Unlicensed Private Investigations in California

Over the last few years there has been a more frequent uncovering and new transparency of the problem of people conducting unlicensed private investigations in the State of California. Prosecution is also on the rise throughout the state of California.

This unlicensed activity harms the public and creates bad publicity for an otherwise normal and ethical profession. This unlicensed activity is also criminal and fraudulent per state statute. There have been countless incidences where an unsuspecting victim met with an unlicensed Private Investigator who made all manner of promises then took their money and disappeared.

Many of these want-to-be Private Investigators do not meet the minimum requirements to obtain a state license. Some even have been found to already have felony convictions on their record. When a person applies to the State of California to become a licensed Private Investigator they must undergo a complete and thorough background investigation -- .

Regularly these unlicensed private investigators connect with their potential victims on internet sites such as Craigslist or other free advertisement sites through false advertising.

In 2010 there were three newsworthy cases of just such unlicensed private investigations. In the spring there was the case of Adrian Grafias. He met with two licensed Private Investigators that nabbed him in a sting investigation wherein they posed as potential clients. Also during the investigation it was uncovered that Grafias had an October 2008 Felony conviction for impersonating a notary public, and an August 2005 conviction of resisting arrest and discharging a firearm. Grafias connected with the potential clients via postings on Craigslist.

Around the same time there was the case of David Savell who blatantly posted an advertisement on Craigslist stating that he was not licensed but offered his services anyway.

Then in July of 2010 there was the case of Kevin Michael Sainez. Sainez was a former Santa Ana, California Police Officer that was arrested on a warrant that included 63 counts of conducting unlicensed investigations and 3 charges of conspiracy to commit sexual assault of an animal. Prosecutors contend that Sainez operated a private investigations company from November 2005 to November 2010 using several different business names including KMS Investigations, Fore-Front Investigations, and 4Front Investigations. He was accused of falsely identifying himself to clients as a licensed private investigator amongst others accusations.

As recently as April 2011 there is the case of Edward Joseph Ortega who has been charged with three counts of perjury, one count of false personation, and one misdemeanor count of illegally working as a Private Investigator. Ortega, of Ridgecrest (California) was hired by the City of Hawthorne (California) to investigate "problematic activities" rumored at Hawthorne City Hall. He was officially hired by their then City Manager, Jag Pathirana. He worked for the city from April until June 2010 interviewing city employees and conducting surveillance and was paid about $13,000. The case is ongoing and Ortega has been ordered back to court on June 3, 2011 for a preliminary hearing.

The California Department of Consumer Affairs has Special Investigators that investigate complaints from the public of unlicensed private investigation activities and other types of issues. As well, both state professional associations for licensed Private Investigators have committees that specifically investigate unlicensed activity. The California Association of Licensed Investigators, the largest professional association of Private Investigators in the United States has a group of Private Investigators devoted to the weeding out the bad guys. And, Professional Investigators of California has a group of Private Investigators that take on the task of looking into what gets reported to them.

Conducting an unlicensed investigation in the State of California is a Misdemeanor that is punishable by fine, imprisonment, or both. The fine by statute is up to $10,000.00. In contrast California Penal Code section 146A states that if any person impersonates a Peace Officer they are guilty of a misdemeanor and can be imprisoned, fined up to $2500.00, or both. Clearly California statutes place a higher significance on unlicensed private investigation activity!

In the State of California Business & Professions Code section 7520 states:

"No person shall engage in a business regulated by this
chapter; act or assume to act as, or represent himself or herself to
be, a licensee unless he or she is licensed under this chapter; and
no person shall falsely represent that he or she is employed by a
licensee."

And further, Business & Professions Code section 7523 states:

"7523. (a) Unless specifically exempted by Section 7522, no person
shall engage in the business of private investigator, as defined in
Section 7521, unless that person has applied for and received a
license to engage in that business pursuant to this chapter.
(b) Any person who violates any provision of this chapter or who
conspires with another person to violate any provision of this
chapter, relating to private investigator licensure, or who knowingly
engages a nonexempt unlicensed person is guilty of a misdemeanor
punishable by a fine of five thousand dollars ($5,000) or by
imprisonment in the county jail not to exceed one year, or by both
that fine and imprisonment."

There is also in essence a "sentence enhancement" per Business & Professions Code section 7523.5(a) that can be imposed:

"The superior court in and for the county wherein any
person has engaged or is about to engage in any act which constitutes
a violation of Section 7523 may, upon a petition filed by the bureau
with the approval of the director, issue an injunction or other
appropriate order restraining this conduct and may impose civil fines
not exceeding ten thousand dollars ($10,000) -- ."

On the issue of advertising unlicensed services, Business & Professions Code section 7534 reads:

"Every advertisement by a licensee soliciting or advertising
business shall contain his or her business name, business address or
telephone number, and license number as they appear in the records of
the bureau. For the purposes of this section, "advertisement" shall
include any business card, stationery, brochure, flyer, circular,
newsletter, fax form, printed or published paid advertisement in any
media form, or telephone book listing. Every advertisement by a
licensee soliciting or advertising their business shall contain his
or her business name, business address or telephone number, and
license number, as they appear in the records of the bureau."

Sometimes these unlicensed private investigators have very menial training. However, it truly ill prepares them for the occupation and leaves them deficient in many skill sets that are required. Anyone can do a Google search and find schools that will train a person to be a Private Investigator over the internet for a nominal tuition amount. But, there is a bigger picture! These schools do not always disclose the fine print that informs the perspective student that all but five states in the U.S. require licensing, and almost all of those states require either a background in law enforcement or a significant amount of time spent in internship under a licensed Private Investigator.
As of 2002 the State of California, which is one of the three hardest states to obtain a license, requires all applicants for a Private Investigators license to minimally meet the following requirements:
ï˜ Be 18 or older.
ï˜ Undergo a criminal history background check through the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI).
ï˜ Have three years (2,000 hours each year, totaling 6,000 hours) of compensated experience in investigative work; or a Bachelor's Degree in law or police science plus two years (4,000 hours) of experience; or an Associative of Arts degree in police science, criminal law, or justice and 2 ½ years (5,000 hours) of experience. Experience must be certified by your employer and have been received while you were employed as a sworn Law Enforcement Officer, Military Police Officer, Insurance Claim Adjuster, employee of a licensed Private Investigator or Repossessor, or Arson Investigator for a public fire suppression agency. (Work as a process server, public records researcher, custodial attendant/records clerk for a law enforcement agency, bailiff, collections agent who collects debts in writing or by telephone after the debtor has been located, or person who repossesses property after it has been located is not considered qualifying experience.)
ï˜ Pass a two-hour multiple-choice examination covering State and Federal laws and regulations, legal terminology, Civil and Criminal liability issues, evidence handling, undercover investigations, and surveillance.

Per the California Department of Consumer Affairs' Bureau of Security and Investigative services, as of January 2011 there are approximately 9,991 licensed Private Investigators in the state. In comparison, according to Allen Deal, Assistant Executive Director with the California Commission on Peace Officers Standards and Training, there are approximately 80,000 Peace Officers in the State of California.

California Peace Officers working off-duty must also obtain a Private Investigators license if they are working as such. Furthermore, there are specific statutory requirements set for in the California Government Code that dictate that any Peace Officer working off-duty as a Private Investigator must be within qualifying policies of their agency of employment and cannot engage in work that may cause a conflict of interest amongst other provisions.

"Certified Investigators" are not licensed Private Investigators! Whether a person or agency calls themselves consultants, security specialists, or investigator, if they do not possess a valid State license they are bogus. Neither is it legal to conduct investigations when a person has merely attained a professional designation such as Certified Public Accountant ("CPA"), Certified Fraud Examiner ("CFE"), Senior Professional in Human Resources ("SPHR"), Certified Insurance Fraud Investigator ("CIFI"), Certified Anti-Terrorism Officer ("CATO"), or the like. Those folks must have a Private Investigators license too! They are also subject to prosecution and or civil liability should they conduct unlicensed investigations.

So, what can you do to protect yourself against the predators out there conducting fraudulent unlicensed investigations?

For starters, the following States require licensing of Private Investigators:

AL AK AZ CA CT DE FL
GA HI IL IN IA KS KY
LA ME MD MA MI MN MO
MT NE NV NH NJ NM NY
NC ND OH OK OR PA RI
SC TN TX UT VT WA WV
WI

Some States, such as California, have reciprocity agreements with other states.

Also, per the Business & Professions Code every licensed investigator is required to carry on his/her person a State of California issued identification card. Ask to see it. If you're looking for a Private Investigator and have obtained their state license number you can verify its validity and the licensee's status with the State at: www.dca.ca.gov/bsis . Don't be afraid to ask questions too. Does the person you are speaking to have obvious expertise? What are their qualifications? How did they qualify to obtain their license? Were you referred to the Private Investigator by a trusted source, or did you find them on a free advertising website? Do they belong to a professional association? Are they reluctant to give you their complete contact information or are they hiding behind the proverbial "cloak and dagger" persona?

If you feel you have a complaint you can also submit such to the California Department of Consumer Affairs' Bureau of Security and Investigative Service via their Unlicensed and Unregistered Activity Lead for located at: http://www.bsis.ca.gov/forms_pubs/uaau_lead_form.pdf .

Beware of those out there that are want-to-be and up to no good -- .