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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 CLEMENTE, Calif. (KGTV) - Border Patrol agents arrested a teenager Tuesday on suspicion of smuggling heroin along Interstate 5 in San Clemente. The 19-year-old man was weaving in and out of lanes near Camino de Estrella about 3 a.m., agents said. He drove his 1997 Chevy pickup truck to a nearby gas station and agents followed to conduct a safety check. “During the encounter, the agents grew suspicious of the driver’s behavior and they decided to request for a K-9 team to respond. The K-9 alerted to the truck’s engine compartment,” agent Theron S. Francisco said in a news release. Agents said they found four packages of heroin inside the truck’s air intake box. The drugs weighed almost five pounds and had a street value of about 7,000. The driver, a U.S. citizen, faces felony drug smuggling charges. 824

SAN DIEGO (KGTV) — Cold, windy, and rainy conditions have prompted the San Diego Housing Commission to activate inclement weather shelters this New Year’s Eve. The commission activates the Inclement Weather Shelter Program when temperatures drop below 50 degrees, the chance of rain is higher than 40 percent or in the case of sustained high winds. The program is a partnership between the commission, the city of San Diego, Father Joe's and Connections Housing. The commission also funds the program. Father Joe’s Villages tells 10News they can take in an additional 170 people this New Year's Eve, including children.They will convert two dining halls into temporary shelters, filling them with cots. “When you’re out there in the rain and you get wet and then this cold air, you feel a chill in your bones, that’s what those on the streets experience,” said Deacon Jim Vargas, President and CEO of Father Joe’s Villages. Homeless individuals will be given meals as well as dry clothes when they leave. Residents can dial 2-1-1 or visit 211sandiego.org to find out more about the county's Inclement Weather Shelter Program. 1134

SAN BERNARDINO, Calif. (AP) — Jurors have reached a verdict in the case of a Southern California man charged with killing a family of four and burying their bodies in the desert.The San Bernardino County District Attorney's Office said Friday that the verdict in the case against 62-year-old Charles "Chase" Merritt will be read in court Monday.Merritt is charged with killing his business associate Joseph McStay, McStay's wife, Summer, and the couple's 3- and 4-year-old sons.RELATED: Dramatic closing arguments in McStay family murder trialThe family vanished from their San Diego County home in 2010. Three years later, their bodies were found in shallow graves in the desert.Merritt was arrested in 2014. Prosecutors say Merritt killed McStay at a time when he was being cut out of McStay's water features business.Jurors began deliberations last week. 865

SAN DIEGO — When Johan Engman scouts locations for his breakfast-centric restaurants, he always seeks places with lots of outdoor space.“Just because we're in Southern California,” he says. “Not because I was predicting a pandemic.”But that criteria sure helped when the coronavirus outbreak hit, and restaurants became limited to outdoor-only seating.Some Breakfast Republic locations didn't lose any capacity, while others, such as its Encinitas eatey, lost about 75 percent.“We're surviving,” Engman says. “I think 2020 is really about being here in 2021.”On Monday - a little help making it through the year. Gov. Newsom and the county paved the way for restaurants across San Diego County to serve tables indoors at 25 percent capacity, after two months of outdoor only. Still, it’s unclear whether the increased restaurant capacity will lead to more jobs- as tens of thousands of displaced workers wait for the call.In July 2019, more than 130,000 San Diegans worked in county restaurants, according to the state Employment Development Department. Last month - with restaurants at outdoor only - that number was just 103,000, a nearly 21 percent drop.Alan Gin, an economist at the University of San Diego, said restaurants will be cautious when it comes to adding staff.“If they can get by without additional staff I think they're going to try to do that,” Gin said. “But if they're strained, if they're already at capacity and to add those 25 percent they're going to need to bring more people back, I think that's what they'll do.Engman says Breakfast Republic will be hiring with the increased capacity, but it’s too early to know the number. He says, however, that he is concerned about winter weather amid still mostly outdoor dining in the coming months.Engman says what would help spur hiring - another round of government stimulus Paycheck Protection Program loans. 1887