Tahoe’s new Gold Rush: Bay Area residents fleeing coronavirus push up home prices

Pam Hobday was sitting in her home across from Donner Lake in Truckee on a recent weekday when a man rang her doorbell and offered her $2 million in cash for her house.

“He said, ‘I don’t even need to see the inside,’” recalled Hobday.

When Hobday said she planned on living there the rest of her life, the man inquired about whether any of her neighbors — the homes share a private dock — would be willing to accept the same deal.

“I asked him where he was from,” she said. “He said, ‘Well, I’m from San Francisco.’ I said, ‘Where in San Francisco?’ He said ‘Nob Hill.’ I said, ‘Sir, this isn’t Nob Hill. This is Truckee.’ I was shocked at how aggressive he was.”

The COVID-19 pandemic has stoked a real estate boom throughout the Tahoe region, propelled by thousands of workers fleeing San Francisco and the broader Bay Area. Freed from the shackles of 9-to-5 office work, these white-collar workers are seeking mountain homes near open space and tranquility far from downtown high-rises. And they have the money to pay for it.

In Tahoe, the influx of newcomers has, as Hobday said, “turned every day into Fourth of July,” bringing unwelcome traffic jams, trash, crowds and fears newcomers could turn the mountain town of Truckee into a coronavirus hot spot.

But full-time residents — in particular the essential workers who staff hospitals, teach kids, plow snow and cook in restaurants — are concerned the influx will drive up rents and housing prices in a region already unaffordable to many.

Year over year, the average home price in the area is up 26% to $1.3 million, while the median price has jumped 17% to $865,000, according to the Padden Group, a local brokerage. The number of homes sold in July was up 59%, from 96 to 235. In the last 30 days, 213 single-family homes hit the market, and 105 are already in escrow. Bidding wars are now par for the course, and some houses are attracting more than 50 bids, according to brokers.

“You are not even going to compete if you don’t have all cash. It is like the Bay Area prior to COVID,” said Kathleen Eagan, a former mayor of Truckee who has lived in the town for 30 years.

The property feeding frenzy is rippling across the Tahoe economy. Owners who had been renting out homes to local families are capitalizing on the seller’s market, leaving their tenants scrambling for new spots just as school is starting up.

“The No. 1 thing you hear around town is, ‘My house is getting sold and I need to find a new place,’” said Emily Vitas, executive director of the Truckee Tahoe Workforce Housing Agency.

Sam Drury, a broker with the Padden Group, said the demand from the Bay Area is strongest in the entry-level segment, under $1 million, and many of the would-be buyers are well-paid tech workers who were renting in the San Francisco market. They are outbidding the teachers, nurses and construction workers, many of whom are forced to commute from Reno and other cities.

 Tahoe’s new Gold Rush: Bay Area residents fleeing coronavirus push up home prices

“Anything that was even a little affordable is getting soaked up,” Drury said. “That three-bedroom, two-bath 1970s chalet that was $550,000 is now $675,000.”

Two bedrooms rent for about $2,200 a month and three bedrooms for $2,500 — which is about 20% above what it was prior to the pandemic. Bay Area renters are often willing to pay an entire year of rent up front, according to affordable housing advocates.

On the Truckee residents Facebook page is a constant stream of locals — teachers, nurses, firefighters — looking for a new rental because their landlords are selling.

Eagan said that the Truckee Nextdoor is full of inquiries from the newcomers — several of whom seemed unfamiliar with the pollen that blankets surfaces every summer. “There are so many posts, ‘Hey just moved to Truckee. And what is that yellow stuff on my deck?’”

The lack of affordable housing has been an issue in Tahoe for decades as Truckee has grown from 5,000 to 16,000 since it incorporated as a town in 1993. The Mountain Housing Council estimates there’s a 4,000-unit housing shortage in the area.

A Truckee Tahoe Housing Workforce Agency survey of 1,800 public sector employees found that 16% of local workers were considering leaving Tahoe because of the housing costs. Over the last 10 years, the Tahoe Forest Health System (a member of the Workforce Housing Agency) has seen a 13% increase in employees commuting in from Reno, which is also seeing a spike in home prices because of the growth there of companies like Tesla and Apple.

Stefanie Olivieri, who owns Carbona’s clothing store in downtown Truckee, said the lack of housing has made it impossible to hire new workers. “It’s crippling our business,” she said. “I have worked five months without a day off because I could not find anyone to work. Most retailers are in the same boat.”

The long commutes “add more traffic, hurt air quality and harm the quality of life,” she added.

On the surface there would seem to be enough housing in the Truckee and North Lake Tahoe region — 13,000 homes serving a population of 16,000. But 54% percent of the inventory is second homes, and of those, about 13% are used for short-term vacation rentals. Many of the vacation homes are sitting empty — at least 1,000 — according to Kai and Colin Frolich, San Francisco transplants who started Landing Locals, a business that seeks to connect owners of unused second homes with local workers.

“We are trying to offer an alternative to short-term rentals or properties sitting empty,” said Kai Frolich.

So far Landing Locals has placed 140 Tahoe workers into 55 empty vacation homes, often units that are in limbo as the owner passed away and the next generation doesn’t live in the area. They call such units “cold beds.” Landing Locals is now working with 373 residents in need of rental housing.

Beyond lamenting the housing crunch that’s hurting workers, Tahoe residents want the new neighbors from the Bay Area to respect their way of life.

Siobhan Smart, who owns the historic Wagon Train Cafe in downtown Truckee, said that Bay Area transplants will be accepted if they are friendly and community-minded.

“You can’t come up here and be a jerk. The town is way too small for that,” she said. “You can’t flip off your neighbor because that is the same neighbor who is going to help dig you and your three small kids out in a snowstorm.”

She added that people from San Francisco need to learn to be neighborly because small-town living in Tahoe is nothing like the anonymous existence that San Francisco residents enjoy.

“Walking around on your phones, not making eye contact — you don’t get to do that here.”

J.K. Dineen is a San Francisco Chronicle staff writer. Email: jdineen@sfchronicle.com Twitter: @sfjkdineen

Article source: https://www.sfchronicle.com/bayarea/article/Tahoe-s-new-Gold-Rush-Bay-Area-residents-15511767.php

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Homes for sale can be toured buy potential buyers on Monday, Bay Area real estate market likely to pick up – KGO

HAYWARD, Calif. (KGO) — Real estate home sales will be kicking into a higher gear on Monday when owner occupied homes for sale can be toured in person with stringent protocols in place.

It’s been a strange March and April for real estate with only vacant homes on the market.

Real estate agents could not sell homes that were occupied but the buyers are out there, according to realtors like Sheila Cunha with Legacy Real Estate.

She just sold a home in Hayward and said ” We put it on the market on Friday and by Wednesday, we had multiple offers and went pending even in this market.”

Things are expected to take off starting Monday when owner occupied homes can again be viewed in person.

But the owner cannot be inside the home and a maximum of two people from the same household can tour with proper protective gear.

But buyers won’t be able to open cabinets or closets because no touching is allowed under the new rules.

Cunha said there are no open houses and no broker tours.

Stagers are allowed in some counties and prohibited still in others.
Many sellers took their homes off the market since the shelter in place order took effect, though many are expected to relist them now.

Some agents say expectations could change among homebuyers.

An extra room that was once a luxury could now be looked at as a necessity for a home office.

Tina Hand, president of Bay East Association of Realtors said, “I think this will shift their mindset and what they want. It may not be the four bedroom home, it may be the three bedroom two bath with an office.”

She also noted buyers are indicating they want to move out to more open space and or in some cases are willing to commute longer as they plan to work from home more.

Hand said, “I believe we will still have our summer home buying season, it will just be later in the third quarter or fourth quarter.”

Prices are expected to remain stable.

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Article source: https://abc7news.com/bay-area-real-estate-home-sales-coronavirus-open-houses-california/6143679/

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Air Pollution Worsens COVID-19, but Bay Area Emissions Limits Are Unchanged

Throughout most of the COVID-19 lockdown this spring and summer, when Sabrina Hall left her home in San Francisco’s Bayview-Hunters Point neighborhood and walked to her car, she routinely found the vehicle — and every other car on the block — covered in a fine layer of dust.

Its source, she believes, is concrete residue from nearby road construction that’s “been going the entire time” throughout the pandemic, she said, and at higher intensity than before the stay-at-home order was imposed in March. Lately, coupled with wind and ash from wildfires, “The dust situation has been worse,” she said Thursday.

Leaotis Martin didn’t have to leave home to breathe invasive particles. On June 8, laborers and heavy equipment working for homebuilder Lennar Corp. appeared on the southern slope of the Hunters Point ridge, to resume work on the SF Shipyard mega-development project, the largest real-estate effort in the city since the 1906 earthquake. Since then, “We’ve got dust flying all over, from there to where I’m at,” several blocks away on West Point Road, Martin said in an interview this summer.

As life in San Francisco entered a state of suspended animation in the early days of the novel coronavirus pandemic, some business continued as usual. That includes construction, which after the first two weeks of the lockdown was specifically permitted as “an essential activity” under Mayor London Breed’s executive order, provided it met certain criteria.

Limits on construction activity were lifted May 17 as California reopened. Reopening presaged a summer-long spike in COVID-19 cases. As the pandemic continues through wildfire season, and San Franciscans breathe in pollution from the fires’ miles-wide blankets of smoke, public health experts and researchers contacted for this article agree that human-created sources of pollution should be limited or eliminated.

That would include slapping limits on construction. Scientists agree construction contributes to air pollution, and according to multiple studies, air pollution can predict where the disease will strike hardest and exacerbate symptoms once people fall ill. And early research out of Italy, where the pandemic struck hard in its earliest days, suggests that pollution can carry the virus itself.

Along with sheltering in place, compulsory masking, and washing hands, a sensible, comprehensive public-health response to the novel coronavirus pandemic would include mandates for cleaner air, experts say. That would be particularly welcome in Bayview. The area suffers some of the worst air quality in the region along with San Francisco’s highest rates of COVID-19, with 1,101 confirmed cases among 37,394 residents, according to the San Francisco Department of Public Health.

Despite the high likelihood that pollution controls would improve health outcomes, the coronavirus pandemic has not prompted changes to air pollution restrictions anywhere in the Bay Area, officials with the San Francisco Department of Public Health and Bay Area Air Quality Management District confirmed. That reluctance is prompting experts to question policy-makers’ actions.

“I don’t know why construction was deemed an essential activity,” said Dr. John Balmes, an air-quality expert and epidemiologist at the University of California, San Francisco, medical school. “I think that was a political-economic decision.”

The result for some San Francisco residents, like Martin and Hall, is sheltering in place in what they say and what data suggests is an unhealthy atmosphere that could make them more vulnerable to the virus.

Some research suggests air pollution link to coronavirus

In both Italy and in China, two early hotspots for COVID-19, researchers found what they call a “direct relationship” between particulate matter and cases of the virus. Building off of these findings, an article published in April in the peer-reviewed journal Challenges suggested the novel coronavirus can travel on particulate matter, fine particles small enough to be inhaled and lodge in the lungs — and that this was a clear call for regulators to cut pollution as a pandemic response.

“If it is true that the novel coronavirus remains active from some hours to several days on various surfaces, it is logical to postulate that the same can occur when it is adsorbed or absorbed by the atmospheric particulate matter, which may also help carry the virus into the human respiratory system,” wrote lead researcher Luigi Sanita di Toppi, a biologist at the University of Pisa.

Once inhaled, those particles — virus-laden or not — can trigger lung inflammation.

Common sources of particulate matter include carbon emissions from industry and automobiles, wood smoke and dust from building and other construction activities, according to the U.S. Environmental Protection Agency.

Such pollution is well-known to increase the likelihood of respiratory infections and mortality. And links between construction pollution and lung disease have been suggested well before the pandemic.

“As the Earth presents us with a very high bill to pay, governments and other authorities need to take prompt action to counter excessive pollution levels,” di Toppi wrote.

Bayview Hunters Point has already paid a very high bill. According to one survey of elementary-school students at George Washington Carver Elementary School, near the Hunters Point shipyard, as many as 85 percent of first-graders have symptoms of asthma, a public-health crisis that researchers have suggested is connected to an influx of new construction.

“Given this, there are public health reasons to institute stronger controls on pollution right now,” said Dr. Claudia Persico, an applied-policy scholar and professor at American University in Washington, D.C. 

Persico  is the lead author of a recent discussion paper that suggested a link between air pollution and COVID-19 infections and deaths. Researchers at Harvard University’s T.H. Chan School of Public Health found a similar link between long-term exposure to air pollution and higher rates of COVID-19 death rates.

The pandemic adds a layer of urgency to revived community concerns around the Bayview-Hunters Point shipyard redevelopment project. In 2008, Lennar Corp. paid a $515,000 fine for failing to control construction dust laden with naturally occurring serpentine asbestos, present in the Hunters Point hill where the first few hundred condos were built.

More recently, the shipyard project has been delayed for years by a fraud scandal in which a contractor hired to clean pollution allegedly faked its work. The weight of these developments, along with recent research suggesting toxic material from the shipyard may have been absorbed by local residents and workers, and  fears that the work that began in June raised more asbestos-laden dust, has led to renewed calls for government to step in.

“Once again, Lennar Corporation is making a loud statement that Black Lives do not matter,” attorney Charles Bonner wrote in a petition filed in early July with the state attorney general’s office. Bonner alleged that construction dust is entering into nearby homes and asked authorities to halt the construction, a claim repeated by Martin and other litigants in a class-action lawsuit.

Officials with the Bay Area Air Quality Management District stressed that the Lennar construction project has not  violated any pollution limits, including the controls on dust containing naturally occurring serpentine asbestos imposed more than a decade ago. An inspector with the district visited the site on July 1 and did not observe any emissions at all, according to a site-visit report obtained via a public records request.

Danielle Tocco, a spokeswoman for Lennar, did not respond to several email messages and phone calls seeking comment.

And, at least for now, that work is over. The work Lennar did in June is pre-construction work called “grubbing,” the removal of roots and vegetation from the hillside so heavier building work can begin.

Once that construction starts, particulate-matter emissions will continue to be monitored, district spokesman Ralph Borrmann said in an email. Emissions will also be subject to limits hashed out as part of the settlement agreement reached about a decade ago.

Should construction be shut down?

But merely monitoring dust is  not good enough for some public-health experts. Some believe pollution controls in place before the pandemic are too lax — and that allowable levels of pollution contribute to asthma, chronic bronchitis and other lung illnesses that render the sufferers more likely to become seriously ill with COVID-19.

“In general, air pollution cutoff criteria should be tightened, irrespective of COVID,” said Dr. Mary Prunicki, a physician and research scientist at Stanford University School of Medicine, where she is the Director of Air Pollution and Health Research at the Sean N. Parker Center for Allergy Research.

Even areas with poor health outcomes and widespread chronic breathing problems connected to long-term air pollution experience near-immediate improvements when pollution levels are cut, she said. Pollution concerns underscore complaints from earlier in the pandemic that argue there’s little justification for construction to be considered an “essential activity” during a respiratory-disease pandemic.

“There’s a difference in opinion, but based on the science, I would say it should be limited or stopped,” Prunicki said. “It would stand to reason that if you can improve air quality, or at least not make it worse, it may have some impact on COVID rates.”

As elsewhere in the country, air quality improved dramatically in March and April, when all but essential workers were told to stay at home and traffic disappeared from Bay Area freeways. Since then, pollution levels have slowly returned to normal — before worsening to some of the most hazardous air quality in the world following wildfires that struck last week.

With that in mind, and with the pandemic still stifling the economy, travel, and normal activities, more radical measures may be needed to smash the virus.

“Given the current increase in coronavirus infections, we should be considering a much more intensive lockdown and shelter-in-place, and in my view, that would include” limits on particulate-matter emitting activities like construction, Balmes of UCSF said.

Construction also poses risks to workers laboring in a dust-laden environment. Inhaling dust can weaken their immune systems thus increasing the likelihood of contracting COVID-19, which could then be spread to family or friends back home.

Little political will for halting or limiting construction

So far, the coronavirus pandemic does not appear to have triggered even a discussion of restricting polluting activities, or re-examining market-rate residential construction’s essential status. In fact, elected officials contacted for this article declined to even discuss the concept.

Before District 10 Supervisor Shamann Walton’s election to represent the Bayview two years ago, he was executive director of Young Community Developers, a job-training nonprofit that’s also involved in affordable-housing construction.

“Right now we are addressing the negative impacts of COVID-19,” he wrote in response to a text message asking if he would tackle the issue of air pollution. “We are providing food, basic needs, PPE and monetary resources.”

Asked directly if he would explore stricter pollution controls, Walton, who also sits on the air-quality district board, did not respond.

Mayor London Breed, through city spokesman Joseph Sweiss, acknowledged “the relationship between poor air quality and COVID-19.” Asked about the link between Bayview’s poor air quality and its COVID rates, and what can be done in response, Sweiss said the pandemic has “disproportionately impacted the most vulnerable among us.”

Part of San Francisco’s climate-action plan to become a “zero emissions” city by 2050 includes pending legislation that would mandate “zero-emission homes” through bans on natural-gas heaters and stoves in new construction, he pointed out. Asked why construction was deemed an “essential activity” during the pandemic and whether Breed would revisit this designation or impose tougher pollution controls, Sweiss did not respond by the time of publication.

No good options

Pollution may present public officials a menu filled with bad options, not unlike the dilemma of how to reopen schools.

Keep pollution limits where they are and health risks are exacerbated. Cut pollution limits, and industrial and construction jobs may vanish. The better air quality seen in the Bay Area this spring “occurred hand in hand with devastating social and economic challenges which will continue to impact communities, particularly the most vulnerable and the most susceptible, for the foreseeable future,” said Dr. Sumi Mehta, a senior epidemiologist at Vital Strategies, a global public health organization that advises governments.

Such considerations won’t satisfy some critics, for whom the COVID-19 pandemic represents a crisis on top of a crisis — and for whom public health concerns outweigh economic indicators.

“I don’t think we need to discuss it any further,” said Dr. Mark Alexander, an epidemiologist and research scientist retired from Kaiser Permanente Northern California, who grew up in the Bayview and now works as a health equity advocate and adviser.

“I would argue that the 38,000 residents of Bayview-Hunters Point are not and will not significantly benefit from development going on in Bayview-Hunters Point,” he said. “This work, and the lack of interest in the health of the community, was happening well before the pandemic hit.”

“The development must stop, certainly during this era of the COVID-19 pandemic,” he added. “It would be the humane thing to do at minimum.”

Until then, residents like Hall and Martin are instructed by public health officials to stay at home to stop the spread of the virus — in an environment that experts say is unhealthy and grows worse as the wildfires rage.

Hall suffers from lung disease and worries about damage from the dust being spread from construction and other elective work. Even if the city insisted that work must go on, there are preventative measures that could protect or save lives that simply have not been offered.

“They haven’t offered us humidifiers or air purifiers,” she said. “There’s no dust control, and no regard to our health.”

Article source: https://sfpublicpress.org/air-pollution-worsens-covid-19-but-bay-area-emissions-limits-are-unchanged/

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Hotels Install Office Amenities to Lure Bay Area Teleworkers Out of the House

HEALDSBURG (KPIX) — More hotel are fashioning rooms into office spaces as working from home becomes a longterm option for many Bay Area professionals.

Thanh Nguyen reported to work Monday from the comfort of his suite at the Harmon Guest House, a hotel in downtown Healdsburg.

The state-of-the-art Altwork Station is just one of the perks it recently rolled out to appeal to work-from-home professionals.

“The ability to come in and really just crank out — my wife and I were talking about this in that — if I could just have six or seven hours of dedicated (time) at least once a week, I could do so much,” said Nguyen.

The San Francisco resident runs a services business out of the city but the office is closed due to the pandemic. He has a second home in Healdsburg and three young children.

“They just come marching in and I’m on my Zoom call talking about a presentation that we’re delivering and they’re marching and playing and, you know, it’s cute, it’s humanizing, everybody has to deal with it but it’s a distraction,” he said.

At Harmon Guest House, guests can book one of the Founders Suites for 12 hours for $300. Access to amenities is included. For overnight stays, the Altwork Station can be requested for an additional $200.

“I think that now so many people have been given the OK to work remotely and I think people are going to take advantage of that,” said Circe Sher, president of Piazza Hospitality, which owns Harmon Guest House. “They’re going to go to different places and escape the noise at home and have the opportunity to really concentrate.”

The pandemic has put a dent in the hotel industry. After being closed for nearly three months, Harmon Guest House says business is less than 50 percent of what it was this time last year.

Hotel Zetta in San Francisco’s Union Square is also getting creative. Right now, it’s offering specials only to people traveling on essential business. Rooms come with a Peloton bike and a meditation headband.

“If I needed to take a nap, I could take a nap too and I’m pretty sleep-deprived in general, so that would work for me,” added Nguyen.

Article source: https://www.msn.com/en-us/money/realestate/hotels-install-office-amenities-to-lure-bay-area-teleworkers-out-of-the-house/ar-BB17ODXC

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Feds investigating massive suspected Marin County Ponzi scheme involving dead real estate investor

Robin Schild was so happy with his $250,000 investment, he mortgaged his house for $400,000 and sunk that too into Ken Casey’s real estate investment firms that promised sky-high returns and came with even higher praise from friends.

Since investing in 2016, the Albany resident said he regularly received his monthly 9% interest payments deposited into his bank account and at one point withdrew $200,000 from his account with no problems. So he was shocked when he received a call from a friend and fellow investor who said all investments and interest payments had been frozen and federal regulators were investigating Casey’s companies for running an alleged Ponzi scheme.

“It’s like, do I need this in the middle of the worst epidemic in 100 years?” Schild said in an interview with The Chronicle. “I think I’ll be lucky to get half of it back … and I consider myself lucky because other people had everything they owned invested and I’ve heard there are people going on food stamps.”

The 63-year-old is one of more than 1,000 investors scrambling to recover hundreds of millions of dollars from the alleged Ponzi scheme involving Casey, who died in May from a heart attack. His admirers celebrated him as a Republican donor, philanthropist and adventurer who amassed an enormous portfolio of office parks and apartment buildings in Marin and Sonoma counties.

Shortly after his death at age 73, a law firm and accountant tasked with transferring his companies — Professional Financial Investors Inc. and Professional Investors Security Fund Inc. — to his ex-wife uncovered the allegations of fraud. They now question whether more officials from the Novato companies profited off the three decades of a “Ponzi-like operation,” according to bankruptcy records reviewed by The Chronicle.

Forensic accountant Michael Hogan, who has been named chief restructuring officer for the companies, pored over the financial records and found the companies used new investor funds to pay off other investors’ interest payments and other debts, according to his bankruptcy declaration.

Hogan estimates Casey’s companies owned interests in about 70 real estate properties with an estimated worth of more than $550 million. However, those properties have debt exceeding $400 million and his companies owe more than $250 million to investors, he said in court records. Last month, both companies filed for bankruptcy.

“Over a period of at least three decades, Mr. Casey appears to have operated a fraudulent scheme in which investors loaned funds to the Companies, with a significant portion of those funds being used to service the debt owed to existing investors and to personally enrich Mr. Casey himself,” Hogan said. “Others associated with the Companies also appear to have been involved and benefitted from the scheme, and this investigation is ongoing.”

The SEC initiated its investigation on May 28, he said. An SEC spokeswoman declined to comment.

Casey started his companies in 1983, serving as the sole officer until 1998. He maintained complete control of the companies until his death, Hogan said.

He divorced his wife, Charlene Albanese, in 1996, but left her the companies. In a statement to The Chronicle, Albanese said she hired lawyer Eric Sternberger two days after Casey’s death to review the corporate finances.

“Mr. Sternberger discovered a variety of improprieties, after which I directed the company to self-report to the SEC, which then began its investigation,” she said. “Funds were frozen to preserve them for the investors, except those relating to bank debt and normal operating expenses, and all officers were removed.

“Company operations are stable, Chapter 11 has been filed, and I am resigning from the director position so professionals and creditors can appoint a qualified independent director,” she continued. “I am heartbroken and sick to my stomach that so many investors, myself included, have been devastated by Ken’s actions. Like all of the other investors, I am waiting to see what can be preserved.”

Hogan also reported in his recent bankruptcy declaration that the companies’ former CEO, Lewis Wallach, “may have also benefited from the manner in which Mr. Casey ran the Companies.”

Last month, the law firm reached an agreement with Wallach to return $1 million from an LLC that he controlled, and is waiting for him to return two properties with several million dollars in equity, Hogan said.

Property records show Wallach owning an Encino (Los Angeles County) home with his wife purchased more than a decade ago for $3.5 million. They also indicate Wallach owned a beachfront Malibu property that is now renting for $30,000 a month.

A woman answered the phone Monday and took a message for Wallach. He did not return the call.

At Casey’s passing, Marin County officials hailed him as the largest commercial property owner in the county in an article by the Marin Independent Journal, which first broke the stories of the alleged scam. He was regaled as a philanthropist and an adventurer, who Herb Caen once wrote about in 1995 when he was training to become the 13th man to reach the North Pole by dog sled.

However, he had past legal troubles. In 1997, Casey pleaded guilty to one count of conspiracy to defraud the federal government, five counts of tax evasion and filing false tax returns, and 41 counts of bank fraud. He was sentenced to 18 months in prison, according to court records.

Casey had recently become active in donating to Republican causes, including a $300,000 donation from Casey’s companies to a committee created to advocate for the repeal of the state’s gas tax. He also donated to Travis Allen’s and John Cox’s unsuccessful runs for governor.

 Feds investigating massive suspected Marin County Ponzi scheme involving dead real estate investor

In October 2018, he loaned Marin County District Attorney Lori Frugoli $25,000, just 13 days before the election that she would win by a few hundred votes.

“She asked me for a loan and I said sure,” Casey told the Independent Journal at the time. “I’m not supporting her to get out of any parking tickets.”

Frugoli told The Chronicle on Monday that in May she repaid the loan in full “prior to any of the recently discovered information about PSIF Inc.”

“Mr. Casey was a friend of my late husband and I knew of Mr. Casey through his service on the Marin County Human Rights Commission,” Frugoli said in an email. “Like many others, I was shocked to learn of the allegations which have surfaced. Mr. Casey never attempted to ‘curry favor’ from me or my office.”

As for Schild, he said he was introduced to the company by a friend and he only spoke a few times to Casey over the phone and found him friendly. He said he’d likely have to sell his Oakland condominium to pay off his debt.

“It’s all dependent on getting fresh suckers,” Schild said. “And there’s not an infinite supply of suckers.”

Matthias Gafni is a San Francisco Chronicle staff writer. Email: matthias.gafni@sfchronicle.com Twitter: @mgafni

Article source: https://www.sfchronicle.com/bayarea/article/Feds-investigating-massive-suspected-Marin-County-15465540.php

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