California
Exclusive: FBI searched California real estate firm linked to bad bank loans
Item 1 of 2 The podium for the director of the Federal Bureau of Investigation is seen at FBI headquarters in Washington, U.S. June 14, 2018. REUTERS/Yuri Gripas/File Photo
Sign up here.
On September 11, FBI agents searched Continuum’s Newport Beach, California, offices, law firm Paul Hastings wrote in a September 12 letter seen by Reuters.
Representatives for Continuum did not respond to emails and calls seeking comment. The FBI is an enforcement arm of the Justice Department. Spokespeople for the agencies did not respond to requests for comment. An attorney for Cantor Group said the firm upheld the terms of the Zions and Western Alliance loans and did not provide comment on the government scrutiny.
Allen Matkins, a law firm that represents other entities linked to Continuum, wrote in an October 2 letter that it learned on September 11 that certain of its clients were the subject of search warrants “in connection with a pending criminal investigation,” and that a grand jury had been convened in the case.
Prosecutors typically convene a grand jury when they intend to gather more evidence. The letters did not say which specific criminal authority was leading the case or what potential misconduct or individuals it was focused on.
Criminal investigations do not necessarily mean any wrongdoing has occurred and many do not result in charges.
Reuters is reporting the FBI search and probe for the first time. The government scrutiny could have ripple effects for what legal filings and public records show is a complex web of investors and lenders tied to Continuum’s real estate dealings, some of which are entangled in civil litigation.
Paul Hastings and Allen Matkins are representing parties embroiled in a complex real estate dispute. The letters relate to those proceedings. The Allen Matkins letter was disclosed in a California court.
When asked about the letter by Reuters, a lawyer for Paul Hastings said the firm was “working to unravel multiple levels of alleged fraud,” but did not provide more details.
Allen Matkins did not respond to calls and emails seeking comment.
PASSIVE INVESTORS
Zions on October 15 sued Cantor Group fund guarantors Andrew Stupin and Gerald Marcil, among others, to recover more than $60 million in soured commercial and industrial loans. The next day, Western Alliance flagged that it had sued the pair and a different Cantor fund in August to recover nearly $100 million.
Both suits allege key information was misrepresented or not disclosed, breaching the loan terms. Western Alliance also alleges fraud on the part of the Cantor fund.
Continuum acquires and manages distressed real estate assets for groups of investors, and its largest investors include Stupin and Marcil, according to a February arbitration ruling related to the real estate dispute. That ruling found Cantor “consists solely” of Continuum’s legal owner, Deba Shyam, and shares the Continuum offices. Shyam did not respond to calls and emails seeking comment.
Cantor upheld its contractual obligations and was transparent with its lenders, while the loans were audited and independently reviewed multiple times over the years, said the Cantor attorney Brandon Tran, who also represents Stupin and Marcil.
The pair are passive investors in Cantor and held no operational roles, he added. Cantor in legal filings has disputed that the Western Alliance loan is in default.
In a statement, Marcil said he had invested in several of Continuum’s properties. He denied wrongdoing and said that he was a victim.
Spokespeople for Zions and Western Alliance did not respond to requests for comment.
Reporting by Douglas Gillison and Chris Prentice; Editing by Michelle Price
Our Standards: The Thomson Reuters Trust Principles.
California
Laurel Canyon home burns as Santa Ana winds gust through Greater L.A.
A house fire amid stiff winds brought more than 100 firefighters onto the narrow streets and steep slopes of Laurel Canyon Saturday morning. Firefighters said the three-story house at 8522 West Oak Court was heavily damaged, but the flames did not spread and the blaze was extinguished in a little over an hour with no injuries reported.
L.A. City Fire Battalion Chief Nick Ferrari said “it started on a balcony and caught a whole house on fire. The wind definitely added to its acceleration.”
The first firefighters arrived by 9:45 a.m. as neighbors watched flames rise 10 to 15 feet above the roofline, surrounded by trees bending in the wind. Though the house’s location on a steep slope at the end of a cul-de-sac posed a challenge, the L.A. Fire Department incident report said firefighters were able to knock down the fire in 73 minutes.
Neighbors said the house, a 960-square-foot, three-story residence built in 1961, has its own minor celebrity status in the area. To reach the structure, visitors had to climb a long set of stairs or ride a private tram up the slope. The home was owned by radio personality and John Lennon publicist Elliot Mintz in the 1970s and 1980s, then later by Olympic gold medalist Ian Thorpe (who swam for Australia in the early 2000s). It was featured in Dwell magazine when it was offered for sale in 2024.
“I was told, when I moved in 40 years ago, that John Lennon was there [often], during what was described as his dark years. My neighbor said John Lennon used to come out in the morning and pee off the balcony,” said architect Andew Ratzsch, 68, who lives a few doors down the street.
Wary of winds on Saturday morning, firefighters responded in force.
“We’ve probably got between 20 and 25 pieces of equipment here, counting L.A. County Fire,” L.A. City firefighter Jose Perez said.
Ferrari said firefighters were paying close attention to neighboring structures and vegetation on the slope, with a “structure defense group” remaining on site to monitor areas made vulnerable by the wind. The site would remain on “patrol status through the night and into the morning,” Ferrari said. The Fire Department incident report said that ”crews will be on scene for an extended duration [conducting] overhaul on any hotspots and monitoring the area.”
In January 2025, the Palisades fire was caused by a small arson fire that was handled by firefighters Jan. 1 but rekindled during severe wind conditions six days later. The firestorm plowed through the Pacific Palisades and into Malibu, burning 23,400 acres and leveling more than 6,800 structures, including many homes. Twelve people died.
California
GOP Rep. Darrell Issa of California says he will retire, months after declaring he’s “not quitting” amid redistricting
Just three months after declaring “I’m not quitting,” Republican Rep. Darrell Issa of California announced Friday he is retiring instead of facing a difficult reelection campaign in a redrawn district.
“It’s the right time for a new chapter and new challenges,” Issa said in a statement. “…Serving in Congress has been the honor of my life.”
Issa, a car alarm magnate considered one of the wealthiest members of Congress, had been a chief antagonist for then-President Barack Obama and then-Secretary of State Hillary Clinton while he served as chair of the House Oversight and Government Reform Committee, from 2011 to early 2015.
Issa’s abrupt reversal injects more uncertainty in the race for Southern California’s 48th District, which was drastically reshaped in November after voters approved a new U.S. House map for California to favor Democrats.
With an incumbent out of the running, it may be harder for Republicans to hold the seat and, by extension, the party’s fragile majority in the House.
After redistricting, Issa flirted with the idea of leaving California to run for Congress in Texas. But at the time he decided to stay put in his home state.
“I can hold this seat. I’m not quitting on California and neither should anyone else,” Issa, who represents a district anchored in San Diego County, said in a statement at the time.
California’s new congressional map, which was spearheaded by Democratic Gov. Gavin Newsom, is intended to tip as many as five Republican-held seats to Democrats this year to offset President Trump’s push in Texas to gain five seats for his party there.
A national battle to redraw U.S. House districts for partisan advantage is still raging in some states ahead of the November midterm elections.
Voters in Texas and North Carolina already have cast ballots in primary elections for U.S. House districts redrawn at Trump’s urging. But the final boundaries for voting districts remain uncertain in Missouri, even though candidates already are filing for office. They also are unclear in Virginia, where new congressional districts could hinge both on a voter referendum and court rulings.
In a video posted to social media Thursday, Obama called on Virginia voters to support the redistricting effort. Virginia currently has six Democrats and five Republicans in the House. Plans offered by elected Democratic leaders this year would try and shift those lines in a way that could result in sending 10 Democrats back to the House and just one Republican.
In his statement, Issa said he was endorsing San Diego County Supervisor James Desmond to succeed him.
California
California tech leaders challenge progressive policies as billionaires, businesses flee: report
Rep. Kevin Kiley, R-Calif., criticized California’s ‘devastating’ proposed wealth tax and how it will affect the state’s residents on ‘The Evening Edit.’
A group of tech industry leaders and self-described “radical centrists” are vowing to push back on left-leaning policies in California that are causing an exodus among wealthy entrepreneurs and businesses from the Golden State.
The New York Post reported that the group held an event attended by about 350 people in Mountain View, California, that featured elected officials, including San Jose Mayor Matt Mahan, San Francisco District Attorney Brooke Jenkins, tech industry leaders and hundreds of attendees who want to challenge the progressive tilt of the state’s policies.
The meeting comes as several prominent wealthy entrepreneurs have left California to avoid a proposed 5% one-time wealth tax on billionaires who were California residents at the start of this year, with the tax due next year. Meta CEO Mark Zuckerberg, Google co-founders Larry Page and Sergey Brin, Oracle founder Larry Ellison and PayPal co-founder Peter Thiel are among those who have moved assets or relocated from California.
Business leaders who are spearheading the group urged those in attendance not to give up on California by leaving and instead push back on left-leaning policies by electing more moderate politicians.
CHEVRON WARNS NEWSOM’S ‘ADVERSARIAL’ ENERGY AGENDA WILL CRIPPLE CALIFORNIA ECONOMY, SEND GAS PRICES SOARING
Y Combinator CEO and founder Garry Tan launched “Garry’s List” to educate voters about California politics. (David Paul Morris/Bloomberg via Getty Images)
“Some people have decided to leave our state as some kind of heroic thing. Like, ‘I’m going to Florida,’” Ripple Chairman Chris Larsen said at the event, according to the Post’s report. “That is not brave. That’s surrender. So, let’s get involved. Let’s take back our state.”
Larsen said the group needs to “fight on par with the unions when they’re proposing stupid job-killing ideas like the San Francisco CEO tax.”
He also called out Democratic politicians who are competing to become the party’s nominee for California governor, including former Democratic presidential primary candidate Tom Steyer, Rep. Eric Swalwell and former Rep. Katie Porter for supporting the union-backed CEO tax.
O’LEARY BLASTS CALIFORNIA WEALTH TAX AS ‘BAD MANAGEMENT,’ CALLS ON RESIDENTS TO ‘HIRE’ NEW LEADERS
Policies such as the San Francisco CEO tax and a proposed wealth tax targeting billionaires have sparked pushback from California centrists. (Justin Sullivan/Getty Images)
He said it’s “really disappointing,” and it reflects the pressure that labor unions have put on the state’s elected officials. Larsen added that while the group isn’t anti-union, it aims to balance labor’s ability to influence elected officials.
Y Combinator CEO Garry Tan hosted the event after he launched “Garry’s List” last month to serve as a “citizen’s union” to support centrist candidates in California who are supportive of policies to improve the state’s schools and addressing issues related to housing and public safety.
Tan criticized Steyer, saying he’s attempting to “buy the governor’s mansion to raise your taxes,” and praised Mahan as the “next governor of California.”
TOP DEMS SANDERS AND REICH RAMP UP BILLIONAIRE TAX PUSH, SAY WEALTHY HAVE ‘ADDICTION’ TO GREED
The hotly contested Democratic primary to replace Gov. Gavin Newsom will be a flashpoint for the brewing battle between centrists and progressives. (Justin Sullivan/Getty Images)
The Post’s report noted that Garry’s List is focusing on voter education efforts through a blog Tan writes with the assistance of AI. Tan launched the site criticizing anti-growth policies, wealth taxes and a strike by San Francisco teachers.
Garry’s List is one of several groups that have been formed in an effort to stem the leftward lurch of California’s politics.
A group called Grow California was created by Larsen and Tim Draper, which will spend about $40 million to support “pragmatic” candidates focused on addressing issues like the cost of living.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Another group called Building a Better California was launched by former Google CEO Eric Schmidt, venture capitalist Michael Moritz and other tech leaders. It has raised over $45 million to help advance initiatives to reform tax policy and spur development.
-
Wisconsin6 days agoSetting sail on iceboats across a frozen lake in Wisconsin
-
Massachusetts5 days agoMassachusetts man awaits word from family in Iran after attacks
-
Maryland7 days agoAM showers Sunday in Maryland
-
Florida7 days agoFlorida man rescued after being stuck in shoulder-deep mud for days
-
Oregon1 week ago2026 OSAA Oregon Wrestling State Championship Results And Brackets – FloWrestling
-
Pennsylvania2 days agoPa. man found guilty of raping teen girl who he took to Mexico
-
News1 week ago2 Survivors Describe the Terror and Tragedy of the Tahoe Avalanche
-
Education1 week ago
After F.B.I. Raid, Los Angeles School Board Discusses Superintendent