Hemphill

Appeal by petitioner, Raymond M. Hemp-hill, from a judgment denying a writ of mandate to compel the Contractors’ State License Board to restore petitioner’s contractor’s license.

Since November 1953 petitioner has been licensed by the board as a general building contractor. On May 24, 1956, an accusation was filed by an investigator of the board wherein Hemphill was charged with having improperly diverted funds received under the terms of a written contract for the construction of a single family residence and garage; departing from plans and specifications in seven instances to the prejudice of the owners, Robert H. and Florence Rosenberg; fail *341 ing to complete construction for the price stated in the contract; and presenting false statements to Mr. Rosenberg for labor and materials in violation of sections 7108, 7109, 7113 and 7116 of the Business and Professions Code.

A hearing was conducted by a hearing officer, after which he found that Hemphill had violated section 7116 1 in that he breached his fiduciary duty to the owner with the intent of making a secret and undisclosed profit by submitting false statements for materials and services rendered and by permitting…