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
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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.
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
U.S. Marine in California accused of stealing, selling missile systems in Arizona
A 23-year-old U.S. Marine formerly stationed at Camp Pendleton in San Diego County is in custody after federal investigators claim he was stealing weapons of war, transporting them to Arizona and selling them.
A Glendale, Arizona native, Corporal Andrew Paul Amarillas, was working as an ammunition technician specialist at the School Infantry-West at Camp Pendleton, where he had access to restricted military weapons, explosives and ammunition.
In a complaint filed in U.S. District Court for the District of Arizona last week, a grand jury indicted the 23-year-old, alleging he stole a Javelin missile system and cans of ammunition that he then sold to a network of co-conspirators, the news outlet AZFamily first reported.
Court documents referenced text messages Amarillas reportedly sent to his unindicted co-conspirators.
“[J]ust got some javs and some other ones,” he allegedly wrote in an August text. “Have 2 launchers that [I] think you’d like, if you want to take a look tomorrow.”
Undercover officers were able to buy some of the ammunition from the middlemen and trace some of it back to Camp Pendleton, where they said some of the lot numbers were signed out by the corporal.
While investigators said that at least one of the Javelin Missile Systems Amarillas planned to sell was recovered, along with some of the stolen ammunition, prosecutors noted in paperwork to keep the corporal in custody that as many as “2 million rounds of M855” ammunition could be unaccounted for, AZFamily reported.
Portable anti-tank weapons designed exclusively for the U.S. military by Lockheed Martin and RTX Corp, Javelin Missile Systems are also used to target low flying helicopters and other fortifications.
Unless demilitarized, the weapons cannot be legally possessed by or sold to the public, which in this case, they weren’t, the Los Angeles Times reported.
The 23-year-old was arrested ahead of completing an eight-week training course in Quantico, Virginia that would have then deployed him to protect the U.S. Embassy in Myanmar.
He pleaded not guilty to charges that included conspiracy to commit theft and embezzlement of government property and possession and sale of stolen ammunition at a federal courthouse in Phoenix on March 26, The Times reported.
The judge said that because he presented a flight risk and had the potential to tamper with evidence and possibly interfere with witnesses at Camp Pendleton that he should be held without bail.
California
Corn tortillas in California now must contain folic acid. More states are looking at it
Fifteen years after she lost her first baby to a rare and devastating birth defect, Andrea Lopez takes comfort in knowing that other Latina mothers might finally avoid the same pain.
In January, California became the first state to require food makers to add folic acid, a crucial vitamin, to corn masa flour used to make tortillas and other traditional foods widely used in her community.
It’s a long-delayed move aimed at reducing Hispanic infants’ disproportionately high rates of serious conditions called neural tube defects, which claimed Lopez’s son, Gabriel Cude, when he was 10 days old.
“It’s such a small effort for such a tremendous impact,” said Lopez, 44, who lives in Bakersfield and is now a lawyer with two young daughters. “There is very little that I wouldn’t do to spare anybody this heartache.”
A similar law takes effect in Alabama in June, and legislation is pending or being considered in Florida, Georgia, Oklahoma and Oregon. Four more states — Texas, Delaware, New Jersey and Pennsylvania — have expressed “active interest” in the issue, according to the Food Fortification Initiative, an advocacy group that focuses on addressing micronutrient deficiencies.
“All women and children in the United States should have access to folic acid and have healthy babies,” said Scott Montgomery, the group’s director.
Corn masa was excluded from a national mandate
For nearly 30 years, folic acid, a key B vitamin, has been required to be added to enriched wheat and white breads, cereals and pastas in the U.S.
Decades of research show the 1998 requirement cut rates of serious defects such as spina bifida and anencephaly by about 30%, preventing about 1,300 cases a year. It is regarded as one of the top public health triumphs of the 20th century.
But corn masa flour, a staple used in Latino diets, was left out of the original fortification requirement — and rates of conditions such as spina bifida and anencephaly in that community have remained stubbornly high.
In 2016, federal regulators allowed, but did not require, folic acid to be added to corn masa products. By 2023, only about 1 in 7 corn masa flour products and no corn tortillas contained folic acid, a review found.
Higher rates of birth defects among Hispanic moms
Nationwide, Hispanic women have the highest rates of having those defects during pregnancy. In California, the rate among Hispanic mothers is twice as high as for white or Black women, state data show.
California’s new law — and the state’s huge buying power — could help expand its adoption nationwide, said state Assemblymember Joaquin Arambula, who sponsored the legislation passed in 2024.
“You have to be the first oftentimes to get the ball rolling,” he said. “So, I’m glad other states have taken up that mantle.”
California’s action and pressure from advocates have already spurred changes.
Gruma Corp., the parent company of Mission Foods and Azteca Milling, has been involved in the fortification issue for nearly two decades. Azteca began selling some — but not all — varieties of Maseca, its largest brand of corn masa flour, with folic acid in 2016.
As of this year, 97% of the company’s retail sales in the U.S. include folic acid. The rest are expected to be fortified before July, Gruma said in a statement.
Mission Foods began fortification in 2024. It now adds folic acid to all of its branded and private label corn tortillas in the U.S.
Such actions by large producers have helped pave the way for smaller manufacturers to follow suit, according to a recent report by the Center for Science in the Public Interest, a consumer advocacy group that has pushed for fortification.
Initially, the industry was concerned folic acid could affect flavor and the cost of changing labels, said Jim Kabbani, head of the Tortilla Industry Association. But he now expects tortilla makers will start selling fortified products on a broader scale.
“I think overall the train has left the station and it will be more and more states,” he said.
Public health experts cheer the growing momentum.
“The science is clear: Folic acid fortification works,” said Vijaya Kancherla, an Emory University epidemiology professor and director of the Center for Spina Bifida Prevention. “It’s safe. It’s proven. And it’s cost-effective.”
RFK Jr. calls corn masa fortification ‘insanity’
That view contrasts sharply with critics — including some at the highest level of government — who regard fortification of the food supply as a form of government overreach.
Late last year, Health Secretary Robert F. Kennedy Jr. criticized California’s new law in a post on X: “This is insanity. California is waging war against her children — targeting the poor and communities of color,” he wrote.
A spokesman for Kennedy declined to explain the comments.
Social media feeds are rife with people claiming that folic acid fortification is “toxic” or that people with a certain gene variation known as MTHFR can’t properly process the vitamin.
None of those claims is accurate, according to advocates and medical experts.
“What’s truly insane is that our nation’s top health official is spreading false claims and frightening people into avoiding a nutrient that’s proven to prevent birth defects and save babies’ lives,” said Eva Greenthal, CSPI’s senior policy scientist.
At fortification doses, folic acid “has never been shown to harm individuals or populations,” said Dr. Jeffery Blount, a pediatric neurosurgeon at the University of Alabama at Birmingham who works to prevent neural tube defects in the U.S. and globally.
The U.S. Centers for Disease Control and Prevention emphasizes that “people with the MTHFR gene variant can process all types of folate, including folic acid.”
Even Kennedy’s new federal dietary guidelines support fortification. Documents backing the guidelines advise pregnant women to eat folate-rich foods, such as leafy green vegetables, beans and lentils. But they also acknowledge that folic acid from fortified foods or supplements is “critical” before conception and during early pregnancy to prevent neural tube defects.
“Folic acid fortification of corn masa flour could help prevent” neural tube defects, the CDC website adds.
Without fortification, ‘It’s just too late’
Neural tube defects, which affect about 2,000 babies each year in the U.S., occur in the first weeks after conception, when the tube that forms the spine and brain fails to develop properly.
That’s often before many women realize they’re pregnant. More than 40% of U.S. pregnancies are unintended. In those cases, many women won’t have been preparing for pregnancy, noted Dr. Kimberly BeDell, medical director of a rehabilitation clinic that helps children with spina bifida at Miller Children’s Hospital in Long Beach, California.
“Even women’s best efforts in going to an OB right away and starting prenatal vitamins, it’s just too late,” BeDell said.
Adding folic acid to corn masa, the way it is added to other grains, is a way to ensure the nutrient reaches the wider population that needs it, she added.
At age 28, pregnant with her first child, Andrea Lopez didn’t know about the importance of folic acid or that the vitamin might be missing from her diet.
Then, an ultrasound mid-way through pregnancy showed that her baby had anencephaly, a fatal condition in which the skull fails to develop properly.
Lopez carried the pregnancy to term and Gabriel lived for 10 days. The pain of his loss never goes away, she said, adding that Gabriel would have been a high school freshman this year. She supports California’s law requiring folic acid fortification of corn masa and finds it “mind-boggling” that the action took so long to enforce.
“Trust me, you don’t want to go through this,” she said. “He’s the love of my life. I have two little girls that survived, but he’s my first born. He is my only son.”
___
The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.
California
Central California Women’s Facility Hosts Groundbreaking Film Festival, Showcasing Incarcerated and Formerly Incarcerated Filmmakers – News Releases
WHAT YOU NEED TO KNOW: CDCR hosted a first-ever film festival celebrating the work of incarcerated and formerly incarcerated filmmakers inside a women’s correctional facility. The San Quentin Film Festival held its first event outside of San Quentin Rehabilitation Center on March 28, bringing the festival to Central California Women’s Facility (CCWF) in Chowchilla. The event featured screenings of award-winning short films from the 2025 San Quentin Film Festival, followed by a filmmaker panel moderated by comedian and television host W. Kamau Bell. Awards were presented for a Narrative and Documentary Pitch Competition, open exclusively to incarcerated women at CCWF and the California Institution for Women. The event also included a “Women in Film” panel and Q&A, providing incarcerated women insight into the entertainment industry and an opportunity to interact with working professionals in the industry.
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“San Quentin Film Festival at CCWF offers incarcerated participants a powerful platform for self-expression and storytelling, and valuable exposure to the film industry and potential career pathways.”
CDCR Secretary Jeff Macomber
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BIGGER PICTURE: The California Department of Corrections and Rehabilitation (CDCR) is committed to rehabilitation and reentry, providing incarcerated people with the tools they need to successfully and safely reenter their communities. The San Quentin Film Festival is an example of this commitment, offering incarcerated filmmakers mentorship and an opportunity to be recognized for their work. Since its inception, participants have leveraged their media experience gained at the festival to pursue careers in the film industry after release, including earning internships and job opportunities.
FILM FESTIVAL DETAILS: The San Quentin Film Festival was created in 2024 by award-winning playwright, screenwriter and author Cori Thomas (Lockdown, When January Feels Like Summer) and formerly incarcerated filmmaker, podcaster and writer Rahsaan “New York” Thomas (Friendly Signs, What These Walls Won’t Hold).
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“We are deeply moved to be playing a small part in helping to even the playing field for these women. We hope the experience will empower them to tell their own stories and bring their unique perspectives to the table, and that today’s event will lead to additional industry engagement.”
Cori Thomas, SQFF Co-founder and Artistic Director
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Narrative Pitch Competition Winner
Untitled (Amber)
Krysten Webber
Documentary Pitch Competition Winner
Desert Blossoms
Diana Lovejoy
AVAILABLE FOR DOWNLOAD
Photos
B-roll
CONTACT: CDCR PRESS OFFICE OPEC@CDCR.CA.GOV
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