ Code, Watkins said, these contractors can only ask for 10% or $1,000 in down payments, whichever is less, on any home improvement project.

“If they ask for more money, you can say, ‘Forget it, Charlie,’ ” Watkins said.

The state insurance commissioner’s office advises property owners to check the license of solicitors, especially those of public adjusters, said Elena Stern, a spokeswoman for the commissioner’s office in Los Angeles.

“All insurance companies have adjusters,” Stern said, “but there is something called a public adjuster who offers their services to people and, if you’re a fire victim, can handle your claim for you and serve as a liaison to the insurance company.”

But Stern warned that contacts with public adjusters are sometimes “beneficial and sometimes not.”

“There are a lot of crooks out there,” she said.

However, Laguna Beach police said they now feel the tide is turning. With stories of con jobs spreading through the community almost as quickly as the fire that gobbled up 366 homes last week, residents are getting wise. And police are now issuing new passes and watching carefully for the fakes.

In addition, security fencing has been installed to limit access to burned areas and, starting Monday, private security guards will help protect those neighborhoods.

Among the hustlers on the make and licensed contractors trying to earn an honest buck are a host of workers who fall into a gray area, including housecleaners and handymen who are simply looking for scarce jobs in hard economic times.

“There are a lot of people out of work,” Purcell said.

The police chief warned that residents should still keep their guard up, making sure they ask for credentials beyond a business card and that anyone offering to do cleanup work has a permit from the city. If someone appears suspicious, residents are asked to call the Police Department at (714) 497-0701.

And above all, Purcell said, do not pay for anything until the work is done.

“No reputable company is going to ask for money up front,” he said. “That should be a clue right there.”

The insurance commissioner’s hot line is (800) 927-HELP.

The state Contractor’s License Board hot line is (800) 962-1125.