HomeMy WebLinkAbout15 - Real Estate Fraud GrantCITY OF
NEWPORT BEACH
C9C /Fp0.H`P City Council Staff Report Agenda Item No. 15
July 26, 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Police Department
Jay R. Johnson, Chief of Police
949 - 644 -3701, jjohnson @nbpd.org
PREPARED BY: Craig Fox, Captain
949 - 644 -3750, cfox @nbpd.org
APPROVED:
TITLE: Orange County Real Estate Fraud Prosecution Trust Fund Award
ABSTRACT:
The Police Department seeks acceptance of a $75,000 award granted from the Orange
County District Attorney's Office for the investigation of real estate fraud crimes.
RECOMMENDATIONS:
1. Authorize the City Council to accept a $75,000 award granted to the Police
Department by the Orange County Real Estate Fraud Prosecution Trust Fund
per Council Policies F -3 and F -25. Therefore, to comply with Council Policy F -3,
City Council must formally accept the award of $75,000 and create a new
appropriation to expend the money.
2. Approve a Budget Amendment increasing revenue appropriations by $75,000 in
1820 -489E.
FUNDING AVAILABILITY:
The Budget Amendment records and appropriates $75,000 in additional revenue from
the Orange County District Attorney's Office. The revenue will be posted to the 1820-
489E account in the Police Department. The Police Department's FY 2011 -12 budget
already includes expenditure funding for the investigators who will be assigned to
perform the grant - related activities.
According to Orange County Assistant District Attorney Elizabeth Henderson (fund
administrator), the funds awarded by the Orange County Real Estate Fraud Prosecution
Trust Fund for FY 11/12 are now available.
Orange County Real Estate Fraud Prosecution Trust Fund Award
July 26, 2011
Page 2
DISCUSSION:
Background:
In April 2011, the Orange County District Attorney's Office disseminated information to
all Orange County law enforcement agencies indicating they would be accepting
applications to receive funding from the Orange County Real Estate Fraud Prosecution
Trust Fund. The information indicated the application period would be from April 15,
2011, through May 16, 2011. Law enforcement agencies applying were directed to
respond in writing to a series of questions related to real estate fraud investigations
conducted by the applying agencies. Once received, the applications would be
reviewed by the Orange County District Attorney's Office to determine eligibility based
on Government Code Section 27388, which sets certain minimum criteria for law
enforcement agencies to apply for and receive funding for investigation of real estate
fraud involving recorded documents. A copy of the application guidelines is attached to
this report.
On May 5, 2011, the Police Department submitted a letter of application to the Orange
County District Attorney's Office requesting consideration to receive funding. The letter
of application indicated that the Police Department has an Economic Crimes Section
consisting of two investigators within the Detective Division that is dedicated to
investigating various economic crimes, ranging from identity theft, credit card fraud,
embezzlement, forgery, as well as real estate fraud. A copy of the application letter is
attached to this report.
In a letter from the Orange County District Attorney's Office dated June 6, 2011, the
Police Department was notified that we had been awarded $75,000 from the Orange
County Real Estate Fraud Prosecution Trust Fund. The letter indicates that the funding
is to be used to partially fund the salary and benefits of an investigator for real estate
fraud cases in our jurisdiction. Per the instructions outlined in the award letter, a
response has been sent to the Orange County District Attorney's Office indicating our
desire to receive these funds, pending City Council approval. A copy of the award letter
is attached to this report.
The responsibility of providing the required end of the fiscal year reporting back to the
District Attorney's Office will be the responsibility of the Grant Administrator, Captain
Craig Fox. The end of year report will include a detailed list of all investigations
conducted related to real estate fraud, the hours involved in each investigation, and the
salary and benefit costs for the investigator(s) who conducted the investigations.
This Staff Report requests approval by City Council to accept these funds pursuant to
Council Policies F -3 and F -25.
Last year, the Police Department received $50,000 from this Trust Fund for FY 10/11
and the City Council approved the acceptance of those funds on November 9, 2010.
Orange County Real Estate Fraud Prosecution Trust Fund Award
July 26, 2011
Page 3
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section
15378)of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly
or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
R. dohnson
Chief of Police
Attachments: Orange County Real Estate Fraud Trust Fund Application Guidelines
Application Letter to Orange County District Attorney's Office
Orange County District Attorney's Office Letter of Award of Funding
Council Policies F -3 and F -25
Budget Amendment
APPLICATION FOR FUNDING
ORANGE COUNTYREAL ESTATE FRAUD PROSECUTION TRUST FUND
The Real Estate Fraud Prosecution Trust Fund Committee will be accepting
applications from Orange County law enforcement agencies seeking funding for real
estate fraud investigation for Fiscal Year 2011 -2012 starting April 15, 2011. To be
considered for funding the application must be received by or delivered to the Orange
Henderson) no later than 5:00 pm on May 16, 2011. She is the collection point for the
applications and will forward them to the Committee for review. Applications should be
submitted on the agency letterhead and signed by the Chief or his /her designee and
include required statistics on real estate fraud investigations. Real Estate Fraud Trust
Fund awards will be made in writing to the applicant law enforcement agencies by June
10, 2011. The Committee will make determinations based on statutory guidelines
contained in Government Code section 27388
Please direct applications and any questions to:
Orange County District Attorney's Office
401 Civic Center Drive West
Santa Ana CA 92701
Attn: Elizabeth Henderson,
Assistant District Attorney
Major /Insurance Fraud Unit
Elizabeth. henderson(�da.ocgov.com
(714)347 -8700
Government Code section 27388 sets certain minimum criteria for law enforcement
agencies to receive funding for investigation of real estate fraud. To qualify for funding,
the law enforcement agency must submit a written application and respond to all
questions. The application must contain complete and detailed responses and the
agency must provide written documentation that supports the agency's eligibility for
funding. This will include detailed case information on cases under investigation that
requires confidentiality. Please request confidentiality (in writing) as to information
submitted that relates to an ongoing case or investigation. This may be in the body of
the application or in an addendum that describes ongoing confidential investigation
material.
In order to be eligible for funding, a law enforcement agency must have a unit,
division or section devoted to the investigation of real estate fraud that has been in
existence for one year prior to the application or has on a regular basis during three
years prior to application assigned specific persons employed by the agency to
investigations involving suspected real estate fraud for investigation.
Eligibility Questions (Government Code section 27388(c)(2)(A)(B)
1. Does your agency have a unit, division, or section devoted exclusively to
the investigation or prosecution of real estate fraud?
a. If yes, has that unit, division, or section been in existence for at least one
year prior to this application? How long? Describe the unit, division or section.
b. If yes, please list the names of the officers /detectives assigned to the
unit and their dates of assignment.
2. Has your agency, during the three (3) years immediately preceding this
application regularly and actively investigated and prosecuted cases of suspected
real estate fraud in a particular unit or division?
a. If yes, has your agency assigned specific persons to investigate those
cases and to what unit or units were these persons were assigned?
b. If yes, please list the names of the officers /detectives specifically
assigned to handle real estate fraud investigations at the agency during the past
three years as well as the time frames of their assignment.
Required Statistical Information
Explanation of Definitions (for filling out forms):
Suspect(s) = multiple suspects- spreadsheet to include names of an suspects under 1
DR# together
Date Received = date that law enforcement agency received the complaint or report from
victim or another agency
Investigator= Investigator or case agent assigned to investigate
Type of case = examples of common types of RE Fraud are loan mod, foreclosure
scheme, mortgage fraud, fraudulent recording, appraisal fraud, real estate investment
fraud - choose another if required. RE Fraud alone is not sufficient.
Estimated loss = estimated out of pocket loss from all victims of the fraud together - only
need one number per case
Number of victims = number of victims reporting fraud where you have reports or
interviews.
Est. personnel hours spent= estimate of total hours that agency law enforcement
personnel expended in the investigation
Result of Investigation= submitted to DA, case filed, case closed /sufficiency of evidence
or other reason,
2
Proposed Use of Funds
Please submit a detailed accounting setting forth in detail your agency's proposed use of
the funds. This should include a budget detailing the proposed expenditures. All funds
must be expended for the exclusive purpose of deterring investigating and prosecuting
real estate fraud involving recorded documents. Funds will not cover overhead
expenses.
Prior Use of Funds
If an agency is awarded funding pursuant to Government Code section
27388(3)(B)(4) during 2010 -2011, upon reapplication, the statute requires a detailed
accounting of funds received and expended in the prior year.
6. This detailed accounting shall include the following:
a. The amount of funds received and expended
b. The uses to which those funds were put
i. Salaries and personnel expenses
ii. Purchases of expenses and supplies
iii. Travel expenses
iv. Training expenses
v. Other expenses
c. The number of filed complaints, investigations, arrests, convictions with
supporting statistical information that resulted from the expenditure of the
Real Estate Fraud Trust funds.
d. Those agencies that received funding in 2010/2011 need to provide an
accounting of funds and a report on the activities and investigations of their
real estate fraud investigation efforts for FY 2010/2011 with their application
and are required to provide a written report to the Board of Supervisors at the
end of FY 2010/2011. Statute also requires report to the California Office of
the Legislative Analyst regardless of whether they apply for funding in
2011/2012. (Contact OCDA paralegal Natalie Adams at
Natalie.adams(@da.ocgov.com to obtain information on how to do this.
4 IAEW PORT
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Newport Beach Police Department
Jay R. Jobnson Chief of Police 870 Santa Barbara Drive • P.O. Boa 7000 • Newport Beach, CA 92658 -7000
May 5, 2011
Ms. Elizabeth Henderson, Assistant District Attorney
Orange County District Attorney's Office
Major /Insurance Fraud Unit
401 Civic Center Drive West
Santa Ana, CA 92701
Dear Ms. Henderson:
The Newport Beach Police Department (NBPD) once again requests funding
consideration from the Real Estate Fraud Trust Fund. Currently, NBPD has an
Economic Crimes Unit within the Detective Division that is dedicated to
investigating various economic crimes, ranging from identity theft, credit card
fraud, embezzlement, forgery, as well as real estate fraud. The Unit once
consisted of four, full -time detectives. Currently, the Unit is operating with only
two, full -time detectives to work the variety of crimes investigated, including real
estate fraud.
The City of Newport Beach is a financial hub of Orange County, is home to
myriad firms associated with the real estate industry, and also has high value real
estate. As a result, Newport Beach is often targeted by criminals committing
crimes associated with real estate fraud. While the NBPD has a long history of
investigating and seeking prosecution in real estate fraud cases, the
Department's ability to effectively investigate real estate fraud has been affected
by the reduction of the Economic Crimes Unit. This request for grant funds
would fund a full -time detective position to handle cases specifically related to
real estate fraud.
Per Government Code 27388 and following your eligibility guidelines, please
review the below information and application for consideration of eligibility and
funding.
Eligibility
The Newport Beach Police Department does not have a unit devoted exclusively
to investigating real estate fraud; however, we have regularly investigated and
actively prosecuted cases of suspected real estate fraud in the past. The
Economic Crimes Unit of the Detective Division, as mentioned above, has been
responsible for investigating these crimes. The Department assigns one of the
two detectives within the Economic Crimes Unit to investigate these crimes,
based on current caseloads.
Office of the Chief (949) 644 -3701 • Support Services (949) 644 -3654 • Patrol - Traffic (949) 6443742 • Detectives (949) 644 -3790
Ms. Henderson
May 5, 2011
Page 2
During the past three years, Detectives Bob Watts and Steve Rasmussen were
assigned to investigate crimes involving real estate fraud. The times of their
assignments were as follows; Bob Watts, August 1, 2006 – May 1, 2010; and
Steve Rasmussen, September 1, 2006 – February 15, 2010. Currently,
Detectives Kyle Cammack, February 15, 2010 – present; and Detective Garrett
Fitzgerald, May 1, 2010 – present, are assigned to investigate these crimes.
Required Statistical Information
See Attachment A.
Proposed Use of Funds
Budget Detail for Personnel (one, full -time detective):
Salary/Benefits
$168,162.84
Equipment/Supplies
0
Training Expenses
$800.00
Training Travel Expenses
$1,200.00
Total Budget Estimate $170,162.84
Prior Use of Funds
The NBPD received $50,000 from the Real Estate Fraud Trust Fund in FY 10/11.
Those funds were used to offset the salary and benefits of Detectives Cammack
and Fitzgerald during their assignment in the Economic Crimes Unit. From
July 1, 2010, to date, NBPD personnel have spent 563 hours investigating crimes
related to real estate fraud. Based on an average hourly rate of $75 (salary and
benefits) for an NBPD investigator, to date we have expended approximately
$42,225 of the $50,000 awarded. We will continue to track our real estate fraud
investigations and report our final statistics to the Orange County District
Attorney's office at the conclusion of the current grant period (June 30, 2011).
See Attachment B.
If you have any questions regarding this
Captain Craig Fox at (949) 644 -3750, or
(949) 644 -3778. Thank you for your consideration.
Sincerely, -
5;jaye-
CHIEF OF POLICE
Attachments
application, please contact
Lieutenant Dennis Birch at
NBPD -- ATTACHMENT A
CASES FILED BY OCDA SINCE 07/01/08
NBPD DR
OCDA CASE
SUSP DOB
CRIME
NBPD
DDA
# OF
VICTIM LOSS
STATUS OF CASE
IF CONVICTED, LIST
#
#
SUSPECT NAME
CRIME
INVESTIGATOR
DDA
VICT
VICTIM LOSS
STATUS OF CASE
CHARGE & SENTENCE
08- 006893
Becerra, A.
7/8/1964
487 PC
Rasmussen
n/a
1
$12,000
Case Filed, Suspect in
15 hours
07- 001879
09F15504
Veltre, J.
503 PC
Rasmussen, Steve
McFetridge, G.
7+
$3.5 million
Custody, Trial Pending
n/a
09- 005425
WMC Serv.
Unknown
664/487 PC
Rasmussen
n/a
6+
none
Exceptionally Cleared
530.5, 487, 532, 186.11,
09 -09845
Kutzner, D
487 PC
Watts /Prouty
1
250,000
Received 3 years state
470, etc. - 3 years state
08-0003011
08F00243
Sanchez, A.
530.5 PC
I Watts, Robert
Patko, Y.
8
1.4 million
prison
prison
07- 012443
07F15264
Gunter, L.
487 PC
Watts, Robert
Christie, J.
1
63,000.00
Plead Guilty
487 - 5 years probation
10 -09053
Jahn iri
6/6/1981
487 PC
Fitzgerald
N/A
1
$12,702
180 days jail, 5 years
08- 000149
08F04397
Licata, A.
487 PC
Watts, Robert
Patko, Y.
1
1.25 million
Plead Guilty
probation
43 hours
11 -619
Alvarez, C
11/22/1970
487 PC
Fitzgerald
Van Der Ahe
1
$12,702
368, 470, 487, 12022 -2
49 hours
11 -971
Shaheb, A
6/19/1980
487 PC
Cammack
Varner
1
$2,996
years, 8 months state
08- 001551
08FO5962
Fe el, D.
368 PC
Watts, Robert
Cazares, C.
1
285,000
Plead Guilty
prison
487 - 4 years, 4 months
09 -10467
09F75735
Gunter, L.
487 PC
Watts, Robert
McFetrid e, G.
100+
250,000+
Plead Guilty
state prison
10 -4831
11HF0400
Parker, George
487 PC
Cammack
McFetridge, G.
8
Approx. $25,000.00
Filed -trial pending
10 -10259
11F00241
Duncan,
459 PC
Fox
Pierce
1
Filed -in trial
11 -619
11HF0809
Alvarez, Cecilia
487 PC
Fitzgerald
Van Der Ahe
1
$12,702
Filed- Warrant
11 -971
11 HF1032
Shaheb, Adel
487 PC
Cammack
Varner
2,996.00
Filed- Warrant
CASES INVESTIGATED BY NBPD SINCE 07/01/08
#
SUSP NAME
SUSP DOB
CRIME
INVESTIGATOR
DDA
VICT
VICTIM LOSS
STATUS OF CASE
NUMBER OF
08- 011699
Guillen, F.
12/14/1969
470 PC
Rasmussen
n/a
2
$45,000
Unfounded
10 hours
08- 006893
Becerra, A.
7/8/1964
487 PC
Rasmussen
n/a
1
$12,000
Under Investigation
15 hours
08- 010929
Merino, S.
Unknown
503 PC
Rasmussen
n/a
1
$60,000
Unfounded
20 hours
09- 005425
WMC Serv.
Unknown
664/487 PC
Rasmussen
n/a
6+
none
Exceptionally Cleared
40 hours
09 -09845
Kutzner, D
487 PC
Watts /Prouty
1
250,000
Under Investigation
10 hours
10 -4831
Parker, G
5/16/1969
487 PC
Cammack
McFetridge, G
8
Approx. $25,000
Filed
218 hours
10 -09840
Pines, M
2/7/1952
487/47OPC
Watts /Prouty
N/A
1
TBD (potential $100,000 +)
Under Investigation
234 hours
10 -09053
Jahn iri
6/6/1981
487 PC
Fitzgerald
N/A
1
$12,702
Unfounded
5 hours
10 -10259
Duncan,C
8/17/1968
459 PC
Fox
Pierce
1
Filed
43 hours
11 -619
Alvarez, C
11/22/1970
487 PC
Fitzgerald
Van Der Ahe
1
$12,702
Filed
49 hours
11 -971
Shaheb, A
6/19/1980
487 PC
Cammack
Varner
1
$2,996
Filed
28 hours
DATE PREPARED: 06/12/10
NBPD -- ATTACHMENT A
CASES FILED BY OCDA SINCE 07101/2010
NBPD DR
#
OCDA CASE
#
SUSPECT NAME
CRIME
NBPD
INVESTIGATOR
DDA
# OF
VICT
VICTIM LOSS
STATUS OF CASE
IF CONVICTED, LIST
CHARGE & SENTENCE
10 -4831
11HF0400
Parker, George
487 PC
Cammack
McFetridge, G
8
Approx.
$25,000.00
Filed
234
10 -10259
11 F00241
Duncan,
459 PC
Fox
Pierce
1
BD potential $100,000 +
Filed -in trial
168
11 -619
11HF0809
Alvarez, Cecilia
487 PC
Fitzgerald
Van Der Ahe
1
$12,702
$12,702
Filed- Warrant
10 -10259
11 -971
11HF1032
Shaheb, Adel
487 PC
Cammack
Varner
Unknown
2,996.00
Filed- Warrant
11 -619
Alvarez, C
11/22/1970
487 PC
Fitzgerald
Van Der Ahe
1
$12,702
Filed
67
11 -971
Shaheb, A
6/19/1980
487 PC
Cammack
Varner
1
$2,996
Filed
34
None
CASES INVESTIGATED BY NBPD SINCE 07/01/2010
NBPD DR
#
SUSP NAME
SUSP DOB
CRIME
NBPD
INVESTIGATOR
DDA
# OF
VICT
VICTIM LOSS
STATUS OF CASE
NUMBER OF
PERSONNEL HOURS
SPENT ON
INVESTIGATION
10 -4831
Parker, G
5/16/1969
487 PC
Cammack
McFetrid e, G
8
Approx.
$25,000
Filed
234
10 -09840
Pines, M
2/7/1952
87/470P
Prouty /Cammack
Pierce
1
BD potential $100,000 +
Ongoing
168
10- 009053
Jahngiri
6/6/1981
487 PC
Fitzgerald
N/A
1
$12,702
Unfounded
5
10 -10259
Duncan,C
8/17/1968
459 PC
Fox
Pierce
1
Unknown
Filed
46
11 -619
Alvarez, C
11/22/1970
487 PC
Fitzgerald
Van Der Ahe
1
$12,702
Filed
67
11 -971
Shaheb, A
6/19/1980
487 PC
Cammack
Varner
1
$2,996
Filed
34
None
Tow,M
Unknown
487 PC
ammack/Fitzgerall
Christie
Unk.
Unk.
Ongoing
6
TOTAL 1 560
DATE PREPARED: 06/12/10
5/26/2010 George Parker
11/6/2010 George Parker
11/19/2010 George Parker
11/20/2010 George Parker
11/22/2010 George Parker
12/8/2010 George Parker
12/9/2010 George Parker
12/17/2010 George Parker
1/11/2011 George Parker
1/11/2011 George Parker
1/12/2011 George Parker
1/15/2011 George Parker
2/21/2011 George Parker
2/23/2011 George Parker
2/28/2011 George Parker
3/1/2011 George Parker
3/2/2011 George Parker
8/3/2011 George Parker
Total
NBPD Mortgage Grant Case Tracker
Grand Theft -Loan Mod Scam
4810 Park Newport
4810 Park Newport
4810 Park Newport
Chino Hills
4810 Park Newport
4810 Park Newport
4810 Park Newport
4810 Park Newport
4810 Park Newport
110 Newport Ctr Drive #6
4810 Park Newport
4810 Park Newport
4810 Park Newport
4810 Park Newport
4810 Park Newport
4810 Park Newport
4810 Park Newport
4810 Park Newport
4810 Park Newport
Cammack
1 3
3
Crime Report /Interview
1 3
3
Crime Report /Interview
1 3
3
Crime Report/Interview
2 8
16
Witness Interview
1 3
3
Crime Report/Interview
1 3
3
Crime Report/Interview
1 2
2
1 4
4
Search Warrant Writing
5 16
80
Executed Search Warrant
3 10
30
Executed Search Warrant
2 10
20
Book Property /Report writing
2 5
10
DA consultation
2 9
18
RFCLCAIR
2 9
18
RFCLCAIR
1 6
6
Victim interview /Follow -up
1 6
6
DA Meeting/Victim Interview
1 5
5
Case Investigation
1 4
4
Crime Report/Interview
234
6/8/2011 1 of 1
NBPD Mortgage Grant Case Tracker
10 -9840 487 PC -Grand Thef (Mortg.Fraud) 19 Coral Cay Proudy /Cammack
10/1/2010 Michael Pines 19 Coral Cay 1 20 20 Phone calls- Prouty (multi. Days)
10/1/2010 Michael Pines 19 Coral Cay 1 20 20 Phone calls- Detective Fox (mult.days)
10/13/2010 Michael Pines 19 Coral Cay 5 7 35 On Scene Invest /Interview /Arrest
10/14/2010 Michael Pines 19 Coral Cay 1 6 6 Investigation
10/15/2010 Michael Pines 19 Coral Cay 1 6 6 Report Writing
11/15/2010 Michael Pines 19 Coral Cay 2 1.5 3 Investigation- Tresspass @loc
11/9/2010 Michael Pines 19 Coral Cay 2 3.5 7 Investigation- Evicted Tenants @Ioc
11/11/2010 Michael Pines 19 Coral Cay 3 1 3 Investigation- Evicted Tenants @Ioc
11/12/2010 Michael Pines 19 Coral Cay 2 1 2 Investigation- Evicted Tenants @Ioc
12/3/2010 Michael Pines 19 Coral Cay 2 7.5 15 Eviction of Tenants
12/3/2010 Michael Pines 19 Coral Cay 3 9 27 Investigation- Eviction
12/31/2010 Michael Pines 19 Coral Cay 3 2 6 Investigation - Possible Burglary
3/15/2011 Michael Pines 19 Coral Cay 1 7 7 Investigation /SW writing (Cammack)
3/16/2011 Michael Pines 19 Coral Cay 1 5 5 Filing of Search Warrant
5/2/2011 Michael Pines 19 Coral Cay 1 6 6 S/W return received /reviewed /filed
Total 168
6/8/2011 1 of 1
10 -9053
11/4/2010 Melika Jahangiri
9/18/2011 Melika Jahangiri
Total
NBPD Mortgage Grant Case Tracker
487 PC -Grand Theft (Mortgage Fraud) 1201 Dove Street Fitzgerald
1201 Dove Street 1 3 3 Interview /Invest /Report Writing
1201 Dove Street 1 2 2 Investigation /Interview
5
6/8/2011 1 of 1
0 10 -10259
10/20/2010 Christopher Duncan
10/21/2010 Christopher Duncan
10/22/2010 Christopher Duncan
10/25/2010 Christopher Duncan
10/26/2010 Christopher Duncan
10/26/2010 Christopher Duncan
10/27/2010 Christopher Duncan
11/14/2010 Christopher Duncan
10/28/2010 Christopher Duncan
11/4/2010 Christopher Duncan
1/6/2011 Christopher &Robin Duncan
2/17/2011 Christopher Duncan
10/22/2010 Christopher Duncan
Total
NBPD Mortgage Grant Case Tracker
459 PC- Burglary (Forged rental Docs) 10 Hidden Pass Fox /Prouty
10 Hidden Pass
1
2
2
Investigation of squatters
10 Hidden Pass
2
0.5
1
Investigation
10 Hidden Pass
2
1
2
Investigation
10 Hidden Pass
1
1
1
Interview (Sgt Short)
10 Hidden Pass
2
1.5
3
Investigation of squatters /report writing
10 Hidden Pass
1
3
3
Interview /report writing
10 Hidden Pass
1
1
1
Report Writing
10 Hidden Pass
1
4
4
Report Writing
10 Hidden Pass
2
3
6
Investigation
10 Hidden Pass
1
1
1
Witness interview
10 Hidden Pass
6
3.5
21
Arrested suspects
10 Hidden Pass
1
2
2
Report Writing /follow -up
10 Hidden Pass
2
1
2
Squatters Investigation
49
6/8/2011 1 of 1
NBPD Mortgage Grant Case Tracker
11 -619 487 PC -Grand Theft (Loan Mod Scam) 2329 Vista Huerta Fitzgerald
1/26/2011
Cecilia Alvarez
2619 Vista Huerta
1
6
6
Investigation
1/20/2011
Cecilia Alvarez
2619 Vista Huerta
1
4
4
Investigation
1/19/2011
Cecilia Alvarez
2619 Vista Huerta
2
5
10
Investigation
1/27/2011
Cecilia Alvarez
2619 Vista Huerta
1
6
6
Witness Interview /Report Writing
2/8/2011
Cecilia Alvarez
2619 Vista Huerta
2
5
10
Witness Interview /Report Writing
2/18/2011
Cecilia Alvarez
2619 Vista Huerta
1
7
7
S/W written /filed /served
3/8/2011
Cecilia Alvarez
2619 Vista Huerta
1
4
4
S/W returned /reviewed /filed
3/23/2011
Cecilia Alvarez
2619 Vista Huerta
2
4
8
Witness Interview /Report Writing
3/24/2011
Cecilia Alvarez
2619 Vista Huerta
1
3
3
Case presented to DA
3/25/2011
Cecilia Alvarez
2619 Vista Huerta
1
5
5
Witness /Suspect Interview
3/29/2011
Cecilia Alvarez
2619 Vista Huerta
1
4
4
Report writing interview review
Total
67
6/8/2011 1 of 1
NBPD Mortgage Grant Case Tracker
10 -971 487 PC -Grand Theft (Condo Sales Fraud) 177 Riverside Ave #1043 Cammack
1/31/2011 Adel Shaheb 177 Riverside Ave #1043 1 2 2 Investigation
2/1/2011 Adel Shaheb 177 Riverside Ave #1043 2 2 4 Investigation /Interview
2/2/2011 Adel Shaheb 177 Riverside Ave #1043 1 2 2 Investigation /Interview
2/4/2011 Adel Shaheb 30 Capobella, Irvine 2 3 6 Investigation
2/8/2011 Adel Shaheb 177 Riverside Ave #1043 1 2 2 Wit Interview
2/16/2011 Adel Shaheb 177 Riverside Ave #1043 1 2 2 Investigation
3/3/2011 Adel Shaheb 30 Capobella, Irvine 1 3 3 Susp interivew /report writing
3/7/2011 Adel Shaheb 30 Capobella, Irvine 1 2 2 Interview prep /report writing
3/29/2011 Adel Shaheb 30 Capobella, Irvine 1 2 2 Report Writing /case prep
4/2/2011 Adel Shaheb 30 Capobella, Irvine 1 3 3 Case presented /filed at DA's office
5/2/2011 Adel Shaheb 30 Capobella, Irvine 1 3 3 Investigation
5/3/2011 Adel Shaheb 30 Capobella, Irvine 1 3 3 Investigation
Total 34
6/8/2011 1 of 1
NBPD Mortgage Grant Case Tracker
None Home Purchase Fraud
2/7/2011 Marc Tow Major Fraud
Total
Major Fraud
Cammack
Consult- Investigation Pending
6/8/2011 1 of 1
TONY RACKAUCKAS
ORANGE COUNTY DISTRICT ATTORNEY
ORANGE COUNTY DISTRICT ATTORNEY'S OFFICE
401 CIVIC CENTER DRIVE WEST • SANTA ANA, CA 92701 (714) 834 -3636
June 6, 2011
Chief Jay R. Johnson
Newport Beach Police Department
870 Santa Barbara Drive
Newport Beach, CA 92658 -7000
Re. Orange County Real Estate Fraud Trust Committee — Award Funding 2011 -12
Dear Chief Johnson:
On behalf of the Orange County Real Estate Fraud Trust Committee created to
administer the funds in the Real Estate Fraud Trust created through Government
Code 27388, we are pleased to award funding to the Newport Beach Police
Department in the amount of $75,000.00 for fiscal year 2011 -2012. The increased
funding recognizes your agency's efforts 2010 -2011 to investigate real estate fraud
cases. Funding is to be used to partially fund the salary and benefits of an
investigator for real estate fraud cases in your jurisdiction. Under the terms of
Government Code 27388(d), law enforcement agencies who receive funding under
the statute are required on a yearly basis to submit a detailed accounting of the funds
received and to provide statistics on the number of investigations and arrests that
resulted from the use of the funds.
The Trust Fund Committee and the Orange County District Attorney's Office Real
Estate Fraud Unit continue to look forward to working together with your department to
investigate and prosecute real estate fraud crimes. To accept funding for this
program, please submit a letter from your city council, mayor or city manager agreeing
to use the program funding for the purpose above.
Respectfully,
�
Tonokackauckas
Orange County District Attorney
Cc: Tom Daly, Clerk Recorder
Tom Mauk, CEO
TR:ru
'' _ ECEIVED JUN 0 ry 2011
BUDGET ADOPTION AND ADMINISTRATION
PURPOSE
F -3
To establish the policy for the preparation, adoption, and administration of the City's
Annual Budget.
POLICY
A. Revenues and Expenditures. With rare exceptions, the City's policy is to identify
and separately budget and account for revenues and expenditures. However, in
some cases the Administrative Services Director may determine that certain
funding coming in to the City is more properly reflected as abatement to an
expense than as revenue; or that certain expenditures of funds are more properly
reflected as abatements to revenue than as expenses. The Accounting Division
will keep note of all such entries, and maintain the ability to separately identify
the component transactions. Examples of transactions where such recording is
often appropriate are earnings on compensating balances, which directly offset
the City's expenditures for banking services; and credit card processing charges,
which decrease actual revenue received.
B. Organization and Development of the Annual Budget. Each year the City shall
prepare and adopt, by formal Resolution, an annual budget as required by the
City's Charter and as provided for in the City's Budget Instructions.
The Annual Budget is published in three volumes, the Resource Allocation Plan
(RAP), the Budget Detail and the Capital Improvement Program (CIP). The RAP
provides an overview of each department's mission, functions, statistical
information, and budget. It also provides summary information regarding the
Capital Improvement Program, as well as summary information for budgeted
and historical overall City revenues, expenditures, and fund balances. The
Budget Detail contains line by line information regarding operating expenditures
for the prior year, current year and budget year. The CIP document provides a
summary of current and future planned projects, basic descriptions of each
project, the funding source and the scope of work to be performed.
The City programs expenditures into four classifications. These are Salaries and
Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures.
Capital Expenditures are subdivided into Capital Outlay, which is generally
used for items of operating equipment or other purchases in excess of $500, and
1
F -3
Capital Projects, which generally deal with Public Works related improvements
for a distinct and identifiable purpose and function. Policy guidelines regarding
budgeting for upkeep and improvement of City buildings are as follows.
1. Cleaning, maintenance, and minor repair expenses are funded within
departmental Maintenance and Operations budgets. This includes
janitorial, limited painting, and routine electrical, plumbing, and minor
structural repairs.
2. Most capital equipment outlays are also budgeted at the department level.
These include expenditures for furniture (free- standing and most built -
ins), carpet replacement, and electronic equipment.
3. Building expenditures that are for a more substantial and relatively
infrequent purpose are funded as Capital Improvement Projects above the
departmental level. These include such items as roof replacements,
significant plumbing and /or electrical upgrades, or remodels involving
structural changes.
Budgeted Expenditures for all four classifications are aligned in the Budget
Documents by Department Budget Units, which usually coincide with Operating
Divisions within the City's organizational structure; and, separately, by Capital
Projects. Therefore within each Division Budget, there will be sections for
Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital
Outlay.
During December of each year, the Administrative Services Department shall
prepare preliminary fund balance estimates for the current year and preliminary
revenue estimates for the next fiscal year. In January of each year, the
Administrative Services Department shall prepare a budget calendar and issue
budget instructions and expenditure detail to each department for use in
preparation of the next year's City budget. Included in these instructions will be
budget guidelines and appropriation limits for each department. These
guidelines will be developed by the Administrative Services Director and
approved by the City Manager. In accordance with City Council Policy F -2
(Reserves/ Designations of Fund Balance), the status and possible changes in
Reserve Accounts shall be addressed as part of this process.
2
F -3
After submission of revenue and expenditure appropriation requests by each
department, the Administrative Services Department shall summarize the
requests for review by the City Manager and Department Heads. After review
by the City Manager and Department Heads, the Administrative Services
Department shall prepare the City's proposed budget for the next fiscal year and
shall submit said proposed budget to the City Council. Thereafter, the City
Council shall hold as many budget study sessions as it deems necessary. Council
budget study sessions shall be recorded. All proposed Council changes to the
City Manager's proposed budget shall be itemized on a budget checklist.
Subsequent to Council review and prior to its final adoption, the City Manager
shall distribute the budget checklist to permit the City Council to approve each
checklist item individually or the checklist by motion.
The City Council shall hold a budget hearing and shall adopt a budget on or
before June 30 as required by the City Charter.
C. Administration of the Annual Budget. During the budget year, Department
Heads and their designated representatives may authorize only those
expenditures that are based on appropriations previously approved by City
Council action, and only from accounts under their organizational responsibility.
In addition, budget expenditures may only be authorized in the year
appropriated. Any unexpended appropriations, except valid encumbrances,
expire at fiscal year end unless specifically reappropriated by the City Council
for expenditure during the new fiscal year. Department Heads are responsible
for not authorizing expenditures above budget appropriations in any given
expenditure classification within their purview, without additional
appropriation or transfer as specified below.
1. New Appropriations. During the Budget Year, the City Council may
appropriate additional funds for special purposes by a City Council
Budget Amendment. The City Manager has authority to approve requests
for budget increases not to exceed $10,000 in any Budget Activity or
Capital Project. (This must be specifically included in each year's Budget
Resolution to remain valid.)
2. Grants & Donations. The City Manager may accept grants or donations of
up to $30,000 on behalf of the City. However, if a new or additional
appropriation is required, the City Manager's authority to create new
appropriations is limited to $10,000 as stated above. The City Council will
be formally notified of such actions on a quarterly basis by way of the City
3
F -3
Manager newsletter to the City Council. (This provision must be
specifically included in each year's Budget Resolution to remain valid.)
Additionally, grant appropriations approved by City Council may be
carried forward to the following fiscal year(s) as long as the grant terms
remain valid, the expenditures are consistent with the previous Council
authorization, and the funds would otherwise need to be returned to the
granting or donor agency. Also, see Council Policy F -25 for specific grant
acceptance and administration procedures.
Grant contracts and restricted donations in excess of $30,000 must be
specifically approved by the City Council. Occasionally, the terms and
conditions of a grant are approved by City Council in a year prior to when
the program activity will take place and therefore, the funds are not
appropriated to carry out the grant at that time. In such cases, the City
Manager may appropriate the funds when they are received, provided the
expenditures clearly meet the amount, terms, nature and intent of the
grant or donation previously approved by City Council.
3. Assessment District Appropriation. Assessment district projects are
typically funded by property owner contributions and bond financing
secured by property assessments. City staff will initially seek
appropriation to advance City resources for the assessment engineering
and the design work related to a proposed assessment district. Since the
City's advance is at risk until a district is formed at a public hearing, the
appropriation related to advanced resources shall be subject to the normal
budget policies. However, once the district has been formed at a public
hearing, the City Council will adopt a "project- length" budget for the
district and City staff will be allowed to roll the appropriations forward
into future fiscal years without rebudgeting the project through the formal
CIP process.
When assessment bonds are issued to finance the improvements, the bond
issuance costs are estimated at the maximum amount that would be
required to complete the improvements because it is not known how
many property owners will opt to pay the assessment in full during the
cash collection period. Finance staff will also have the authority to reduce
Council appropriations (related to bond issuance costs) after bonds are
resized and sold.
9
F -3
4. Transfers. During the fiscal year, actual expenditures may exceed budget
appropriations for specific expenditure line items within departmental
budgets. If a total departmental budget, within a specific Classification, is
not exceeded, the Administrative Services Director has the authority to
transfer funds within that Classification and Department, to make the
most efficient use of funds appropriated by the City Council. (Salaries
and Benefits, Maintenance and Operations, Other Charges, and Capital
Expenditures are the City's four Classifications.)
5. Realignments. Further, funds may be realigned between one Department
Budget Activity and another, within the same Classification, with City
Manager approval. For example, if a Fire Department function and the
employee who accomplishes it are replaced by a slightly different function
assigned to the Police Department, the City Manager may authorize the
transfer of appropriate funds to support this function.
6. Reprogramming. Any reprogramming of funds among the four
Classifications (Salaries and Benefits, Maintenance and Operations, Other
Charges, and Capital Expenditures) within a given fund requires the City
Manager's approval. Any budget revision that changes the total amount
budgeted for any fund (other than the minor provisions contained in
paragraphs C.1. and C.7.b.) must be approved by the City Council.
7. Capital Projects. The Department Head having primary responsibility for
a Capital Project (usually the Public Works Director) is authorized to
encumber and approve subsequent expenditure of City funds for Capital
Projects. However, contracts in excess of $30,000 require specific City
Council authorization at the time of contract award. In addition, any
contracts not of format and wording already approved by the City
Attorney require specific City Attorney review and approval prior to
contract award.
Once a contract has been awarded, change orders may be approved by the
Public Works Director, or other Department Head having responsibility
for the Project, so long as the net total amount committed to the Project
remains below 110 percent of the original contract award amount; and so
long as the original amount appropriated for the Project by City Council is
not exceeded.
5
F -3
Change orders exceeding the above thresholds may be approved by the
City Manager as follows:
a. Total spending for any single contract may not exceed 125 percent
of the original contract award amount without City Council
approval. In certain situations the Public Works Director and the
City Manager may determine that a change order exceeding this
125 percent threshold is needed, and that the timing is such that a
work stoppage or other undesirable consequence will result if
approval of the change is delayed until the next City Council
meeting. In those instances, the City Manager may approve a
change up to 150 percent of the original amount. However, the
City Manager will notify all City Council Members individually if
this situation develops, and if there are any objections to the
increase, a special meeting of the City Council will be called to
address the issue.
b. The total amount authorized for a capital improvement project may
be increased by transferring funds from one Project to another or
by reprogramming funds from any of the other three classifications
(see C.6), so long as the new total does not exceed 110 percent of
the original amount appropriated by Council.
C. In the event that the transfer or reprogramming action in C.7.a. or
C.7.b. above would result in a material reduction in the scope of the
capital project or other City activity from which funds are to be
withdrawn, City Council authorization is required. For example,
the movement of five percent (5 %) of the funding from one large
project to another large project of the same general category could
be approved by the City Manager, whereas the elimination or
significant reduction of two small, unrelated projects to provide
funds for a five percent (5 %) increase in a much larger project
would require City Council approval.
In all instances, notification of any changes to capital project contract
amount or budget authority must be communicated to the Administrative
Services Director.
All unexpended and unencumbered capital projects will be canceled on
June 30 of each fiscal year. The appropriation balance of these canceled
6
F -3
projects will be recorded in the Reserve for Capital Improvements or
another appropriate Reserve Account by the Administrative Services
Director at fiscal year end (see also paragraph D.2. below).
8. Reserves. Funds from unappropriated contingency reserves may be
transferred to active Classification accounts only by City Council Budget
Amendment.
D. Additional City Council, City Manager, and Administrative Services Director
Responsibilities. The Administrative Services Director is responsible for
checking purchase requests against availability of funds and authorization as per
the approved Budget. The City Manager is responsible for approving
expenditures which do not conform to the approved Budget, but which fall
within the exceptions noted in this policy statement. It is the responsibility of the
City Manager to administer the City's budget within the framework of policy
and appropriation as approved by the City Council.
1. Special City Council Expenditure Approval. Once the final Budget has
been approved by the City Council, specific City Council approval to
make expenditures consistent with the Budget will not be required, with
two exceptions (see also Purchasing and Accounts Payable Procedures):
a. Capital Projects in excess of $30,000.
b. Contracts for services in excess of $50,000.
All other budget administration actions, including the routine filling of
vacancies in staff positions authorized within the Budget, will not require
further City Council approval. However, new positions and other new
expenditures do require City Council approval, and the City Council and
City Manager reserve the right to impose any special fiscal control
measures, including a personnel hiring freeze, and other spending
controls, whenever circumstances warrant. Since the annual Budget is
approved by formal Resolution, a request by a City Council Member for
review of a portion or portions of the Budget, with a view toward
changing amounts appropriated or the purposes for which they were
appropriated, requires a majority vote of the City Council.
7
F -3
2. At fiscal year end, the Administrative Services Director is authorized to
realign, reprogram, and /or transfer money among accounts within each
Fund in order to close the books of accounts of the City of Newport Beach
in accordance with generally accepted governmental accounting
principles as established by the Government Accounting Standards Board,
Government Finance Officers Association, and other appropriate
accounting or auditing pronouncements. Any net shortage within a Fund
will be recorded as a decrease in Fund Balance and reported to the City
Council. Any net excess will be recorded as an increase to one or more
appropriate Reserve Accounts as recommended by the Administrative
Services Director and approved by the City Manager. (Information
regarding appropriation of Funds from the Reserve Accounts is contained
in City Council Policy F -2.)
Adopted - January 24,1994
Amended - February 27,1995
Corrected - February 26, 1996
Amended - May 13,1996
Amended - May 26,1998
Amended - August 8, 2000
Amended - May 8, 2001
Amended - April 23, 2002
Amended - April 8, 2003
Amended - April 13, 2004
Amended - September 13, 2005
Amended - October 10, 2006
Amended - August 11, 2009
Formerly F -10, F -11, F -12, and F -21
GRANT ADMINISTRATION
PURPOSE
F -25
To establish guidelines for the application, acceptance, administration, and financial
reporting of grants including, but not limited to federal, state, local, and restricted
donations (also considered grants for the purpose of this policy).
POLICY
A. Grant Application and Responsibility
Individual departments are encouraged to investigate sources of funding
relevant to their respective departmental activities.
The individual department applying for a grant or receiving a restricted
donation shall generally be considered the Program Administrator of the grant.
The Accounting Division of Administrative Services may assist in the financial
administration and reporting of the grant but the Program Administrator is
ultimately responsible for meeting all terms and conditions of the grant, insuring
that only allowable costs are charged to the grant program and is responsible for
adhering to City budgeting and fiscal procedures. Individual Departments and
Program Administrators are not authorized to execute grant contracts. Grant
contracts should be reviewed by the City Attorney's office and executed by the
City Manager and or City Council.
B. Grant Acceptance & Appropriation by City Council
Even though the funding source for an activity may be provided by a
grantor /donor, only City Council can appropriate funds for official City
activities except as authorized by Council Policy F -3 (Budget Adoption and
Administration). Therefore, prior to the acceptance of a grant, the City Manager
and City Council shall:
1. Approve the terms and conditions of the proposed grant including the
specific City obligations that may be created by the grant contract in terms
of required City matching expenditures or staff activities, even if the
expenditures were previously appropriated through the budget adoption process.
1
F -25
2. Approve budget appropriations for the grant expenditures and City
matching expenditures unless previously appropriated through the
budget adoption process.
3. Approve and execute the Grant Contract(s).
Note: The City Council review and approval of items 1 and 3 are not required if
the grant is under $30,000 however, Council expenditure appropriation is
required for all new appropriations in excess of $10,000 or as otherwise specified
by Council Policy F -3.
Any budget amendments requested by the Program Administrator or operating
department shall be reviewed by the Accounting Division of the Administrative
Services Department and submitted as a staff report to the Council for their
review and approval. The Accounting Division of the Administrative Services
Department along with the Program Administrator shall determine the proper
amount of the appropriation request during the current and future fiscal year(s).
C. Timely Reimbursement
The Program Administrator is responsible and should pursue and /or request
grant reimbursements or draw -downs on a timely basis. If requested, the
Accounting Division of the Administrative Services Department will assist with
grant reimbursements or draw - downs. All checks shall be made payable to the
City of Newport Beach and remitted to Program Administrator.
Grant checks should be deposited immediately with the City Treasurer along
with supporting documentation received by the Program Administrator. Copies
should also be forwarded to the Accounting Division of the Administrative
Services Department.
The Program Administrator will keep the Accounting Division of the
Administrative Services apprised of the annual estimated grant revenues and
expenditures and a tentative schedule of cash -flows for the grant program.
2
F -25
D. Financial and Grant Reporting
Grant reporting requirements vary widely by grant and sometimes include
monthly, quarterly, and or annual reporting. Subsequent to the approval of a
grant application, and during the project period, any required reports shall be
the responsibility of the Program Administrator, or if requested by the Program
Administrator, the Accounting Division of the Administrative Services
Department. Program Administrators submitting their own reports shall
forward a copy of each report to the Accounting Division of the Administrative
Services Department.
E. Grants Containing Direct Federal Assistance of Federal "Pass- Through" Funds
Program Administrators acknowledge that Federal Funds or Federal Funds that
"pass- through" state and local programs are required to be reported on the
City's Schedule of Federal Financial Assistance and included in the City's annual
Single Audit (compliance audit of all Federal Funds). Program Administrators
will identify and keep the Accounting Division apprised of those grant programs
that contain direct Federal Funding or Federal pass - through funds identifying
the Catalog of Federal Domestic Assistance (CFDA) number when at all possible.
F. Record Keeping & Retention Requirements
For the purpose of Grantor inquiries and grant specific compliance audits,
Program Administrators are responsible for maintaining adequate records to
evidence that program activities and expenditures met the terms and conditions
of the grant and that all grant reporting requirements were met timely. Record
retention requirements vary by grant but it is recommended that grant records
should be maintained for a minimum of the life -of- the -grant plus three years,
unless otherwise specified by the grant contract.
G. Documents to be forwarded to Accounting:
Information received from a granting or donor agency that is pertinent to the
terms, conditions, approval, extension, denial, revocation, and administration of
a grant shall be forwarded to the Accounting Division of the Administrative
Services Department including but not limited to:
3
Grant Award Notification
Expenditure Authorization Date (if applicable)
Grant Contracts
Grant Extension Letters
Grant Termination Letter
Program and or Financial Reports
Notices of Questioned Costs or instances of non - compliance
Any Document setting or modifying terms and conditions of the grant
Adopted - September 13, 2005
F -25
N
City of Newport Beach NO. BA- 12BA-00,,
BUDGET AMENDMENT
2011 -12
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
Increase Expenditure Appropriations AND
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
X from additional estimated revenues
from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
AMOUNT: $75,000.00
Increase in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
To increase revenue appropriations related to the acceptance of a grant from the Orange County District Attorney's Office for
investigation of real estate fraud crimes. The FY 2011 -12 budget includes funding for the expenditures related to this
grant.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE Amount
Fund Account Description Debit Credit
010 3605 General Fund - Fund Balance $75,000.00
REVENUE ESTIMATES (360 1)
Fund /Division Account
1820 489E
EXPENDITURE APPROPRIATIONS (3603)
Division
Number
Account
Number
Division
Number
Account
Number
Division Number
Account Number
Division Number
Account Number
Signed: J ,
"�� Financial
Signed:
Signed:
Description
Police - OC Real Estate Fraud Award
Description
Administrative Services Director
Approval: City
City Council Approval: City Clerk
$75,000.00
` Automatic
7l)
Date
Date
Date