My Contractor Took My Money and Disappeared — What Do I Do?

Is This Contractor Fraud?

California Penal Code §532 (theft by false pretenses) applies when someone takes money through false promises. California Business and Professions Code §7160 (home improvement fraud) applies when contractors take excessive deposits or abandon home improvement projects — and carries civil penalties of three times your actual damages.

Step 1 — File a Police Report

File a police report with your local police department or sheriff's office. Bring your contract, payment records, and a written timeline. Even if police do not immediately investigate, a police report creates an official record that strengthens your civil case and may be required by your bonding company.

Step 2 — File a CSLB Complaint Immediately

If the contractor is licensed, file a CSLB complaint at cslb.ca.gov right away. The CSLB can suspend the contractor's license and may facilitate recovery through their bond program. See our CSLB complaint guide.

Step 3 — File a Bond Claim

Look up the contractor's license on cslb.ca.gov and find their bonding company. California contractor bonds are currently $25,000 minimum. See our bond claim guide.

Step 4 — Send a Demand Letter and File Suit

If the contractor can be located, send a formal demand letter first. Then pursue a civil lawsuit for actual damages plus, if fraud is proven, treble damages under Business and Professions Code §7160.

If the Contractor Was Unlicensed

Under Business and Professions Code §7031, you can recover all money paid to an unlicensed contractor regardless of whether any work was performed. See our unlicensed contractor guide.