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SAN DIEGO (CNS) - The CEO of a La Jolla-based financial services firm pleaded guilty Wednesday to defrauding shareholders, falsifying tax returns and operating an unlicensed money services business.David Nava, head of Surf Financial Group LLC, worked with others to convert publicly traded companies' debt into unrestricted stock under false pretenses, and then sold the stock, despite being banned since 1994 by federal securities regulators from taking part in the securities industry, according to federal prosecutors.Prosecutors say Nava, 62, directed others to write fraudulent attorney opinion letters that facilitated removing restrictions on stocks so they could be sold, in circumvention of the U.S. Securities and Exchange Commission's regulations on the offer and sale of securities.The Department of Justice said brokerage firms cleared the sale of shares of the restricted stocks on the basis of those letters, allowing Nava and others to sell millions of shares, then move the proceeds into bank accounts under his control.In addition to his plea to a federal count of conspiracy to commit securities fraud, Nava also pleaded guilty to operating an unlicensed money transmitting business, which he used to move millions of dollars in financial proceeds, and a tax fraud count for falsifying federal tax returns from 2014 to 2016, in which he underreported Surf Financial's profits in order to conceal his true income and tax liability, according to the Department of Justice.Sentencing is slated for Jan. 8 in San Diego federal court. 1556

SAN DIEGO (CNS) - The father of two children who died in a Rancho Bernardo condominium fire fell asleep while drunk with a lit cigarette in his hand and then abandoned his kids to try and save himself, a prosecutor said Tuesday, while a defense attorney told jurors that a defective cell phone was a far more likely ignition source. Jurors heard final summations, then began deliberating the charges against Henry Lopez, 39, who is charged in the Oct. 28, 2017, deaths of his 7- year-old daughter Isabella and 10-year-old son Cristos. He faces up to 14 years in prison if convicted of involuntary manslaughter, child endangerment and reckless fire starting. Deputy District Attorney Kyle Sutterley alleges that Lopez got drunk following an argument with his girlfriend, fell asleep and ignited a blaze in his bed. The prosecutor alleges that Lopez, upon waking to find the condo ablaze around 3:15 a.m., went past the children's bedrooms on his way down the stairs and punched out a first-floor window to try and escape the flames. He then went back upstairs and started pounding on the walls, then passed out from the smoke at the top of the stairs, where firefighters later found him, Sutterley said. According to the prosecutor, Cristos walked into his father's burning bedroom, laid down on the floor and died of burns to more than 80 percent of his body. Isabella went into her brother's room, laid down on the bottom bunk bed and ``fortunately never woke up'' after passing out due to smoke inhalation, Sutterley said. ``A parent has a responsibility to care for their children, a responsibility to protect their children, and if need be, to sacrifice themselves for their children. And Henry Lopez, on Oct. 28, 2017, he failed his children, and as a result, one of them burned to death, and one of them went to sleep and never woke up,'' Sutterley said in his closing argument. Defense attorney Paul Neuharth Jr. alleges it was more likely that his client's iPhone 6 caused the blaze while it was charging beneath Lopez's pillow. Neither cigarette butts, nor the phone, were found in the remnants of the blaze. Sutterley said investigators located a drinking glass within the area where the fire started, which may have been used as a makeshift ashtray. Prosecutors say a similar glass full of around 75 discarded cigarette butts was located in a trash can in the home's garage. However, no cigarette butts were found inside the glass in the bedroom. Neuharth told jurors there was no proof that a lit cigarette started the fire, with the only evidence of smoking inside the home coming from the defendant's ex-wife, Nikia, who said she once witnessed him smoking marijuana in his bed. Lopez told investigators he only smoked on his outside patio and never inside the house, particularly due to his son's asthma. Wayne Whitney, an investigator with the San Diego Fire Rescue Metro Arson Strike Team, testified last week that despite the lack of cigarette butts in the burned bedroom, he was able to make a ``reasonable inference'' that cigarettes sparked the fire, by way of Lopez's alleged smoking habits. Whitney conceded that the cell phone was a possible cause of the fire, but said he didn't believe it would have ignited the condo fire if it were under Lopez's pillow, as a lack of oxygen would have smothered the blaze and kept it from spreading. Sutterley said the burns Lopez sustained on his back, arms and particularly his hand were more consistent with holding a lit cigarette, rather than a cell phone igniting beneath his pillow, which Sutterley argued should have caused burns to Lopez's head. Neuharth emphasized that Whitney came to his conclusion despite no evidence that Lopez smoked in the home that day, while on the other hand, cell phone records proved the phone was in the condo, though it's unknown whether it was in Lopez's bedroom. Wall outlets and candles in Lopez's bedroom were ruled out as potential causes of the blaze, as they were outside the area where investigators believe the fire began. Smoke detectors in Lopez's bedroom and one of the children's rooms were unplugged or removed, according to Sutterley, who said Lopez had a 0.229 blood-alcohol content when blood was drawn at a hospital less than two hours after the fire. Neuharth contested the idea that Lopez did not do whatever he could to try and save his children, telling the jury that the defendant went back upstairs and beat a hole in the wall in attempt to get to the youngsters' rooms amid thick smoke filling the condo. The attorney argued that had it not been for the timely arrival of firefighters, Lopez, too, would have died from smoke inhalation. ``What more can you ask of a parent than to give their life and if not for whatever matter of seconds it would have been or a minute before he was brought out and resuscitated, he would have been dead along with the children,'' Neuharth said. Sutterley argued Lopez's first instinct was selfishness and self- preservation, as ``he was so deep into a bottle of whiskey and a cigarette that he forgot (the children) were there or abandoned them on purpose. But either way, as a parent, your first thought is to save your children. Your first thought is to your kids. It's not to yourself. It's not to the front door. It's to save your children.'' 5315

SAN DIEGO (CNS) - The San Diego Community College District announced Thursday it will continue online instruction through the remainder of the academic year, including the January 2021 intersession and Spring 2021 semester.SDCCD Chancellor Constance M. Carroll emailed district employees Wednesday informing them of the decision. With exceptions for a few programs that are difficult to offer virtually, all district classes have been online and all operations conducted remotely since March 23 to help curb the spread of COVID-19. Hybrid exceptions include various science and clinical laboratory sections, career classes with technical components and classes for first responders, which are offered on campus with all health protocols required. Carroll said more hybrid classes and on campus support services will be offered in the spring if the situation allows, but that the district's highest priority is the health and safety of its students and employees."It seems incredible that we are now in our sixth month of dealing with the coronavirus COVID-19," Carroll said. "I do not believe anyone could have predicted the longevity of this crisis."In her email, Carroll thanked district employees for their "dedication above and beyond the call of duty," to assist students, many of whom continue to face financial hardship due to loss of income. Seven in 10 district students work to support themselves and/or their families.To date, the district has distributed .3 million in federal Coronavirus Aid, Relief, and Economic Security Act funds to more than 8,000 students at San Diego City, Mesa and Miramar colleges, as well as San Diego Continuing Education. Another 7,000 in funding is being provided by United Way of San Diego County to assist district students and 0,000 has been contributed by the San Diego Foundation to fund student laptops.In spite of these efforts, many district students have faced the difficult choice of continuing their educations or supporting their families, especially during a period when many public schools are online. Enrollment is down 8% across the district this fall.Of particular concern, Carroll said, is evidence that some of the region's most vulnerable students -- including those from lower-income communities and traditionally underrepresented groups -- have been impacted the greatest by the COVID-19 pandemic."We must ensure that the current public health crisis and economic crisis do not prevent our students from making progress towards their educational goals," she said. "The community and the workforce are counting on our ability to continue delivering a high-quality education and effective student outcomes."However, the district has also seen a 25% increase in enrollment in the San Diego Promise, the free tuition program for eligible students. Program representatives believe the surge in new students is partly a result of more students who have chosen to start their educations at one of the district's colleges, instead of a university. 3019

SAN DIEGO (CNS) - The San Diego City Council's Active Transportation and Infrastructure Committee unanimously voted today to send a set of regulations on dockless electric scooters and bicycles to the full council.Should the full council vote in favor of the regulations, scooter riders would be banned from parking scooters and bicycles in hospital and school zones, beach area boardwalks, the perimeter of Petco Park and the north and south legs of the Embarcadero. Riders and scooter company employees would also only be able to park scooters in groups of four in designated areas on the street, with at least 40 feet between groups. Scooter speeds, currently a maximum of 15 mph, would be slowed to 8 mph in high-traffic areas like Spanish Landing, Petco Park and Balboa Park, and 3 mph on the Embarcadero and the Martin Luther King Jr. Promenade. Scooter companies would use geofencing technology to limit parking abilities and speeds in specific areas, technology that Bird already uses in areas like the Santa Monica Beach Bike Path.The city would also require scooter companies to apply for a six-month operational permit with a to-be-determined fee and pay 0 per scooter or bike each year. Scooter companies could only renew permits in January or June, bike each year. Scooter companies could only renew permits in January or June, estimate roughly 20,000 scooters are active within city limits, but companies are currently not compelled to report the size of their fleets. City Council members Chris Ward, Chris Cate and Vivian Moreno agreed City Council members Chris Ward, Chris Cate and Vivian Moreno agreed as the scooter and GPS technology changes. Because of that, the committee voted to bring the regulations back to the committee six months after their date of implementation, should the council approve them."I do want to see further improvement on this but I haven't heard anything in the mayor's proposal ... that is disagreeable,'' Ward said. "Everything there is somewhat of a foundation but we need more work on this for this to truly work.''Ward and Moreno also added an amendment making it more difficult for underage residents to start and ride a dockless scooter."We absolutely want to make sure that these modes of transportation are available throughout the whole city and not just in the downtown area,'' Moreno said. "I've seen a lot of underage riders operating scooters and Idon't see any provision in this ordinance that specifically requires operators to do something to stop children from illegally riding scooters.''Representatives from scooter companies Bird, Lime, Razor and Lyft all expressed support for the regulatory package, while some residents framed the proposal as not doing enough to ensure the safety of San Diego pedestrians."As the creator of e-scooter sharing, we have seen first-hand how vital it is for our transportation solution to be integrated thoughtfully into a community,'' said Bird spokeswoman Kyndell Gaglio. ``We take the importance of protecting the safety and welfare of our riders and community very seriously and so we commend San Diego on its efforts to develop clear and impactful regulations.''Mayor Kevin Faulconer originally proposed a similar set of regulatory concepts in October, which the council's Public Safety and Livable Neighborhoods Committee approved while requesting a fleshed-out version. Faulconer's proposed the current version of the regulations last week after months of pressure from residents concerned about public safety and from transportation advocates who didn't want the scooters banned outright.The city attorney's office is also in the process of responding to a lawsuit against the city and the scooter companies for failing to stop residents from using the scooters on the city's sidewalks. 3806

SAN DIEGO (CNS) - San Diego County reported 513 new COVID-19 infections and no new deaths Sunday, raising the region's total to 60,169 cases with the death toll remaining at 908.Local officials will find out Tuesday whether the county will sink into the most restrictive purple tier of the state's four-tiered COVID-19 reopening plan.State officials reported Wednesday that San Diego County had an unadjusted new daily coronavirus case rate of 8.7 per 100,000. The adjusted case rate had dropped to 7.4 per 100,000, above the baseline of 7, qualifying the state for the purple tier. Last week's unadjusted case rate was 7.8 per 100,000.According to the reopening plan, a county has to report data exceeding a more restrictive tier's guidelines for two consecutive weeks before being moved to that tier. A county then has to be in that tier for a minimum of three weeks before it may move to a less restrictive tier.San Diego County has been in the red tier for months, skirting but ultimately avoiding the purple tier, which would necessitate the closure of almost all indoor operations of nonessential businesses. Recent trends have shown a steady increase in infection numbers.If the county cannot drop its adjusted daily case rate below 7 per 100,000, indoor operations in locations such as restaurants, museums, places of worship, breweries and retail businesses will have to either close entirely, move to outdoor operations only or modify in other ways.In recent weeks, the region had an unadjusted rate well above the purple tier guidelines, but a significant effort to increase the volume of tests had allowed for an adjustment to bring it back to the red, or substantial, tier.Dr. Wilma Wooten, the county's public health officer, said retail operations, including indoor shopping centers, will be limited to 25% of building capacity, down from the current 50%. Schools, unless they have already restarted in-person learning, will be restricted to distance learning. K-12 schools already in session can continue, Wooten said."Cases are increasing in the region and it is vital that we take this virus seriously and recommit ourselves to the strategies that are proven to work," she said Thursday. "Wear a face covering when you go out in public, stay six feet away from others and avoid crowds and large gatherings."The county's testing positivity rate actually improved, declining 0.3% from last week to reach 3.2%, but remains high enough for this metric to remain in the orange tier.The state's health equity metric, which looks at the testing positivity for areas with the least healthy conditions, increased from 5.1% to 5.3% and entered the red tier. This metric does not move counties backward to more restrictive tiers, but is required to advance.The state data reflect the previous week's case data to determine where counties stand. The next update will be Tuesday. 2892