Undercover Probe Into Massive Repair Scheme Allegedly Overcharging Homeowners For Shoddy, Inadequate Work Yields Financial Settlement

From the Office of the California Attorney General:

• Attorney General Edmund G. Brown Jr. and the Contractors State License Board (CSLB) have finalized an agreement that will stop a massive service and repair scheme that unfairly overcharged thousands of Californians for "shoddy and woefully inadequate" home repair work. [...] A months-long investigation by the Attorney General's Office and the Contractors State License Board found that SRVS Charge Inc. and its affiliated companies had been cheating some 6,000 customers each year for overpriced and substandard home repair work since 1989.(1)

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• Over several years, the Attorney General and the CSLB shut down affiliates of SRVS Charge, Inc. But instead of ending their scheme, the defendants continued to run their company under a labyrinth of business names and fraudulent contractor license numbers that were interchangeable. When CSLB either revoked a license or received an excessive number of complaints, the company would establish a new corporate identity and business would continue without interruption. As part of its investigation, CSLB conducted undercover stings against service technicians suspected of using these fraudulent licenses and referred instances of the illegal activity to the San Diego, Los Angeles, Santa Clara, and Sacramento County district attorney's offices.

For the entire California AG's press release, see Brown and Contractors State License Board Stop Massive Statewide Home Repair Scheme.

For the relevant legal documents filed by the California AG:

• People v. Mkhitarian, et al. - Complaint for Civil Penalties and Injunctive Relief;
• Stipulation;
• Final Judgment.

(1) To stop the companies' alleged illegal practices and provide restitution to those who were victimized, Brown and the CSLB reached a settlement with: - SRVS Charge Inc. and its affiliates, - Principal owner, Sarkis Terabelian, 43, of Burbank; - General manager, Zohrab "Rob" Mkhitarian, 40, of Burbank; and - Associates Marine Metspakyan, 33, Avetik Avo Gyandzhyan, 38, Lilit Lusparyan, 28, Alisa Oganyan, 35, Estine Akopyan, 28, and Vardui Terabelian, 45.

The following companies are affiliated with the defendants and are included in the settlement: - American Electric (CSLB #834398) - American Home Repairs, Inc. (CSLB #834206) - 59 Minute Service (CSLB #837697) - Cal Repair Services, Inc., dba Pick Red Plumbing (CSLB #797241) - Answering Resources, Inc., dba Thrifty Electric (CSLB #723375) - Orbell Enterprises, Inc., dba Plumbing One (CSLB #713006) - USA Services, Inc. (CSLB #775863) - Love My Home, Inc. (CSLB #811361) - Electric Avenue, formerly A Plus Electric Company (CSLB #569322) - American Electric 911 Fast Inc. (CSLB #826916) - Pro Electric Co. (CSLB #670171) - RG Electric (CSLB #516892) - Pacific West Heating & Air Conditioning (CSLB #604150).