Alan Safahi charged in connection with alleged bank and wire fraud scheme
SAN FRANCISCO – A federal grand jury indicted Alan Safahi on charges related to an alleged bank fraud scheme, announced United States Attorney David L. Anderson and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter.
The indictment alleges that between June 2013 and September 2014, Safahi, 58, of Orinda, Calif., fraudulently entered into an agreement with a bank by which the bank was to be a backer for prepaid charge cards. According to the agreement, Safahi’s company, Card Express, would issue and service the charge cards. Further, the agreement required Card Express to fund 100% of the value of the cards and to turn over to the bank the total amount that the cards were supposed to be worth. Instead of complying with the agreement, Safahi allegedly directed the employees of Card Express to maintain two sets of books. One set of books maintained by Card Express was accessible to the cardholders and accurately reported the total amount for which the prepaid charge card was purchased, as well as the balance after any purchases. The second set of books, however, was provided to the bank and fraudulently stated that the amount the cardholder spent on the day the card was used was the total value of the prepaid card. Thus, Safahi caused the bank to believe the sponsored cards had much lower balances overall than they actually did have.
According to his LinkedIn profile, Safahi is also CEO and founder of ZED Network, a financial services company based in Ontario, Canada. An online search shows Card Express was based in Irvine, CA and was listed as a government contractor. A call to the company number was unsuccessful because it is disconnected.
The indictment further alleges Safahi fraudulently diverted funds that should have been turned over to the bank, i.e., the difference between the value of the cards and the amount Card Express reported to the bank was prepaid for the cards. Safahi allegedly used some of the diverted funds to fund Card Express. Safahi allegedly used other diverted funds to maintain his personal lifestyle, including by purchasing his home. According to the indictment, on or about September 24, 2014, Safahi no longer was able to maintain sufficient cash flow to conceal his fraud and reported the true overall balance of the prepaid charge cards to the bank. After reporting the true balance of the cards to the bank, Safahi promptly shut down Card Express, causing the bank and its customers to lose money. According to the indictment, the overall balance of the charge cards Safahi reported to the banks on September 24, 2014, was approximately $2,735,531.27 larger than previously reported.
In sum, the indictment charges Safahi with bank fraud, in violation of 18 U.S.C. § 1344, four counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of money laundering, in violation of 18 U.S.C. § 1957. Safahi made his initial appearance today and was released on a $250,000 bond. The defendant was ordered to appear on September 13, 2019, at 11:00 a.m. before the Honorable Susan Illston for a status and trial setting conference.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 30 years in prison and a maximum $1,000,000 fine on each count of bank and wire fraud. If convicted of money laundering, the defendant faces a maximum sentence of 10 years in prison and a maximum $250,000 fine. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Robert David Rees is prosecuting this case with the assistance of Kathy Tat. This prosecution is the result of an investigation by the Internal Revenue Service. Criminal Investigations.
Allen Payton contributed to this report.
Read MoreBy Brentwood Police Department
Thanks to a collaborative effort between officers and detectives, Kevin Winans (30-year-old San Francisco resident) was taken into custody on pandering charges. On Thursday, Aug. 22, 2019, Winans was arrested in Brentwood after attempting to coerce a female into prostitution. At the time of arrest, Winans drove his vehicle from the Bay Area to pick up the female in Brentwood. Inside Winans vehicle, detectives located an amount of supporting evidence. Winans remains in county jail on pandering and obstruction charges.
Fortunately, in this case, officers and detectives were able to make an arrest before someone became a victim of sex trafficking.
For more information on the National Human Trafficking Hotline, Child Sex Trafficking or Sextortion please visit:
https://humantraffickinghotline.org/
http://www.missingkids.com/theissues/trafficking
http://www.missingkids.com/theissues/sextortion
Read MoreBy Daniel Borsuk
Legally and politically embattled Contra Costa County Assessor Gus Kramer is “seriously planning” to run for the District 5 seat of the Contra County Board of Supervisors, a seat held by 20-year veteran Federal Glover of Pittsburg, the Contra Costa Herald has learned.
Miffed earlier this month when the board of supervisors decided to not award him a 1.96 percent cost-of-living increase that would have raised his annual salary from $208,013 to $212,086, based on findings of an average salary study Contra Costa County Administrator David Tawa had compiled of nine other counties of elected officials holding the offices of assessor, auditor-controller, clerk-recorder, and treasurer-tax collector. (See related article)
“I am planning to file for the district five seat,” said Kramer. “I will file in March.”
At the early August board of supervisors meeting, Twa instructed supervisors to not award the assessor a cost-of-living increase by stating, “Currently the Assessor is 1.96 percent below the Average of the nine Bay Area comparable counties. A salary adjustment for the Assessor will be considered at a later date, once other issues in the Department have been resolved.”
Kramer was re-elected to another four-year term of office in last November’s election, so he says he has nothing to lose in running for a supervisorial seat, he told The Herald.
Without going into detail, Kramer did not address the ongoing legal challenges he faces chiefly the Superior Court proceedings on allegations of “willful or corrupt” misconduct in office involving county employees.
The county assessor, who resides in Martinez, but grew up and attended and graduated from former Pacifica High School in Bay Point, said he has no problem running against veteran supervisor Glover.
“I want to reveal what is really going on during those closed door sessions. There are many unanswered questions about the legality of those closed sessions,” Kramer said.
In the meantime, Glover told the Herald he plans to run for a sixth four-year term.
“I plan to run for re-election in 2020,” Glover said. “I have worked hard for the constituents of District 5. I will run on my strong record.”
Glover would not comment on Kramer’s prospective candidacy.
“I don’t want to read anything into it at this time,” he said.
Read MoreMartinez, Calif. – Yesterday, Tues., August 27, 2019, a grand jury indictment was unsealed against defendant William Cashell, a 44-year-old resident of Walnut Creek, California and Johnson County, Kansas. He was indicted for two counts of possession of child pornography.
Cashell appeared in Martinez, California for an arraignment in Department 263 before the Honorable David Flynn. Cashell pleaded not guilty to the charges alleged in the indictment. Cashell remains out of custody on his own recognizance. Deputy District Attorney Scott Prosser is the prosecutor assigned to the case on behalf of the People. DDA Prosser is with our Sexual Assault Unit.
On May 2, 2019, investigators from the Internet Crimes Against Children Task Force served a warrant at Cashell’s residence after it was discovered he was storing child pornography in his e-mail account. Investigators also located child pornography on a smartphone belonging to Cashell. Cashell was initially charged in a criminal complaint on June 11, 2019 and remained at large until July 20, 2019 when was arrested in Johnson County, Kansas and extradited back to Contra Costa County.
The Silicon Valley Internet Crimes Against Children Task Force is managed by the San Jose Police Department. In Contra Costa County, detectives and investigators from the Walnut Creek, Concord and Moraga Police Departments, the Contra Costa County Sheriff’s Office, Contra Costa County Probation Department and Contra Costa County District Attorney’s Office participate in the task force along with Special Agents from the United States Department of Homeland Security and the United States Secret Service.
Parents are encouraged to discuss online safety with their children and can visit the website www.kidsmartz.org for further information. If you believe your school or community organization would benefit from a smartphone and social media awareness presentation, please contact the District Attorney’s Office at DA-Commentary-Feedback@contracostada.org.
Case information: People v. Cashell Docket Number 05-191603-0
Read MoreBy Jimmy Lee, Director of Public Affairs, Contra Costa County Office of the Sheriff
On the afternoon of Tuesday, August 27, 2019, the Marine Patrol Unit continued to search for a missing boater in Indian Slough. He was reported missing on Sunday, August 25, 2019, at about 2:18 AM. Two men were fishing on an inflatable raft at Indian Slough when their raft apparently had a malfunction. One of the men swam to shore, but the other person was unaccounted for.
At about 4:05 PM on Tuesday, Marine Patrol Deputies were dispatched to a floating private dock behind a residence on the 200 block of Discovery Bay Boulevard for a report of a body in the water.
Deputies arrived on scene and recovered the body. The body was turned over to the Coroner’s Division.
The Coroner’s Division later identified the recovered body as 34-year-old Efren Cruz-Rodriguez of Oakland. An autopsy was performed this morning. The cause of death is listed as drowning.
Anyone with any information on the incident is asked to contact the Sheriff’s Office Marine Patrol Unit at (925) 427-8507.
Read MoreExpected completion in December 2020
Pacific Gas and Electric (PG&E) will begin construction on the Bay Point Utility Undergrounding Project. The work consists of undergrounding utility lines along Bailey Road from State Route 4 north to Willow Pass Road then east along Willow Pass Road to the Pittsburg City Limit just east of Crivello Avenue. This project will provide residents of Bay Point with a more aesthetic travel corridor, remove several obstructions along the sidewalk, and provide a more dependable utility infrastructure than the existing overhead lines. Contra Costa County is also installing six additional streetlights to improve safety for pedestrians, bicyclists, and motorists.
Construction will begin on Tuesday, September 3, 2019, with completion in December 2020, barring unforeseen circumstances. Drivers can expect delays during construction. Work may take place between 7:00 am and 7:00 pm with restrictions to minimize impacts during commute hours. There may be night and weekend work scheduled during electrical system cut-overs to minimize disruption to local residents and businesses.
Funding for Contra Costa County’s portion of this project is provided by gas tax revenues and Navy Mitigation funds, and the remainder is funded by PG&E Rule 20A funds, Comcast, and AT&T.
Read MoreCongressmen Mark DeSaulnier (CA-11) and Jerry McNerney (CA-09) will host a joint town hall at on Thursday, August 29th at 6:30 p.m. in Antioch. The City of Antioch is split between the two representatives.
During the town hall, DeSaulnier and McNerney will provide an update on news of the day and will take questions.
Antioch Town Hall with Congressmen DeSaulnier & McNerney
Thursday, August 29
6:30 p.m. to 8:00 p.m.
Antioch Community Center
Doors Open at 6:00 p.m.
This event is open to the public, press, and photographers.
Please RSVP by visiting https://desaulnier.house.gov/town-hall-rsvp or calling 925-933-2660. To request ADA accommodations, translation services, or for more information contact Representative DeSaulnier’s office in either Walnut Creek or Richmond.
Read MoreBy CHP-Contra Costa
Monday morning at approximately 8:00 am, we responded to a collision on Highway 4 westbound, near Loveridge Road. Upon arrival, we located a motorcycle rider who had rear-ended a Toyota Camry and was ejected off of his motorcycle, as a result of that collision.
Unfortunately, following that collision, the rider was struck by a big rig and sustained fatal injuries. Both the driver of the big rig and the Toyota are cooperating with our investigation. Multiple lanes were closed until approximately 10:00 am, but the roadway is now fully open. Identification of the motorcycle rider will be made through the Contra Costa Coroner’s Office.
Read MoreBy Jimmy Lee, Director of Public Affairs, Contra Costa County Office of the Sheriff
Sunday morning at about 2:18 a.m., Delta Station Deputy Sheriffs responded to Indian Slough for a missing person detail. Two men were fishing on an inflatable raft at Indian Slough when the raft apparently had a malfunction. One of the men swam to shore, but the other person was unaccounted for.
A CHP helicopter, U.S. Coast Guard and Contra Costa Fire Protection District arrived on scene with boats and aerial support, however, the missing man was not located
Sheriff’s Office Marine Patrol Unit later arrived on scene and took over the investigation and search. Anyone with any information on the incident is asked to contact Sheriff’s Office dispatch at (925) 646-2441.
Read MoreThis morning, at approximately 8:50 am, we responded to a collision on Balfour Road near American Way. Upon arrival, we located three vehicles which had been involved in a collision. Our investigation so far has revealed the following information:
The driver of a Nissan Altima was driving eastbound on Balfour, west of American Avenue behind a Mini Cooper. The driver of the Nissan attempted to pass the Mini Cooper over double solid yellow lines, but while attempting to overtake it, clipped the Mini Cooper and struck a white minivan head on, which was going westbound on Balfour.
The driver of the Nissan was pronounced deceased on scene, the driver of the Toyota minivan was transported to a local hospital with minor injuries, and the driver of the Mini Cooper was unharmed. At this time (10:30 am), Balfour remains closed as we complete our investigation and clear the scene. We do not have an estimated time to re-open the roadway. We are still investigating whether drugs and/or alcohol were a factor in this collision.
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