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SAN DIEGO (CNS) - The founder and former CEO of a San Diego startup pleaded guilty Wednesday to a federal wire fraud charge for stealing more than .5 million from his own company.Jeffrey Fildey, 56, of Las Vegas, created GoFormz Inc. -- which provides online mobile forms and reporting products -- and began illegally taking money from the company sometime around late 2015 and continued to do so through August 2017, according to the U.S. Attorney's Office.U.S. Attorney Robert S. Brewer said, Fildey "abused a position of trust to brazenly steal company assets, treating GoFormz Inc. as his own private slush fund."Prosecutors say Fildey obtained loans -- supposedly for the company -- then kept the funds for himself, paid for personal expenditures on company credit cards, received cash advances for himself on company credit cards and took money directly from the company's bank account.A U.S. Attorney's Office statement announcing the plea cited examples that included a 6,250 loan he obtained for the company, which he immediately wired from the firm's bank account to his personal bank account. The U.S. Attorney's Office said GoFormz made payments on the loan while he spent the money on personal expenses.The U.S. Attorney's Office said Fildey took three unauthorized loans on behalf of the company and transferred the funds to his bank account each time, withdrew more than 0,000 in cash from the company's bank account for his personal use and made more than ,600 in unauthorized purchases on the corporate credit card.The company lost ,544,147 as a result, according to the plea agreement.Sentencing is scheduled for Nov. 9. 1658

SAN DIEGO (CNS) - San Diego can meet the demand for new housing over the next 10 years, but will have to make numerous changes to codes and procedures to get there, according to a report scheduled to be presented by city officials Thursday.A series of proposals to alleviate a housing shortage is scheduled to be announced by the San Diego Housing Commission and City Council members David Alvarez and Scott Sherman.RELATED: San Diego's housing crisis prompts M trust fund for affordable housingSome of their ideas are to: 538

SAN DIEGO (CNS) - The city of San Diego obtained a preliminary injunction Tuesday against grocery delivery company Instacart, in the wake of a judge's ruling that the company misclassified its employees as independent contractors.San Diego County Superior Court Judge Timothy Taylor's ruling stems from a lawsuit brought by San Diego City Attorney Mara Elliott, who alleged Instacart was evading providing its "shoppers" with worker protections like minimum wage and overtime pay by classifying them as independent contractors rather than employees.In the ruling, which was issued Feb. 18, but not formally served to the parties until this week, Taylor agreed with the City Attorney's Office's assertion that Instacart would not be able to show its workers should be classified as independent contractors.RELATED: San Diego Instacart shoppers upset over service’s pay changesThe judge cited a state Supreme Court ruling in the case of Dynamex Operations West Inc. v Superior Court, which outlines an "ABC" test for determining whether a worker is an employee, a classification that applies if the person performs a core function of the business, is not free from its control, or is not engaged in an independently established trade, occupation or business.Taylor wrote that Instacart would likely be unable to satisfy any of the test's three conditions.The judge also wrote that the city's litigation against Instacart was in line with other recent, related decisions, including the recent passage of AB 5, which gives greater labor protections to workers classified as employees."The policy of California is unapologetically pro-employee (in the several senses of that word). Dynamex is explicitly in line with this policy," Taylor wrote. "While there is room for debate on the wisdom of this policy, and while other states have chosen another course, it is noteworthy that all three branches of California have no spoken on this issue."The Supreme Court announced Dynamex two years ago. The decision gave rise to a long debate in the legal press and in the legislature. The legislature passed AB 5 last fall. The governor signed it. To put it in the vernacular, the handwriting is on the wall."Instacart plans to appeal the decision, which the company said would not affect its operations in San Diego, due to a temporary stay of enforcement during the appeals process."We disagree with the judge's decision to grant a preliminary injunction against Instacart in San Diego," Instacart said in an emailed statement. "We're in compliance with the law and will continue to defend ourselves in this litigation. We are appealing this decision in an effort to protect shoppers, customers and retail partners. The court has temporarily stayed the enforcement of the injunction and we will be taking steps to keep that stay in place during the appeals process so that Instacart's service will not be disrupted in San Diego."Elliott's office touted the ruling as a victory for worker protections."This landmark ruling makes clear that Instacart employees have been misclassified as independent contractors, resulting in their being denied worker protections in which they are entitled by state law. We invite Instacart to work with us to craft a meaningful and fair solution" Elliott said."This decision is also a warning to other companies to do right by their employees. As the court said, `The handwriting is on the wall.' California has had two years since the Supreme Court's Dynamex decision to distinguish between a contactor and an employee. Everyone, not just Instacart, must live up to their legal responsibilities; they cannot ignore the significance of what occurred here." 3686

SAN DIEGO (CNS) - The San Diego City Council voted unanimously, 9-0, today in favor of building a new fire station at UC San Diego.The fire station is the first on the campus and will serve UCSD students, faculty, staff and the school's surrounding neighborhoods. The station will be located in the campus' northwest corner at the intersection of North Torrey Pines Road and Northpoint Driveway."UC San Diego is pleased that the San Diego City Council has approved a fire station to be built on the campus," UCSD Chancellor Pradeep K. Khosla said. "We look forward to working together with the City of San Diego on this vital project. UC San Diego is significantly growing its enrollment to make the university one of the nation's premier residential campuses and it is critical that we address life safety issues as part of our growth."More than 36,000 students currently live on UCSD's campus, with the school planning to add another 20,000 student beds by 2022. According to city officials, the rapid campus growth has led to an increase in incidents in an area that is currently outside the area that existing fire stations can cover.According to UCSD and the city, the new fire station will include three fire apparatus vehicle bays, administrative offices, a kitchen and dining area, a training room, an exercise room and crew quarters. The 10,500-square-feet facility will accommodate 12 San Diego Fire Department crew members once built. 1453

SAN DIEGO (CNS) - The San Diego City Council voted Monday to place two ballot measures on the March 2020 ballot, including a hotel tax hike that would fund a convention center expansion, homeless services and infrastructure improvements.The tax increase proposed by San Diego Mayor Kevin Faulconer would raise the city's transient occupancy tax from 10.5% to as high as 15.75% in certain areas of the city, which supporters argue would reap an estimated billion over 42 years.The funding would allow the city to purchase a parcel of land adjacent to the convention center that is currently owned by Fifth Avenue Landing. Once it purchases the land, the city would expand the convention center by roughly 400,000 square feet, from roughly 800,000 square feet to about 1.2 million square feet.RELATED: Hotel tax increase proposed for San DiegoThe land cost is expected to be roughly million, part of an estimated allocation of .5 billion for the purchase and convention center upkeep and marketing. Roughly .8 billion of the initiative's remaining revenue would fund the city's homeless services and shelters, while 1 million would be allocated for repairs to the city's network of roads."This is a measure that is being supported by the lodging industry and is willing to tax its own customers to ... help support homelessness in our community and to help with our infrastructure," San Diego Tourism Authority COO Kerri Kapich said.Voter rights groups and several council members urged that the measure be placed on the November ballot in lieu of the March primary ballot, when turnout is expected to be lower. The council ended up voting 5-4 in favor of placing the measure on the March ballot to ensure it goes in front of voters as soon as possible.RELATED: San Diego city council approves .9 billion homelessness planThe council also unanimously voted to place a measure authored by City Councilman Scott Sherman on the March ballot that would shift the responsibility for the city auditor appointment process from the mayor's office to the council's Audit Committee. Currently, the mayor appoints a city auditor candidate to serve a 10-year term."The city auditor is vital to holding city administration accountable and ensuring taxpayer dollars are spent properly," Sherman said in a statement. "The administration shouldn't be in charge of choosing who is overseeing the administration. This ballot measure will help ensure this important position is truly independent."Under the proposed measure, the Audit Committee would recruit and choose three candidates for the city auditor position. The council would then choose one of the three candidates to serve as the city auditor for a pair of five-year terms.Since the position was established in 2009, the city has only had one official city auditor, Eduardo Luna, who served nearly all of his term before leaving for a similar position with the city of Beverley Hills in October 2018.Sherman, the Audit Committee chair, proposed the measure after Faulconer appointed DeeDee Alari, a deputy director in the city treasurer's office, to the position in July. Alari has yet to be confirmed. 3167