California
California Wildfire Live Updates: New Fire Ignites In San Fernando Valley—As Death Toll Reaches 6
Topline
A fire erupted in western San Fernando Valley on Thursday afternoon, becoming one of five active fires in Los Angeles County as the region endures historically destructive blazes that have so far killed at least six people.
A firefighter sprays water on the Sunset fire on Vista street on Wednesday, Jan. 8, 2025 in Los … [+]
Timeline
California Gov. Gavin Newsom approved a request from Los Angeles County to deploy 8,000 National Guard members to the region to help combat fires and prevent looting (the sheriff’s department arrested 20 people for looting as of Thursday afternoon).
The NFL announced the Jan. 13 wild card playoff matchup between the Los Angeles Rams and Minnesota Vikings will be moved from SoFi Stadium in Los Angeles to State Farm Stadium in Glendale, Arizona, citing concerns for public safety.
Los Angeles County Sheriff Robert Luna and county supervisor Kathryn Barger announced the county requested support from the National Guard, which is expected to deploy as early as Thursday evening as curfews from 6 p.m. to 6 a.m. are put in place to combat looting in evacuation areas linked to the Palisades and Eaton fires.
The Kenneth Fire began in the neighborhood of West Hills and spread to 50 acres, triggering evacuation orders for some residents in the Hidden Hills community.
The death toll from the fires reached six, according to multiple outlets, with the city of Malibu reporting its first death of a resident killed in the Palisades fire.
Biden said the federal government will pay the full cost of the disaster response for 180 days, covering the costs of things like “debris and hazard removal, temporary shelters, first responders’ salaries and all necessary measures to protect life and property” (the federal funding initially covered 75% of eligible firefighting costs).
Los Angeles Mayor Karen Bass said the Sunset fire in the Hollywood Hills was “fully contained” after the fire began Wednesday evening and spread to 43 acres.
Los Angeles Unified School District announced its schools and offices will remain closed through Friday, adding students will continue to have access to digital academic resources, meal distribution and mental health support services.
The NBA postponed a game between the Los Angeles Lakers and the Charlotte Hornets scheduled to take place at 7:30 p.m. on Thursday night at Crypto.com Arena, the NBA announced, with ESPN insider Shams Charania noting Lakers head coach JJ Redick lost his home in the fires.
Luna said he was “not satisfied” with some of the preliminary numbers he was getting regarding the death toll from the fires and he asked for patience on the subject, saying “right now, frankly, we don’t know” how many people have died, but they will eventually.
The Los Angeles Fire Department lifted the last evacuation order related to the Sunset Fire, providing some relief to residents, though it said there are still “LAFD companies working in the area” and asked people “to be careful while returning” to their homes.
Pasadena urged residents in a portion of the city to not use tap water for drinking or cooking “until further notice,” citing the Eaton Fire’s damage to reservoirs and pump stations that potentially impacted water quality in certain areas.
Los Angeles Department of Water and Power said 95,203 of its customers are without power and that the estimated time to respond to outages remains at 24 to 48 hours, noting within a statement its boil water notice remains in effect for residents in Pacific Palisades’ 90272 zip code and the adjacent area.
Biden said in a post on X, formerly known as Twitter, he was again briefed on the fires and would make remarks to the nation after the funeral of former President Jimmy Carter, which began at 10 a.m. EST.
The wildfires have severely impacted the air quality in the Los Angeles area with levels of PM 2.5 pollutants—airborne particles less than 2.5 microns in diameter—hitting 165, which is labeled “unhealthy” by the EPA’s AirNow tracker and 11 times above the World Health Organization’s recommended safe limit of 15.
At least 2,000 homes, businesses and other buildings have been destroyed by the fire so far, and more than 130,000 people have been forced to evacuate—some even multiple times as the fires spread to other parts of Los Angeles county.
According to the National Weather Service, the dry Santa Ana winds moving in from the northeast will “continue over Eaton Fire through the next few days, with somewhat weaker winds Thursday morning followed by increasing winds Thursday afternoon…into early Friday.”
The NWS also noted that the red flag warnings across Los Angeles and nearby Ventura County will remain in effect until 6 p.m. on Friday.
At least 250,000 homes and businesses across Los Angeles County and neighboring Ventura County remained without power on Wednesday night, according to PowerOutage.us, as the Los Angeles Department of Water & Power said its crews had managed to restore power to “more than 152,000” since the start of the fires.
After lifting the most of the evacuation zone around the Hollywood Hills fire, the LAFD urged residents to be “cautious when returning to their homes because firefighters are continuing to work in their neighborhoods,” and said areas where the evacuation order has not been lifted will remain closed until Thursday morning.
The Los Angeles Fire Department said “the majority of the Evacuation Zone for the Sunset Fire is LIFTED” in an update shortly after midnight as Cal Fire’s tracker showed the size of the blaze in the Hollywood Hills shrinking from its previous size of 60 acres to 43 acres at 12:17 a.m. PST.
City of Pasadena officials warned that the tap water in the areas that have been evacuated due to the Eaton Fire is not safe to drink and said the residents should “not try to treat the water” themselves but use bottled water instead.
Cal Fire’s latest update at 9:40 p.m. PST showed that at least 10% of the Hurst Fire has been brought under control although the blaze still continues to cover around 855 acres.
The Los Angeles County Sheriff’s Department said the the “most intense fire activity” in the Hollywood hills fire is occurring on the southwestern side, while the perimeter on the eastern side is “holding well thanks to a fire road and ground crews in place.”
Cal Fire has deployed several helicopters and tankers to douse the Hollywood Hills fire, with flight tracker data showing at least six aircraft flying over the area—aerial operations had been impacted on Tuesday night and early Wednesday due to the strong winds.
The city of Santa Monica instituted a mandatory curfew from sunset to sunrise on Wednesday night “to support law enforcement efforts in these zones, and other measures to facilitate an effective response,” the Palisades Fire.
Los Angeles Mayor Karen Bass said the Los Angeles Police Department’s officers are being deployed to Hollywood “to help alleviate evacuation traffic,” as the city moves to “urgently to close roads, redirect traffic and expand access for LAFD vehicles to respond to the growing fire.”
The mandatory evacuation order triggered by the Hollywood Hills fire covers areas between the 101 Freeway on the east, Laurel Canyon on the west, Mulholland Drive on the north and Hollywood Boulevard on the south—an evacuation warning is also in effect covering remaining areas of Hollywood Boulevard and parts of Sunset Boulevard.
Another fire, called the Sunset Fire, broke out around 6 p.m. PST in the Hollywood Hills which has rapidly grown in recent hours to engulf more than 50 acres or area, prompting mandatory evacuations.
Biden canceled the final overseas trip of his presidency on Wednesday—shortly before he was set to travel to Italy and the Vatican—to stay in Washington D.C. and monitor the emergency in California.
Biden approves a Major Disaster Declaration for California, making federal funding available to those impacted by the fires in Los Angeles County.
Officials told The New York Times the death toll in the Eaton Fire rose to five after saying earlier in the day two people had died, and the Los Angeles Times reported all five deaths “occurred in and around Altadena and Pasadena.”
Santa Monica expanded its evacuation order, advising residents for all areas north of Montana Avenue from the beach to 11th Street to leave immediately, and areas to the south and east remain under evacuation warnings.
Nearly 1 million customers of electricity providers in Los Angeles County were without power, PowerOutage.us reported before it said the outage management system of Southern California Edison—the main electricity provider in the county—went offline.
The Palisades Fire in Los Angeles’ Pacific Palisades—an affluent coastal neighborhood—exploded to 15,832 acres, according to Cal Fire, making it the largest fire of the four burning in Los Angeles County as of Wednesday afternoon.
The Eaton Fire in Altadena, a small city directly north of Pasadena, grew to 10,600 acres with 0% containment, according to the Cal Fire.
Los Angeles Mayor Karen Bass announced Los Angeles Fire Department air operations resumed after a lengthy suspension of air support began Tuesday due to high winds.
County of Los Angeles Fire Chief Anthony Marrone said at least two civilians died in the Eaton Fire, though the cause of their deaths were not disclosed.
Deanne Criswell, administrator of the Federal Emergency Management Agency, said FEMA is “closely monitoring” the wildfires and has authorized additional assistance from the agency to support firefighting efforts.
The Woodley Fire began in the Sepulveda Basin neighborhood, expanding to 30 acres before being brought under control, according to The New York Times.
The Hurst Fire ignited in the suburban area of Sylmar.
Newsom declared a state of emergency, urging residents to heed evacuation orders and saying, “This is a highly dangerous windstorm creating extreme fire risk, and we’re not out of the woods.”
The Palisades Fire started in the Pacific Palisades neighborhood and resulted in about 30,000 people receiving evacuation orders as it initially spread to about 2,000 acres.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
How Big Is The Palisades Fire?
The Palisades Fire began around 10:30 a.m. local time Tuesday and burned 17,234 acres as of Thursday morning, according to the California Department of Forestry and Fire Protection, which issued evacuation orders for residents of the Palisades and for those living along a long stretch of the Pacific Coast Highway. Cal Fire continued to report 0% fire containment Thursday. Los Angeles Fire Department chief Kristin M. Crowley said Thursday “it is safe to say that the Palisades fire is one of the most destructive natural disasters in the history of Los Angeles,” noting preliminary reports estimate thousands of structures have been damaged or destroyed, The New York Times reported.
How Big Is The Eaton Fire?
The second blaze, called the Eaton Fire, began Tuesday evening in Eaton Canyon near the San Gabriel Mountains and grew rapidly Wednesday to cover 10,600 acres, with 0% contained as of Thursday afternoon. The Eaton Fire also triggered a round of mandatory evacuations in the nearby areas of Altadena, Pasadena and Sierra Madre. City officials said Thursday more than 1,000 structures have been damaged or destroyed in the greater Pasadena area.
How Big Is The Hurst Fire?
The Hurst Fire was reported later Tuesday night after it broke out near the Los Angeles-area suburban neighborhood of Sylmar, north of the rest of the city. Shortly after it was reported, the Los Angeles Fire Department issued evacuation orders in the area, warning of a “rapid rate of spread.” As of an 8:30 a.m. PST update Thursday, the Hurst fire covered 671 acres, as authorities contained 10% of the blaze.
How Big Is The Lidia Fire?
The Lidia Fire was first reported Wednesday afternoon, burned 348 acres and was 60% contained Thursday morning, according to Cal Fire. Anthony Marrone, fire chief for Los Angeles County, said Thursday forward progress on the fire had been stopped. LAist reported the fire, which began in the Angeles National Forest, posed such an extreme threat that the forest will remain closed for at least one week.
How Big Was The Sunset Fire In The Hollywood Hills?
The Sunset Fire, which broke out Wednesday evening, grew to engulf around 43 acres. Bass said Thursday the fire was fully contained. Evacuation orders in the area were lifted at 7:30 a.m., and LAFD advised residents returning to their homes to use caution as workers were still in the area. The fire burned near a number of Hollywood landmarks, including the popular urban hiking trail Runyon Canyon, Hollywood Boulevard and the Hollywood Walk of Fame.
How Big Was The Woodley Fire?
The Woodley Fire was first reported Wednesday morning, and fire crews were able to hold the fire to 30 acres, LAist reported. It was reported as 100% contained Thursday and officials said there were no current threats tied to it.
How Much Will The Wildfires Cost?
JPMorgan analysts led by Jimmy Bhullar estimated in a note Thursday there could be $50 billion in total damages, including $20 billion in insured losses, though they noted “estimates of potential economic and insured losses are likely to increase.” Those estimates would place the fires as the costliest in U.S. history. Jasper Cooper, vice president-senior credit officer at Moody’s Ratings, said the credit rating business expects “insured losses to run in the billions of dollars given the high value of homes and businesses in the impacted areas,” adding “commercial property losses could be significant.”
How Did The California Fires Start—and Why Are They Spreading?
A mix of extremely gusty winds, drought conditions and low humidity created conditions conducive for fires to quickly spread. The appearance of weather conditions suggestive of La Niña, a climate phenomenon linked to drier conditions and drought in southern parts of the U.S., likely played a large part in priming southern California for extreme fire conditions this week. Los Angeles in particular has seen an underwhelming amount of rain in the last eight months alongside a dry winter. The last time the city recorded over a tenth of an inch of rainfall was last May, according to the Los Angeles Times, contributing to drought. The dry conditions paired with historically strong winds gave way to this week’s fires. Wind gusts of up to 99 mph were reported near Altadena and other nearby areas early Wednesday. The National Weather service forecast wind gusts of 50 to 80 mph in parts of southern California and up to 100 mph gusts in mountains and foothills into Wednesday night. The conditions are the result of a wind pattern called the Santa Ana winds or “devil winds,” which are often fast-moving, dry and warm winds that originate inland, around Nevada and Utah, and blow toward the coastal regions of Southern California. Cal Fire is still investigating the specific causes for each of the fires blazing in Los Angeles County.
How Many Deaths And Injuries Have The Fires Caused?
The Eaton Fire has killed at least five people, multiple outlets reported Wednesday. Earlier in the day, Marrone confirmed two were killed and said there have also been a “high number of significant injuries to residents who did not evacuate.” A 25-year-old firefighter sustained a serious head injury while combatting the Palisades Fire on Tuesday, the Los Angeles Fire Department told NBC News. There were “multiple burn victims” who were treated by medical officials, though the number of people who were treated is not immediately known.
What Celebrities Are Affected By The Fires—like James Woods And Mark Hamill?
See a full list here. Paris Hilton, who wrote she had evacuated her home, reportedly lost her Malibu home to the fire. Billy Crystal and his wife Janice said they lost their Pacific Palisades home to the fire, after first moving to the location in 1979. Jamie Lee Curtis, who appeared on “The Tonight Show” on Wednesday, said she likely lost her home to the fire and wrote on Instagram calling for people to “reach out to anyone who lives in Los Angeles” to offer assistance. Eugene Levy, the Pacific Palisades’ honorary mayor, told the Los Angeles Times he fled his home and said the “smoke looked pretty black and intense over Temescal Canyon.” Meanwhile, actor Mark Hamill wrote on Instagram Tuesday that he evacuated his Malibu home, while Vice President Kamala Harris’ home in Los Angeles was put under an evacuation order, though no one was in the home at the time the order was placed, spokesperson Ernesto Apreza said.
Which Celebrities Have Donated To Relief Efforts?
Curtis, who advocated in a “Tonight Show” appearance Wednesday for people to donate to relief efforts, said on Instagram on Thursday she was donating $1 million to start a support fund for the city and people impacted by the fire. The Los Angeles Chargers announced Wednesday they were giving $200,000 to wildfire relief efforts. Bethenny Frankel’s charity also announced on Fox News on Thursday it was raising money for California wildfire victims.
Is The Hollywood Sign On Fire?
No—despite social media rumors and AI-generated images. Read more here.
Which Schools Are Closed Due To The Wildfires?
All Los Angeles Unified Schools will remain closed Friday after being shut down Thursday. Al schools under the Pasadena Unified School District will remain closed throughout the week. Several other school districts in the region also canceled classes Wednesday through Friday, including the Glendale Unified School District and Burbank Unified School District, and two other area districts—Alhambra Unified School District and South Pasadena Unified School District—closed through Thursday. Pepperdine University announced Thursday morning its undergraduate classes and the “vast majority” of its graduate classes on the Malibu campus will take place online through Jan. 19. The university’s Calabasas campus closed Wednesday, with administrators noting students with classes scheduled for Calabasas, West Los Angeles or the Irvine campuses “will receive further guidance from their deans and/or supervisors.”
Which Events And Tv Shows Are Cancelled Due To The Wildfires?
The Critics Choice Awards—slated for Sunday—were postponed due to the fires, the organization told Variety. Several other TV shows—from “Jimmy Kimmel Live” to “NCIS”—paused production (see here for a list). The Screen Actors Guild canceled it in-person awards nomination ceremony on Wednesday because of the wildfires “in an abundance of caution.” The nominations will be announced on the SAG Awards website on Thursday, the guild said. Universal Studios said its park in Hollywood would close Wednesday because of “extreme winds and fire conditions,” adding they expect to reopen on Thursday. The Academy of Motion Picture Arts & Sciences extended its voting deadline for the 97th Academy Awards by two days, according to multiple outlets. The voting period, which is now open, is set to conclude Tuesday due to the delay. The announcement of this year’s Oscar nominees will also be pushed back two days, and is now scheduled for Jan. 19.
What Other Sports Events Were Impacted By Wildfires?
The Thursday matchup between the Lakers and Hornets was postponed with no indication of a make-up date. A Wednesday night NHL game between the Los Angeles Kings and Calgary Flames at Crypto.com Arena was also postponed and has yet to be rescheduled. A women’s college basketball game featuring Pepperdine University and the University of Portland scheduled for 6 p.m. Thursday was postponed, according to the West Coast Conference. The city’s SoFi Stadium was the initial venue for the Jan. 13 NFL wild-card playoff game between the Los Angeles Rams and Minnesota Vikings, but was switched to State Farm Stadium in Glendale, Arizona, in the interest of public safety. The NFL did not provide any information on ticket refunds at the time of the announced change of venues.
Has The Fire Impacted Flights From Lax And Other Airports?
Los Angeles International Airport, located about 19 miles south of the Pacific Palisades, has not experienced significant flight cancellations as of Thursday morning, according to FlightAware. Just 1% of departures were canceled and 5% were delayed as of 8:55 a.m. PST. Some flights were disrupted at the much smaller Hollywood Burbank Airport: About 8% of departures were delayed and another 1% were canceled Thursday.
What Other Areas Face Fire Risks In Southern California?
The NWS issued an extreme fire weather alert—its highest designation for fire potential—from Wednesday to Thursday for a 2,356-square mile stretch of land that includes areas such as Glendale, Oxnard, Santa Clarita, Thousand Oaks and Pasadena.
Chief Critic
President-elect Donald Trump and one of his key advisers, Elon Musk, have been critical of the local government’s response to the fire since they broke out. In a Thursday post on X, formerly known as Twitter, Musk claimed “the immense loss of homes in LA is primarily due to” bad governance leading to a shortage of water and “nonsensical overregulation that prevented creating fire breaks and doing brush clearing.” Trump has also taken aim at Los Angeles Mayor Karen Bass and California Gov. Gavin Newsom, saying on Truth Social Thursday “nobody has ever seen such failed numbers before!” (referring to the Palisades Fire’s zero containment) and blamed it on “gross incompetence” by Newsom and Bass.
Further Reading
With negligible rain in 8 months, Southern California swings toward drought (LA Times)
Residents flee on foot as Palisades Fire torches hillside homes (LAist)
California
It rained a lot in October. Is fire season over now?
This autumn brought something that isn’t always common for much of California — a decent amount of rain in October. Rather than heat waves, there have been umbrellas.
After years in which some of the worst wildfires in state history happened in the fall, a lot of people are wondering: Is fire season over?
It depends on where you live, fire experts say. And simply put, there’s more risk in Southern California right now than Northern California.
“We have not yet seen enough rain in Southern California to end fire season,” said Daniel Swain, a climate scientist with the University of California division of Agriculture and Natural Resources. “But we probably have in Northern California.”
January saw historic, devastating fires in Los Angeles. Since then, it has been a relatively mild fire year statewide in California.
Through Monday Oct. 27, a total of 522,372 acres have burned statewide in areas overseen by the California Department of Forestry and Fire Protection and the U.S. Forest Service. That’s a drop of 40% from the previous 5-year average of 1.3 million acres over the same time. A big part of the reason is the early onset of rain.
Through Thursday, San Jose had received 2 inches of rain, more than four times its historical average for the month of October. Oakland had 1.64 inches — double its historical average of 0.84. Sacramento’s total also was double the historical average, and Santa Rosa and San Francisco were at 125% and 113% of normal for the month.
Farther south, Fresno was at 223% of normal, with 1.18 inches, and Los Angeles had received 252% of normal with 1.41 inches. But a few areas, including San Diego and Palm Springs, remain below normal. And nearly all of Southern California’s rain came in one storm on Oct. 15. After that, temperatures have soared back up, hitting 97 in Los Angeles this week.
On Wednesday the National Weather Service issued a red flag warning for parts of Ventura and Los Angeles counties. With forecasts for strong winds that day, Gov. Gavin Newsom announced that 129 firefighters, 10 engines and three helicopters would be pre-positioned in case fires started in those areas.
But in Northern California, the trend has been just the opposite.
Cal Fire cancelled a controlled burn planned for Wednesday at the Soquel Demonstration Forest in Santa Cruz County aimed at reducing overgrown brush. The reason: brush and trees were too damp.
The day before, Cal Fire officials had planned to burn 52 acres in San Mateo County in a controlled fire east of Interstate 280 near Belmont and Crystal Springs Reservoir. They gave up after 6 acres because only grass and not heavier vegetation like coyote brush would burn, said Sarah Collamer, a Cal Fire forester who was overseeing the operations.
“We’re still in fire season,” she said. “We are getting small starts. They are going until we put them out. But the fire danger is greatly reduced.”

Illustrating her point, last Thursday, a fire broke out east of downtown San Jose at Alum Rock Park. Cal Fire sent a plane to drop retardant on it. But it was put out at 10 acres and caused no damage. A grass fire that began near Altamont Pass in Alameda County last Sunday burned 20 acres and was easily contained by fire crews.
Moisture levels are key. As most campers know, wet wood doesn’t burn. When California is in droughts and heat waves, moisture levels in plants plummet. After rains and cooler temperatures, along with higher humidity levels, moisture levels go up. Then, fires may start in grass, but they don’t spread easily to damp brush and trees, particularly if there aren’t strong winds.
“Right now you could get a grass fire going,” said Craig Clements, director of the Fire Weather Research Laboratory at San Jose State University. “But whether or not it will end up being a big fire is unlikely. We are seeing the hills green up already from the early rain. It looks like January right now in the East Bay Hills.”
Overall, national experts say California is in good shape. The 7-day forecast from the National Interagency Fire Center in Boise, Idaho has “little or no fire risk” for all of California except part of southern California from Santa Barbara to the Mexican border where it is listed as “low risk.” And more rain is forecast in Northern California on Wednesday.
Fire experts disagree on whether there is an exact amount of rain each fall that signals the end of fire season. Often, supervisors of controlled burns wait until at least 1 inch has fallen, Clements said.
Dan Cayan, a research meteorologist with the Scripps Institution of Oceanography in San Diego, published a study in 2022 showing that since World War II, 90% of the acres burned in Southern California have burned before 0.35 of an inch of rain has fallen in autumn. After that, fires can still start during winter dry spells and high Santa Ana winds, he said. But they are much less likely.
“Northern California is doing pretty well,” he said. The dividing line this fall between wetter-than-normal and drier-than-normal runs through L.A. County. We’ve had some slight rain in San Diego, but it has been nearly three weeks with nothing. We’re still in a vulnerable situation down here.”
Many of California’s worst wildfires have occurred in the fall, including the Oakland Hills Fire in October 1991; the Camp Fire in Paradise, in November 2018; and the Tubbs Fire in October 2017, which killed 22 people and burned 5,600 structures in Napa and Sonoma counties.
After those fires, Cal Fire officials and many political leaders began saying that fire season is all year long in California due to warmer conditions from climate change.
To some extent that is true. The devastating wildfires in Pacific Palisades and Altadena this year occurred in January, amid a long, hot, dry spell and winds that reached 100 mph.
But in general, risk goes down when rains start, temperatures cool, and days shorten, experts say. Because of the damp weather this fall, Cal Fire officials have begun to relax back-yard burning rules. Starting Oct. 17, they have allowed it in nearly every Bay Area County and all counties north to the Oregon border, under permits, when it was altogether illegal during the hot summer months.
In winter, Cal Fire stations also reduce staffing from peak levels, although that has not started yet.
“We could still have 80-degree days with winds,” said Capt. Robert Foxworthy, a Cal Fire statewide spokesman. “There’s still a chance of wildfire. We’re not expecting large damaging, destructive fires burning timber and brush because of how much moisture we’ve received. But in some places there is a threat still there.”
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
California sues truck-makers for breaching zero-emission sales agreement
California air quality officials have sued four truck manufacturers for breaching a voluntary agreement to follow the state’s nation-leading emissions rules, the state announced Tuesday.
What happened: Attorney General Rob Bonta’s office filed a complaint Monday in Alameda County Superior Court, arguing that the country’s four largest truck-makers — Daimler Truck North America, International Motors, Paccar and Volvo North America — violated an enforceable contract that they signed with the California Air Resources Board in 2023.
The lawsuit comes two months after the manufacturers filed their own complaint in federal court, arguing the agreement — known as the Clean Truck Partnership — is no longer valid after Republicans overturned California’s Advanced Clean Truck rule in June through the Congressional Review Act.
Why it matters: The move sets up a fight to determine whether the federal system or state courts — where CARB would have a higher likelihood of prevailing — will review the case.
-
New York1 week agoVideo: How Mamdani Has Evolved in the Mayoral Race
-
News1 week agoVideo: Inside Our Reporter’s Collection of Guantánamo Portraits
-
Milwaukee, WI4 days agoLongtime anchor Shannon Sims is leaving Milwaukee’s WTMJ-TV (Channel 4)
-
News5 days agoWith food stamps set to dry up Nov. 1, SNAP recipients say they fear what’s next
-
Politics1 week agoAOC, Sanders rake in millions as far-left cements grip on Democrat Party
-
Alabama6 days agoHow did former Alabama basketball star Mark Sears do in NBA debut with Milwaukee Bucks?
-
Politics1 week agoGrassley releases memo showing DOJ ‘unleashed unchecked government power’ on Trump associates
-
News1 week agoMap: Minor Earthquake Strikes Southern California
