Legislators target fraudulent pool contractors

Tuesday, June 3, 1997 | 11:32 a.m.

Assemblyman John Lee, D-Las Vegas, said many Las Vegans have lost money to pool contractors because they were required to make huge advance payments.

He urged the Assembly Commerce Committee on Monday to approve AB512 that prohibits prepayments and requires pool contractors to complete work within 30 days of a written date. Homeowners can make staged payments, but only if they accept the work for the completed stage.

Commerce Chairman Richard Perkins, D-Henderson, didn't take a vote on the bill as members want to consider several amendments, including one that would prevent pool subcontractors from placing liens on homeowners if they aren't paid. Instead they would be required to seek the money they are owed from the contractor.

Assemblyman Barbara Buckley, D-Las Vegas, expressed support for Lee's bill, saying it wouldn't take much to convince her in light of consumer disasters with pools in Las Vegas.

More than 50 people lost $19,000 to $30,000 each in 1995 to Oasis Pools, which declared bankruptcy and went out of business.

Its owner, James Hampton, was convicted in January of two misdemeanor violations of the state deceptive trade practice law.

In the last four years, the state Contractors Board has received 810 complaints about pool contractors.

Margie Grein, director of finance for the board, said pool contractors generally demand a 40 percent deposit before beginning work. Then they request 25 percent more for beginning each stage.

Lee's bill would prohibit a deposit of more than 2 percent of the pool's total cost.