Contra Costa Herald

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

Brentwood woman owner of Emeryville tax preparation company charged with tax fraud

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Traci Austin and Emeryville Tax Services 2019 promo from their Facebook page.

Traci Austin allegedly aided in submission of more than 40 fraudulent tax returns and hosted “tax school” at which she taught prospective tax preparers how to compose fraudulent tax returns

Could face three years in prison and a $100,000 fine

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

OAKLAND – A federal criminal complaint unsealed today charges Traci Austin with aiding and assisting in the preparation of fraudulent tax returns, announced Acting U.S. Attorney Stephanie M. Hinds and Internal Revenue Service, Criminal Investigation, and IRS-Criminal Investigation Special Agent in Charge Mark H. Pearson.

The complaint describes Austin, 44, of Brentwood, CA, as the owner of a tax return preparation business called Emeryville Tax Services (“ETS”).  According to the complaint, Austin prepared materially false and fraudulent tax returns for her clients by including false and/or inflated Schedule A expenses, false and/or inflated Schedule C income and expenses, and false dependents.  By doing this, Austin fraudulently reduced her clients’ taxable income and tax liability, thereby resulting in larger refunds for the client and higher return preparation fee income for Austin.  The investigation has revealed that Austin allegedly assisted in the preparation of at least 42 fraudulent tax returns and an estimated tax loss of well over $697,000 to the federal government.

In addition to the false and fraudulent tax return preparation scheme, the complaint also alleges that since 2016, Austin has hosted a “Tax School” through ETS and charged a fee of at least $200 for students to attend the tax school.  According to the complaint, the goal of the tax school was to hire the attendees as preparers for ETS and prepare tax returns for ETS clients as well as the attendees’ own clients.  During the tax school, Austin allegedly instructed prospective tax preparers how to fraudulently manipulate tax returns to generate the maximum tax refund, and thus the maximum tax preparation fee by listing fictitious side businesses under Schedule C and fake business expenses on Schedule A, for example, the complaint describes how Austin taught her students how she created a fictitious dog grooming business for a client, created a fictitious profit and loss statement for the fake business, and how she instructed the client to print out some photos of dogs to support the idea of her fictitious business.

Austin is charged with aiding and assisting in the preparation of false and fraudulent federal income tax returns, in violation of 26 U.S.C. § 7206(2).

The charges in the complaint are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law.

If convicted, Austin faces a maximum penalty of three years in prison and a $100,000 fine; however, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Austin made her initial federal court appearance this morning before United States Magistrate Judge Kandis A. Westmore.  Austin remains out of custody and her next scheduled appearance is at 10 a.m., on February 24, 2022, for a status conference before Magistrate Judge Westmore.

Assistant U.S. Attorney Abraham Fine is prosecuting the case with the assistance of Kay Konopaske and Helen Yee. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

 

Contra Costa DA announces arrest, charges against defendant in Blackhawk store robbery, carjacking-kidnapping

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Suspects’ vehicles used in Blackhawk robbery and carjacking. Screenshot of Danville Police video.

One of three suspects, two still sought

By Bobbi Mauler, Executive Assistant, Contra Costa County District Attorney

Martinez – The Contra Costa District Attorney Diana Becton announced today that the District Attorney’s Office has charged Philander Raymel Walton Johnson age 30, in a four-count felony complaint with Robbery, Assault with a Deadly Weapon and two counts of Carjacking for Kidnapping. The charges stem from the November 24, 2021, crime spree which began at the Ace Hardware in Blackhawk and culminated in Johnson’s arrest in San Ramon.

According to Danville Police Chief Allan Shields, Johnson was one of three suspects involved in the crimes. (See 6:23 mark of video by Chief Shields).

“This brazen crime spree is a flagrant violation of community safety,” said District Attorney Diana Becton. “My office is working in a coordinated effort with law enforcement partners throughout the Bay Area to identify perpetrators of organized retail theft. Those who engage in such criminality will be prosecuted to the full extent of the law by the Contra Costa District Attorney’s Office.”

Johnson and two unidentified individuals entered the Blackhawk Ace Hardware and attempted to flee with several power tools in hand. When confronted by store staff, Johnson brandished a knife and effectuated his escape. Separated from his accomplices, Johnson proceeded into a nearby parking lot and entered the car of an unwitting motorist. Johnson held the driver at knife point and commanded the victim drive him out of the immediate area.

Johnson arrived in San Ramon, abandoning the first carjacking victim to enter a second occupied vehicle. Johnson threatened the unwitting occupant to drive him away. Law enforcement in the area were able to observe the suspicious nature of the activity and conducted a traffic stop, assisting the victim driver and apprehending Johnson.

Johnson is pending adjudication of an unrelated shoplifting case which had previously been filed in August 2021. Johnson is in custody awaiting arraignment.

Case information: People vs Philander Johnson 01-197695-0

Bay Area crime wave impacts San Ramon over holiday weekend

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Source: San Ramon Police Department

By San Ramon Police Department

Over the holiday weekend, a very specific crime trend took place throughout the Bay Area, targeting elderly victims. Unfortunately, San Ramon was not exempt. Please take a moment to review the incidents outlined below and please, pass the information on to your friends and family as soon as possible. As always, if you see anything suspicious, call us immediately by dialing 9-1-1 or through our non-emergency line at 925-973-2779.

On Wednesday afternoon (Nov. 24), at roughly 3:30 pm, an elderly female was walking on S. Wedgewood Road near Mosaic Park when she was approached by two individuals in a white Mercedes-Benz SUV. The SUV was driven by a heavyset male (caucasian) in his 50s when a female in her mid/late 30’s (caucasian) spoke to the victim through the rear passenger window. After a short conversation, the suspect exited the vehicle and used a sleight-of-hand technique to remove the victim’s necklace and bracelets before getting back into the car and driving away.

Yesterday (Sunday, Nov. 28), at roughly 12:15 pm, an elderly female was walking along Cinnamon Ridge Road when she was approached by a female in her 30’s (Asian Indian with black hair in a ponytail). The female exited the passenger door of a newer model black BMW X3 SUV driven by an Asian-Indian male in his 30’s. During this incident, the suspect engaged the elderly victim in conversation. Again, a sleight-of-hand technique was used to remove the victim’s highly valuable watch from her wrist before the suspect got back into the vehicle and left the area.

As mentioned before, this crime trend was not specific to San Ramon. Multiple cities throughout the Bay Area had similar crimes occur over the holiday weekend. As you can see, although the suspect’s descriptions may be different, their theft methods are the same and were consistent with other thefts committed in Bay Area cities. Fortunately, there have been no injuries reported during these crimes.

Our concern is the specific targeting of elderly individuals wearing expensive jewelry and watches while out for walks by themselves. Detectives from our agency are actively pursuing investigative leads to identify those responsible for these crimes. In the meantime, please take a few moments and make sure this information is passed on to your family, friends, and loved ones. Please encourage them to walk/exercise with someone else, or if they do go out on their own, to leave their valuables at home during their daily exercise.

And always, call us immediately if you see anything suspicious!

 

Contra Costa Sheriff’s Office released suspect in Walnut Creek retail theft due to “computer input error”

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Male suspect back in custody as of Tuesday; female suspect out on bail; the other male suspect still in custody

By Allen Payton

The Contra Costa Sheriff’s Department revealed on Tuesday, Nov. 30 that, last week, they inadvertently released one of the suspects arrested for the organized retail theft at Nordstrom in Walnut Creek on Nov. 20. (See related article)

Sheriff David Livingston issued the following statement about it:

“On November 21, 2021, 32-year-old Joshua Underwood of San Francisco was booked into the Martinez Detention Facility (MDF) on charges that included robbery, conspiracy, and burglary. Due to a computer input error, Underwood was released on November 24, 2021. This afternoon, Underwood appeared in court for his arraignment. He was remanded into custody and is currently being held at MDF on the following charges: robbery, burglary, conspiracy, and organized retail theft. He is being held in lieu of $140,000 bail.”

Regarding one of the others who was arrested, on Monday, the Sheriff issued the following statement about the case:

“On November 21, Dana Dawson was booked on the following charges: robbery, conspiracy, felon in possession of a firearm, concealed weapon in her vehicle, burglary, possession of stolen property, and possession of burglary tools. The DA’s Office filed robbery, conspiracy and burglary charges. Dawson was eligible for bail which was set at $190,000. She posted bail and was released on November 25.”

An ABC7 News report provides more details about the mistake.

 

Candidate for Contra Costa DA, Mary Knox offers three-point plan to prevent smash-and-grab retail theft

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Sources: (Left) Herald file photo and (Right) Mary Knox for DA campaign.

The current DA has been slow to respond to flash mob robberies, and once she responds, she’s ineffective. Given my 36 years of experience as a Contra Costa Deputy District Attorney, I know the District Attorney can do more. We need to implement these three steps immediately:

  1. Convene a Bay Area-wide law enforcement response to track and apprehend suspects 

Contra Costa law enforcement agencies are partnered to provide mutual aid during emergency situations.  This “mutual aid” concept should be employed throughout the Bay Area to strategically shut down access routes for potential retail targets to intervene and prevent crime before it happens.

The investigative and technological expertise of this team will:

  • Identify the criminal syndicates who organize the smash-and-grab robberies
  • Intercept the “chatter” on social media planning these events
  • Share information between law enforcement agencies to quickly locate and arrest perpetrators

The ideal team to coordinate this activity is the DA/FBI Safe Streets Task Force, comprised of local, state, and federal task force agents who are partnered with prosecutors assigned to the Community Violence Reduction Unit (a unit that I created in the Contra Costa District Attorney’s Office).

Given the violence involved and the value of the merchandise being stolen, the Task Force will collaborate with the U.S. Attorney’s Office to charge qualifying cases under the Hobbs Act and prosecute them in federal court.

The criminal syndicates committing the smash-and-grab robberies, as well as strings of residential burglaries in Contra Costa, are mobile and active in surrounding counties.  During the past four years, regional law enforcement agencies have done an impressive job of sharing information to identify the true scope of the criminality of these crews and to provide investigative support.  The information supplied by this well-coordinated network provided me with the evidence required to file multiple counts following very significant organized retail theft and residential robberies.  I worked with the Walnut Creek and Pleasant Hill Police Departments through the investigative challenges of the looting in 2020 and filed charges on a number of suspects.  As District Attorney, I will continue to support this allied inter-county effort.

  1. Prevent the use of our freeways as crime corridors, deploy cameras 

Organized shoplifting gangs have been using the regional freeway system to quickly move between targets in neighboring law enforcement jurisdictions.  By the time an investigation starts at the first crime, the gang has moved on to loot another store in the next county.

Contra Costa’s Freeway Security Network has the technological capability to combat organized retail theft.  The Allied Freeway Agencies have received additional funding for the Network and direction to develop a plan to augment and expand the Network county-wide in order to provide technological leads in preventing and investigating criminal syndicates involved in the violent organized retail theft.

I am proud to have originated the creation of this freeway camera system to combat freeway shootings.  Since the network was installed, freeway shootings have been reduced by 90% in Contra Costa while remaining all too frequent in neighboring counties. I continue to work with law enforcement and elected leaders to propose that additional funding that Governor Newsom included in the state budget be used to incorporate additional technology to target organized retail theft into the Freeway Security Network.

  1. Disrupt the use of social media as a key enabler of looting 

Organized retail theft would not exist without social media, which is the key element to planning and profiting from these crimes.

Looting is coordinated through social media 

Social media platforms provide the means of communication which allows criminals to conspire to commit take-over robberies. These platforms are directly aiding and abetting the commission of large-scale crimes, which may result in criminal liability for the social media platforms.  I will call on the social media platforms, as well as private communication platforms, to monitor and immediately report to law enforcement any communications planning a smash-and-grab robbery or the “fencing” of stolen property.

We must make it clear to technology companies that failure to monitor and report the coordination of criminal enterprise should not be a protected business activity and should instead be considered as aiding and abetting that crime.

Stolen goods are sold via online marketplaces 

If a market for the merchandise that is being stolen did not exist, the criminal syndicates would have no motive to steal.  While I am out talking with community members, most are surprised to learn that the merchandise that is stolen from CVS, Walgreens, Lululemon and the high-end retailers is often sold on the internet via OfferUp, LetGo, and the Facebook and Amazon Market Places.

As District Attorney, I will actively engage and educate our community members about the crime occurring in our county and ways we can work together to combat it, such as not buying merchandise off the internet that does not have a means of guaranteeing that it is not stolen merchandise.  I will also work with retail stores to modify their return/exchange policies to ensure that they are not accepting the return of their own stolen merchandise.

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About Mary Knox: Mary Knox was born and raised in Walnut Creek and has 36 years of experience advocating and fighting for victims, their families, and the larger community. She is a lead prosecutor in the Contra Costa County District Attorney’s office, who has prosecuted and won high profile cases against some of the most notorious criminals in county history. She has broken the chokehold that criminal gangs have had on the most disadvantaged communities and has engaged in meaningful violence reduction by instituting effective strategies to reduce crime and prosecute violent criminals. Learn more about Mary at maryknox4da.com

 

Contra Costa DA joins forces with other prosecutors to combat organized retail theft

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As thieves turn to new tactics, Bay Area, San Joaquin County prosecutors form alliance to ensure accountability

By Bobbi Mauler, Executive Assistant, Contra Costa County Office of the District Attorney

Today, Nov. 24, 2021, Contra Costa District Attorney Diana Becton announced an alliance between Contra Costa, Alameda, San Francisco, Marin, San Mateo, Santa Clara and San Joaquin counties, law enforcement, and state agencies to combat the recent increase in organized retail theft. Each office has pledged a prosecutor to collaborate and participate in the joint effort. (See related article)

“Fencing and organized retail theft rings operate across jurisdictional boundaries,” said Contra Costa District Attorney Diana Becton. “As prosecutors, we must respond to the nature of these crimes and operate with our partners to more effectively meet this challenge. Those responsible for perpetuating these crimes are working together as a team, and to ensure accountability for their crimes, law enforcement needs to work together as a team too. These caught and arrested will be prosecuted to the full extent of the law.”

“Organized retail theft has adverse and costly impacts on business owners and consumers alike,” said San Joaquin District Attorney Tori Verber Salazar. “Through a partnership with our neighboring counties, we will hold all parties accountable, including fencing rings and individuals who purchase stolen goods. We commend Governor Newsom and Attorney General Bonta for taking organized retail theft seriously and we implore the community to report suspicious resell activity to assist law enforcement’s efforts in tracking organized retail theft rings.”

While police work to strengthen investigations and collaborations across jurisdictional boundaries, prosecutors’ offices similarly can better ensure accountability through information sharing. The partnership between counties and local agencies would allow for the sharing of information through data collection, crime analytics, as well as pooled investigative tools to successfully prosecute those involved with organized retail theft schemes. In addition to the shared resources between counties, the District Attorney’s Offices would continue to collaborate with their local retailers and State Representatives to ensure statues that cover organized theft rings are enforceable and improve safety for consumers.

“Retail theft crimes are affecting all counties in the Bay Area as well as across the nation.  Collaboration and shared strategies with neighboring prosecutors and law enforcement partners are critical to both preventing and responding to organized retail theft,” said San Francisco District Attorney Chesa Boudin.  “This alliance of prosecutors is committed to developing strategies to combat these organized crimes.  Together, we are determined to stop those who participate in organized retail theft, including by dismantling the fencing networks that make this type of crime profitable.”

“The recent premeditated retail theft mob action in multiple cities across Northern California is intolerable and will not be accepted by District Attorneys, law enforcement officials and our community members,” said San Mateo District Attorney Steve Wagstaffe.  “Anyone caught engaging in such criminal conduct should expect to find themselves facing prosecution, conviction and incarceration. There is no leniency for such behavior.”

“The recent acts of retail thefts, robberies and mass-mob burglaries throughout Northern California will not be tolerated. These are clearly carefully orchestrated crimes, working together in large groups to create a mob-like mentality,” said Alameda County District Attorney Nancy O’Malley. They are instilling fear in merchants, customers, and the wider community. This is especially appalling at a time where many are out and about during the holiday season. Be assured that those caught and arrested will be prosecuted to the full extent of the law.”

“California has seen shifts in crime trends and tactics, and Bay Area prosecutors are forming this partnership to meet the moment,” said Cristine DeBerry, Executive Director of the Prosecutors Alliance of California.  “Partnerships like these reflect the need to implement modern solutions to modern problems. These crimes happen quickly, and they may not be caught in the act.  Through information sharing and coordination, there will be greater likelihood of arrests and accountability than everyone working in isolation.”

Contra Costa DA announces charges against three defendants in organized retail theft operation

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Suspects from San Francisco, Oakland face felony charges of conspiracy, burglary, robbery, and organized retail theft of Walnut Creek Nordstrom Saturday night

By Bobbi Mauler, Executive Assistant, Contra Costa County Office of the District Attorney

The Contra Costa District Attorney’s Office announced, today, felony charges have been filed related to the retail thefts at Nordstrom, Walnut Creek on Saturday night, November 20, 2021, when approximately 90 individuals stormed the Nordstrom Department Store in Walnut Creek’s Broadway Plaza simultaneously using three separate entrances. (See video from ABC7 news report)

Two employees were assaulted, and one was pepper sprayed by the suspects. Officers arrived on the scene quickly, stopping one of the cars and arresting two people, one of whom was in possession of a firearm. Another person was arrested nearby a short time later in possession of stolen Nordstrom property. The remaining participants in this criminal mob fled from the area in cars at high speeds.

Police are investigating what was clearly a planned event, with the initial calls coming into the department about cars driving recklessly in the area shortly before 9:00 p.m. Nordstrom employees began calling 911 when approximately 80 people entered the store and immediately began stealing merchandise.

The three suspects arrested by the Walnut Creek Police Department are Dana Nika Dawson, age 30 and Joshua Noel William Underwood, age 32 both of San Francisco, and Rodney Barone Robinson, age 19 of Oakland.

“The Contra Costa District Attorney’s Office is committed to working with the Walnut Creek Police Department and our retail community to hold those involved in retail theft accountable. We are committed to stopping those who participate in organized retail theft, which has adverse and costly impacts on business owners and consumers as well” stated District Attorney Diana Becton.

The copy of the complaint and charges can be viewed here: CCDA – Dawson Underwood Robinson complaint #01-197688-5

The defendants will be arraigned on the Felony charges on Monday, November 29, 2021, at 1:30 p.m. in Department 25 of the Contra Costa Superior Court.

The Walnut Creek Police Department is continuing to investigate Saturday night’s organized theft ring activity at Nordstrom in the Broadway Plaza. There were no additional major incidents over the course of the weekend in Walnut Creek, although similar thefts took place at a variety of locations throughout the Bay Area. While the Police Department is actively monitoring intelligence, there is no indication that Walnut Creek residents or businesses need to be on a heightened alert. Police are continuing their expanded presence in the downtown area.

The Walnut Creek Police Department was actively monitoring intelligence that indicates the group of thieves who stole from the Broadway Plaza Nordstrom were considering similar activity later that day. That was not confirmed, but out of an abundance of caution, they alerted businesses and residents to be prepared. The Police Department called out additional officers and reserves.

The investigation is on-going, if anyone has information regarding this incident, please contact Detective Deng at deng@walnutcreekpd.com. Case information: Docket Number 01-197688-5.

Allen Payton contributed to this report.

Coroner’s inquest jury determines death of Pleasant Hill man was a suicide

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By Jimmy Lee, Director of Public Affairs, Contra Costa County Office of the Sheriff

Contra Costa County Sheriff-Coroner David Livingston announces that a coroner’s jury today reached a finding in the September 28, 2020 death of 46-year-old Jeremy Robert Waring of Pleasant Hill. The finding of the jury is that the death is a suicide.

The coroner’s jury verdict came after hearing the testimony of witnesses called by the hearing officer, Laura Pagey.

According to the Pleasant Hill Police Department, on Sept. 21, 2020, officers received reports of an armed person at a residence. Officers arrived to find a person driving away from the scene. When the officers tried to make a traffic stop, Waring started shooting at them.

He then drove behind Pleasant Hill Elementary School where he attempted to commit suicide with the firearm.

Officials say the suspect was taken to a hospital to receive medical attention for his injuries.

No officers or community members were injured during the incident.

A Coroner’s Inquest, which Sheriff-Coroner David Livingston convenes in fatal incidents involving law enforcement personnel, is a public hearing during which a jury rules on the manner of a person’s death. Jury members can choose from the following four options when making their finding: Accident, Suicide, Natural Causes or At the hands of another person, other than by accident.

Allen Payton contributed to this report.

Contra Costa Probation Department awarded grant to supervise people convicted of DUI

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The Contra Costa County Probation Department is the recipient of a one-year, $389,700 grant from the California Office of Traffic Safety (OTS) to monitor high-risk, repeat DUI Probation clients.  Currently, the Probation Department is supervising 202 DUI probation clients.

Grant funding will be used to make sure DUI probation clients are following the court ordered terms of their probation, including home, work and office visits, alcohol testing and warrant service operations.

In addition, funding will be used to develop the Habitual Offender Tally, also known as “HOT Sheets,” that identify repeat DUI probation clients to local law enforcement agencies.  The funds will also be utilized to assist Probation in working with Court officials to establish probation orders for the DUI clients being placed on probation.

This grant is aimed at reducing the number of persons killed and injured in alcohol-related collisions as well as lower DUI recidivism rates.

“Prevention and treatment are valuable tools in reducing DUI recidivism rates,” OTS Director Barbara Rooney said. “Monitoring programs are intended to steer probationers in the right direction.”

The ongoing partnership between the Contra Costa County Probation Department and the Office of Traffic Safety has spanned more than 15 years.

“The support and assistance provided by OTS, coupled with strong working relationships with state and local law enforcement agencies, have allowed the Probation Department to closely monitor and rehabilitate our clients,” said Chief Probation Officer, Esa Ehmen-Krause. “Reducing the traumatic impact that impaired driving causes across our community contributes to improving public safety.”

The grant will fund Probation Department personnel to monitor drivers on Probation for felony DUI or multiple misdemeanor DUI convictions, including conducting unannounced fourth amendment waiver home searches, random alcohol and drug testing and ensuring those on probation are attending court-ordered DUI education and treatment programs.  It will also fund the continued training of the Probation Department personnel in an effort to keep up with current trends and equipment use.

While alcohol remains the worst offender for DUI crashes, Contra Costa County Probation supports OTS in its statement, “DUI just doesn’t mean booze.”  Prescription medications and marijuana can be impairing by themselves, but also in combination with alcohol, and can result in a DUI arrest.

The grant program runs through September 2022.

Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration.

 

Contra Costa DA files charges of misdemeanor Vehicular Manslaughter for death of Lafayette cyclist

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Joe Shami with his bicycle at the Mt. Diablo summit. Source: MountDiabloCyclists.org

Victim was known as the “Legend of Mount Diablo” for his 600 rides to the top of the peak

By Bobbi Mauler, Executive Assistant to the District Attorney, Contra Costa County

The Contra Costa District Attorney’s Office has charged Lori Everett with a misdemeanor Vehicular Manslaughter in violation of Penal Code section 192(c)(2), for striking cyclist Joseph Shami with her vehicle in Lafayette on April 13, 2021, shortly before 7:00 AM.

Shami was an incredibly experienced cyclist who lawfully entered the roundabout at the interchange of Olympic Boulevard and Pleasant Hill Road. Despite Shami’s bright helmet and colorful clothing, the motorist failed to yield, and struck the victim cyclist who was in an established lane of travel.

According to Lafayette Police news release reported previously, “a nurse and a doctor from John Muir Medical Center and a firefighter from the San Ramon Valley Fire Protection District, who happened to pass by, immediately began to render aid to the bicyclist. Officers arrived on scene along with the fire department which took over medical care for the victim. The bicyclist was transported to a local hospital where he succumbed to his injuries and died overnight.” (See related article)

Shami, a retired AT&T engineer, was known as the “Legend of Mount Diablo” for riding to the top of the East Bay’s tallest peak for 600 straight weeks, according to the San Francisco Chronicle. He completed his 11-year, 28-week streak in 2019 at the age of 85. Shami was a member of the Mount Diablo Cyclists.

Tragic roadway deaths like this are avoidable. To ensure the safety of our community, the Office of the District Attorney implores motorists to be active, attentive drivers and to be mindful of pedestrians and cyclists when sharing the roadways.

Case information: DKT# 01-197626-5