Legal Question in Business Law in California

Your posted makes it sound like he is not a licensed contractor. if so, it certainly is possible they could sue to get the money back. If he is a contractor, then they shouldn't be able to get all of the money back. As your the checks being made out to you, that certainly is odd. You should discuss this in more detail with a local attorney. Something doesn't smell right.

Unless you and your boyfriend are both licensed contractors, you most certainly can be sued for the $7,500 and any other damages arising out of the failure to complete the work. Unlicensed contractors are obligated by law to return all payments on demand, period, no exceptions no matter how much work was actual done or what it was worth. It is effectively a 100% fine for illegal contracting. Since you received the payments, a case can be made that you were the unlicensed general contractor and your boyfriend was an unlicensed subcontractor.

And this is before we even consider WHY the payments were made out to you. If it was to avoid creditors' collection efforts from your boyfriend, or to evade child support payments, or anything else like that, you could be in even more trouble.

I basically agree with the two previous answers, but would like to add an afterthought. Whether your boyfriend is licensed or not, if you were the one to whom payments were to be sent, you very well may have become business partners. Forming a legal partnership does not require a written partnership agreement -- in fact, it doesn't even require an oral agreement. All that's required for two people to become business partners is to behave as though they are in business together, and receiving the payments on a contract may suggest a partnership to the client, in which case you can be sued. All partners are liable for all partnership debts and other liabilities, and can be sued thereon. Also note that contract-based claims for $7,500 can be brought in small claims court.