Connect with us

California

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

Published

on

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.

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.

Advertisement

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.

Advertisement

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.

Advertisement

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

Advertisement

Our Standards: The Thomson Reuters Trust Principles., opens new tab



Source link

California

California warns Tesla faces 30-day sale ban for misleading use of

Published

on

California warns Tesla faces 30-day sale ban for misleading use of



The California DMV on Tuesday said Tesla Motors faces a possible 30-day sale ban over its misleading use of the term “autopilot” in its marketing of electric vehicles.

On Nov. 20, an administrative judge ruled that Tesla Motors’ use of “autopilot ” and “full self-driving capability” was a misleading description of its “advanced driving assistant features,” and that it violated state law, the DMV said.

In their decision, the judge proposed suspending Tesla’s manufacturing and dealer license for 30 days. However, the DMV is giving Tesla 60 days to address its use of the term “autopilot” before temporarily suspending its dealer license.

Advertisement

“Tesla can take simple steps to pause this decision and permanently resolve this issue — steps autonomous vehicle companies and other automakers have been able to achieve in California’s nation-leading and supportive innovation marketplace,” DMV Director Steve Gordon said.

Tesla had already stopped its use of “full self-driving capability” and switched to “full self-driving (supervised)” after the DMV filed accusations against it in November 2023.

The DMV said its decision to file those accusations stretches back to Tesla’s 2021 marketing of its advanced driver assistance system. Besides the two terms, the DMV said it also took issue with the phrase, “The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat.”

“Vehicles equipped with those ADAS features could not at the time of those advertisements, and cannot now, operate as autonomous vehicles,” the DMV said.

As for the manufacturing license suspension, the DMV issued a permanent stay on that proposal.

Advertisement



Source link

Advertisement
Continue Reading

California

Former California doctor sentenced in Matthew Perry’s overdose death

Published

on

Former California doctor sentenced in Matthew Perry’s overdose death


LOS ANGELES — A former California doctor was sentenced to 8 months of home detention and 3 years of supervised release Tuesday after pleading guilty to ketamine distribution in connection with the fatal overdose of “Friends” star Matthew Perry.

Mark Chavez pleaded guilty in 2024 to one count of conspiring to distribute ketamine to Perry, who died at 54. Chavez appeared Tuesday before U.S. District Judge Sherilyn Peace Garnett in Los Angeles. He faced up to 10 years in prison.

He will also be required to complete 300 hours of community service and pay a $100 special assessment to the U.S. government.

“My heart goes out to the Perry family,” Chavez said outside of court after his sentencing.

Advertisement

Zach Brooks, a member of Chavez’s legal team, said Tuesday: “what occurred in this case was a profound departure from the life he had lived up to that point. The consequences have been severe and permanent. Mr. Chavez has lost his career, his livelihood, and professional identity that he has worked for decades to develop.”

“Looking forward, Mr. Chavez understands that accountability does not end with this sentence. He’s committed to using the rest of his life to contribute positively, to support others and to ensure that nothing like this ever happens again,” Brooks said. “While he cannot undo what occurred, he can choose how he lives his life from this moment.”

Chavez was one of five people charged in connection with Perry’s death. The TV star died of an accidental overdose and was found dead in a hot tub at his Los Angeles home in October 2023.

Chavez’s lawyer, Matthew Binninger, has previously said his client was “incredibly remorseful” and “accepting responsibility” for his patient’s overdose.

Chavez was a licensed physician in San Diego who formerly operated a ketamine clinic. Prosecutors said he sold ketamine to another doctor, Salvador Plasencia, who then distributed it to Perry.

Advertisement

“I wonder how much this moron will pay,” Plasencia said in a text exchange to Chavez, according to the investigators. “Lets find out.”

Earlier this month, Plasencia was sentenced to two and a half years in federal prison for his involvement in the case.

Chavez wrote “a fraudulent prescription in a patient’s name without her knowledge or consent, and lied to wholesale ketamine distributors to buy additional vials of liquid ketamine that Chavez intended to sell to Plasencia for distribution to Perry,” the indictment in the case said.

In the month before his death, the doctors provided Perry with about 20 vials of ketamine and received some $55,000 in cash, according to federal prosecutors.

Perry was undergoing ketamine infusion therapy to treat depression and anxiety, according to a coroner’s report. However, the levels of ketamine in his body at the time of his death were dangerously high, roughly the same amount used for general anesthesia during surgery. The coroner ruled his death an accident.

Advertisement

Before his death, Perry was open about his lengthy struggles with opioid addiction and alcohol use disorder, which he chronicled in his 2022 memoir, “Friends, Lovers and the Big Terrible Thing.”

Katie Wall reported from Los Angeles and Daniella Silva reported from New York.

This is a developing story. Please check back for updates.



Source link

Advertisement
Continue Reading

California

California’s first mobile 911 dispatch classroom launches in Fresno

Published

on

California’s first mobile 911 dispatch classroom launches in Fresno


A mobile classroom is giving Central Valley students a hands-on look at what it takes to answer 911 calls.

The classroom on wheels is one of only two in the nation, the first in California, and is part of the Fresno Regional Occupational Program’s dispatch pathway.

“Dispatchers are the steady heartbeat of the emergency response,” Fresno County Superintendent of Schools Dr. Michele Cantwell-Copher said during Monday’s ribbon-cutting ceremony.

Advertisement

California’s first mobile 911 dispatch classroom launches in Fresno (Photo: FOX26 Photojournalist Byron Solorio)

Inside the trailer, students train at real dispatch consoles designed to mimic a live dispatch center.

The program is a partnership with Fresno City College, creating a pipeline from the classroom to dispatch careers.

The curriculum is backed by California POST, or the Commission on Peace Officer Standards and Training, which sets minimum training and certification standards for law enforcement in the state.

Advertisement

It gives students the opportunity to practice call taking and scenario based decision making in a realistic and interactive setting,

said Michelle D., with POST.

The system uses realistic audio and artificial intelligence to recreate high-pressure simulations.

“If it’s a child that is injured, we can have the child crying in the background, so it really gives them that true, realistic first-hand experience,” said Veronica Cervantes, a Supervising Communications Dispatcher with the Fresno County Sheriff’s Office.

Dispatch supervisors say programs like this one could help address a growing staffing shortage.

More people need to be in this profession. We are hurting for dispatchers

explains Matt Mendes, a Dispatch Supervisor with the Fresno County Sheriff’s Office.

Advertisement

Officials say the job offers competitive benefits, including a starting salary of about $53,000, overtime opportunities, and the potential to earn six figures over time.



Source link

Continue Reading

Trending