Contra Costa Herald

News Of By and For The People of Contra Costa County, California

Better Business Bureau warns of spooky risks during National Cybersecurity Awareness Month

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Source: BBB

October is National Cybersecurity Awareness Month, and the Better Business Bureau (BBB) is sounding the alarm on digital ghouls and cyber predators that could haunt the corners of our everyday digital lives. Recent data from the BBB Scam Tracker reveals concerning statistics, emphasizing the urgency for consumers to be vigilant and take proactive steps to protect themselves.

One of the most alarming threats is the rise of social media scams where scammers exploit consumer trust, with a staggering 91% engagement rate and 53% resulting in financial loss. “Social media platforms are full of suspicious characters,” warns Lori Wilson, President and CEO of BBB serving the San Francisco Bay Area and Northern Coastal California. “Be especially careful if you spot offers in your social media channels that look too good to be true – scammers often lure victims that way.”

Another menacing threat is the proliferation of hacked “smart” devices, exposing households to potential intrusions by cybercriminals. The “Internet of Things” has expanded to include an array of devices, ranging from cars to refrigerators, becoming potential security and privacy vulnerabilities. Intruders can exploit these devices, turning them into conduits for unauthorized access.

Phishing attacks also pose a danger, where individuals and organizations fall victim to disguised evildoers posing as trusted contacts, resulting in data breaches and financial losses. Additionally, the rapidly growing cryptocurrency markets have become a playground for tricksters, making it vital for consumers to exercise caution and conduct thorough research before considering any investments.

The BBB offers several essential cybersecurity tips to protect against these ominous threats:

  • Be cautious with social media ads that seem too good to be true and research companies before making purchases.
  • Safeguard smart devices by using anti-malware, encrypting WiFi, and regularly updating software.
  • Verify the identity of online contacts to mitigate the risk of phishing attacks.
  • Educate yourself about cryptocurrency and verify information before investing to avoid scams.

For more cybersecurity tips and resources, visit BBB.org/cybersecurity.

ABOUT BBB: Better Business Bureau is a non-profit organization striving to advance marketplace trust. For over a century, BBB has been fostering an ethical marketplace where buyers and sellers can trust each other. BBB sets standards for ethical business behavior and monitors compliance. BBB helps consumers identify trustworthy businesses and those that aren’t and encourages its Accredited Businesses to uphold these standards.

 

 

Lafayette attorney indicted in the DC Solar billion dollar Ponzi scheme

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Faces 23 counts of conspiracy to commit wire & bank fraud, bank fraud, wire fraud

7 residents from Martinez, Clayton, Pleasant Hill, Walnut Creek & Vacaville convicted, fined and sentenced

Former Concord- and Benicia-based company

By U.S. Attorney’s Office, Eastern District of California

SACRAMENTO, Calif. — On Oct. 5, 2023, a federal grand jury returned a 23‑count indictment against Ari J. Lauer, 59, of Lafayette, charging him with conspiracy to commit wire and bank fraud, bank fraud, and wire fraud affecting a financial institution, for his role in the biggest criminal fraud scheme in the history of the Eastern District of California, U.S. Attorney Phillip A. Talbert announced.

Lauer is an attorney licensed to practice law in California, and from approximately 2009 to January 2019, he was outside counsel to DC Solar and provided legal and business advice concerning DC Solar’s operations. The indictment was unsealed today following Lauer’s arrest.

According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. A significant incentive for investors were generous federal tax credits due to the solar nature of the generators. Jeff Carpoff, 52, Paulette Carpoff, 49, both of Martinez, and their co-conspirators solicited investors to invest in the generators in large multimillion-dollar transactions using a variety of fraudulent techniques.

A key part of the fraud was that investors would never actually take possession of the generators. Instead, DC Solar typically leased those generators back from the investors, and claimed to sublease them to third parties to generate revenue. In reality there was very little actual third-party rental demand for the generators, yet when Lauer and the other co-conspirators learned this, they continued to represent falsely to investors that the rental market for the generators was robust.

In June 2012, Lauer, Jeff Carpoff, and others met to discuss the failure to generate third-party lease revenue sufficient to meet their financial obligations to the investors. The conspirators agreed to conceal that lack of third-party lease revenue from current and prospective investors, by, among other things, making periodic transfers of investor money from one account to another while misrepresenting the flow of funds as third-party lease revenue. Lauer and other members of the conspiracy created a circular payment system they referred to as “re-rent.” In 2014, they created a “re-rent agreement,” backdating the document to 2011, and used it to explain the large sums of money being transferred from one account to another. In fact, the real source of money was new investor money, which was being used to pay obligations to existing investors. The indictment further alleges that Lauer and other members of the conspiracy prepared sublease agreements with “concealed addendums” that materially altered the terms of the contracts. They used the sublease agreements to defraud investors.

Between March 2011 and Dec. 18, 2018, investors collectively invested approximately $759,400,000 and several financial institutions and other investors transferred collectively $152,700,000 to DC Solar as part of related transactions for the purchase and lease of generators. In total, DC Solar closed transactions with investors that contributed an aggregate of more than $912 million to purchase generators. Those transactions purportedly involved approximately 17,000 generators, at approximately $2.5 billion in purported value.

During the conspiracy, approximately 94% to 95% of the supposed lease revenue on the books was actually intercompany transfers disguised as new investor money. In truth, third-party end-user demand for generators never exceeded 5% of the revenue that was claimed. (Learn more about the DC Solar scheme)

This case is the product of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorney Audrey Hemesath is prosecuting the case.

On Nov. 9, 2021, Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790,600,000 in restitution for conspiracy to commit wire fraud and money laundering. His wife Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. She was sentenced on June 28, 2022, to 11 years and three months in prison.

On Nov. 16, 2021, Joseph W. Bayliss, 48, of Martinez, was sentenced to three years in prison and ordered to pay $481,300,000 in restitution for securities fraud and conspiracy in connection with the DC Solar scheme. On April 12, 2022, DC Solar CFO Robert A. Karmann, 57, of Clayton, was sentenced to six years in prison and ordered to pay $624 million. On May 31, 2022, Alan Hansen, 50 of Vacaville, was sentenced to eight years in prison for conspiracy to commit an offense against the United States and aiding and abetting money laundering. Ryan Guidry, 48, of Pleasant Hill, was sentenced on Jan. 31, 2023, to six years and six months in prison and ordered to pay $619,415,950 in restitution for to conspiracy to commit an offense against the United States and aiding and abetting money laundering.

Ronald J. Roach, 55, of Walnut Creek, pleaded guilty to criminal offenses related to the fraud scheme and is scheduled to be sentenced on Nov. 14, 2023. Roach faces a maximum statutory penalty of 10 years prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

lauer_indictment.pdf

Allen D. Payton contributed to this report.

 

18-year-old arrested for Oakley restaurant burglary

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Suspect from Concord and Oakley

By Oakley Police Chief Paul Beard

On Wednesday, October 11, 2023 at 8:46AM Oakley Police Officer D. Navarrette was dispatched to 2005 Main Street, Suite B for a burglary to Uncle Wong Chinese Restaurant. Upon arrival Officer Navarrette observed the front glass door to the restaurant was broken. Officer Navarrette entered the closed restaurant and noticed the cash register area had been ransacked and it appeared as if the cash register had been stolen. Officer Navarrette had the owner of the restaurant respond to confirm if there was any loss. The victim did confirm the cash register was missing along with a credit card reader and an undisclosed amount of cash. In addition to the loss there had been approximately $500 worth of damage done to the restaurant.

Officer Navarrette began his investigation, and he discovered the suspect had been captured on a security camera from inside the restaurant. The security camera footage revealed the suspect forcibly entered the restaurant at 2:43 AM. Officer Navarrette circulated an image of the suspect to all of the other police officer of the Oakley Police Department in hopes somebody would make a recognition.

On October 12, 2023, Officer C. Johnson was on patrol on the west end of town and saw a male who matched the image of what Officer Navarrette had circulated and he was still wearing the same exact clothing as from the night before. Officer Johnson contacted the person and the person admitted to committing the burglary. Officer Johnson arrested the person and booked him into jail. The suspect was not in possession of any of the stolen goods when he was arrested.

 The suspect in this case is a young man named Jonathan Douglas (18, Concord/Oakley). I further understand the suspect in this case is down on his luck. What I see in this case however, is a criminal act and criminal acts need to be associated with accountability. I applaud the communication, dedication and teamwork between my officers that lead up to this arrest. Simply put I have grown accustomed to expecting nothing less out of the men and women of the Oakley Police Department. I do hope the best possible decisions are made in the case of this young man to create positive change in his ways.

Stay safe Oakley.

Allen D. Payton contributed to this report.

11 arrested for grand, petty theft at Pleasant Hill Shopping Center

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Arrests were made outside the Pleasant Hill Target store on Tuesday, Oct. 10, 2023. Photo: Pleasant Hill PD

By Pleasant Hill Police Department

We had another successful Theft Suppression event at the Pleasant Hill Shopping Center on Contra Costa Blvd., Tuesday afternoon, Oct. 10, 2023, which resulted in the recovery of over $2,500 of stolen merchandise. This shopping center houses stores like Target, Ross, and HomeGoods, as well as Burlington.

During this planned operation, the following 11 people were arrested for grand theft, petty theft:

Jordan Pitts 22, Opelika, AL

Abel Isais Garcia 23, Novato

Davonte Coimin Michel 25, Windsor

Derald Morris 65, Pittsburg

Andrew John Lopez 36, Martinez

George Davis 47, Pittsburg

Cayla Coleman 22, Richmond

Lavaughna F. Manuel 30, Antioch

Ahjanae Woods 23, Concord

Valerie Sage 65, Concord

Dennis Scarcella 33, San Francisco

Pleasant Hill police officers make arrests outside the Target store on Tuesday, Oct. 10, 2023. Photos: PHPD

We will continue to work hard through the upcoming Holiday Season to combat the ongoing issues with Organized Retail Crime and Retail Theft.

Thank you again to our community partners for assisting us in making this another successful event.

 

Governor signs Glazer’s first-in-nation consumer protection bill

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SB644 allows 24-hour hotel booking cancellations with full refund

By Steven Harmon, Office of State Senator Steve Glazer

SACRAMENTO – Consumers will be able to make cancellations with a full refund, at no charge, up to 24 hours after they make a booking with hotels, short-term rentals and third-party booking services if they book at least 72 hours before their stay under a bill signed Tuesday by Governor Gavin Newsom.

“This first-in-the-nation law will end the confusing maze of misleading cancellation policies for lodging on the Internet,” said Senator Glazer (D-Orinda, CA7), author of the bill, SB 644. “Now, consumers will have a chance to correct mistakes and cancel bookings they hadn’t intended to make and get a full refund.”

According to the California Legislative Information website, the new law reads as follows:

“SEC. 3. CHAPTER  2. Hotel and Private Residence Rental Reservation Refunds

A hosting platform, hotel, third-party booking service, or short-term rental shall allow a reservation for a hotel accommodation or a short-term rental located in California to be canceled without penalty for at least 24 hours after the reservation is confirmed if the reservation is made 72 hours or more before the time of check-in.

1748.82.

(a) If a consumer cancels a reservation pursuant to Section 1748.81, the hosting platform, hotel, third-party booking service, or short-term rental shall issue a refund to a consumer of all amounts paid to the hosting platform, hotel, third-party booking service, or short-term rental to the original form of payment within 30 days of the cancellation of the reservation.

(b) The refund required by this section shall include a refund of all fees charged to the consumer for optional services.”

Glazer represents most of Contra Costa County.

Allen D. Payton contributed to this report.

Danville woman sentenced to 22 months in federal prison for embezzling $1.7 million from Men’s Warehouse

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Gina Lonestar in happier times. Source: Her Facebook page posted May 27, 2022.

Former VP of Construction, Maintenance and Facilities at parent company Tailored Brands invented fake vendor and submitted false invoices over eight-year period

By U.S. Attorney’s Office, Northern District of California

OAKLAND – Gina Suzanne Lonestar was sentenced to 22 months in federal prison in connection with a wire fraud scheme pursuant to which she embezzled over $1.7 million from her former employer, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. Jon S. Tigar, United States District Judge.

Lonestar, 52, of Danville, Calif., pleaded guilty to the charge on May 19, 2023. According to her plea agreement, Lonestar admitted that, in December 2010, she devised a scheme to create a fake vendor to defraud Men’s Wearhouse and later Tailored Brands (Men’s Wearhouse’s parent company) of money by submitting and approving false invoices for the fake vendor to the accounts payable department. Lonestar created a document stating the vendor was a sole proprietorship associated with a family member and then began submitting and approving invoices falsely claiming the vendor was performing work at Men’s Wearhouse stores throughout California, such as inspections and handyman work. Lonestar admitted that she submitted and approved false invoices in the name of the fake vendor for approximately eight years, defrauding her employer of over $1.7 million, which was paid to her joint checking account. Lonestar admitted that the vendor did not exist and the family member with whom she co-owed the company performed none of the work for which she provided invoices.

At the time Lonestar devised the scheme, she was a Director in the Facilities Department of Men’s Wearhouse. During the relevant time period she was promoted to Senior Director of Facilities and Corporate Services and then to Vice President of Construction, Maintenance, and Facilities. In all of her roles, she had the authority to approve invoices for work done by vendors. Lonestar’s scheme ended in 2019 when the company discovered the conduct during an internal audit.

On September 8, 2022, a federal grand jury indicted Lonestar charging her with six counts of wire fraud, in violation of 18 U.S.C. § 1343. Pursuant to her plea agreement, Lonestar pleaded guilty to one count and the court dismissed the remaining counts during her sentencing hearing.

In addition to the 22-month sentence, Judge Tigar ordered Lonestar to pay a $1,736,216 forfeiture money judgment and to serve three years of supervised release which will begin after she leaves prison. Judge Tigar ordered that Lonestar begin serving her sentence on January 5, 2024. In addition, Judge Tigar scheduled a hearing for December 1, 2023, to determine issues regarding restitution.

The case is being prosecuted by Assistant United States Attorney Noah Stern with assistance from Elizabeth Kim and Kathleen Turner. The prosecution is the result of an investigation by the FBI.

Apply now to first ever Contra Costa Shark Tank Youth Competition

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Win $1,000 to launch or grow your business!

Introducing the first ever Contra Costa Shark Tank Youth Competition! Win $1,000 to launch or grow your business. No idea is too small!

The Contra Costa Shark Tank Youth Competition is a fun way to promote youth entrepreneurship which teaches important life skills including perseverance, self-confidence, and financial literacy. When young people succeed as entrepreneurs, they improve their own lives while also contributing to the economic development of their local communities. The competition is designed to encourage young people to consider themselves entrepreneurs and submit new business ideas or share existing business ventures that would benefit from additional funding. No idea is too small. Take a chance and share your entrepreneurial vision with us and what it would mean for you to win the first Contra Costa Shark Tank Youth Competition!

Eligibility:
All students (Kindergarten – 12th grade) in Contra Costa County may apply.

Limit one application per business. If a team is applying, one team leader must be designated.

Competition Timeline and Details:

September 2023 – Application opens

November 15, 2023 – Application deadline

Nov. & Dec. 2023 – Finalist Selection Committee reviews applications

January 2024 – Finalists announced

February 6, 2024 – Finalist Pitch Event at the Lafayette Library.

Winners receive $1,000 (first place), $500 (second place), $250 (third place). Prizes distributed in the form of Visa cash cards.

Criteria:
Applications will be evaluated based on the applicant’s enthusiasm for entrepreneurship, how the business is presented, the viability of the business, and how the prize money will be used to launch a new business or grow an existing business.

Visit www.contracostasharktank.org to learn more and apply.

Winners will be selected by a panel of judges on February 6, 2024 at the Lafayette Library.

Deadline to apply is November 15th!

 

Brentwood to provide space for remote workers

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Tech MeetUp launches Sept. 13

By Darin Gale, Brentwood Assistant City Manager

The City of Brentwood will launch the Brentwood Tech MeetUp at the Brentwood Community Center, 35 Oak Street, beginning Wednesday, September 13th at 9 am. The City’s Economic Development team is spearheading this effort in order to provide an alternative workspace for the hundreds of hybrid and remote tech workers residing in the City.

“The Tech MeetUp will serve to provide hybrid and remote tech workers a break from working at home and an opportunity to network with others in similar industries, seek new jobs or ventures with like-minded individuals”, shared Ricardo Noguera, Economic Development Manager.

The Tech MeetUp will operate from 9:00am – 4:00pm on Mondays, Wednesdays and Thursdays in a casual drop-in setting, offering, free Wi-Fi connection and complimentary coffee, refreshments and snacks. “Just bring your laptop, phone, etc. to work and connect with other passionate tech workers in Brentwood”, added Abraham Salinas, Senior Economic Development Analyst.

To learn more please visit, Brentwoodca.gov/tech-meetup or contact Ricardo Noguera, Economic Development Manager at RNoguera@brentwoodca.gov or (925) 516-5118.

 

Antioch man pleads guilty to leading organized theft of lottery scratchers

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Has history of arrests by multiple agencies; group committed more than 100 thefts in 7 counties

By Ted Asregadoo, PIO, Contra Costa District Attorney’s Office

The Contra Costa District Attorney’s Office and officials with the California State Lottery announced today that Ryan Anderson plead guilty to nine felony charges as the ringleader of a sophisticated organized retail theft ring.

The 32-year-old Antioch resident (born 1/18/91) was the mastermind behind a group responsible for committing more than 100 organized retail crime thefts from stores authorized to sell California Lottery Scratchers and redeem winning Scratcher tickets for prize money. Anderson, and other associated with him, targeted convenience and grocery stores throughout the counties of Contra Costa, Alameda, Marin, Sacramento, San Joaquin, Solano, and Stanislaus.

“Organized retail crime is serious a crime that will not be tolerated in our communities,” said District Attorney Diana Becton. “We will continue to work with our retailers and all of our state and local justice partners to hold these offenders accountable with arrest, prosecution, conviction, incarceration, and full restitution.”

By early 2022, the California State Lottery investigators — working with multiple law enforcement agencies and Contra Costa DA’s Major Financial Crimes division — identified Anderson as the ringleader of a group responsible for 71 separate thefts of lottery tickets valued at a total of $95,565.00 and an additional $59,105.00 in prize money stolen from 65 retail locations across 7 Northern California counties between March 27th, 2022, and October 25, 2022. The retail crime spree stopped when Contra Costa prosecutors were able to keep Anderson in custody.

Under state laws, the Contra Costa County District Attorney’s Office was able to prosecute Anderson for all his crimes, even though they occurred in multiple counties. This is because state laws allow a single county to prosecute offenses if a crime — or the effects of a crime — crosses county lines.

During a court hearing in Martinez today, the California State Lottery made a victim impact statement noting that “tens of thousands of dollars” Anderson and others stole victimized not only the California State Lottery, but also its retail partners, many of which are “small, independently owned businesses that rely on the sale of Lottery games to thrive.” Moreover, lottery players were victims who lost out on the opportunity to win, and “public school students who have been robbed of additional funds to support important programs and enriching learning environments.”

The terms of the plea mean that Anderson will spend three years in state prison, admit probation violations, and pay full restitution to the California State Lottery. In court, Anderson presented a letter of apology to the victims of the crimes he committed saying, in part, that he wants to make an “honest living” so he will be able to “pay back any money [that] is owed.”

The lengthy investigation into these incidents was favorable due to the partnerships between the Contra Costa District Attorney’s Office, the Contra Costa Probation Department, the Security/Law Enforcement Division of the California State Lottery, and the collaborative efforts of dozens of local law enforcement agencies.

According to localcrimenews.com, Anderson, a 5’11”, 170 lb. Black male, has a history of arrests dating back to 2015 by multiple agencies including Antioch PD, Concord PD, Walnut Creek PD, Contra Costa Sheriff’s Office and Sacramento Sheriff’s Office for a variety of crimes such as assault with a deadly weapon or assault with force likely to produce great bodily harm, vandalism, vehicle theft, attempted robbery, petty theft, DUI and while license suspended, and burglary.

Case No. 04-22-01154 | The People of the State of California v. Anderson, Ryan

Case No. 04-203281-1| The People of the State of California v. Anderson, Ryan

Allen D. Payton contributed to this report.