Law Enforcement

SAN BERNARDINO -- Attorney General Kamala D. Harris today announced the arrest of seven suspects who have been charged in a mortgage fraud scheme that defrauded more than 1,550 Inland Valley homeowners seeking loan modification services during California’s foreclosure crisis.

The felony complaint alleges that Nehad “Nick” Ayyoub Ayyoub, 57, of San Bernardino and president of The Firm Loans, Insurance and Investments Inc. and First Choice Debt Solutions Inc., along with his six colleagues, Ghydan Ayyoub Rabadi, 38, of Los Angeles, Zaid Rabadi, 49, of Los Angeles, James Clemons, 55, of Riverside County, Wissam Ismail, 32, of Riverside County, Eddie Mercado, 57, of San Bernardino, and Majid Safaie, 60, of Orange County, deceived homeowners by illegally charging up-front payments for loan modification services and lying about the services they provided.

“These individuals profited from the fear and desperation of hard working Californians who were simply fighting to keep their homes during the height of our state’s foreclosure crisis,” Attorney General Harris said. “This kind of predatory activity is reprehensible.”

The suspects are charged in a 24 count complaint of felony grand theft, personal and corporate income tax evasion and conspiracy. The suspects were booked at Murrieta Detention Center, Orange County Jail, Rancho Cucamonga Jail and Azusa Police Department today. Ayyoub is being held with bail set at $75,000 and all others are being held with bail set at $50,000. Ayyoub is facing a maximum exposure of 12 years in prison while his colleagues are facing a maximum exposure of 8 years.

According to court filings, Ayyoub and his colleagues took advantage of homeowners who were desperate to lower their mortgage payments by selling them home loan modification services and requiring payment of up-front fees. Homeowners were falsely told that attorneys would be negotiating their loan modifications, that they would get a loan modification with no risk of failure, that they would receive a refund if they were dissatisfied and that the suspects had special contacts with lenders, which would give them an advantage in obtaining lowered monthly payments.

Homeowners were instructed to stop paying their mortgage and to instead give the money to Ayyoub and his colleagues to ensure that they would obtain a loan modification, causing many victims to default on their home loans without obtaining a modification, according to court filings.

The suspects operated this scam from January 2007 to March 2010, according to court filings.

Attorney General Harris’ Mortgage Fraud Strike Force began investigating this case in 2010 yet business records were immediately sealed until September 2012 when Safaie’s claim of attorney client privilege was overruled.

Homeowners who feel they may have been victimized should file an online complaint with the California Attorney General’s Office: http://oag.ca.gov/consumers

Agents with the California Attorney General’s Bureau of Investigations were assisted by investigators with the State Franchise Tax Board.

Created in May 2011 by Attorney General Harris, the Mortgage Fraud Strike Force continues to lead the charge in investigating and prosecuting misconduct at all stages of the mortgage process.

In February 2012, Attorney General Harris secured a commitment from the nation’s five largest banks which has resulted in more than $20 billion for struggling California homeowners. Following the settlement, Attorney General Harris sponsored the California Homeowner Bill of Rights, a landmark package of legislation that restricts dual-track foreclosures, guarantees struggling homeowners a reliable point of contact at their lender and imposes civil penalties on fraudulently signed mortgage documents. In addition, homeowners may require loan servicers to document their right to foreclose. This legislation was signed by Governor Brown in July 2012 and took effect on January 1, 2013.

Please note that a complaint contains only allegations against a person and, as with all defendants, those named here must be presumed innocent unless and until proven guilty.

A copy of the complaint can be found attached to the electronic version of this release at: https://oag.ca.gov/news

LOS ANGELES -- Attorney General Kamala D. Harris today announced the arrest of the alleged owner and operator of a revenge porn website who facilitated the posting of more than 400 sexually explicit photos of Californians and extorted victims for as much as $250 each to remove the illicit content.

Casey E. Meyering, 28, of Tulsa, Oklahoma was arrested yesterday in Tulsa by agents with the California Attorney General’s eCrime Unit, the Rohnert Park Department of Public Safety and the Tulsa Police Department. The Attorney General’s Office is seeking a Governor's warrant for Meyering’s extradition to California, and he remains in custody pending the extradition hearing. According to documents filed in Napa County Superior Court, Meyering has been charged with 5 felony extortion counts.

“This behavior is the very definition of predatory and this website made a game out of humiliating victims for profit,” Attorney General Harris said. “These actions at their core are about one individual exploiting the privacy and trust of others for financial gain. We will continue to investigate and prosecute those who participate in these deplorable and illegal activities.”

Court documents allege that in 2013, Meyering owned and administered the website WinByState.com, which solicits the anonymous, public posting of private photographs containing nude and explicit images of individuals without their permission. Commonly known as revenge porn, the photos maybe obtained consensually by the poster during a prior relationship, or are stolen or hacked.

The investigation into WinByState.com began when a Northern California hacking victim discovered nude photos of herself on this site that had been stolen from her computer, according to court documents. Described as “a user supported website where you can trade your ex-girlfriend, your current girlfriend, or any other girl that you might know,” WinByState.com solicited uploaders to identify their “wins” according to city and state, sometimes using the victim’s complete or partial name. There were over 400 postings in the California forum, and at least one victim was under 18 at the time the photographs were taken, according to court documents.

Court documents also allege that WinbyState.com required victims to pay $250 via a Google Wallet account to remove posted photographs. The account was named TakeDownHammer, and was registered to Meyering at a non-existent Beverley Hills storefront. Law enforcement agents purchased a “takedown” for one the victims in Napa, and traced the funds to Meyering’s bank account in Tulsa, where surveillance footage from the bank identified him withdrawing money from the account.

The California Attorney General’s Office is currently working with GoDaddy.com to suspend the website pending the investigation and identification of additional victims.

In December of last year, Attorney General Harris announced the arrest of Kevin Christopher Bollaert, 27, of San Diego, who operated the revenge porn website ugotposted.com. He was charged with 31 felony counts of conspiracy, identity theft and extortion and is currently awaiting trial.

Attorney General Harris created the eCrime Unit in 2011 to identify and prosecute identity theft crimes, cybercrimes and other crimes involving the use of technology.

Individuals who feel they are victims of WinByState.com or other revenge porn websites should file a complaint with the California Attorney General’s office here: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company.

Please note that a complaint contains only allegations against a person and, as with all defendants, Casey E. Meyering, must be presumed innocent unless and until proven guilty.

FRESNO – Attorney General Kamala D. Harris today announced the arrest of five individuals who allegedly ran a statewide housing scheme by using adverse possession laws to fraudulently seize at least 23 homes in nine counties.

“It is reprehensible that these individuals lied to the courts in order to steal homes and in some cases to demand payment from the rightful owners,” Attorney General Harris said. “The conduct of the attorneys in this scheme is even more offensive because they violated their ethical duty to be honest to the courts. I am pleased that my mortgage fraud strike force, together with our state and local partners, continue to investigate and prosecute these crimes against our people and our economy."

Sandra Elaine Barton, 30, Christopher Spencer Barton, 31, Daniel Paul Vedenoff, 29, Sheldon W. Feigel, 50, and Craig Merrill Mortensen, 60, all of Fresno, were arrested today and charged with 288 felony counts including perjury, filing false court records and preparing false evidence. Cambria Lisa Barton, 21, remains at large.

All were booked into the Fresno County Jail on bail ranging from $27,500 to $1,795,000 and face restitution payments of at least $3.5 million.

According to the Attorney General’s filing, the Barton family, along with Vedenoff, Sandra Barton’s boyfriend, allegedly worked with two lawyers, Mortensen and Feigel, to identify seemingly abandoned residential properties and file for adverse possession of the property in court in order to obtain title. Once a Barton family member obtained ownership, the property would then allegedly be restored and was typically sold or rented.

Under California law (Code of Civil Procedure 325), an individual can claim adverse possession of real property if he or she has occupied or claimed it continuously for at least five years and paid property taxes for that period of time, among other requirements.

According to the Attorney General’s filing, since 2006, Barton family members and their attorneys allegedly provided factually impossible and knowingly fraudulent evidence and statements in court under penalty of perjury in order to obtain at least 23 residential properties in nine counties. These counties include: Fresno, Kern, Los Angeles, Madera, Merced, Santa Barbara, San Mateo, Sonoma and Tulare.

The alleged scheme was uncovered when Nancy Zelepsky, the true owner of a residence in Santa Barbara County, sought an equity loan in 2010 and contacted a title company in order to determine if there were any liens against her property. Zelepsky was notified that Sandra Barton had been listed as the deed holder of the home in July of that year through documents filed by Mortensen. After seeking assistance from the Legal Aid Foundation of Santa Barbara County, a court determined that Sandra Barton’s prior claim to the property was fraudulent and restored ownership to Zelepsky. The court then notified the California State Bar regarding Mortensen and the California Attorney General’s office opened an investigation in June 2011.

This case was headed by Attorney General Harris’ Mortgage Fraud Strike Force, which was created in May 2011 to investigate and prosecute misconduct at all stages of the mortgage process.

Sandra Barton faces a maximum state prison sentence of approximately 103 years, Mortensen faces 108 years, Feigel faces 15 years, Christopher Barton faces 7 years and Vedenoff faces 8 years.

The Attorney General’s Office was assisted in this case by the State Bar of California, Santa Barbara County District Attorney’s Office, Kern County Sheriff’s Department, Clovis Police Department and Fresno Police Department.

Please note that a complaint contains only allegations against a person and, as with all defendants, those named here must be presumed innocent unless and until proven guilty.

A copy of the Complaint is attached to the electronic version of this release at: oag.ca.gov/news.

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced the arrest of the alleged owner and operator of a revenge porn website who facilitated the posting of more than 10,000 sexually explicit photos and extorted victims for as much as $350 each to remove the illicit content.

“This website published intimate photos of unsuspecting victims and turned their public humiliation and betrayal into a commodity with the potential to devastate lives,” Attorney General Harris said. “Online predators that profit from the extortion of private photos will be investigated and prosecuted for this reprehensible and illegal internet activity.”

Kevin Christopher Bollaert, 27, of San Diego, was arrested today in San Diego by California Department of Justice agents and is being held in San Diego County jail on $50,000 bail. According to documents filed in San Diego County Superior Court, Bollaert has been charged with 31 felony counts of conspiracy, identity theft and extortion and is facing possible jail time and fines.

Court documents allege that, in December 2012, Bollaert created the website ugotposted.com, which allows the anonymous, public posting of private photographs containing nude and explicit images of individuals without their permission. Commonly knows as revenge porn, the photos are typically obtained consensually by the poster during a prior relationship or are stolen or hacked. Unlike many other revenge porn websites where the subject of the photos is anonymous, ugotposted.com required that the poster include the subject’s full name, location, age and facebook profile link.

California Penal Code sections 530.5 and 653m (b) make it illegal to willfully obtain someone’s personal identifying information, including name, age and address, for any unlawful purpose, including with the intent to annoy or harass.

Court documents also allege that Bollaert created a second website, changemyreputation.com, in October 2012, which he used when individuals contacted ugotposted.com requesting that content be removed from the site. Bollaert would allegedly extort victims by replying with a changemyreputation.com email address and offering to remove the content for a fee ranging from $299.99 to $350, which could be paid using an online PayPal account referenced in the emails. Ballaert allegedly told investigators, according to court documents, that he made around $900 per month from advertising on the site and records obtained from his changemyreputation.com PayPal account indicate that he received payments totaling tens of thousands of dollars.

According to court documents, ugotposted.com’s registration listed a billing address in San Diego, CA.

The arrest comes after a six-month investigation by the California Attorney General’s eCrime unit.

Attorney General Harris created the eCrime Unit in 2011 to identify and prosecute identity theft crimes, cybercrimes and other crimes involving the use of technology.

Individuals who feel they are victims of ugotposted.com or other revenge porn websites should file a complaint with the California Attorney General’s office here: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company.

Please note that a complaint contains only allegations against a person and, as with all defendants, Kevin Christopher Bollaert, must be presumed innocent unless and until proven guilty. 

A copy of the complaint and arrest warrant are attached to the electronic version of this release here: https://oag.ca.gov/news.

SAN FRANCISCO – Attorney General Kamala D. Harris today announced that the number of reported hate crimes in California decreased 12.8 percent in 2012. There were 930 hate crime events reported statewide in 2012, a decrease from the 1,060 hate crimes reported in 2011.

Since 2003, the total number of hate crime events in California has decreased 37.6 percent from 1,491 to 930.

“While overall numbers are down this year, any hate crime hurts the people and values of California,” said Attorney General Harris. “I am confident that California law enforcement will monitor and prosecute these cases to ensure severe consequence and accountability.”

Hate crimes with a race/ethnicity/national origin bias decreased 10.1 percent from 2011 to 2012 but still accounted for 56.8 percent of all hate crime events in 2012. Over the past ten years, these have consistently been the most common type of hate crime.

Hate crime events involving a sexual orientation bias decreased 3.7 percent and events involving a religious bias decreased 27.9 percent from 2011 to 2012.

All police agencies and district attorney’s offices in California submitted hate crime statistics to the state Department of Justice for this report. Hate crime categories are established by the Federal Bureau of Investigation.

Next year, three changes will be made to the Hate Crime Event Report form distributed by the California Department of Justice to local law enforcement agencies in the state.  In accordance with a change made by the FBI, the category ‘gender non-conforming’ will be added to the ‘gender’ category and ‘community centers’ will be added to the ‘location’ category.  Additionally, California will add the category ‘anti-Sikh’ to the ‘religious’ category.

Statistics that reflect these changes will appear in the Attorney General’s 2014 Hate Crime Report, which will be released in 2015.

The California Attorney General’s Office published its first hate crimes report in 1995. All previous reports can be found at: http://oag.ca.gov/cjsc/pubs

A complete copy of the Hate Crime in California 2012 report is available here: https://oag.ca.gov/sites/all/files/agweb/pdfs/cjsc/publications/hatecrimes/hc12/preface12.pdf?

LOS ANGELES -- Attorney General Kamala D. Harris today launched a new initiative designed to curb recidivism in California through partnerships between the California Department of Justice’s new Division of Recidivism Reduction and Re-Entry and the state’s counties and District Attorneys.

The Division will support counties and District Attorneys by partnering on best practices and policy initiatives, such as the development of a statewide definition of recidivism, identifying grants to fund the creation and expansion of innovative anti-recidivism programs and using technology to facilitate more effective data analysis and recidivism metrics.

“California’s District Attorneys bring vital experience to the challenge of reducing recidivism, and it is important their perspective is incorporated,” said Attorney General Harris. “This new division will support innovative, evidence-based approaches to recidivism solutions in California.” 

“San Diego County has been a statewide leader in working to reduce recidivism through innovative prisoner re-entry programs,” said San Diego County District Attorney Bonnie Dumanis. “We welcome the Attorney General’s leadership and commitment of resources in this area as our County continues to protect public safety while dealing with the ongoing challenges brought on by prisoner realignment.”

"The Attorney General's initiative will provide local prosecutors with the accurate data we need to determine realignment's real impact on public safety," Los Angeles County District Attorney Jackie Lacey said. "I look forward to working with other prosecutors in developing effective diversion programs for nonviolent offenders and seeking funds to expand alternative sentencing courts."

“Any successful crime reduction effort must include a strategic and well planned approach to combatting recidivism,” said Alameda County District Attorney Nancy E. O’Malley.  “Both low level criminals as well violent offenders will eventually return to our communities when released from jail or prison, and I welcome the opportunity to work closely with Attorney General Harris’ office on putting into place the best possible strategies to reduce crime and recidivism rates.”

“The decision to implement a new strategic plan that would ultimately help reduce crime and recidivism in our state is a powerful step forward, and I commend Attorney General Harris for her leadership in this area,” San Bernardino County District Attorney Michael Ramos said. “It is a data-driven methodology that will not only better equip local DAs with resources and technical assistance, but one that will make our streets safer. As we continue to address the ever changing needs brought about by prison reform, this initiative is a much-needed, collaborative approach to tackling crime more effectively at the state and local levels.”

“I appreciate the leadership of Attorney General Harris in focusing our collective attention to best practices to reduce recidivism and crime in our communities,” Los Angeles County Sheriff Lee Baca said. “The Los Angeles County Sheriff’s Department has been a national leader in rehabilitating jail inmates while incarcerated, and those efforts will only be enhanced with proven re-entry strategies focusing on helping offenders be successful upon release from jails and prisons.”

“As the California Criminal Justice System continues to recalibrate itself with the implementation of Realignment, the California Police Chiefs Association is encouraged by the Attorney General’s announcement that the Department of Justice will partner with counties to identify and implement successful reentry programs,” California Police Chiefs Association President Kim Raney said. “Ensuring public safety in our communities is the primary mission for Police Chiefs, and we welcome the Attorney General’s commitment to work with counties to ensure the safety of cities statewide.”

The Division of Recidivism Reduction and Re-Entry will consist of three subdivisions focused on program development, evaluation and grants. It will be funded through existing California Department of Justice resources.

The Division will use innovative technology, such as the Department’s recently created California SmartJustice system, to analyze offender populations and recidivism risk factors. SmartJustice, a new database and analytical tool created by the California Department of Justice, can track repeat offenders and offense trends to provide counties with more effective options in developing anti-recidivism initiatives. 

In 2005, then San Francisco District Attorney Harris created a reentry initiative called Back on Track, which aimed to reduce recidivism among certain low-level, non-violent drug offenders. Over a two-year period, the program reduced recidivism among its graduates to less than 10 percent. Back on Track was designated as a model for law enforcement by the US Department of Justice.

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced the removal of ten private health insurance websites that misled Californians by imitating Covered California, the state’s official insurance marketplace for the Patient Protection and Affordable Care Act (ACA). Attorney General Harris also released tips to help consumers avoid insurance scams.

“These websites fraudulently imitated Covered California in order to lure consumers away from plans that provide the benefits of the Affordable Care Act,” Attorney General Harris said. “My office will continue to investigate and shut down these kinds of sites. I urge Californians to avoid healthcare scams by visiting coveredca.com.”

In September, the California Attorney General’s office began an investigation into websites that imitate the state’s Covered California website (www.coveredca.com). Multiple website operators were sent cease and desist letters informing them that their websites were in violation of state law and demanding the immediate removal of the website or transfer of the domain name to the state’s official exchange.

These websites were operated by private health insurance brokers or companies that were not affiliated with Covered California. The websites have domain names similar to the state’s official healthcare exchange and contain unauthorized references to the official exchange’s trademarked logo and name. In several cases, websites used the phrases “Get Covered,” “Covered California” and “California Health Benefit Advisers.”

The California Affordable Care Act forbids individuals or entities from claiming to provide services on behalf of Covered California without securing a valid agreement with the State Exchange. (Gov. Code, § 100510.) State law also prohibits solicitations that falsely imply a governmental connection (Bus. & Prof. Code, § 17533.6), the use of a domain name that is confusingly similar to another entity (Bus. & Prof. Code, § 17525), making or disseminating untrue or misleading representations with the intent of selling goods or services (Bus. & Prof. Code, § 17500) and unfair competition through untrue or misleading advertising (Bus. & Prof. Code, § 17200).

To date, all website operators who have been contacted by the Attorney General’s office have complied, and the following websites have been either deactivated or redirected to the official exchange website:

www.californiabenefitexchange.com

www.californiahealthbenefitexchange.com

www.coveredcalifornia.com

www.shopinsuranceexchange.us

www.shopinsuranceservices.com

www.healthexchangeinsurance.com

www.shopforhealthcare.org

www.taxcreditinsurance.com

www.smallbusinesshealthoptionsprogram.com

www.stateexchanges.org

The California Health Benefit Exchange is charged with implementing the ACA and is the operator of California’s online health insurance marketplace known as Covered California. California consumers who purchase health insurance policies through this marketplace receive protections guaranteed by the ACA that may not exist in policies outside of the exchange.

Health insurance plans sold outside the official exchange on the individual market before January 1, 2014 do not qualify for federal subsidies and do not have the guarantees provided by the ACA’s consumer protection provisions. Major consumer protections include: no denials based on preexisting conditions; no rating differences based on factors other than age, geography, and family size; issuers may not impose any annual dollar limits for covered services; and all qualified plans must cover essential health benefits identified under the ACA.

The California Attorney General’s Health, Education and Welfare Section, in conjunction with Covered California and the California Department of Insurance, will continue to monitor these and other potentially fraudulent sites.

To avoid scams related to California’s health insurance marketplace, Attorney General Harris has released the following tips for consumers:

• California’s only official health insurance marketplace is www.coveredca.com, which is where individuals, families and small businesses can get information, compare plans and enroll.
• Be wary if you receive a call from a representative claiming to be a government official asking for your personal information like Social Security number or Medicare card number. You should not provide personal or financial information over the phone and should instead contact Covered California directly.
• If you are approached by someone offering assistance from Covered California, verify that they are a Certified Enrollment Counselor by asking to see their required ID badge or by contacting Covered California directly.
• Never pay someone for assistance with healthcare enrollment. Free enrollment assistance is available by contacting Covered California directly.
• If you believe that you have been the victim of a scam, please report it by contacting Covered California directly or by filing a consumer complaint with the California Attorney General’s office at: http://oag.ca.gov/contact/consumer-complaint-against-business-or-company

To contact Covered California directly, call (800) 300-1506 or email consumerprotection@covered.ca.gov

Assistance by phone is also available in the following languages:

Arabic: 800-826-6317

Armenian: 800-996-1009

Chinese: 800-300-1533

Farsi: 800-921-8879

Filipino: 800-983-8816

Hmong: 800-771-2156nie

Khmer: 800-906-8528

Korean: 800-738-9116

Lao: 800-357-7976

Russian: 800-778-7695

Spanish: 800-300-0213

Vietnamese: 800-652-9528

SAN DIEGO – Attorney General Kamala D. Harris today announced that former San Diego Mayor Bob Filner has plead guilty to one count of felony false imprisonment and two counts of misdemeanor battery.

Filner entered his guilty plea today in San Diego County Superior Court.

“This conduct was not only criminal, it was also an extreme abuse of power,” said Attorney General Harris.  “This prosecution is about consequence and accountability. No one is above the law.”

Under the terms of the plea agreement, Filner must surrender his Mayoral pension from the date the felony was committed (March 6, 2013) until the date he resigned office (August 23, 2013).  He will serve probation for three years and home confinement for three months.  The agreement also prohibits Filner from seeking or holding public office. As a consequence of the felony plea, Filner may not serve on a jury or own a firearm while he is on probation.

Filner is required to undergo treatment as directed by a mental health professional throughout his probation. If he violates the terms of his probation, he may face up to 6 months in jail.

Fines including restitution, probation and court fees will be determined at Filner’s sentencing hearing, which will be announced today.

The California Attorney General's office was assisted in this investigation by the San Diego County Sheriff's Department.

A copy of the complaint is attached to the electronic version of this release at: oag.ca.gov/news

SAN FRANCISCO -- Attorney General Kamala D. Harris today joined San Francisco Mayor Ed Lee and San Francisco Police Chief Greg Suhr to launch the California Department of Justice’s JusticeMobile app.

JusticeMobile is a mobile app that gives law enforcement agents, for the first time, secure and immediate access to state and federal criminal justice information. Until now, officers have had to use a phone or radio to contact personnel to obtain this information.

JusticeMobile was tested over the past five months by more than 600 San Francisco Police Department (SFPD) officers. Now, JusticeMobile is being rolled out to all SFPD officers, giving them access to internal SFPD, California DOJ and federal law enforcement databases. Justice Mobile will soon be available to law enforcement agencies across the state. The Los Angeles Police Department plans to equip 3,600 officers with the technology.

“We have mobile apps for everything from banking to board games on our phones. But, incredibly, law enforcement hasn’t had the tools to access important criminal justice information on handhelds and tablets until now,” said Attorney General Harris. “JusticeMobile is a quantum leap forward for public and peace officer safety, and it demonstrates our commitment to facilitating the adoption of new technology by law enforcement. I thank Mayor Lee and Chief Suhr for their partnership on this important project.”

In San Francisco, the Attorney General’s office partnered with SFPD’s Technology Division, the Mayor’s Office and technology companies through the San Francisco Citizens Initiative for Technology and Innovation (sf.citi).

“San Francisco’s men and women in uniform need 21st Century tools to keep our city safe,” said Mayor Lee. “This is a game changer. Under the leadership of Attorney General Harris, SFPD and sf.citi, the JusticeMobile smartphones give officers on the streets instant access to law enforcement data where information in real time counts. The City’s violent crime rates are now at historic lows and implementing innovative crime prevention strategies like this will help keep San Francisco as one of the safest big cities in America.”

“Talk about loving when a plan comes together, and I want to acknowledge the vision of Mayor Lee, Attorney General Kamala D. Harris, the Police Commission, and sf.citi in moving this initiative forward,” said SFPD Chief Greg Suhr. “That vision, coupled with the tenacity of SFPD CIO Susan Giffin and her award winning team, San Francisco will be a safer place because it’s a smarter place. This is the force multiplier SFPD has been working toward. In this case, some of San Francisco’s finest citizens came together to give ‘San Francisco’s Finest’ a 21st century tool that will go a long way towards making the City the safest big city in the country.”

JusticeMobile employs many rigorous security standards, including: strong password requirements, a Virtual Private Network requiring two-factor authorization, encryption, limits on downloads and backup/syncing, and prohibiting copying or screen captures.

JusticeMobile is also being used on a pilot basis to keep illegal firearms out of the hands of dangerous criminals. DOJ agents are using JusticeMobile on their iPads to check potential gun buyers at weekend firearms shows in California, by checking names against the Bureau of Firearms Armed Prohibited Persons (APPS) database. Previously, agents were able to run only 20 individuals against the APPS list at a weekend gun show. Now, using JusticeMobile on iPads, agents are running 80 individuals, an increase of 300 percent.

Images showing how the app works are attached to the electronic version of this release at: https://oag.ca.gov/news

SACRAMENTO -- Attorney General Kamala D. Harris announced that Larry Harmon, 48, of Granite Bay, was sentenced Tuesday to 16 months for a scheme to defraud the state Board of Equalization out of more than $4.5 million in fraudulent claims for tax returns on defaulted car loans.

The case was referred to the Attorney General’s Special Crimes Unit for investigation after an auditor with the California Board of Equalization (BOE) noticed the suspicious claims. Harmon had submitted thousands of fraudulent requests with BOE that, if successful, would have resulted in losses of more than $4.5 million.

“Defrauding state government is equivalent to stealing taxpayer dollars,” Attorney General Harris said. “I applaud the cooperation between my office and the Board of Equalization to stop this scheme before any losses occurred.”

“Those who cheat and defraud our tax system impose a selfish and unfair tax increase on their fellow Californians,” said Board of Equalization Member George Runner. “It’s only right that they be brought to justice.”

Harmon, who was sentenced Tuesday in Sacramento Superior Court to 16 months in county jail, was arrested in January on 10 felony counts of false claims and forgery. Harmon formerly managed investments for several NBA players, including Carmelo Anthony of the New York Knicks and Ben Gordon of the Charlotte Bobcats.

As owner of Larry Harmon & Associates, Harmon represented financial institutions seeking sales tax refunds from the BOE. A lender is entitled to submit a refund request to BOE when an individual defaults on a car loan and the vehicle is repossessed.

DOJ agents determined that Harmon created fraudulent bank documents and loan papers, along with a shell company called Premier Capital Finance. He submitted these documents to BOE to request refunds for non-existent banks, including Premier Capital Finance. He also fabricated letters from his attorney attesting to the validity of his paperwork. 

At the time of the search warrant and arrest, DOJ and BOE agents discovered additional fraudulent documents that indicated he was in the process of creating two additional false claims, each for more than $5 million.  

The Board of Equalization and the Attorney General’s Bureau of Investigation routinely combine resources to investigate fraud and tax schemes perpetrated against the State of California as part of a joint effort to combat underground economy crimes.