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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) -- Three Camp Pendleton Marines were stabbed during a fight Saturday in San Clemente, a sheriff’s official confirms.The fight happened around 1 a.m. Saturday in a parking lot on the 200 block of El Camino Real.The three Marines, two aged 21 and the other a 23-year-old were involved in a fight with two men and a woman.RELATED: Woman finds Marine Corps ring on Florida's Siesta Key, hopes to find ownerDuring the fight, one of the men pulled out a knife and stabbed all three Marines. All three of the men were taken to the hospital with non-life threatening injuries.The Marines were all assigned to the 1st Battalion, 4th Marines at Camp Pendleton.Deputies arrested 24-year-old Alexis Moreno-Aguirre on suspicion of attempted murder. He was booked into the Orange County jail.RELATED: Wife of Marine veteran self-deports to Mexico, leaving behind husband and daughter 925

SAN BERNARDINO, Calif. (KGTV) -- Prosecutors said Monday that a California man killed his business partner and his family out of greed, according to the Associated Press. Prosecutor Sean Daugherty told jurors that Charles Ray Merritt wrote checks totaling more than ,000 on his partner’s QuickBooks account after the family disappeared. The comments came during opening statements in the trial for the alleged murders of Joseph McStay, Summer McStay and their three and four-year-old sons. Prosecutors also say that, while being questioned about the family’s disappearance just days after they went missing, Merritt kept referring to Joseph in the past tense.Outside the courtroom, defense attorney Rajan Maline said Merritt’s livelihood depended on McStay being alive. The McStays disappeared from their Fallbrook home in early February 2010. Days after they were last seen, the family’s SUV was found abandoned at a strip mall parking lot in San Ysidro.RELATED: Trial set to begin in McStay family murder caseIn 2013, the bodies of the family members were found in the Mojave Desert, near Victorville. Prosecutors said the family died from blunt-force trauma to their heads. Authorities found a sledgehammer, believed to be the murder weapon, in one of the graves.According to court documents, investigators believe Summer McStay may have been raped before she was killed. Merritt was arrested in connection with the killings in November 2014 after sufficient evidence linking him to the case, including DNA, was discovered.Authorities alleged Merritt killed the family members inside their home and then buried them in the desert. Merritt also tried to paint over the crime scene, according to authorities.During Monday’s opening statements, jurors in the San Bernardino County courtroom are expected to hear a tape of Merritt being questioned by investigators.Merritt, 61, has pleaded not guilty to charges of murder and is being held without bail.Prosecutors are seeking the death penalty in the case. 2017

SAN DIEGO — Three teenagers were taken into custody in three separate attempts to smuggle fentanyl across the U.S.-Mexico border, according to federal officials.U.S. Customs and Border Protection (CBP) said the incidents occurred on March 30 and 31 at the San Ysidro Port of Entry near San Diego, California.On Friday, CBP agents stopped a 17-year-old Mexican citizen. After noticing an "anomaly" on the teen's back, agents conducted a pat down and found two packages strapped to his back. The packages contained four pounds of fentanyl — a street value of 1,000.The next day, CBP agents stopped two more male teens within 10 minutes of each other: a 17-year-old and a 15-year-old. Both were found to have packages of fentanyl strapped to their backs. The two combined were carrying about nine pounds of drugs, a street value of more than 6,000.The teens in each case were arrested and turned over to Homeland Security Investigations. The all drugs were seized by CBP officers.According to Pete Flores, the director of Field Operations for Customs and Border Protection in San Diego, Fentanyl is 50 to 100 times more deadly than heroin."Please understand that no matter what you may be told, there are consequences for engaging in this type of activity, not to mention the dangers of working with transnational criminal organizations,” he said, 1383

San Diegans will soon have a new, and much more convenient way, to sell their homes.With a few taps on their computers or phones, they could get an all-cash offer from real-estate tracker Zillow for their property.The program, called Zillow Offers, adds speed, convenience and certainty to a process that often requires patience, home staging, visits from complete strangers, and frustration over transactions falling through."What we're trying to do is help homeowners solve one of the biggest problems they have," said Jeremy Wacksman, President of Zillow. "If you're selling and buying at the same time, trying to get all that done and project managing that even with the help of a great agent is hard."Zillow plans to launch the program in San Diego in early 2020. Homeowners would answer a few questions about their property online, getting an initial offer. If interested, they can arrange for an in-home inspection. A day or two after that, they'll get a formal cash offer they can consider. But that certainty comes at a price. Zillow makes its offer based on a variety of factors, including how long they believe they will have to hold the property and what they can sell it for. The company also deducts the costs of any repairs it deems necessary, with no room for negotiation. Typically, their offer comes with a 7 percent fee, which is 1 to 2 percent more than the average commission.Mark Goldman, a loan officer for C-2 Financial, said Zillow's offer likely comes with a cost. "For somebody who needs to do a fast transaction, it might be a suitable option, but you're not going to get top dollar for your house if you're going to do that," he said. San Diego Realtor Gary Kent said he could also negotiate on behalf of the seller in a traditional sale, not just to get the most money but also in case there are any requests over repairs. Zillow's program is currently active in Riverside County.Kristofer Kisner, who is selling his four-bedroom home in Lake Elsinore to Zillow for 0,000, said he believes he got fair market value.Currently, Redfin and Opendoor also offer online homebuying services. They also typically charge 7 to 8 percent commissions. 2181

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