I wish I could have seen that from a lawn chair. For those of you who do not know, Jeff is a large muscular man who is as cool as a cucumber. Former body builder. I'm very surprised the guy took a step toward Jeff. Jeff would not have flinched at all. Steely gaze.
According to my general understanding, if a contractor begins work on your house and you see this occur, and don't say anything, you can be liable for the work. Obviously, that did not happen in this instance.
The guy was one of 'those guys.' In Washington, all contractors are registered and bonded. Except the ones who are not.
AFAIK, there is no crime in unregistered contracting. I worked for our state agency. It's like Whack-A-Mole. They can get serious with these guys but they don't have the staff or budgets to deal with all of them and to do so, you need to know where to find them. They don't actually live in their PO Boxes. In fact, they often live in trailers. And when you do crack down...the law calls for a firm slap on the wrist.
Caveat Emptor.