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Exclusive: FBI searched California real estate firm linked to bad bank loans

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Exclusive: FBI searched California real estate firm linked to bad bank loans


NEW YORK, Oct 30 (Reuters) – The FBI last month searched the offices of a California real estate investment firm Continuum Analytics, which is linked to bad loans recently disclosed by Zions (ZION.O), opens new tab and Western Alliance (WAL.N), opens new tab, according to legal correspondence seen by Reuters.
Continuum Analytics is an affiliate of the little-known Cantor Group funds which Zions and Western Alliance have said defaulted on about $160 million in loans, spooking markets already on alert for signs corporate credit is weakening.

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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.

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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.

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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.

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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.

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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

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Comedian accused of threatening California public official after clash during set

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Comedian accused of threatening California public official after clash during set


A comedy act has escalated into a full-blown criminal investigation in California’s Stanislaus County, where a comedian is accused of threatening a public official.

Court documents show the case allegedly stems from a comedy show at Che’root Lounge in Modesto, where surveillance video shows Anthony Krayenhagen performing and calling out a group of people that included Supervisor Channce Condit for being too loud during his set.

Surveillance video from a day later shows Condit back at Che’root, allegedly complaining about Krayenhagen’s behavior toward his group.

Court documents show that Condit alerted the Stanislaus County Sheriff’s Office about escalating exchanges with Krayenhagen. On November 12, Condit alleges he received a message on Facebook that said “wassup? Is there still an issue?”

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Then, Condit claims he called Krayenhagen and that the comedian yelled obscenities over the phone, allegedly telling Condit he is “green lit,” a reference the court documents say is a go-ahead to execute a hit or action on a subject.

Court documents show a Stanislaus County detective assigned to the county’s threat assessment center wrote the affidavit for the comedian’s arrest warrant that says, “Due to the contemporary culture of mass casualty attacks …and political figure assassinations in the U.S…actions like Krayenhagen are treated as a serious threat and responded to directly.”

Jessica Graves is an attorney who is not connected to this case. 

“It just seems completely blown out of proportion,” Graves said. “It’s like, the comment is being so dramatically inflated into something it never was.”

Krayenhagen has no criminal history in Stanislaus County, where he is from.

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“I think what’s absolutely missing here is the immediacy. The threat has to be clear, immediate, and specific, and you just don’t have that here,” Graves said.

Condit has also asked for a criminal protective order against Krayenhagen.

 Krayenhagen is being held in the Stanislaus County jail on $750,000 bail. The comedian is due back in court in December.

CBS News Sacramento reached out to Condit for his comments on this arrest. He has not immediately responded. 

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CAL FIRE company officer training reaches record 2025 total in California

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CAL FIRE company officer training reaches record 2025 total in California


Record year for CAL FIRE training

The office of Governor Gavin Newsom said CAL FIRE has trained more than 650 Company Officers in 2025, marking a record year for leadership development across California.

According to the governor’s office, four Company Officer academies have operated at full capacity during 2025.

The newest site, the Atwater Training Center in Merced County, opened in July 2025 to meet rising training demand.

Existing facilities in Ione, Redding and Riverside have supported the expanded training programme.

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The office said this training year reflects a sustained focus on developing professional leaders for CAL FIRE operations across the state.

Gavin Newsom, Governor of California, said: “Rapidly expanding our world-class firefighting force is just one piece of California’s unprecedented investment in fire protection and readiness.

“From new training facilities to the Southern California Emergency Operations Center, we’re building the infrastructure and workforce our communities need to face the climate challenges ahead.

“While Donald Trump undercuts federal readiness for mega-fires that threaten communities across the west, California continues to dominate with key investments in fire readiness and response.”

Company Officer Academy Class 25-14 graduation

The office confirmed that 38 CAL FIRE Company Officers have graduated from Company Officer Academy Class 25-14 at the Ione Training Center.

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This cohort is described as the final class in the 2025 training cycle.

The graduates have completed an intensive syllabus and will move into leadership roles across the department.

CAL FIRE Director and Fire Chief Joe Tyler administered the oath to the new Company Officers.

Tyler’s keynote address highlighted the workload involved in delivering this year’s instruction.

CAL FIRE Director and Fire Chief Joe Tyler said: “This milestone year of training represents our commitment to the future of CAL FIRE and the safety of California.

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“We recognize the achievement of these 38 students, as well as the dedication of our training staff who maintained exceptionally high standards while sustaining this record-setting pace.”

State investment in wildfire readiness and prevention

The governor’s office linked the graduation to wider state investment in wildfire response and prevention capabilities.

According to the office, California has doubled its spending on wildfire prevention and resilience efforts since 2020.

State figures report more than $2.5 billion allocated to wildfire resilience programmes.

An additional $1.5 billion is due to come from the 2024 Climate Bond.

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California has also invested $173 million in community-based wildfire projects aimed at helping local areas protect themselves from wildfires.

The office described the firefighters graduating at the new training facility as an example of this funding in practice.

The governor’s office added that California has joined the Northwest Wildland Fire Fighting Compact.

This agreement expands mutual aid partnerships for major wildfire incidents to additional agencies across the US and Canada.

How expanded CAL FIRE capacity relates to sector priorities

The expansion of CAL FIRE Company Officer training and the opening of the Atwater Training Center in Merced County provide practical information for fire and rescue chiefs and senior officers tracking workforce development in US wildland agencies.

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A record total of more than 650 Company Officers trained in 2025 indicates the scale of leadership capacity being built within CAL FIRE.

Training officers and instructors may note that four academies operated at full capacity, with a new site added to handle increased demand.

Emergency and disaster response managers can draw on the detailed figures on state investment, including more than $2.5 billion for wildfire resilience, $1.5 billion from the 2024 Climate Bond and $173 million for community-based projects.

Government departments and mutual aid coordinators will be directly affected by California’s decision to join the Northwest Wildland Fire Fighting Compact, which broadens access to partner resources during major wildfire incidents.



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All lanes reopen on 5 Freeway in Oceanside after officer-involved shooting forces closure

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All lanes reopen on 5 Freeway in Oceanside after officer-involved shooting forces closure


OCEANSIDE, Calif. (KABC) — Hours after an officer-involved shooting prompted the full closure of the 5 Freeway in Oceanside, all lanes were reopened Saturday afternoon as the investigation continues.

“The 5 is closed in both directions between Oceanside and the Orange County border while police investigate a shooting,” Caltrans said in a social media post at 9:39 a.m., adding that drivers should use the 15 Freeway as an alternative route.

The Buena Park Police Department said its officers attempted to pull over a car for vehicle code violations just before 1 p.m. in the area of La Palma Avenue and San Marino Drive, but the car failed to stop and a pursuit ensued.

“At 1:05 a.m. we asked CHP to take over the pursuit. They did but requested our K-9 unit stay in the pursuit,” Buena Park police said in a statement.

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Police said that at 2:10 a.m., the suspect vehicle was brought to a stop and then an officer-involved shooting occurred. It was not immediately known what led to the shooting.

A SigAlert was issued shortly after 2:30 a.m. between Harbor Drive in Oceanside and Christianitos Road in San Clemente, according to the California Highway Patrol.

As several lanes were reopened hours later, the Highway Patrol urged motorists to continue to use caution and watch for personnel in the area.

The investigation is ongoing.


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