Law Enforcement

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.

SAN FRANCISCO -- Attorney General Kamala D. Harris announced a 42-year prison sentence for a Northern California man who ran a Ponzi scheme that defrauded more than 400 investors, most of them elderly, out of more than $90 million.

James Koenig, 60, of Redding, owned Assent Real Estate Corporation (AREI) from 1999 to 2008. The company specialized in the acquisition, management and resale of commercial property and elder care facilities. Most victims of his Ponzi scheme were elderly individuals from the Bay Area.

In May, Koenig was found guilty of 35 felony counts, including conspiracy, use of a scheme to defraud in connection with sales of securities, sales of securities by means of false statements, and residential burglary relating to the sales of fraudulent investments. The jury also found special enhancements for “great takings” because of the large amount of loss involved.

“This individual ran a ruthless Ponzi scheme that robbed investors, including vulnerable elderly people, of their life savings,” said Attorney General Harris. “The 42-year prison sentence represents justice given the severity of this crime and the deep impact on victims. I commend the work of the Department of Justice attorneys and support staff who worked on this complex case.”

Koenig did not inform investors that he had a prior federal conviction for mail fraud, which prevented him from getting favorable loan terms for his company. He also did not disclose AREI’s dire financial condition. Many of the investors were elderly and placed their life savings or home equity into the securities offered by Koenig.

The company’s early losses were managed by using the funds of new investors to pay off the original investors. By 2007, AREI had accumulated $163 million in debt that was unsecured or significantly under-secured and required monthly payments of more than $1.8 million to maintain. In April 2007, AREI stopped making payments to investors, while continuing to solicit and sell securities to new investors. The Ponzi scheme finally failed in the spring of 2008.

The case was based on 32 of the more than 400 victims, whose losses exceeded $8 million – $3.8 million of which came from investments made after April 2007 – when AREI stopped paying its current investors. At the time of sentencing, the total losses by victims were reported to be in excess of $90 million. 

Koenig was sentenced in Shasta County Superior Court on Friday. A restitution hearing will occur at a later date.

SACRAMENTO – The California Department of Justice today released the Crime in California 2012 report which shows crime changed incrementally in 2012 compared to the prior year.

Based on data from local law enforcement agencies throughout California, the report notes that 2012 violent and property crime rates per 100,000 population remain at half the rate seen just 20 years ago. 

According to the FBI, many factors can affect the volume and type of crime occurring, including local economies, reporting practices and population density. 

The Crime in California report is compiled by the California Department of Justice and pulls together data reported by police and sheriff’s departments in all of California’s 58 counties. It presents an overview of the state’s criminal justice system through statistics for reported crimes, arrests, dispositions of adult felony arrests, adult related calls for assistance, and law enforcement officers killed or assaulted.

 The complete report is attached to the electronic version of this press release at: http://oag.ca.gov/news.

SACRAMENTO -- Attorney General Kamala D. Harris today announced the arrest of three individuals who allegedly engaged in fraud against the State of California by taking bribes, misappropriating taxpayer money and forging documents.

The complaint alleges that Michael Mathison, owner of Veteran Toners Services, supplied inflated quotes to the Department of Fish and Wildlife and the California Department of Transportation (CalTrans) for office supplies. Mathison then produced counterfeit quotes from non-existent competitors with even higher prices. As a result, Veteran Toners Services was awarded the office supplies business at the original inflated price and two department employees – in return for giving Veteran’s the contract – received kickbacks in the form of money orders, gift cards and vacations. 

“These workers conspired to defraud taxpayers for personal gain,” said Attorney General Harris. “We take government fraud very seriously. I thank our state partners for working closely with Department of Justice agents on this case.”

Stephanie Clark, 42, of Fair Oaks, Danny Gray Compson, 62, of Yuba City and Mike Mathison, 50 of San Pedro, were arrested today and face charges of bribery, conspiracy and misappropriation of state funds.  Clark and Compson also face charges of embezzlement by a public officer.

Clark and Compson were booked into the Sacramento and Sutter county jails, respectively, on $75,000 bail each, while Mathison was booked into the Los Angeles County Jail on $250,000 bail.

The arrests came after a year-long investigation by the California Attorney General Office’s Bureau of Investigation after the office received an anonymous tip. The arrests followed the service of six search warrants on Monday and Tuesday, including some at state office buildings. All agencies involved cooperated with the investigation once they were made aware of it.

Clark, who works for the California Department of Fish and Wildlife, took more than 50 bribes for a total of $23,800 over the course of five years, the complaint alleges. Agents discovered more than 50 postal money orders deposited to Clark’s bank account. The agents also uncovered more than 200 separate purchase orders for office supplies and a sampling of 13 of those showed approximately $50,000 in over-charges.

Compson, who works for the California Department of Transportation, also accepted bribes from Mathison. The complaint alleges he submitted invoices worth as much as $5,000 a week to be paid, but he never received the product.

The investigation into any further wrongdoing is ongoing.

The Attorney General works to protect the state against fraud and other financial misconduct through the enforcement of the California False Claims Act. Investigations and prosecutions brought pursuant to the Act have resulted in the recovery of hundreds of millions of dollars in wrongfully obtained public funds.  The False Claims Unit of the Corporate Fraud Section investigates alleged violations of the Act based upon referrals from state, federal and local agencies, tips from members of the public and qui tam complaints, otherwise known as whistleblower complaints.

SACRAMENTO -- Attorney General Kamala D. Harris today announced a nine-year state prison sentence of a man who defrauded the California Department of Transportation (CalTrans) out of nearly $1.9 million.

Eric Hodgson, 43, of Elk Grove, agreed to a plea deal that in addition to the nine-year prison sentence, included forfeiture of his personal and real property, which includes two residences, two cars, several retirement accounts and a collection of Star Wars items worth more than $10,000.

Hodgson was arrested in April on 22 counts of grand theft following a California Department of Justice investigation that began after Caltrans staff discovered fraudulent invoices for print advertisements that had never actually run in local newspapers as promised. On Thursday, Hodgson pleaded guilty in Sacramento Superior Court to seven of the 22 counts as part of the plea deal.

Hodgson, as the owner of Phenix Print & Image, was hired by Caltrans to publicly advertise new construction contracts to bidders, as required by statute. Caltrans employees discovered the alleged fraud during a routine request for information and proof of publication for the construction contract advertisements. A subsequent internal review confirmed likely fraudulent activity and, as consistent with state law, the matter was turned over to the California Department of Justice for further investigation.

The investigation of invoices submitted by Phenix found two print advertising contracts, awarded in 2008 and 2009, that totaled more than $1.8 million. Caltrans terminated a third contract, awarded to Phenix in 2011 for more than $800,000, before any invoices were paid.

The California Department of Justice investigation found that Hodgson defrauded Caltrans of nearly $1.9 million by using false and fraudulent documentation.  He instead used the money to pay off a mortgage, make purchases of toys and comics, and pay for exotic trips for him and his company staff.

Photos of the forfeited property are attached to the electronic version of this release at: http://oag.ca.gov/news.