Contra Costa Herald

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

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.

Alamo telecommunications consultant pleads guilty to violating sanctions on Iran

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70-year-old faces 20-25 years in prison, as much as $1.25 million in fines

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

OAKLAND – The U.S. Attorney’s Office today announced charges against and guilty pleas by Farhad Nafeiy for violating sanctions by exporting software upgrades for commercial-grade telecommunications servers to the Islamic Republic of Iran (“Iran”), and for tax evasion. The plea was accepted by the Honorable Araceli Martínez-Olguín, United States District Judge. The announcement was made by United States Attorney for the Northern District of California Ismail J. Ramsey, Assistant Attorney General Mathew G. Olsen, Homeland Security Investigations (HSI) Special Agent in Charge Tatum King, and Special Agent in Charge of the IRS Criminal Investigation’s Oakland Field Office Darren Lian.

Nafeiy, 70, of Alamo, Calif., was charged with and pleaded guilty to a violation of the International Emergency Economic Powers Act (“IEEPA”). Under IEEPA, the President of the United States is granted authority to address unusual and extraordinary threats to the national security, foreign policy, or economy of the United States. Under that law, the President has issued orders prohibiting certain activities and transactions with Iran and the Government of Iran. The Department of Treasury’s Office of Foreign Assets Control (OFAC) has issued regulations, referred to as the Iranian Transactions and Sanctions Regulations (ITSR), implementing those orders. These sanctions on Iran generally prohibit, among other things, exporting or facilitating the export of U.S.-origin products to Iran and providing services to Iran.

Nafeiy obtained licenses—or approvals—from OFAC for advising non-Iranian telecommunications companies on doing business with Iran. However, those licenses did not authorize Nafeiy to provide any hardware, software, or technology directly to Iran. Nafeiy exceeded his OFAC licenses, thereby violating the ITSR and IEEPA, by directly providing software upgrades to telecommunications equipment in Iran. Nafeiy admitted in his plea agreement that he knew he exceeded these licenses when he did so. In his plea agreement, Nafeiy further admitted that the total amount of sales of such software upgrades to Iran was approximately $400,000. Nafeiy separately was charged with, and admitted to, evading his federal income taxes, and specifically not paying income tax on some of the proceeds of these sales.

On August 10, 2023, Nafeiy was charged by information with one count of violating IEEPA, in violation of 50 U.S.C. § 1705, and one count of tax evasion, in violation of 26 U.S.C. § 7201. Pursuant to the plea agreement, he pleaded guilty to both charges.

Judge Martínez-Olguín scheduled Nafeiy’s sentencing hearing for January 29, 2024. For the 50 U.S.C. § 1705 violation, Nafeiy faces a maximum statutory prison term of 20 years, a maximum fine of $1,000,000, and restitution, if appropriate. For the tax evasion charge, Nafeiy faces a maximum prison term of five years, a maximum fine of $250,000, and restitution of at least $79,124 to the IRS. As part of any sentence, the court may also order Nafaiy to serve a period of supervised release and to pay additional assessments, however, the court will impose a sentence only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The case is being prosecuted by Assistant U.S. Attorney Benjamin Kingsley and Trial Attorney David Ryan of the National Security Division’s Counterintelligence and Export Control Section, with the assistance of Kathleen Turner of the U.S. Attorney’s Office. Former Trial Attorney Elizabeth Abraham provided valuable assistance in prior phases of the prosecution. The prosecution is the result of an investigation by Homeland Security Investigations and the Internal Revenue Service-Criminal Investigation.

 

Danville murder-suicide takes lives of man, two children Wednesday

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The Contra Costa County Sheriff’s Office investigated a possible murder-suicide at a residence in the 100 block of Larkwood Circle in Danville on Wednesday, Aug. 9, 2023. At about 5:20 PM, Danville police officers responded to the residence for a welfare check. Officers entered the residence and found three bodies, an adult and two juveniles.

The fire department confirmed all three to be deceased. The adult is identified as 44-year-old Nemanja Isailovic of Danville.

According to his Linkedin page, Isailovic was a hardware and software engineer and worked since September 2016 as a Content Resource Engineer for IXL Learning in San Mateo. In 2010 he earned a doctorate in Computer Engineering from U.C. Berkeley.

There is no ongoing threat to the community. The Sheriff’s Office is still actively investigating this case.

Anyone with any information on this incident is asked to contact the Investigation Division at (925) 313-2600 or through Sheriff’s Office dispatch at (925) 646-2441. For any tips, email: tips@so.cccounty.us or call (866) 846-3592 to leave an anonymous voice message.

Allen D. Payton contributed to this report.

Robbery crew’s luck runs out, charged with $1.1 million St. Patrick’s Day heist of San Ramon jewelry store

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Security camera video screenshot of the San Ramon jewelry store robbery on March 17, 2023. Source: KTVU FOX2

Rolex with GPS chip helped police arrest, charge suspects, four with history of arrests

The Office of the United States Attorney has charged five defendants—Sunia Mafileo Faavesi, Ryan Kentrell Montgomery, Paul Christopher Tonga, John Ioane Tupou, and Kyle Vehikite—with conspiracy to commit robbery affecting interstate commerce for their roles in the St. Patrick’s Day March 17, 2023, robbery of Heller Jewelers in San Ramon, Calif., announced United States Attorney Ismail J. Ramsey and Bureau of Alcohol Tobacco, Firearms, and Explosives Special Agent in Charge Jennifer Cicolani. All the defendants except Tupou made their initial federal court appearance on July 27 before U.S. Magistrate Judge Alex G. Tse to face the charges. Tupou remains at large.

According to a federal criminal complaint, filed July 21, 2023, and unsealed at the initial appearance, Faavesi, 30, Montgomery, 35, Tonga, 33, Tupou, 30, and Vehikite, 34, planned and executed the armed heist, which involved at least eleven individuals, some armed, taking approximately $1.1 million in stolen watches and jewelry from the family-owned San Ramon jewelry store. The complaint alleges that while some of the participants were inside the store or immediately outside it during the armed robbery, others acted as lookouts and get-away drivers of at least four waiting vehicles. The robbery took place at a bustling mall in San Ramon in the middle of the afternoon and resulted in multiple bystanders, including children, fleeing the masked and armed robbers.

The complaint affidavit provides details regarding how the defendants originally cased the location a week prior to the robbery and then returned on March 17, 2023, with co-conspirators to execute the robbery. The complaint alleges investigators were able to identify one of the defendants by evaluating GPS information emitted from a stolen Rolex watch. Law enforcement investigators thereafter conducted a covert investigation that ultimately enabled them to identify each of the five defendants and to piece together the movements of the defendants on the day of the robbery.

Faavesi, Montgomery, Tonga, and Vehikite all were arrested on July 26, 2023. The government has filed a motion asking that they be detained pretrial. Defendants’ next scheduled appearances are on August 1, 2023, and August 4, 2023, for their respective detention hearings.

A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants each face a maximum sentence of 20 years, and a fine of $250,000. As part of any sentence, the court also may order defendants to pay restitution, if appropriate, and to serve an additional period of supervised release to begin after a prison term. 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.

Assistant U.S. Attorney Alethea M. Sargent is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the San Ramon Police Department and the ATF, with assistance from the Drug Enforcement Administration, the IRS, and Bureau of Customs and Border Protection.

According to localcrimenews.com, Faavesi has a history of arrests dating back to 2016, four times for burglary and once for robbery by multiple agencies. Tonga of San Mateo also has an arrest record dating to 2015 including for multiple DUI’s and receiving stolen property – motor vehicle. Topou of Oakland has a history of arrests also dating to 2015 including for burglary, robbery, battery with serious bodily injury and gun charges. Vehikite of San Ramon has at least two previous arrests in 2021 including for drug and ammunition charges.

Allen D. Payton contributed to this report.

Danville to host National Night Out Tuesday, Aug. 1

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Pre-registration is required

National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie.

From 6:00- 9:00 pm on Tuesday, August 1, 2023 neighborhoods throughout Danville and across the nation are asked to spend the evening outside with neighbors holding block parties, festivals, parades, ice cream socials and cookouts. Sign up and schedule a visit from Town of Danville Council Members, and Officers from the Danville Police Department.

Please contact 925-314-3717 with any questions. Pre-registration is required.

San Ramon celebrates 40th Anniversary of cityhood with swim and movie night, concert, gala

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The City of San Ramon is excited to be celebrating its 40th Anniversary!

In 1983, San Ramon voters decided overwhelmingly to incorporate as a city. Officially incorporated on July 1, 1983, the community assumed leadership over development, police, parks, and other services. A new library, community center, and parks were quickly in the planning stages.

The City will be celebrating throughout the year with commemorative giveaways, special events, and more!

For upcoming events and announcements, sign up for email updates here.

40th Anniversary Celebrations

Dive-In Movie: Top Gun: Maverick

Friday, August 4

San Ramon Olympic Pool (9900 Broadmoor Drive)
Rec Swim at 7 p.m.
Movie at 8:15 p.m.
Admission: $1/person
Act#18880

More Information

40th Anniversary Celebration Concert in the Park: Fast Times Dance Party

Sunday, August 6 at 5:30 p.m.

Central Park Amphitheater (12501 Alcosta Blvd)
FREE for All Ages!

40th Anniversary Gala

Friday, August 25

City Hall Rotunda (7000 Bollinger Canyon Road) and San Ramon Community Center (12501 Alcosta Blvd)

 

San Ramon to celebrate Independence Day with Eagles tribute band concert

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By City of San Ramon

The San Ramon Fourth of July Celebration Concert will feature The Boys of Summer, an Eagles Tribute Band, and a celebration of the City of San Ramon’s 40th Anniversary. The concert will take place tomorrow in San Ramon’s Central Park Amphitheater at 12501 Alcosta Boulevard, from 5–8 p.m.

The evening will begin at 5 p.m. with a reading by the San Ramon Poet Laureate, followed by patriotic music performed by Olympia Fields, the brass section of the San Ramon Symphonic Band, followed by a salute and recognition of our Veterans and active-duty military personnel, and the singing of the National Anthem by San Ramon resident Sofie Donati. The headliner, The Boys of Summer, an Eagles tribute band, will take the stage at 6 p.m. and entertain the crowd with The Eagles’ greatest hits.

Additionally, food will be available for purchase from sweet and savory food truck vendors. The San Ramon Arts Foundation will have wine, beer, soda, and water available for purchase. Shade structures, tents, and umbrellas will only be permitted at the top of the ridge/hill to ensure lines of site remain open.

Danville to celebrate Independence Day with Kiwanis July 4th parade

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Celebrating our Educators in Downtown Danville  

By Kiwanis Club of San Ramon Valley

The Kiwanis-Danville Parade will take place on Tuesday, July 4th, 2023 from 9am-noon in downtown Danville, California.

This year’s parade theme is Celebrating our Educators and our Grand Marshal is Chavonta Edington, Contra Costa County Teacher of the Year.

The Kiwanis Club of San Ramon Valley has organized and conducted the annual Kiwanis 4th of July Parade in partnership with the Town of Danville since 1975. The parade attracts 30,000-40,000 spectators each year and is a wonderful opportunity for the community to come together and celebrate America’s birth.

The parade is co-sponsored by the Town of Danville, supported by community groups such as the Aktion Club, Boy Scouts of America, Girl Scouts, National Charity League, and Boys Team Charity, and sponsored by local businesses and individuals (see our Sponsors page). All proceeds raised are redistributed to local nonprofits through grants issued by the San Ramon Valley Kiwanis Foundation (see our Grants page).

PARADE DETAILS

Date & Time

The parade will begin at 9:00am on the morning of Tuesday, July 4th, 2023, and will run 2.5 to 3 hours.

Location

The Parade will take place along Hartz Avenue and San Ramon Valley Boulevard from approximately 9am to noon, starting at San Ramon Valley High School at Railroad Avenue. The Parade route will end at Town and Country Drive like last year. The parade can be seen from either side of the street and there is always plenty of room for everyone!

Seating

Sidewalk space is available for bring-your-own-seating on a first come, first served basis after 6:00 p.m. on Monday, July 3rd. Unattended seating positioned along the route prior to 6:00 p.m. are subject to removal by the Town. Parade-goers are kindly asked to respect the following:

  • Do not block handicap accessible ramps on the street corners or sidewalk access. Please be mindful of those who need to use the ramps as well as local merchants and property owners along the parade route. All unattended items set-out prior to 6:00 p.m. on Monday, July 3rd are subject to removal. Please note that the Kiwanis Club of San Ramon Valley, Town of Danville, and other organizing groups are not responsible for lost or stolen items.
  • Chalk and tape may NOT be used to reserve seating along the parade route as it creates a mess and in no way reserves your space. Volunteers and/or Town Maintenance staff may remove these markings and materials as part of the sweep.
  • Please be considerate. The downtown Danville area will be very crowded before, during, and after the parade. In addition to the above requests, everyone in attendance is asked to exercise patience, consideration, and common sense throughout the event and cooperate with one another so that all can see and enjoy this great annual tradition.

Parking

Parking is available at several municipal lots including:

  • Clock Tower Parking Lot
  • Danville Library/Community Center Parking Lot
  • Front Street Municipal Parking Lot
  • Railroad Avenue Municipal Parking Lot
  • Rose Street Parking Lot
  • Village Theatre Parking Lot

Given the expected crowd size, parking in or near the downtown Danville area will be very limited and alternative travel arrangements such as walking or biking are strongly recommended. Parade-goers may consider parking at the Sycamore Park & Ride parking lot and use Iron Horse Trail to walk to the downtown Danville area. Accessible parking near the parade route is available at the Crossroads Shopping Center located at Hartz Way and San Ramon Valley Blvd. in the back by JD Academy Of Salon + Spa. Accessible seating along the parade route will be offered at the grandstand viewing area at Oak Court and San Ramon Valley Blvd. A golf cart shuttle will be available to transport individuals to the viewing area from the Crossroads Shopping Center.

Street Closures

The streets along and surrounding the parade route will close at approximately 6am on the day of the parade. Please arrive early and plan on parking on the outskirts of town and walking or biking to downtown Danville.

Tentatively, the following streets will be closed:

  • Danville Boulevard between El Cerro Boulevard and Railroad Avenue
  • Railroad Avenue between Hartz Avenue. and Love Lane
  • La Gonda Way between El Cerro Boulevard and Danville Boulevard
  • Prospect Avenue between Hartz Avenue and Front Street
  • East Linda Mesa Avenue between Hartz Avenue and the Rose Street Parking Lot
  • Hartz Avenue between Railroad Avenue and Hartz Way
  • San Ramon Valley Boulevard between Hartz Way and Town and Country Drive
  • Town and Country Drive between San Ramon Valley Boulevard and Sheri Lane

Through traffic may utilize Danville Boulevard from north of El Cerro Boulevard and San Ramon Valley Boulevard south of Sycamore Valley Road West. The parking lots for Danville Town and Country, Danville Livery, and Sycamore Square will be open and accessible.

Animals

Due to noise, crowds, heat, the presence of young children, and nature of the event, we do not advise bringing non-service animals to the parade.

Refreshments

Some businesses in the downtown Danville area will be open during the parade and may offer food and beverages for purchase. Street vendors are not permitted. Parade-goers are encouraged to bring refreshments with them to the parade.

Per Town of Danville ordinances, consumption of alcohol in a non-designated area is STRICTLY PROHIBITED.

Promotional Items

Many parade entrants choose to distribute promotional items to parade-goers along the parade route. While we welcome this tradition, please note that parade entrants are only permitted to hand items out during the parade, and entrants are NOT PERMITTED to throw items under any circumstances. Spraying water is also strictly prohibited.

We ask members of the community to assist entrants in abiding by these important rules by not encouraging the throwing of items or spraying of water during the parade.

Public Safety

In addition to the safety tips provided throughout this page, the Danville Police Department requests the community’s assistance in reporting any suspicious activity: If you see something, say something.

Please report any suspicious activity to law enforcement personnel patrolling the parade route. If you cannot locate an officer and feel something constitutes a safety hazard and should be dealt with immediately, call 911. If you feel what you are seeing does not need an immediate response, you can contact the Danville Police Department’s non-emergency number, (925) 820-2144.

For more information click here.

Alamo man charged with running $39 million Ponzi scheme

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Derek Vincent Chu faces up to 20 years in prison and $250K fine for each count of wire fraud

SAN FRANCISCO – A federal grand jury indicted Derek Vincent Chu, charging him with crimes related to an alleged $39 million Ponzi scheme involving over 100 victims, on April 26, 2023, announced United States Attorney Ismail J. Ramsey, Internal Revenue Service – Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian, and FBI Special Agent in Charge Robert K. Tripp.

According to the indictment, between late 2013 and 2020, Chu, 41, of Alamo, Calif., used several companies to raise $39 million by fraudulently soliciting investments in the purchase and resale of professional basketball tickets and luxury suites at Oracle Arena, in Oakland, California; the Staples Center, in Los Angeles, California; and the Chase Center, in San Francisco, California. The indictment further alleges that Chu induced investors by making numerous materially false misrepresentations, including how the investor funds would be used, how investors would be repaid, and whether the investments were secured by collateral.

According to the allegations in the indictment, Chu commingled the investors’ money between his own personal accounts and his companies’ accounts, which resulted in investor money being used to repay other, earlier investors, and for other unrelated expenses. Furthermore, the indictment alleges that Chu misappropriated and diverted more than $7.3 million of investor funds for his own personal benefit, which included paying credit card debts; making cash withdrawals; paying for travel, luxury automobile and jewelry purchases; and paying utilities bills, among other things.

The indictment charges Chu with eight counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2, and three counts of money laundering, in violation of 18 U.S.C. §§ 1957 and 2.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Each wire fraud count has a maximum statutory sentence of 20 years in prison and a fine in the amount of $250,000. Each money-laundering count has a maximum statutory sentence of 10 years in prison and a fine in the amount of $250,000. The court also may order a term of supervised release, fines or other assessments, restitution, and forfeiture, if appropriate. 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.

Chu was arrested this morning and made an initial appearance before the Hon. Laurel Beeler, U.S. Magistrate Judge for the Northern District of California. Chu’s next appearance is scheduled before Judge Beeler on Wednesday, May 10, 2023, for appearance of counsel.

The Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the San Francisco Police Department.

Individuals who believe that they may be a victim in this case should contact the United States Attorney’s Office for the Northern District of California’s victim specialists by email at: USACAN.DCVictimAsst@usdoj.gov.