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SAN DIEGO (CNS) - A grand jury indictment charging three San Diegans with conspiracy to commit fraud, grand theft, forgery and identity theft was unsealed Thursday, alleging the defendants defrauded more than 100 local Navy service members out of millions by selling the service members unnecessary life insurance policies.Paul Flanagan, 54; Ranjit Kalsi, 52; and Gregory Martin II, 49, are accused of selling 4,700 life insurance policies and annuity contracts to service members who already had life insurance through the Navy, otherwise known as Servicemembers' Group Life Insurance.Prosecutors allege the defendants -- through their company, Go Navy Tax Service -- misrepresented what services the company was providing when they sold policies to the service members. Bank accounts were opened in the service members' names to make automatic payments toward the policies' premiums, though the victims believed they were signing up for a retirement savings account or other services, rather than life insurance policies.Flanagan, the company's owner, pleaded not guilty to nearly 70 felony counts at the downtown San Diego courthouse Thursday afternoon. Kalsi and Martin, who allegedly did the bulk of the sales out of the company's office -- a trailer located near the San Diego Naval Base on 32nd Street -- were arraigned Wednesday afternoon.The defendants face more than 20 years in prison if convicted of all counts, according to the San Diego County District Attorney's Office. Prosecutors allege the victims were defrauded out of around .8 million total.The company's website, www.gonavytaxservice.com, currently only provides a brief statement on its homepage, which reads, "Hello, we are currently unable to provide Tax Preparation Services this off-season. Sorry for the inconvenience. If you need anything else, please call us and leave a message. Someone will get back to you asap."Flanagan's attorney, Earll Pott, said outside court Thursday that the allegations against his client were "mystifying," as he alleged the service members should have been well aware through bank statements that their accounts were being accessed and why."If this was a fraud, it was a pretty short-lived fraud and it made no sense at all," Pott said. "Within two months, these guys were going to get statements that told them exactly what the product was that they had, and they had a clawback provision where they could come back and complain, and say `well, I didn't understand this' or 'I don't want this,' and the insurance company would have refunded the money."According to Pott, Flanagan was out of state during most of the time of the charged incidents and simply received and submitted the policy applications. But as to Kalsi and Martin, Pott said, "We don't have any reason to believe that the two agents involved did anything appropriate either."The attorney said, "The disturbing thing about this prosecution is the suggestion that the government's going to come in and second-guess whether or not you need these particular financial vehicles. There's nothing illegal about getting more insurance or having another investment vehicle that helps you feel more secure in their retirement."Kalsi’s attorney, Domenic Lombardo, had no comment at this time.Martin’s attorney, Jeremy Warren, tells 10News, “Mr. Martin has been aware of the investigation for some time and vigorously denies the allegations. He looks forward to defending himself in court.”The investigation into the alleged fraud began last year, on the basis of complaints sent to the Attorney General's office."The victims of this scam were young women and men serving our country who were essentially tricked into signing up for something they didn't need and couldn't afford." District Attorney Summer Stephan said. "Enlisted sailors were not given a chance as to whether they wanted a supplemental life insurance policy. That decision was made for them through corrupt and fraudulent methods."The defendants are due back in court July 17 for a readiness conference. 4048

SAN DIEGO (CNS) - A former Torrey Pines High School student who posted threats targeting the school on his Instagram account was sentenced Friday to a year in custody, with at least six months to be served at a residential alcohol and mental health treatment facility.Kevin Matlak, 21, pleaded guilty last month to one count of making a criminal threat.Superior Court Judge Polly Shamoon placed Matlak on five years probation and ordered him to stay away from Torrey Pines High and have no contact with three people named in a criminal complaint.RELATED: Former Torrey Pines student faces judge in online threats caseDefense attorney Brian Watkins said Matlak didn't threaten anyone directly, but three former classmates -- whom the defendant didn't know -- read his posts on Instagram and felt threatened by them.The classmates of Matlak's who graduated in 2015 reported the threats to law enforcement on May 30, leading to his arrest."I hate all of you," Matlak wrote in one post, according to Deputy District Attorney Matthew Greco.RELATED: Former Torrey Pines High School student seeking psychiatric help after online threat"Get the (expletive) out of San Diego 2K18 before I find u," the defendant wrote in another post. Matlak also posted a photo of him holding an AR-15 rifle in one hand and giving the middle finger with the other hand, Greco said.The principal of Torrey Pines High School wrote a letter to the court, detailing how the threats impacted him and his assistant principals, knowing that the person making the threats had not been arrested and knowing that they could be in harm's way after they made the decision to keep the school open the next day. 1690

SAN DIEGO (CNS) - A fire that erupted in the attic of a Rancho Penasquitos home early Monday displaced seven residents, but nobody was hurt.The blaze was reported shortly after 12:45 a.m. at the two-story house in the 8400 block of Corte Fragata, off Carmel Mountain Road north of state Route 56, according to the San Diego Fire-Rescue Department.One person in the home told dispatchers the residents smelled smoke and saw smoke coming from the attic, SDFRD spokeswoman Monica Munoz said. Crews knocked down the fire within 25 minutes and kept the flames contained to the attic area, but the house sustained smoke damage, she said.The American Red Cross was called in to help the displaced residents -- four adults and three children -- arrange for temporary lodging.The cause of the fire was under investigation. 821

SAN DIEGO (CNS) - A 38-year-old man was stabbed Wednesday morning after confronting a man he saw attempting to break into cars in a Rancho Bernardo parking lot, police said.It happened shortly before 2:10 a.m. near the intersection of Fairlie Road and Bernardo Center Drive, San Diego police Officer Robert Heims said.The 38-year-old man saw a man trying door handles of cars in a parking lot in the area and confronted him, Heims said.They got into an argument before the suspect ran away and the victim chased him, the officer said.The victim caught up to the man and they got into a fight, during which the victim was stabbed at least once, Heims said, adding that the man was taken to a hospital for treatment of non-life-threatening injuries.After the fight, the assailant was last seen running southbound on Bernardo Center Drive.The suspect was described as a 5-foot-10 white man who weighs between 140 and 160 pounds. He was last seen wearing a black hoodie and blue jeans. 989

SAN DIEGO — It's a nerve-racking place: on stage, behind the mic, looking out at a sea of people waiting for your punch line.The Comedy Palace in San Diego sees many comedians but not like the one who performed Friday night."It was something I thought about even in college but lacked the courage to do it," said Michael Schmid. "I always loved to make people laugh."Schmid always had the passion, but it was a recent visit to the doctor that gave him the courage he had been lacking."If not now, when?" Schmid said.Three years ago, he was diagnosed with primary lateral sclerosis, a condition similar to amyotrophic lateral sclerosis, or ALS."It had spread to my upper body and becoming more quadriplegic," Schmid said.One month ago, he made the toughest decision of his life."The most difficult thing I ever had to do in my life was to talk to my children about ending my life," he said.Schmid says he will end his life on December 27, citing severe pain. He shared the date with one of his favorite comedians, along with a dream and a request for help."My initial response was 'We're going to make this happen,' " said Lisa Alvarado.Alvarado talked with some friends in the industry to see if they'd help make Schmid's dream of performing come true."I'm talking comics with Netflix specials, Comedy Central specials," Alvarado said.In one month, the group developed a 15-minute standup comedy routine for Schmid to deliver Friday night. Many of the professional comedians were in the audience as Schmid performed in his wheelchair with Alvarado holding his microphone.After the performance, Schmid's father made his way to the stage to give his son a hug."I never expected him to do that and show the world we're close," said Schmid.Schmid's ex-wife and his four children were also in the audience."No matter how crappy of a hand he's been dealt, he's taken it with a joke," said Schmid's son Joshua.Schmid is grateful he had a chance to laugh."I want my friends and family to have at least that memory when I'm gone," Schmid said. "Do not just give up where you're at ... always strive and reach for something else.""Even if it is the end of your life," he said, "you can be more than you are right now." 2256