A former solar contractor from Las Vegas has been sentenced after pleading guilty to defrauding homeowners out of nearly $250,000. Derek Carbajal, previously associated with Lifetime Power Solar Company, was given a sentence that combines probation with financial restitution, as reported by KTNV. The court's decision mandates Carbajal to serve 36 months of probation, among other conditions, and to pay $245,264 in restitution to the victims of his fraudulent practices.
In a scheme that operated from March 2022 until April 2023, Carbajal was arrested on charges including seven felony counts and one misdemeanor, after he collected substantial down payments from homeowners for solar system installations that were never performed. Most victims were elderly, tricked into handing over at least half of the total cost of a new residential solar system upfront, which is far above the legally stipulated maximum down payment in Nevada. Following his admission of stealing the funds, Carbajal was obliged to also pay $113,524 at sentencing, which will go directly to some of the affected homeowners, as noted by KTNV.
The sentencing comes amid increasing measures to combat contractor scams in Nevada. According to FOX5 Vegas, the Nevada State Contractors Board (NSCB) has created a specialized solar investigations unit aimed at targeting complaints involving theft, fraud, abandonment, and unlicensed contracting within the solar industry. This move reflects rising concerns over disproportionate down payments and unlawful sales tactics employed in the sector.
For homeowners considering solar installations, the Nevada State Contractors Board advises to cautiously verify the legitimacy of contractors, recommending multiple bids and emphasizing the importance of comprehensively understanding contract terms before signing. In an effort to provide further safeguards, Nevada State Contractors Board Executive Officer David Behar stated, "Nevada law stipulates that the down payment for any residential project must be either 10% of the total contract or $1,000, whichever is less. To safeguard your investment, avoid paying a contractor more than this amount upfront." The Nevada State Contractors Board's stance is to ensure consumers are not left vulnerable to predatory business practices, with resources available for those seeking to make informed decisions when selecting a licensed contractor, as per KTNV.
Victims of contractor fraud, specifically by residential solar companies, have been urged to reach out to the Nevada State Contractors Board for support. The board, as indicated by FOX5 Vegas, offers recourse options such as the Residential Recovery Fund, which can provide up to $40,000 per validated claim. In light of these protective measures, homeowners are better equipped to shield themselves against potential scams and the financial losses that may ensue.
