Contra Costa Herald

News Of By and For The People of Contra Costa County, California

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Innovative freight and transit plan proposed for Port of Oakland

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Renderings source: CyberTran International

Colliers and partners present practical underground solution to ease traffic, reduce emissions and boost regional economy with two West Contra Costa companies

In response to the Port of Oakland Request for Qualifications (RFQ) for use of the Charles P. Howard Property, the global real estate and investment brokerage firm Colliers is spearheading a proposal and negotiations for a joint collaboration between CyberTran International, EarthGrid PBC, UC Berkeley Partners for Advanced Transportation Technology (PATH), the County of Alameda, and the Corporation for Manufacturing Excellence (MANEX) and has submitted a visionary proposal to move freight underground from the Howard Property to an In-Land Port to be established in Tracy, California area.

EarthGrid has developed patented plasma-boring technology that cuts through the hardest rock types exponentially faster than, and at a fraction of the cost of traditional tunnel boring techniques. The plasma boring system cuts through hard rock using a process called spallation, induced by thermal shock on the rock face. CyberTran International, Inc. is the final stage developer for full-scale demonstration and deployment of their Ultra-Light Rail Freight and Transit (ULRF&T) system technology which was originally developed by the US Department of Energy. Their innovative autonomous vehicle transit solution can provide both passenger and goods movement services at a quarter of the cost of a traditional transit system, with half the cost to operate and maintain, while providing on-demand and direct-to-destination travel without having to make stops.

EarthGrid’s groundbreaking plasma-boring technology allows for unprecedented flexibility in tunnel sizes, enabling the co-location of freight, power and fiber in the same reliable, resilient and efficient tunnel. This breakthrough drastically reduces our carbon footprint, taking millions of trucks transporting freight off the road. Together, the two cutting-edge technologies are poised to have a significant impact across multiple industry platforms.

“Yesterday’s transit technologies aren’t serving us well today; Automobiles have evolved, Aviation has evolved, Aerospace has evolved, it’s time for rail to evolve,” says Dexter Vizinau, CEO of Richmond, CA-based CyberTran. “Today’s grid cannot handle the rapidly rising demand for energy, freight transport, fiber, and water. This is an opportunity to evolve our infrastructure through a network of resilient underground tunnels that can efficiently distribute freight, power, water and fiber; all in one utility tunnel built for the 21st century. We must move away from relying on current vulnerable above-ground infrastructure prone to increasingly frequent weather events.”

“Our plasma-boring machines are the solution to our aging, inefficient grid.” says Troy Helming, CEO of Richmond, CA-based EarthGrid.

Renderings source: CyberTran International

Today, trucks are the only way to carry goods to the Tracy and Central Valley regions. Highway 580 is heavily congested with traffic, which also impacts air quality.

“The Port of Oakland has every right to increase cargo throughput. It’s key to maintaining a productive port, but not at the expense of more trucks on the road. My constituents don’t want to see more trucks added to an existing problem and will vehemently oppose it,” said Alameda County Supervisor Nate Miley. “Going underground to move goods and reducing truck traffic appears to be a viable solution and I hope all the Port of Oakland community embrace it and make use of the proposed system!”

“UC Berkeley PATH has been on the cutting edge of autonomous vehicle transportation for over 30 years. Going from vehicles in traffic to rail is a natural fit for the engineering science of PATH. Lately, we’ve been working on analysis and studies. We’re ready to build something and we believe the CyberTran ULRF&T system is it!” according to James Fishelson PATH Director and Lead Researcher. MANEX will be an instrumental factor in the design, planning, and implementation of a factory being proposed at an additional Port of Oakland site. The federally backed organization is well suited to assist in virtually every aspect of the vehicle production process. MANEX has experience with both transit and automobile vehicle manufacturing practices.

Vizinau added, “The Port must consider the needs of their customers during the proposal selection process. These companies want their goods quickly, more efficiently, and at the best possible cost obtainable. They must have a voice in this process!”

CyberTran is committed to having the factory and logistics facilities be Union Shops. Dockside operations will be negotiated with the ILWU, and construction jobs will be negotiated with the Building Trades. The In-Land Port will be a Union facility with which the union is yet to be identified.

The three massive structures being proposed will generate a significant amount of construction and permanent jobs that will add to the East Bay regional economy. The Howard Property proposes to house a 1,000,000 square foot on-dock logistics center, with a Ship to Shore operation where Ships, ULRF&T, Trucks, and possibly Heavy Rail will converge for import and export activity. The operation will result in approximately 1000 construction jobs, and 1500 permanent jobs. The structure is named IMODAL1.

A second property two doors west of the Howard Property called The Roundhouse is being proposed to be CyberTran’s Manufacturing Operations and Maintenance facility, aptly named M.O.M. This facility will birth transit vehicles for a global market. M.O.M. will also maintain the transport system. The 800,000 square foot M.O.M. facility will generate approximately 1000 construction jobs and 1200 permanent jobs.

IMODAL2 is proposed as a property site yet to be determined in the Tracy California area. It will operate as an In-Land Port for both import and export goods movement activities. The 1,000,000 square foot structure will employ 1000 construction jobs and 1500 permanent jobs.

Colliers International is pleased to be spearheading the Public Private Partnership proposal package and is available for questions.

About EarthGrid

EarthGrid, founded in 2016, is a plasma boring technology and infrastructure company specializing in proprietary, groundbreaking plasma tunnel-boring technology that can revolutionize the grid infrastructure in the U.S. Its goal is to create a network of underground tunnels to transmit clean energy, goods, and high-speed broadband across the U.S. In addition to expanding electricity capacity, EarthGrid aims to enhance the safety, security, and reliability of grid infrastructure, housing critical infrastructure underground to avoid the crippling effects of natural disasters. Follow EarthGrid on LinkedIn and YouTube.

(NOTE: The publisher of the Herald has a financial interest in CyberTran International.)

 

CHP highlights new laws for 2025

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Includes reckless driving & sideshow enforcement, electric bicycle safety, autonomous vehicles, retail theft, more

SACRAMENTO – As we head into the new year, the California Highway Patrol (CHP) is highlighting the new public safety laws that were passed during this year’s legislative session and signed by Governor Gavin Newsom. Unless otherwise noted, the laws referenced below take effect on January 1, 2025.

Tools to Address Reckless Driving and Sideshows:

Vehicles: Speed Contests (AB 1978, Sanchez)

Assembly Bill 1978 permits storing a vehicle when an individual is arrested but not taken into custody for obstructing or placing a barricade a highway or off-street parking facility for purposes of aiding a speed contest or exhibition of speed.

Vehicles: Impoundment (AB 2186, Wallis)

Assembly Bill 2186 permits the arrest and custody of individuals engaged in an exhibition of speed in an off-street parking facility. It also permits the impounding of the individual’s vehicle for not more than 30 days.

Vehicles: Sideshows and Street Takeovers (AB 2807, Villapudua)

Assembly Bill 2807 defines a “sideshow” and a “street takeover” as the same type of event.

Vehicles: Removal and Impoundment (AB 3085, Gipson)

Assembly Bill 3085 provides authority to seize and impound a vehicle with a warrant when the vehicle was used in violation of a speed contest or exhibition of speed (including aiding or abetting). This bill also permits electronic service of the notices of impoundment and storage hearings.

Emergency Alert Information Sharing:

Electronic Toll Collection Systems: Information Sharing: Law Enforcement (AB 2645, Lackey)

Assembly Bill 2645 allows transportation agencies operating electronic toll collection systems to share real-time license plate data with law enforcement during active emergency alerts, such as AMBER, Ebony, or Feather Alerts. This legislation eliminates the need for a search warrant in such situations, enabling quicker responses to locate suspect vehicles linked to emergencies, such as child abductions.

Electric Bicycle Safety:

Electric Bicycles, Powered Mobility Devices and Storage (SB 1271, Min)

Beginning January 1, 2026, SB 1271 focuses on improving the safety standards for electric bicycles (e-bikes), powered mobility devices, and related lithium-ion batteries. It requires these devices and their components, such as batteries and charging systems, to be tested by accredited laboratories to meet specific safety standards. The bill also mandates labeling these products to show compliance with safety regulations, ensuring consumers are informed. Furthermore, it prohibits distributing, selling, or leasing e-bikes and related equipment unless they meet these standards, aiming to reduce risks like fire hazards and electrical malfunctions. Beginning January 1, 2028, the bill would prohibit a person from renting or offering for rental an electric bicycle, powered mobility device, charging system, or storage battery unless it has been tested to the specified safety standard.

Vehicles: Electric Bicycles (AB 1774, Gipson)

Assembly Bill 1774 prohibits modifying an electric bicycle’s speed capability to an extent it no longer meets the definition of an electric bicycle.  Also, it prohibits selling a product or device that can modify the speed capability of an electric bicycle to an extent it no longer meets the definition of an electric bicycle.

Vehicles: Electric Bicycles (AB 1778, Connolly)

Assembly Bill 1778 authorizes a local authority within the County of Marin, or the County of Marin in unincorporated areas, to enact an ordinance or resolution prohibiting a person under 16 years of age from operating a class 2 electric bicycle or requiring a person operating a class 2 electric bicycle to wear a helmet.

Vehicles: Electric Bicycles (AB 2234, Boerner)

Assembly Bill 2234 establishes the San Diego Electric Bicycle Safety Program and authorizes a local authority within the County of San Diego, or the County of San Diego in unincorporated areas, to enact an ordinance or resolution prohibiting a person under 12 years of age from operating a class 1 or 2 electric bicycle.

Photo Enforced Speed Enforcement Pilot Program:

The City of Malibu’s Speed Safety System Pilot Program (SB 1297, Allen)

Senate Bill 1297 establishes a five-year Speed Safety System Pilot Program in the City of Malibu. The bill defines a ‘speed safety system’ as a fixed or mobile radar or laser system, or any other electronic device that utilizes automated equipment, to detect a violation of speed laws and obtains a clear photograph of a speeding vehicle’s license plate. The bill establishes mandates regarding policy, enforcement, implementation, public notification, and a system evaluation report.

Clean Air Vehicle Sticker Extension:

Vehicles: High-Occupancy Vehicle Lanes (AB 2678, Wallis)

Assembly Bill 2678 permits vehicles with a Clean Air Vehicle decal to drive in High Occupancy Vehicle (HOV) lanes until January 1, 2027, if federal law permits.

Autonomous Vehicles:

Vehicle Equipment: Driver Monitoring Defeat Devices (SB 1313, Ashby)

Senate Bill 1313 prohibits using, possessing, or selling devices designed to interfere with driver monitoring systems in vehicles equipped with advanced driver assistance systems or autonomous technology. These systems monitor driver alertness and help ensure safety when automated features are used. Violating this law is classified as an infraction. Exceptions are provided for manufacturers testing new technology, vehicle repairs, and updates compliant with safety standards or modifications for disability accommodations. This law aims to enhance road safety by preventing tampering with critical monitoring systems.

Autonomous Vehicles Interactions with First Responders and Traffic Violation Notices – AB 1777 (Ting)

Upon the Department of Motor Vehicles (DMV) adoption of necessary regulations, AB 1777 creates new authority for a law enforcement officer to issue a “notice of autonomous vehicle (AV) noncompliance” to an AV manufacturer for an alleged traffic violation committed by one of their vehicles.  Beginning July 1, 2026, AB 1777 establishes additional requirements for how AVs that operate without a human operator in the vehicle interact with first responders, including a requirement for manufacturers to provide a two-way device in the vehicles to communicate with first responders.

Pedestrian Safety Around Buses:

Transit buses: Yield Right-of-Way Sign (AB 1904, Ward)

Assembly Bill 1904 authorizes a transit agency to equip a transit bus with a “yield” right-of-way sign on the left rear of the bus.  The sign may be a static decal or a flashing light-emitting diode (LED).

License Plate Manipulation:

License Plates: Obstruction or Alteration (AB 2111, Wallis)

Assembly Bill 2111 prohibits any alteration of a license plate’s reflective coating to avoid detection from any entity, not just law enforcement.

Property Theft from a Vehicle:

Crimes: Theft from A Vehicle (SB 905, Wiener)

Senate Bill 905 creates the crime of Unlawful Entry of a Vehicle, which addresses unlawfully entering a vehicle with the intent to commit a theft or any felony. It also adds the crime of Automotive Property Theft for Resale, which addresses possessing stolen property obtained from a vehicle with the intent to sell or exchange the property for value. The property’s value must be over $950.00 and not for personal use. The value of property can be combined within two years of separate acts.

Combating Retail Theft:

Crimes: Organized Theft (SB 982, Wahab)

Senate Bill 982 makes the crime of organized retail theft permanent and strengthens measures to address retail crime. The bill eliminates the expiration date for specific provisions targeting organized retail theft, ensuring long-term tools for law enforcement to combat this issue.

Crimes: Fires (SB 1242, Min)

Senate Bill 1242 amends Penal Code Section 452 regarding the unlawful setting of fires. It updates penalties and legal language to clarify offenses, including circumstances involving organized retail theft.

Sentencing Enhancements: Sale, Exchange, Or Return of Stolen Property (SB 1416 Newman)

Senate Bill 1416 focuses on combating organized retail theft by increasing penalties for those involved in the resale of stolen goods, often referred to as “fencing.” The bill, until January 1, 2030, creates sentencing enhancements for individuals who sell, exchange, or return stolen property for value, particularly when the property exceeds specific thresholds. Punishment increases from one year to four years based on a property value scale ranging from $50,000 to over $3 million.

Theft: Jurisdiction (AB 1779, Irwin)

Assembly Bill 1779 addresses the issue of organized retail theft by streamlining the prosecution process. Specifically, it allows district attorneys to consolidate charges for theft offenses committed across multiple counties into a single trial, provided all affected county district attorneys agree.

Crimes: Organized Theft (AB 1802, Jones-Sawyer)

Assembly Bill 1802 ensures that the crime of organized retail theft remains permanently defined in state law and extends the CHP’s Property Crimes Task Force indefinitely. This bill eliminates the “sunset” clause that would have otherwise allowed the statute and the task force to expire.

Regional Property Crimes Task Force (AB 1972, Alanis)

Assembly Bill 1972 expands the scope of the CHP’s Regional Property Crimes Task Force to include cargo theft as a property crime for consideration and requires the task force to provide logistical and law enforcement support for railroad police.

This bill emphasizes cargo theft as a specific priority and aims to strengthen resources for law enforcement agencies to combat these issues. As an urgency statute, AB 1972 went into effect immediately upon its passage in August 2024 to address these concerns promptly.

Crimes: Shoplifting (AB 2943, Zbur)

Assembly Bill 2943, also called the “California Retail Theft Reduction Act,” strengthens measures to combat organized retail theft by creating a specific crime for serial retail theft, allowing the aggregation of property value for thefts committed within 90 days to qualify as grand theft. It empowers law enforcement to make arrests using video evidence or sworn statements, shields businesses from lawsuits for reporting crimes and promotes rehabilitation through diversion programs for minor offenders. The bill aims to dismantle theft rings while balancing public safety and criminal justice reforms.

Crimes: Theft: Retail Theft Restraining Orders (AB 3209, Berman)

Assembly Bill 3209 creates a retail crime restraining order.  A court may issue a restraining order when sentencing an individual for specific retail theft-related crimes, including vandalism of a retail store and assaulting a retail store employee.  The restraining order prohibits the individual from entering or being on the grounds of the establishment and may include parking lots adjacent to and used by the establishment.

The mission of the CHP is to provide the highest level of Safety, Service, and Security.

City welcomes CenterCal as Streets of Brentwood new owner

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Photos: DK Engineering

Plans to revitalize into “dynamic lifestyle center”; destination will soon welcome new outdoor spaces and first-to-market retailers

By Darin Gale, Brentwood Assistant City Manager

BRENTWOOD, CA – The Streets of Brentwood, located at the intersection of Highway 4 and Sand Creek Road, has transitioned to new ownership. CenterCal Properties, LLC, a prominent developer known for its vibrant retail and entertainment destinations, is now the owner of the center. CenterCal also owns and operates notable properties such as The Veranda in Concord and Bay Street in Emeryville, along with several other lifestyle centers across the western United States.

CenterCal plans to revitalize The Streets of Brentwood, transforming it into a dynamic lifestyle center where visitors can shop, dine, and enjoy entertainment in a welcoming, clean, and vibrant atmosphere. “The Streets of Brentwood will continue to provide safe, healthy, and enjoyable experiences for the more than 400,000 residents of the Delta Region. The City of Brentwood is thrilled to welcome CenterCal to our community and looks forward to partnering on this exciting new chapter for the Streets of Brentwood,” said Tim Ogden, City Manager.

CenterCal Properties is focused on creating thoughtful projects that will ensure a lasting benefit to the communities they serve. Their primary goal is to design gathering places that will strengthen the social fabric of the surrounding neighborhoods, ultimately creating prosperity, happiness and a stronger sense of community.

CenterCal honors the customer by providing the best experience possible, through design, fine restaurants and retailers, and amenities that enhance the surrounding neighborhoods. CenterCal partners with the communities in which they locate, offering visitors many activities, entertainment and events in an atmospheres, which are inviting and fun for years to come.

UPDATE: Later, CenterCal shared offered additional information about their new ownership of the center.

CenterCal Properties, a premier full-service commercial real estate company serving the western U.S., and Heitman, a global real estate investment management firm, today announced the joint acquisition of The Streets of Brentwood shopping center. The transaction underscores both companies’ commitment to enhancing community-oriented shopping centers and fostering vibrant guest experiences as they continue to expand in key markets across the western United States.

The Streets of Brentwood, a top-tier shopping destination located in Brentwood, Calif., features a dynamic and convenient mix of retail, dining, and entertainment. CenterCal Properties and Heitman plan to collectively reimagine and enhance the center’s offerings that make it a premier lifestyle destination, further solidifying its status as a cornerstone of the community. While a range of entertainment and shopping experiences are currently available, exciting additions are on the horizon, including a new community gathering space for hosting seasonal events and more renowned lifestyle brands and restaurants.

“The Streets of Brentwood is an important addition to our portfolio of premier, mixed-use properties,” said Jean Paul Wardy, CEO of CenterCal Properties. “We are committed to creating spaces that not only serve as shopping destinations but as community hubs where people can gather, relax, and enjoy a variety of experiences. We look forward to working closely with our retail partners and the Brentwood community to continue to elevate this vibrant center.”

Gordon Black, Portfolio Manager at Heitman adds, “Open-air lifestyle centers have demonstrated strong operating fundamentals post the COVID-19 pandemic. These fundamentals are further benefitting from minimal new supply and sustained demand from retailers, a trend we believe will continue. We believe this property has features that are critical to success, including partnership with an established regional operator and trade area demographics that are supportive of demand.”

The Streets of Brentwood serves four major California regions—Bay area, Tri-Valley, Sacramento Delta, and the Central Valley—with 358,700 square-feet of retail and mixed-use space.

About CenterCal Properties

CenterCal Properties LLC, a premier full-service commercial real estate company founded in 2004, is redefining the landscape of the western U.S. With a focus on community-building, the company creates spaces that foster connection, enjoyment, and a sense of belonging. Under the visionary leadership of Founder and CEO Jean Paul Wardy, CenterCal Properties has become synonymous with excellence and innovation, boasting a portfolio of iconic destinations across California, Idaho, Oregon, Utah and Washington. Rooted in core values that include creative persistence, high standards, resourcefulness, delivering today, and unwavering integrity, CenterCal Properties specializes in the investment, development, leasing and management of high-quality retail and mixed-use development from its headquarters in El Segundo, California. More information, including a full property portfolio, is available at www.centercal.com.

 About Heitman

Heitman is a global real estate investment management firm with nearly $50 billion in assets under management as of June 30, 2024. Founded in 1966 and headquartered in Chicago, Heitman has 10 offices worldwide and is an active participant in the global real estate property and capital markets. Heitman makes real estate investments through private equity, debt, and publicly traded real estate securities.

Hannah Castle of FINN Partners contributed to this report.

EarthGrid announces $18B funding to deploy U.S. underground utility projects

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EarthGrid’s 2-Torch Plasma-Boring System Operating on Limestone. Source: EarthGrid

Groundbreaking joint venture with Kuwait-based EnerTech will use Point Richmond company’s plasma boring technology

Enables critical infrastructure improvements, increased grid capacity and resiliency to meet rising clean power demands

POINT RICHMOND, Calif./PRNewswire/ — EarthGrid, a Bay-area plasma tunnel-boring technology and infrastructure development company, announced Tuesday, Sept. 17, 2024, that it has signed a joint venture agreement with EnerTech, a Kuwait Investment Authority (KIA) entity, to deploy infrastructure projects in four phases across the United States, Europe and the Middle East.

https://earthgrid.io/

The first two phases consist of, in estimate, $18 billion in U.S. infrastructure improvement projects. Utilizing EarthGrid’s patented plasma-powered machines, this joint venture will develop a network of underground tunnels designed to upgrade the current power grid and fiber networks with reliability, efficiency, and resiliency while accelerating the clean power transition.

To meet the U.S. goal of reaching net-zero economy-wide greenhouse gas emissions by 2050, more than a million miles of new transmission will be required over the span of three decades. Compounding this challenge is that more than 70% of current transmission lines are over 25 years old, aged over half their 50-year expected lifetime. Through this joint venture, EarthGrid will enable more than 100 gigawatts of new renewable energy to be added to the U.S. grid while also solving grid congestion in strategic locations.

“On average, it takes 10 to 20 years to develop, permit, and build new overhead transmission lines, making it evident that an alternative approach is critical to meet the needs of U.S. environmental goals,” said Troy Helming, EarthGrid founder and CEO. “Through our joint venture with EnerTech, a cleantech and infrastructure developer, we are proud to support the much-needed evolution of the U.S. power grid, enabling clean energy and improving core infrastructure development.”

While overhead transmission lines are time-consuming to complete, traditional undergrounding is also slow, more costly than overhead lines, and performs poorly against hard rock, which can, in turn, result in abandoned or very delayed projects. EarthGrid’s plasma-boring technology and proprietary approach significantly reduces the time and costs of undergrounding methods without harmful chemicals, primarily powered by clean energy.

EarthGrid’s cleantech undergrounding approach aligns with EnerTech’s goals to deploy breakthrough technology globally, with projects initiated first in the U.S., and subsequently, in Europe and the Middle East, to accelerate the deployment of clean energy options worldwide. “We are thrilled to announce this partnership with EarthGrid to deploy what we believe is the fastest and most cost-efficient tunnel boring technology by far to improve core infrastructure,” said Abdullah Al Mutairi, EnerTech CEO.

As a registered telecommunications utility in 46 states (CPCN), EarthGrid offers its customers and partners preferred access to rights of way alongside public roadways to expedite underground fiber projects. EarthGrid intends to secure permits, as needed, to add additional infrastructure to its tunnels and trenches, including power, water, and robotic freight tubes.

Ultimately, this joint venture’s project pipeline will be deployed in collaboration with an ecosystem of key capital, strategic and government stakeholders globally, including utilities, data centers, and clean energy companies.

EarthGrid was represented by a U.S law firm, Glaser Weil, with Jeff Joyner, senior partner of the firm, playing a key role in executing the deal through his extensive experience in sustainable solutions.

About EarthGrid

EarthGrid, founded in 2016, is a plasma boring technology and infrastructure company specializing in proprietary, groundbreaking plasma tunnel-boring technology that can revolutionize the grid infrastructure in the U.S. Its goal is to create a network of underground tunnels to transmit clean energy and high-speed broadband across the U.S. In addition to expanding electricity capacity, EarthGrid aims to enhance the safety, security, and reliability of grid infrastructure, housing critical infrastructure underground to avoid the crippling effects of natural disasters. Follow EarthGrid on LinkedIn and YouTube.

About EnerTech

Established in 2012, EnerTech’s mission is to initiate its own development projects and participate in projects within the energy, clean technology, recycling, water, waste management, and renewable energy sectors. EnerTech is a Kuwait-based state-owned entity with full ultimate ownership by Kuwait Investment Authority (KIA), currently one of the world’s oldest and largest sovereign wealth funds.

Media Contact: [email protected]

Pleasant Hill man charged in San Francisco tow company insurance fraud case

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Jaime Respicio, operator Jose Badillo and two other co-defendants accused of submitting fraudulent auto insurance claims for multiple vehicles

By U.S. Attorney’s Office, Northern District of California

SAN FRANCISCO – Jose Vicente Badillo, Kirill Afanasyev, Jason Naraja, and Jaime Respicio have been charged in an indictment with various crimes related to two schemes to defraud auto insurance companies, announced United States Attorney Ismail J. Ramsey; FBI Special Agent in Charge Robert K. Tripp; and IRS Criminal Investigation (IRS-CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The case has been assigned to the Hon. James Donato, United States District Judge.

According to an indictment returned by a federal grand jury on August 20, 2024, Afanasyev, 36, Badillo, 28, both of San Francisco, and Respicio, 38, of Pleasant Hill, California, conspired to defraud an auto insurance company by submitting a fraudulent insurance claim on a wrecked car that Afanasyev purchased in May 2019. The Indictment alleges that, when Afanasyev bought the car, it was undrivable, with significant front-end damage. Nevertheless, the Indictment says, Respicio obtained an insurance policy on, and later took title to, the car before Afanasyev, posing as Respicio, falsely reported to the insurance company in August 2019 that Respicio had been in a single-car accident in it in San Francisco. The Indictment further alleges that Afanasyev made materially false statements and misrepresentations to the insurance company, after which the insurance company processed and approved the claim and sent Respicio an insurance reimbursement check for $47,856.34. The Indictment alleges that Badillo participated in this scheme to defraud by agreeing to falsely document that his towing company had towed the wrecked car from the purported accident location.

The Indictment alleges that Afanasyev, Badillo, and Naraja, 37, of Hayward, California, engaged in a second conspiracy and scheme to defraud another insurance company by submitting a fraudulent insurance claim regarding an accident involving multiple vehicles that had been staged by Badillo in San Mateo County. Specifically, the Indictment alleges that Badillo and Afanasyev planned the staged accident in which Badillo loaded a vehicle carrier with four vehicles (several of which were inoperable or had pre-existing damage) and purposefully drove them off the road on Guadalupe Canyon Parkway in San Mateo County in August 2019. The Indictment alleges that, after Badillo reported this “accident” to his insurance company, Badillo, Afanasyev, Naraja, and another individual all made false or misleading statements to an insurance company representative. The Indictment alleges that the insurance company ultimately denied Badillo’s claim as fraudulent but nevertheless paid one of Badillo’s towing companies $5,210 for its recovery, towing, and storage of vehicles involved in the staged accident.

The Indictment also alleges that, at the time of the offenses in 2019, Badillo owned and/or controlled at least two companies engaged in the business of towing vehicles: Jose’s Towing, LLC, and Auto Towing, LLC, both of which operated out of San Francisco.

In the first conspiracy and scheme to defraud, Afanasyev, Badillo, and Respicio are charged with one count each of (i) conspiracy to commit mail fraud and wire fraud, in violation of 18 U.S.C. § 1349; (ii) mail fraud, in violation of 18 U.S.C. §§ 1341 and 2; and (iii) wire fraud, in violation of 18 U.S.C. §§ 1343 and 2. Afanasyev and Respicio are also charged with one count of money laundering, in violation of 18 U.S.C. §§ 1957 and 2.

In the second conspiracy and scheme to defraud, Afanasyev, Badillo, and Naraja are charged with (i) one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and (ii) four counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2.

Naraja and Respicio were arrested in Hayward and Pleasant Hill, respectively, on August 27, 2024, and released on $50,000 bonds at their initial appearances on August 28, 2024. Naraja is next scheduled to appear in court on August 29, 2024, at 10:30 a.m., before the Hon. Lisa J. Cisneros for arraignment and identification of counsel. Respicio is next scheduled to appear in court on September 5, 2024, at 10:30 a.m., before the Hon. Alex G. Tse for arraignment and identification of counsel. Badillo was previously arrested and made his initial appearance in another insurance fraud case on August 8, 2024. He is scheduled to appear before the Hon. Lisa J. Cisneros for arraignment and identification of counsel in both cases on August 30, 2024, at 10:30 a.m. Afanasyev’s initial appearance and arraignment has been scheduled for September 9, 2024, at 10:30 a.m. before the Hon. Alex G. Tse.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Afanasyev, Badillo, and Respicio each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 1 through 3, which charge mail fraud, wire fraud, and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1341, 1343, 1349, and 2. Afanasyev and Respicio face a maximum sentence of 10 years in prison, and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, whichever is greater, plus restitution, if appropriate, on Count 4, which charges money laundering, in violation of 18 U.S.C. §§ 1957 and 2. Similarly, Afanasyev, Badillo, and Naraja each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 5 through 9, which charge wire fraud and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1343, 1349, and 2. The court also may order an additional term of supervised release to begin after any prison term as part of the sentence for any or all of the defendants. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Assistant U.S. Attorneys Kyle F. Waldinger and Galen A. Phillips are prosecuting the case with the assistance of Amala James and Carolyn Jusay Caparas. The prosecution is the result of a lengthy investigation by the FBI and IRS-CI. The U.S. Attorney’s Office, the FBI, and IRS-CI appreciate the assistance and support of the San Francisco Police Department in this insurance fraud investigation.

 

 

$450,000 in stolen retail items recovered in CHP operation

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Crates and bags of stolen items recovered during the operation. Photos: CHP – Golden Gate

ID more suspects believed to be involved in illicit fencing operation; San Ramon Police assist

By Sergeant Andrew Barcley, CHP – Golden Gate

OAKLAND, Calif. – Investigators assigned to the California Highway Patrol’s (CHP) Golden Gate Division Organized Retail Crime Taskforce (ORCTF) recovered over $450,000 in stolen merchandise from an Oakland residence following a month-long investigation.

In July 2024, ORCTF investigators launched an investigation into a criminal network involved in a string of retail thefts targeting various retailers throughout the Bay Area.  Through surveillance operations, investigators identified suspects believed to be involved in an illicit fencing operation based in Oakland.  With the information gathered, investigators obtained search warrants for a home and multiple vehicles located in Oakland.

On Thursday, August 15, ORCTF investigators, along with San Ramon Police Department personnel, successfully executed the warrants at the Oakland residence.  During the search of the home and the two vehicles, investigators located a large amount of stolen merchandise, which was seized and transported to a facility for documenting.  During the search, investigators learned that the suspect was currently leasing a storage facility in Oakland, leading to the issuance of an additional search warrant.  The storage facility was searched, and additional stolen merchandise was located inside.  Retail industry partners involved in the operation valued the recovered merchandise, consisting mainly of items found at drug stores, from all locations at over $450,000.

Investigators arrested 35-year-old Claudia Cruz of Oakland for her involvement in the fencing operation.  Cruz was booked into Alameda County Jail on charges of organized retail crime, possession of stolen property, and conspiracy to commit a crime.

On Aug. 23, San Ramon Police Chief Denton Carlson wrote in a post on X (formerly Twitter), “I am very proud of the investigative work the San Ramon Police Organized Retail Theft Suppression Team put into this operation in coordination with CHP-Golden Gate. They have formed an outstanding partnership!”

According to localcrimenews.com, a woman whose full name is Claudia Ivet Cruz Barragan, was arrested the same day for the same crimes, is Hispanic, five-feet inches tall and weighs 150 pounds. However, the website shows her age as 40. According to an August 2023 CBS News Bay Area report, a 31-year-old woman named Daniela Cruz Barragan was arrested with another woman for theft of $85,000 in stolen retail goods. The CHP PIO was asked to determine if she is related to Claudia Cruz and if Claudia’s correct age is 35 or 40. He was also asked if some of the stolen items were from retailers in San Ramon. Please check back later for any updates to this report.

The mission of the California Highway Patrol is to provide the highest level of Safety, Service, and Security.

Allen D. Payton contributed to this report.

Assemblywoman Wicks announces agreement with governor, big tech claiming to support work of CA journalists who oppose it, using private and taxpayer funds

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Instead of passing bill she carried – See UPDATE with details of “Deal Framework”

But CA journalists “oppose this disastrous deal”

“The future of journalism should not be decided in backroom deals…Not a single organization representing journalists and news workers agreed to this undemocratic and secretive deal with one of the businesses destroying our industry.” – Media Guild of the West

Senator Glazer who has his own bill on the matter opposes deal says it, “seriously undercuts our work toward a long term solution to rescue independent journalism” and doesn’t include Meta (Facebook, Instagram) and Amazon

By Allen D. Payton

Assemblymember Buffy Wicks (D-15, Oakland)

SACRAMENTO – On Wednesday, August 21, 2024, Assemblymember Buffy Wicks (D-AD15, Oakland) announced the establishment of a first-in-the-nation partnership with the State, news publishers, major tech companies and philanthropy, unveiling a pair of multi-year initiatives to provide ongoing financial support to newsrooms across California and launch a National AI Accelerator.

Together, these new partnerships will provide nearly $250 million in public and private funding over the next five years, with the majority of funding going to newsrooms. The goal is to front-load $100 million in the first year to kick-start the efforts. The total investment could increase over the next several years if additional funding from private or state sources becomes available.

“This agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California — leveraging substantial tech industry resources without imposing new taxes on Californians,” said Governor Gavin Newsom. “The deal not only provides funding to support hundreds of new journalists but helps rebuild a robust and dynamic California press corps for years to come, reinforcing the vital role of journalism in our democracy.”

Assemblymember Wicks, who represents portions of Western Contra Costa County, authored AB 886 to help ensure the sustainability of local journalism, as news outlets across the country are downsizing and closing at alarming rates. A Northwestern University study published last year found an average of two and a half newspapers in the United States close every week, and that our nation has lost two-thirds of its newspaper journalists since 2005. California has lost more than 100 newspapers in the last decade alone.

The new suite of initiatives includes multi-faceted support for publishers across California to address challenges that have impacted the depth and breadth of news coverage in the state. They will help ensure the sustainability of existing and new online publications – with an emphasis on small, local outlets and community-facing journalism.

“As technology and innovation advance, it is critical that California continues to champion the vital role of journalism in our democracy,” said Wicks. “This partnership represents a cross-sector commitment to supporting a free and vibrant press, empowering local news outlets up and down the state to continue in their essential work. This is just the beginning. I remain committed to finding even more ways to support journalism in our state for years to come.”

California news publishers will be the beneficiaries of a News Transformation Fund, to be administered by the UC Berkeley School of Journalism, providing financial resources that preserve and expand California-based journalism. The funding will include contributions from technology platforms and the State of California, supporting innovative new investments that promote local journalism. The funding will support California-based state and local news organizations, particularly those serving California local news deserts, underserved and underrepresented communities, and outlets that prioritize California coverage.

“The University of California is proud to partner with Governor Newsom and legislative leaders to bolster the critical work of local news organizations and journalists in California,” said UC President Michael V. Drake, M.D. “Californians depend on robust local and diverse news organizations to stay informed about their communities, and the University and specifically the UC Berkeley School of Journalism stand ready to support this endeavor.”

Funding for the initiative would be complemented by direct support from the State, helping news organizations keep and grow newsroom staff and offsetting the costs of producing local news and information.

“A vibrant press is crucial for strong communities and a healthy democracy. This is a first step toward what we hope will become a comprehensive program to sustain local news in the long term, and we will push to see it grow in future years,” said California News Publishers Association CEO Chuck Champion and Board Chair Julie Makinen. “We will work with the state and tech companies to make the most of this initiative. We’re grateful to Assemblymember Wicks for her passionate advocacy on behalf of our 700-plus member newsrooms.”

Partners in this initiative also reiterated their strong commitment to strengthening newsroom and ownership diversity for ethnic and underserved communities. The Governor also announced his support for AB 1511 (Santiago), which aims to increase the state’s ongoing commitment to place official marketing, advertising and/or outreach advertising with local and underrepresented media outlets.

“Ethnic and community media outlets in California have a long history of serving as trusted messengers of culturally responsive news to historically underrepresented and underserved communities,” said Assemblymember Miguel Santiago. “These initiatives ensure that California is embracing private sector innovation while developing partnerships with and seeding investments from the public sector to empower local publishers and journalists that are vital to a healthy, thriving democracy.”

Additionally, researchers and businesses will have access to new resources to explore the use of AI to tackle some of the most complex challenges facing society, and strengthen the workforce through a new National AI Innovation Accelerator. This will be administered in collaboration with a private nonprofit, and will provide organizations across industries and communities — from journalism, to the environment, to racial equity and beyond — with financial resources and other support to experiment with AI to assist them in their work. The AI accelerator will empower organizations with the new technology, and complement the work of the Journalism Fund by creating new tools to help journalists access and analyze public information.

“We appreciate the thoughtful leadership of Governor Newsom, Assemblymember Wicks, Chair Umberg, and Senator Glazer on these issues,” said Kent Walker, President of Global Affairs and Chief Legal Officer for Alphabet (Google’s parent company). “California lawmakers have worked with the tech and news sectors to develop a collaborative framework to accelerate AI innovation and support local and national businesses and non-profit organizations. This public-private partnership builds on our long history of working with journalism and the local news ecosystem in our home state, while developing a national center of excellence on AI policy.”

“A strong press is a key pillar of democracy, and we’re proud to be part of this partnership to utilize AI in support of local journalism across California,” said Jason Kwon, Chief Strategy Officer for OpenAI. “This initiative builds on our longstanding work to help newsrooms and journalists around the world leverage AI to improve workflows, better connect users to quality content, and help news organizations shape the future of this emerging technology.”

Work will begin immediately to stand up both initiatives, which will go live in 2025. Included below is a range of quotes from additional supporters.

What others are saying:

“The work of local independent publishers is essential to a well-functioning democracy, and this new public-private partnership provides immediate and needed relief. Lawmakers should be proud of this program, which builds on California’s innovative Local News Fellowship with millions of new dollars in a way that prioritizes small publishers and those serving underrepresented groups.” – Chris Krewson, Executive Director of Local Independent Online News (LION) Publishers, a national nonprofit with 76 of its 600 publisher members in California

“The new public-private partnership provides a pioneering, ambitious program that will offer significant help to local newsrooms that give Californians the information they need to participate in a healthy democracy. It’s encouraging that lawmakers and tech platforms found a way to work together to forge an innovative solution that can be a model for other states.” – Lance Knobel, CEO of Cityside Journalism Initiative, the nonprofit behind Richmondside, Oaklandside and Berkeleyside

“California is leading the way with this first-in-the-nation investment to protect the press and sustain quality journalism. This fund will help news outlets and journalists adapt to a changing landscape with new tools and funding to embrace emerging technologies. This is especially helpful for ethnic and community media which is comprised largely of under-resourced family businesses whose strongest connections are to their community.” – Regina Wilson, Executive Director, California Black Media

“California is home to the largest concentration of multilingual news outlets serving immigrant and ethnic communities in the US. This breakthrough public private partnership to support local journalism brings welcome recognition of the ethnic media sector’s indispensable role in connecting these diverse communities to each other and to the wider public realm.” – Sandy Close, Director of Ethnic Media Services (EMS), a California-based nonprofit which works with 2000 ethnic news outlets nationwide, including over 300 in California

“It represents an equity-media model for the nation,” added Julian Do, EMS Co-Director

“Protecting and rebuilding California’s robust media ecosystem and ensuring it serves immigrants, Latinos and communities of color equally requires an important role for philanthropy, our tech and private sector, and yes, California’s State Government. We see this historic agreement as just the first major step where the State of California can lead the way in building a sustainable media ecosystem for the most diverse state in the Union.” – Arturo Carmona, President of the Latino Media Collaborative

“This is a win for all Californians. Disinformation flourishes when quality journalism disappears. This critical funding will help local publishers survive and keep their communities informed and engaged.” – Neil Chase, CEO of CalMatters and former editor of The Mercury News and East Bay Times

“The revival of a strong, independent community-minded local press is vital for California. All things considered, this agreement both injects new money into doing that and helps spur the innovation, tech and otherwise, required at this moment. As a companion to the California Local News Fellowship, it’s another brick in the rebuilding of California journalism.” – Ken Doctor, Newsonomics news analyst and Lookout Local founder and CEO

“Supporting local news and journalism is vital to enabling a fully informed and engaged community. We are very pleased to see California as a leader in building this public-private partnership that will substantially impact local journalism and essential news coverage in communities throughout California. This vital funding will support our local news and will enable an expansion of our initiative to add to the depth of our bilingual coverage and journalists in Napa Valley – where 40% of the population is Latino.” – Marc Hand, CEO and Board Chair of Highway 29 Media, a publisher of newspapers serving communities in Napa Valley

California Journalists’ Guild Opposes Deal, Calls it a “Shakedown”

In addition, the Media Guild of the West, which represents journalists and had supported Wicks’ bill, issued a statement on Wednesday opposing the deal entitled, “California’s journalists do not consent to this shakedown.”

The guild’s representatives and signatories to the statement (see below) wrote, “This afternoon, Google, California Assemblymember Buffy Wicks, California Governor Gavin Newsom and many of California’s publishing lobbies announced ‘a first-in-the-nation partnership with the State, news publishers, major tech companies and philanthropy, unveiling a pair of multi-year initiatives to provide ongoing financial support to newsrooms across California and launch a National AI Accelerator.’

After two years of advocacy for strong antimonopoly action to start turning around the decline of local newsrooms, we are left almost without words. The publishers who claim to represent our industry are celebrating an opaque deal involving taxpayer funds, a vague AI accelerator project that could very well destroy journalism jobs, and minimal financial commitments from Google to return the wealth this monopoly has stolen from our newsrooms.

Not a single organization representing journalists and news workers agreed to this undemocratic and secretive deal with one of the businesses destroying our industry. Moments ago, the following opposition letter was filed with the California legislature:

We represent journalists and news workers who provide essential news for millions of Californians in print, digital, broadcast, commercial and nonprofit newsrooms.

The future of journalism should not be decided in backroom deals. The Legislature embarked on an effort to regulate monopolies and failed terribly. Now we question whether the state has done more harm than good.

California’s journalists and news workers OPPOSE this disastrous deal with Google and condemn the news executives who consented to it in our names.

Signed,

Matt Pearce, President, Media Guild of the West, The NewsGuild-CWA Local 39213
Jon Schleuss, President, The NewsGuild-CWA
Annie Sciacca, President, Pacific Media Workers Guild, The NewsGuild-CWA Local 39521
Carrie Biggs-Adams, President, NABET-CWA Local 51
Javad Ayala, President, NABET-CWA Local 53
Kevin Gallo, Regional Vice President 5, NABET-CWA
Frank Arce, Vice President, Communications Workers of America District 9

Glazer Also Opposes Agreement, Calls it “Inadequate”

State Senator Steve Glazer (D-SD7, Orinda)

State Senator Steve Glazer (D-SD7, Orinda), who represents most of Contra Costa County and has his own bill on the matter, SB911, also does not support the deal and on Wednesday issued the following “Statement on Wicks-Google Agreement”:

“Despite the good intentions of the parties involved, this proposal does not provide sufficient resources to bring independent news gathering in California out of its death spiral.

Google’s offer is completely inadequate and massively short of matching their settlement agreement in Canada, in supporting on-the-ground local news reporting.

Democracies live and die based on the free exchange of information and oversight between government and its people. Autocracies and dictatorships thrive when that information is constrained or manipulated.

The hollowing out of independent news gathering and the monopoly power of these digital platforms is an existential threat to our democratic republic.

This agreement, unfortunately, seriously undercuts our work toward a long term solution to rescue independent journalism

There is a stark absence in this announcement of any support for journalism from Meta (parent company of Facebook and Instagram) and Amazon. These platforms have captured the intimate data from Californians without paying for it. Their use of that data in advertising is the harm to news outlets that this agreement should mitigate.”

Questions for Wicks About the Agreement and Initiatives Go Unanswered

Questions were emailed Wednesday night to Wicks’ Director of Communications, Erin Ivie, asking, “Do you email out press releases to media that cover her district? Was there a press conference held announcing the agreement?”

Other local media publishers in Contra Costa County didn’t receive the press release about the agreement nor an invitation to any press conference at which it was announced, either.

She was also asked the following:

“Why didn’t she reach out to the local media that cover her district for our input like Congressman Mark DeSaulnier did for his legislation?

Which news publishers, major tech companies and philanthropy are party to the agreement?

Can you ease provide copies of the two initiatives mentioned in the press release or the link to where they can be found?

What are the definitions of ‘newsroom’, ‘local journalist’ and ‘local news outlets’ mentioned in the press release, including in a quote by the Assemblywoman?

Which newsrooms will qualify for the funds? Who will determine which newsrooms will receive the funds and how much they will receive?

Will the funds be provided directly from the tech companies and philanthropy to the newsrooms, or will they be funneled through a state government agency? Will there be an application process and to whom will the applications be submitted?”

Finally, Ivie was asked, “Who will be working on both initiatives? How does a local news publisher get involved in the process?”

UPDATE: Wicks’ Staff Provides Details of Deal

In response, Ivie provided the “Deal Framework, Measures to support democracy, journalism and AI innovation” (see below). In addition, she provided answers to the Herald’s questions:

“Eligible for the funding are nonprofit and for-profit news organizations who have been around for at least two years. The funding is awarded by headcount, overseen by a diverse board (outlined further down).

The one exception is commercial broadcasters, who were carved out of the agreement because they continue to generate healthy profits from advertising dollars.

The funds will be distributed by the UC Berkeley School of Journalism, by an approved claims administrator who typically handles complex distributions of class action settlements. Details of the application process are forthcoming, but in the meantime, anyone interested can contact our office to get on a list to receive those details.

The state is currently committed to providing a minimum of $70M over 5 years, and that commitment is limited to the journalism fund only. Google has committed to $110M minimum over the same time frame, plus $62.5M for their AI accelerator.

That means that taxpayer funds could be used to support the journalism fund, but not the work of the AI accelerator. It will not require legislation to be passed, but it will require a budget allocation (in January), which the Governor has already committed to.

Our office, Google, the UC Berkeley School of Journalism, plus a seven-member governing board. That board will consist of two CNPA members, one member from Ethnic Media Services, one from Local Independent Online News (LION), one from Latino Media Collaborative, one from California Black Media, and one from Media Guild of the West.

Any local news publisher who wants to get involved can email our office and be brought into the fold. If you’re interested, please email our Legislative Director Zak Castillo-Krings at [email protected].

The agreement was made in lieu of AB 886, and the bill will no longer move forward.”

Deal Framework

Measures to support democracy, journalism and AI innovation

  1. Summary: Creation of first-in-the-nation partnerships that will provide nearly $250 million in public and private funding over the next five years, with the majority of going to support newsrooms. The goal is to front-load $100 million in the first year to kickstart the efforts. Total investment could increase over the next several years if additional funding from private or state sources becomes available.
  2. State Contribution: 30mm in year one. 10mm in each of the next four years (years 2-5). All money will be contributed to a new fund established at UC Berkeley School for Journalism.
  3. Google Commitment to Journalism, up to 30mm a year, as follows:
  4. Year one:

$15mm to the Journalism Fund

$5mm to AI fund accelerator

$10mm in funding for existing journalism programs

  1. Years 2-5: Google continues its contribution to Journalism Fund at 10mm minimum. Google maintains 10mm in funding for existing journalism programs
  2. National AI Accelerator
  3. Managed by as-yet-to-be finalized non-profit organization, under terms to be

defined by funders

  1. Google commitment of additional 10mm to Accelerator
  2. Google commitment of additional 2.5mm to fund AI research
  3. Additional contributions from other tech companies
  4. UC School of Journalism non-profit public charity
  5. Administration costs are not to exceed a customary overhead
  6. Purpose is to bolster UC’s efforts to support and catalyze local news

throughout the state

  1. Overseen by a 7-member governing board:
  2. CNPA member
  3. CNPA member

iii. Ethnic Media Services

  1. Local Independent Online News
  2. Latino Media Collaborative
  3. California Black Media

vii. Media Guild of the West

  1. Funds allocated by board to be distributed by claims administrator
  2. 12% of funding reserved for locally focused publications and publications targeting underrepresented groups
  3. The function of the board will be to validate the distribution formula based on the number of journalists per publication. Funds to be distributed to eligible organizations by dividing the number of eligible journalism positions or

freelancers of each organization by the total number of overall eligible positions multiplied by the total eligible amount in the fund consistent with the current language of AB886. The board will have no other discretion relative o the distribution of funds.

  1. The definition of a journalist does not include broadcasters
  2. Additional State Support:
  3. California will work with its departments on plans to prioritize state government advertising in local publications and publications in underserved markets, with the goal of redirecting millions in advertising dollars.

Erin Ivie, Director of Communications, Office of Assemblymember Buffy Wicks and Steven Harmon, Communications Director for the Office of State Senator Steve Glazer contributed to this report.

Civil rights lawsuit filed against City of Antioch, Antioch Police, Contra Costa Child Protective Services claims neglect led to 2022 toddler’s beating death

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CONTENT WARNING: Information included may be disturbing to some individuals

Antioch childcare facility, Pittsburg pediatrician also named

Attorney says agencies “utterly failed in their duties” to protect 18-month-old girl abused by parents also named in suit

San Francisco, August 20, 2024 — A federal civil rights lawsuit was filed in the beating death of an 18-month-old child in Antioch, alleging that a litany of individuals and agencies charged with protecting the tiny girl utterly failed in their duties and led directly to her death as the result of trauma inflicted by her biological parents.

The case, filed last week in Federal District Court on behalf of the two older siblings of the toddler, names the following defendants as negligently responsible for her horrific death: the City of Antioch, Antioch Police Department, Contra Costa Child Protective Services, Contra Costa County Regional Health Foundation, and a childcare facility, The Learning Center (actually named, The Learning Experience – see below), as well as the toddler’s biological parents, Jessika Fulcher and Worren Young, Sr.

The child was removed from her parent’s custody within weeks of her birth in February 2021 because she was in danger of neglect and abuse. Yet, over the next 16 months, the very people and institutions who were supposed to protect the toddler and her siblings failed to report obvious signs of abuse and/or failed to take action to prevent further trauma to the girl.

The child died August 26, 2022, from trauma so severe that it severed her pancreas and caused bleeding in her brain, according to doctors and the lawsuit.

The lawsuit seeks unspecified monetary damages, including punitive damages against the agencies and individuals named as responsible in the legal action.

“This child–who was still learning to walk–was brutally tortured and died a horrific death, all because the entire system that was supposed to protect her failed this innocent 18-month-old child,” said Brett Schreiber, attorney for the plaintiffs and partner at Singleton Schreiber law firm. “While her parents committed the physical abuse that killed her, their abuse was entirely enabled and abetted by social workers, police, hospitals and day care centers who should have stopped them.”

A juvenile court judge removed the toddler from the custody of her parents in March 2021, shortly after her birth.  When the child was born, both she and her mother had methamphetamines in their systems. In addition, both parents had outstanding warrants in Georgia. The children were placed in foster care.

Within weeks of the judge’s decision, however, Contra Costa County Child Protective Services (CPS) began a process intended to lead to reuniting the children with the parents, beginning with a “case plan” requiring close supervision of the parents. The case plan required the parents to submit to regular drug testing. The suit alleges that they missed half these mandated tests and failed many that they took.

A doctor at Pittsburg Health Center further noted injuries on the toddler, but neither the doctor nor the hospital notified CPS, and CPS never requested the hospital’s records.

Nonetheless, CPS soon allowed overnight visitations for the children with the parents, and by September 2021 enabled the parents to regain custody by concealing these and other facts from the judge.

The toddler returned to a household in turmoil, with Antioch police visiting the home at least three times in 2022. Yet the children remained in the home and no referral to CPS was made, even though the father was finally arrested for domestic violence and battery. The child’s daycare center, The Learning Center in Antioch, also alerted the mother regarding significant bruising on the toddler yet failed to make a mandated referral to CPS.

On August 25, 2022, Antioch Police Department officers and paramedics were called to the child’s home by her mother who reported that the girl was having trouble breathing. The girl was rushed to the hospital where doctors discovered she was the victim of severe, intentional injuries.

Her parents left the hospital during the night saying they were going out to smoke, but never returned. The girl died the following morning; a juvenile court hearing in April 2023 concluded that one or both parents were responsible for the fatal injuries.

“This was a complete dereliction of duty that resulted in the death of one young child and the lifelong loss and trauma for two others,” Schreiber said. “On behalf of those siblings, we are asking the court not only to compensate them for the life-long emotional scarring they will suffer, but also to punish those who failed to prevent this horrible tragedy so that it never happens again.”

Antioch City Attorney Thomas L. Smith and Interim Antioch Police Chief Brian Addington were asked on Tuesday afternoon if they had any comment about the lawsuit. Addington was also asked if lawsuits naming the police department are received by the chief or if they are handled by the city attorney’s office. Neither responded by publication time Wednesday evening.

Asked if the County had any comment on the lawsuit, Tish Gallegos, Community Relations and Media for the Contra Costa County Employment & Human Services Department responded, “The County has not been served with the lawsuit, therefore has no comment at this time.”

Asked whom at the County was served with the lawsuit, Sam Singer, of Singer Associates Public Relations representing Singleton Schreiber said, “I know the lawsuit was filed but it may not have been served, yet.”

The press release shows the case is O.Y., W.Y., and A.Y. v. County of Contra Costa, City of Antioch, Jessika Fulcher, Worren Young, Sr., Colleen Sullivan, Flynne Lewis, Contra Costa Regional Health Foundation, The Learning Center, Raji Ponnaluri, and Does 1 through 50, filed in U.S. District Court for the Northern District of California.

Correction, Details Provided on Named Parties

However, the name of the business is actually, The Learning Experience.

Provided with that information and asked how Sullivan, Lewis and Ponnaluri are related to the lawsuit, Singer shared details from the lawsuit, including: “over the next year, from March 2021 to April 2022, during the pendency of the dependency action, CPS workers—Defendants in this action— abysmally failed to protect O.Y. and W.Y. Defendants Colleen Sullivan and Does 1-10, CPS employees, repeatedly misled and deceived the juvenile court. They represented that Defendant Parents were complying with the court’s orders documented in a ‘case plan,’ when, in fact, Defendant Parents were violating the terms of the case plan.”

Singer also shared, “defendant Flynne Lewis was a pediatrician practicing medicine at the Pittsburg Health Center who was responsible for the health, safety, and welfare of Decedent O.Y. and Plaintiff W.Y. Defendant Lewis and staff working at the Pittsburg Health Center noted and documented signs of abuse and neglect of O.Y., but failed to report such information to CPS or any law enforcement agency.”

Finally, Singer provided details about the correct name for the business and its owner which reads, “At all relevant times, Defendant The Learning Experience was a daycare center located at 4831 Lone Tree Way, Antioch, CA 94531 which was owned and operated by Defendant Raji Ponnaluri.”

Singleton Schreiber is a client-centered law firm, specializing in mass torts/multi-district litigation, fire litigation, personal injury/wrongful death, civil rights, environmental law, and sexual abuse/trafficking. Over the last decade, the firm has recovered more than $2.5 billion for clients who have been harmed and sought justice. The firm also has the largest fire litigation practice in the country, having represented over 26,000 victims of wildfire, most notably serving plaintiffs in litigation related to the 2023 Maui wildfires, the Colorado Marshall wildfire, the Washington Gray wildfire, and others.

Allen D. Payton contributed to this report.

CA Attorney General announces settlement agreement with Rite Aid Corporation to continue providing pharmacy services statewide

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Company agrees to conditions resolving competitive impacts related to changes in ownership involving retail pharmacy outlets

OAKLAND — California Attorney General Rob Bonta today announced a settlement with Rite Aid Corporation (Rite Aid) operating as an injunction to enable him to review changes of ownership involving their retail pharmacy outlets statewide. Additionally, the settlement includes injunctive conditions that resolve competition-related concerns to ensure remaining Rite Aid pharmacies provide necessary medication and healthcare services to Californians, specifically those who may rely on Medi-Cal and Medicare, and protect workers at stores that are sold or closed. Today’s settlement reflects the Attorney General’s efforts to prevent the continued growth of pharmacy deserts, which disproportionately impact low-income individuals, the elderly, and people of color, all of whom are also patients of Rite Aid. The settlement was reached under Assembly Bill (AB) 853.

“Pharmacies are often the most accessible healthcare providers, offering vital services for the well-being of individuals and families. Without them in our communities, Californians could face significant barriers in managing chronic conditions, receiving timely medications, and accessing preventative care,” said Attorney General Bonta. “Today, with AB 853 and conditions set by my office, Californians who rely on Rite Aid pharmacies can continue accessing their medications and essential healthcare services they need to live healthy and fulfilling lives.”

Rite Aid filed for Chapter 11 bankruptcy and began closing nearly 550 stores nationwide since October 2023. California experienced the closure of more than 100 stores statewide; however, approximately 71% of all stores in California have remained open throughout the bankruptcy and with one exception in San Diego, there were two or more competitive alternatives close by for the closed stores. This June, Rite Aid’s bankruptcy restructuring plan was approved by the United States Bankruptcy Court for the District of New Jersey, which turns over control of the company to a group of its lenders.

Under the settlement and AB 853, Rite Aid agrees to the following conditions for the next five years:

  • Use commercially reasonable efforts to maintain the remaining Rite Aid stores, as well as all required licenses.
  • Provide 90-day notice of sale or closure of remaining Rite Aid stores.
  • Continue participation in Medi-Cal and Medicare if commercially reasonable.
  • Provide financial assistance to patients if commercially reasonable to do so.
  • Continue free delivery services to patients who were receiving these services from a closed store in San Diego.
  • Ensure compliance with state staffing levels.
  • Maintain hiring list for all employees from stores that close going forward for preferential hiring at other Rite-Aid stores.
  • Use commercially reasonable efforts to pay retirement contributions if collective bargaining agreements require such payments.
  • Use commercially reasonable efforts to abstain from contesting unemployment for individuals who are laid off as a result of the sale or closure of Rite Aid stores if no nearby Rite Aid store offers employment.
  • Comply with nondiscrimination rules in the provision of healthcare services and to commercially reasonable efforts to provide financial assistance to patients.

The California Department of Justice’s Healthcare Rights and Access Section (HRA) works proactively to increase and protect the affordability, accessibility, and quality of healthcare in California. HRA’s attorneys monitor and contribute to various areas of the Attorney General’s healthcare work, including nonprofit healthcare transactions; consumer rights; anticompetitive consolidation in the healthcare market; anticompetitive drug pricing; privacy issues; civil rights, such as reproductive rights and LGBTQ healthcare-related rights; and public health work on tobacco, e-cigarettes, and other products.

A copy of the settlement can be found here.