A Poway man who stole nearly $8 million dollars from dozens of victims over a five-year period in San Diego County, most of them senior citizens, has been charged by the District Attorney’s Office with more 80 felony counts. Christopher Dougherty, 46, has been charged with grand theft, fraud and financial elder abuse, and other charges reflecting crimes committed against at least 31 families. Dougherty, a former licensed insurance agent, solicited at least $7.75 million in investments as part of a large-scale Ponzi scheme that eventually collapsed and left victims with nothing. Twenty of the 31 victims were 65 or older at the time of their investments. [TWEET THIS]

“This was a classic Ponzi scheme where the defendant stole millions of dollars from trusting families and senior citizens. These aren’t rich investors, they’re people who worked hard and trusted their life savings with someone who preyed on their vulnerabilities,” said District Attorney Summer Stephan said. “I’m very proud of the investigative work done by the DA’s Insurance Fraud Unit and our law enforcement partners to bring justice to dozens of victims preyed upon by a heartless con man.”

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Dougherty was arrested at his home in Poway on April 25 and booked into jail. He was arraigned in Superior Court on April 26 and pleaded not guilty. The court set bail at $5 million. He faces up to 35 years in prison if convicted of the charges.

Currently, 31 households have been identified as having invested with Dougherty, but investigators are currently evaluating the information of approximately 26 additional victims, many of whom are expected to be added to the case in the future.

Many of the investors were identified when Dougherty filed bankruptcy in federal court in October of last year, but additional victims were identified when investigators began looking more closely at Dougherty’s financial records. Some of the victims met Dougherty when he was designated by various school districts (including Sweetwater Union High School District, Imperial Unified School District, and El Centro Elementary School District) as an investment advisor for employees. Other victims were introduced to Dougherty by his current clients. Dougherty leveraged a reservoir of trust he had developed with long-standing clients, convincing them to cash out of established, conventional investments and move their money to his private investments.

Dougherty offered private investments in various companies he owned. One of the investment opportunities Dougherty pitched investors was a 100-acre “organic” cattle ranch in Alpine. While the farm was real, it didn’t actually generate any profits for investors. Dougherty also promoted a marijuana growing project on that Alpine property.

Dougherty shuffled money around in classic Ponzi fashion, paying “profits” to complaining investors with funds invested by more recent investors.  In addition, Dougherty used investor funds for personal expenses, including home remodel, travel, college tuition, and large cash withdrawals. Once investors began to demand their money and Dougherty couldn’t pay it back, the Ponzi scheme collapsed.

“Unfortunately, financial scams have become an all too common reality. As your Sheriff, I want you to know that people who masquerade as financial experts only to steal your life savings will be held accountable,” said San Diego County Sheriff William Gore. “I applaud the collaborative action in exposing Dougherty’s scheme before he had a chance to manipulate additional victims out of their hard-earned retirement.”

“Dougherty’s criminal enterprise is callous and indefensible,” said Insurance Commissioner Ricardo Lara. “Crimes against the elderly are especially reprehensible. Increasingly we are uncovering complex financial scams that target seniors, and other vulnerable California communities and consumers. We will continue to work with our district attorney partners to aggressively investigate and prosecute anyone who targets seniors.”

The case was investigated by a task force comprised of members from the San Diego Sheriff’s Department, California Department of Insurance, California Department of Business Oversight, and the San Diego Police Department.  The case is being handled by Deputy District Attorney Michael Zachry from the San Diego District Attorney’s Office’s Insurance Fraud Division.

“The SEC alleges that Dougherty took advantage of his clients’ trust by using their retirement savings to run a Ponzi scheme,” said Michele Wein Layne, Director of the Los Angeles Regional Office.  “The SEC is committed to protecting clients by holding accountable any investment advisers who so grossly abuse the duties they owe to their clients.”

Anyone who believes they are a victim of Christopher Dougherty, and have not already been in communication with law enforcement, may contact the California Department of Insurance at (858) 693-7100.

Many Ponzi schemes share common characteristics. The DA’s Office urged investors to look for these warning signs: [TWEET THIS]

• High investment returns with little or no risk. Every investment carries some degree of risk, and investments yielding higher returns typically involve more risk. Be highly suspicious of any “guaranteed” investment opportunity.
• Overly consistent returns. Investment values tend to go up and down over time, especially those offering potentially high returns. Be suspect of an investment that continues to generate regular, positive returns regardless of overall market conditions.
• Unregistered investments. Ponzi schemes typically involve investments that have not been registered with the SEC or with state regulators. Registration is important because it provides investors with access to key information about the company’s management, products, services, and finances.
• Unlicensed sellers. Federal and state securities laws require investment professionals and their firms to be licensed or registered. Most Ponzi schemes involve unlicensed individuals or unregistered firms.
• Secretive and/or complex strategies. Avoiding investments you do not understand, or for which you cannot get complete information, is a good rule of thumb.
• Issues with paperwork. Do not accept excuses regarding why you cannot review information about an investment in writing. Also, account statement errors and inconsistencies may be signs that funds are not being invested as promised.
• Difficulty receiving payments. Be suspicious if you do not receive a payment or have difficulty cashing out your investment. Keep in mind that Ponzi scheme promoters routinely encourage participants to “roll over” investments and sometimes promise returns offering even higher returns on the amount rolled over. [TWEET THIS]

In keeping senior citizens safe, the key to prevention is knowledge and awareness. In addition to the Insurance Fraud Division, which is handling this case, the District Attorney’s Office has an Elder Abuse Prosecution Unit. The specialized unit handles about 200 felony cases per year with a lead prosecutor, two victim advocates and a full-time investigator.

Information on how protect yourself and your loved ones from becoming victims of elder abuse can be found on the District Attorney’s public website at www.SafeSeniorsSanDiego.com.

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When notorious convicted murderer, Betty Broderick, was up for parole in 2017, it was Deputy DA Richard Sachs who represented the people of California at a record-breaking 11-hour hearing, arguing against her release. Ultimately, the board voted to deny parole for 15 years and Broderick will remain in state prison where she is serving time for the 1989 murders of her ex-husband and his new wife at their Hillcrest home. It was just another day at the office for Sachs, 60, who was recognized Thursday by the Victim Assistance Coordinating Council with a ‘Victim Advocate Award’ at its 30th Annual Candlelight Tribute for Crime Survivors on Thursday. [TWEET THIS]

Sachs, a statewide expert on parole issues and the founder the San Diego County District Attorney’s Lifer Hearing Unit – the first in the state – represents the DA’s Office before the Board of Parole when it is considering parole suitability for those who have been sentenced to life terms. Because of his expertise, Sachs is a go-to expert in California on all things involving the parole process and he has developed a reputation as a staunch advocate for family members whose loved ones have been killed. He’s a lifeline for victims or their next of kin throughout the parole process.

Sachs’ recognition comes during the annual National Crime Victims’ Rights Week, when law enforcement, prosecutorial agencies, victim advocates and community members come together to support survivors of crime.

“Richard Sachs combines his legal expertise with a sense of compassion that loved ones and next-of-kin need when navigating the parole process,” said District Attorney Summer Stephan. “I don’t know anyone more knowledgeable on parole issues in this state than him. Our office and the community are lucky to have such a resource fighting to protect public safety.”

Sachs founded the DA’s Lifer Hearing Unit in 1995 to ensure family members are not left out of the parole process, have a voice, and are treated with dignity and respect. He has been a Deputy District Attorney more than 34 years.

Sachs has worked on many prominent San Diego-related parole cases including helping obtain four parole reversals in the cop killer case involving Jesus Cecena, who shot and killed San Diego Police Officer Archie Buggs in 1978.

The DA’s Lifer Unit has been featured on national and local news broadcasts and has been referred to by the Board of Parole Hearings as a “model for the state.” Sachs also has extensive experience in appellate law and serves as the lead author for amicus briefs for the California District Attorneys Association, Lifer Committee. He also serves as the lead author for the lifer training material for the California District Attorneys Association. He is a dedicated victim advocate and has designed victim notification systems for the Lifer Unit working around the clock to ensure that no victim or next of kin is denied their opportunity to submit a victim impact statement.

Sachs, a native of Chicago, graduated from the John Marshall Law School in 1983. He served as a Judicial Clerk for the Presiding Justice of the Fourth District Court of Appeal and worked in a large civil firm in Los Angeles before joining the District Attorney’s Office in 1985. [TWEET THIS]

The names of 332 people have been removed from civil gang injunction lists affecting neighborhoods across San Diego County following a careful review by the District Attorney’s Office, which worked to confirm individuals’ lack of recent criminal and gang activity. The civil injunctions were filed several years ago in various cities across the county, often in response to communities seeing a spike in gang-related violence. The injunctions—which have had their critics— were court orders restricting the most active and dangerous gang members from congregating with other known gang members, fighting, carrying weapons, and intimidation. [TWEET THIS]

However, no gang injunctions have been filed by the DA in the past eight years and the oldest existing injunction dates back to 1997.  District Attorney Summer Stephan initiated the review of 799 individuals, recognizing the dated nature of most of the injunctions and the potential problems that being on the list pose to individuals who are no longer affiliated with a gang or engaging in criminal activity. When a civil gang injunction is issued against an individual, it remains in effect for a lifetime unless that person applies for removal and meets certain criteria. However, most people don’t know relief maybe available to them or how to go about requesting their name be removed.

“People who are genuinely taking steps to be a lawful, contributing member of our community shouldn’t be punished by a civil court order that might be stopping them from getting a job, connecting with their relatives or moving on with their lives,” DA Stephan said. “We worked closely with our law enforcement partners to identify people who might qualify for removal while at the same time making sure we’re continuing to protect the public from those who still engage in gang-related crimes and activities.”

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To qualify for removal from the list, a person:

• cannot have a conviction for a violent felony for the past 10 years
• must have remained out of custody and had no criminal convictions for the past five years (excluding minor traffic violations)
• have had no activity that demonstrates continued loyalty to, or membership in a criminal street gang for the past five years

In total, 42 percent of the individuals listed on 20 civil gang injunction lists affecting 12 gangs have been removed. The District Attorney sent letters in late February informing people their name had been purged from the lists, saying the action is “an effort to pursue justice that fairly reflects your current status as one moving away from the gang life. This should assist you in removing any negative consequences that come from being on an injunction list.” It also notes that if the individual reengages in gang activity they could be added back on the injunction.

“Every law enforcement agency in the county wants individuals to disassociate themselves from the gangs and the activity that landed them on the civil injunctions,” said Escondido Police Chief Craig Carter. ”Police departments across the county are joining the DA in being proactive in removing individuals from these injunctions and we hope other gang members see this as a motivation to end their gang affiliation and become a productive member of their community. We want nothing more than to keep our youth from joining gangs in the first place.” [TWEET THIS]

Pastor Jesus Sandoval, Executive Director of San Diego’s Commission on Gang Prevention and Intervention, praised the collaboration that led to the removal of individuals from the injunctions.

“The Commissioners in our Sub-Committee for gang documentation laid the groundwork for this effort and did an outstanding job working with the DA and Chief of Police in advocating for this audit,” Sandoval said. “The removal of these names is in line with the Commission’s vision is to develop a more strategic, coordinated, and collaborative effort between the City and law enforcement agencies to curtail gang involvement and its negative impact in the City of San Diego.”

The DA also says 66 individuals were removed from injunctions not for lack of gang or criminal activity but because the injunction no longer applied because they were either sentenced to life in prison, deceased or appear to have left the jurisdiction or gang life entirely.

The District Attorney’s Office will conduct follow up audits once a year and continue to mail notices to the individuals removed from injunction enforcement. People wanting to find out if they’ve been removed you from an injunction can email SanDiegoDA@sdcda.org.

Individuals who believe they qualify and would like to petition for removal can fill out this form on the DA’s website and submit it for review. In 2017, a former gang member from Oceanside who was listed on a gang injunction 13 years earlier had a petition to have his name removed from the list granted. Over the years, 20 individuals have petitioned for removal and 15 petitions have been granted.

A review of individuals who remain on the lists shows 97 with arrests or convictions from September 2017 to September 2018. Four individuals on the lists have active warrants for murder and during the time the injunctions have been in place, 32 defendants who are on the lists have been sentenced to prison for 15 or more years.  Two individuals on the list have been charged with murder and are awaiting trial. [TWEET THIS]

Investigator Anthony “Tony” Pellegrino received the Benevolent and Protective Order of Elks’ Enrique Camarena Award.  This award recognizes and honors law enforcement officers who have made a significant contribution in the field of drug prevention.

The District Attorney Bureau of Investigation nominated Tony for the drug awareness and prevention classes he has been teaching at Westview High School for the past 11 years.  Tony volunteers his time to teach 16 classes each year to all freshman students. He utilizes his over 30 years of experience in law enforcement to make the narcotic presentations authentic and real.  He has expanded the course to also cover drug-facilitated sexual assault.  Over the years, Tony has volunteered over 400 hours and has had an impact on approximately 5,000 students.

On Saturday, February 2, 2019, Tony was honored at the Encinitas Elks Lodge, where he was recognized for his contributions in drug prevention and presented with a certificate.

Today, 22 Deputy District Attorneys took their oath and were sworn in by District Attorney Summer Stephan at the Hall of Justice in Downtown. The members of the new class, who have diverse professional and personal backgrounds, bring an array of rich experience to the DA’s Office. [TWEET THIS]

“I am excited to welcome the class of 2019 to our office, consisting of professionals who reflect the diversity in our community and are committed to the principles of fair and equal justice for everyone,” District Attorney Summer Stephan said. “I am confident they will do an outstanding job supporting our mission to prevent crime, protect victims and prosecute those who break the law.”

WATCH the newest Deputy District Attorneys being sworn in, here.

The new class includes a naval officer, four collegiate athletes, prosecutors from different states, former business owners, a rodeo queen, a former Israeli women’s national soccer team member, a founder of a gang-prevention program, many law review members, a founder of a non-profit organization that provided educational resources to students in City Heights, a former Teach For America teacher, and award-winning law students. As a group, they speak 11 different languages.

Diva Aziz said the road to becoming a prosecutor was paved in her desire to want to provide justice to society’s most vulnerable people.

“I have seen violence, discrimination, and injustice – being born in Afghanistan and growing up in Russia,” Aziz said. “These experiences definitely shaped my character, and have taught me about standing up for what’s right, about integrity, commitment, being a team player, having compassion, and hard work. It has also helped me discover my purpose in life, which is being a prosecutor, serving, and giving back to my community.”

Malak Behrouznami, who was born in El Paso, but raised in Juarez, Mexico, said she grew up looking for a way to serve her community. She was especially motivated by the hundreds of women who would go missing and eventually turn up murdered in Juarez.

“That motivated me to want to do something,” Behrouznami said. “I’ve always wanted to find a way to serve the community I care about and this job is the best means for me to do fulfill that need. This office has shown me that it’s not about the wins or the losses, it’s about the justice.”

Katherine Grabar, who was drawn to a career in prosecution, said she was inspired by San Diego’s collaborative courts programs and its Computer and Technology Crime High Tech (CATCH) Team. After hearing from seasoned prosecutors throughout the training process, she wants to focus on being an accomplished trial attorney.

“The people here not only want to help the community, but they also want to help each other,” Grabar said. “I am eager to give back to the community of San Diego and the DA’s Office.”

WATCH the newest Deputy District Attorneys being sworn in, here.

The new prosecutors recently completed a three-week, intensive training to learn the functions of the office and practice essential trial advocacy skills, under the guidance of senior Deputy District Attorneys. Their training motto was “setting the standard of excellence.” The new prosecutors will report to their assignments today across all branches and divisions of the District Attorney’s Office.

The San Diego DA’s Office has more than 1,080 employees, including a diverse group of 330 Deputy District Attorneys of which 184 are women and 146 are men. [TWEET THIS]