The text below was taken from the Search Warrant and Affidavit that was signed by a judge on January 14,2009. It was scanned and converted to text by an optical character reader program and may contain some typos. The big question to me is why Postmus and Defazio were never charged with the crimes that were outlined in the affidavit? The location and financial details of his land purchases or gifts were not reported on his disclosure forms as requiored by law. It's not a question of if it happened, it did and no charges were filed. Read the affidavit and draw your own conclusion.
CI INFORMATION- REAL ESTATE
CI said Postmus and Defazio are partners in Tri-Land Inc, and they had acquired land in Adelanto and Lucern, through that partnership. CI said Postmus had prior inside knowledge regarding future development of the properties contiguous to the acquired land and could be in violation of conflict of interest laws as a result of his inside knowledge. CI remembers, Postmus said some land was acquired “outside of escrow”.
In connection with this investigation, I consulted with Supervising Investigator Robert Schreiber of the District Attorney's Special Investigations Unit As Supervising Investigator of SID, Schreiber is currently responsible for the supervision of the Public Integrity Unit. Schreiber holds a Master's Degree in Management from the University of Redlands, School of Business, and a Bachelor of Science degree in Business Administration from the University of Southern California, School of Business.
As Supervising Investigator. and in his previous assignments as a Senior Investigator for the Public Integrity Unit and Real Estate Fraud Unit, Schreiber has reviewed or investigated over 200 complaints involving criminal allegations against public officials. Schreiber has investigated several cases involving financial crimes and the financing, transfer and ownership of real property and criminal conduct related thereto. Schreiber has interviewed experienced investigators from the Federal Bureau of Investigation and the United States Secret Service along with numerous employees of financial institutions. Additionally, Schreiber has interviewed persons known to have committed financial crimes on the various ways persons obtain, hide and launder their illicit moneys.
While employed as a District Attorney Investigator, Schreiber has attended over 200 hours of continuing education in investigative technique. Additionally, Schreiber has completed over 160 hours of specialized training in Bankruptcy Fraud, Money Laundering, Asset Forfeiture, Tracing illegal Proceeds and Fraud Investigation Methods. Schreiber has received this training from the Federal Law Enforcement Training Center, the Investigation Training Institute, the United States Department of Justice and the California District Attorney's Association. Schreiber has collaborated on investigations with the following agencies: California Economic Development Department, California Department of Corporations. California Department of Real Estate, California Franchise Tax Board, Securities and Exchange Commission, Office of the Comptroller of Currency, Federal Bureau of Investigation, United States Secret Service, HUD OIG and the Federal Reserve Bank of the United States Treasury.
Prior to his work as a District Attorney's Investigator, Schreiber was employed for approximately six years as a Deputy Sheriff by the San Bernardino County Sheriff's Department where he worked on several investigations which dealt with complex financial crimes, public integrity crimes, embezzlement and white collar criminal conduct. While employed as a Deputy Sheriff, Schreiber completed over 200 hours of specialized training in various methods of investigation. Schreiber possesses the Basic, Intermediate,Advanced and Supervisory Certificate Awarded by the Commission on Peace Officer Standards and Training.
In addition to his law enforcement training and experience, Schreiber has been a Real Estate Licensee for over 31 years in the State of California, 27 of which, as a Real Estate Broker. Schreiber has expertise in Real Estate Law, Contracts, Escrow, Title Insurance, Finance, Construction, Development and Investments.
I asked Schreiber to compare and analyze the income, investments, and real property interests reported by Assessor Bill Postmus on Postmus' Statement of Economic Interests (Forms 700) for the calendar year 2007, to information that Schreiber obtained through public records, published statements in the press, and transcripts of Postmus' recent Grand Jury testimony regarding his investments in land. A copy of the forms 700 (Attachment # 23), published statements in the press (Attachment # 24), portions of Grand Jury transcripts (Attachment # 25), and public records (Attachment # 26) are hereto attached.
Although Postmus provided information on his form 700 that appears to describe the nature of his income, investments, and real estate interests in six parcels of land, several circumstances exist that cause Schreiber to believe that the information provided in Postmus' disclosure are false and misleading. The following is a summary of Schreiber's findings:
FINANCIAL DISCLOSURE ( FORM 700)
Tri-Land, Inc.
On Schedule A-2 of the attached Statement of Economic Interests (Form 700), which details ownership interests of 10% or greater in Investments, Income, and Assets of Business Entities Trusts, Postmus declares that he has an investment in the business entity Tri-Land. Inc. Postmus describes the business activity' of Tri-Land, Inc. as a "Land Investment”. He also declares that the nature of the investment In TriLand, Inc. is a “Partnership". On his declaration, Postmus fails to ascribe an actual fair market value to his investment in Tri-Land. Inc' as is required by the disclosure form.
An inquiry of public records indicates that Tri-Land, Inc. is a California Corporation that was formed on May 7, 2007 by Dino Defazio. A Statement of Information, filed with the Secretary of State on July 12, 2007 indicates that the sole officer of this Corporation is John Dino Defazio, a high desert developer. According to public records, Defazio is a principal of Artisan Homes and other business entities that do business in San Bernardino County. Although Postmus declares he has a "Partnership" interest in Tri-Land, Inc he fails to accurately describe the nature of his interest (ie. shareholder interest or percentage) and nothing in the public records indicate that Postmus is an actual shareholder of Tri-Land. Indeed, Corporations are not partnerships. CI indicated that Defazio and Postmus own Tri-Land Inc, equally.
Purchase of Six Parcels of Vacant Land
On the same schedule as described above, Postmus declares an ownership interest in 6 parcels of land. Postmus described the nature of his interests in these 6 parcels as being through a "Property Ownership Deed of Trust" held by Tri-Land. Three of these parcels are identified by Postmus as APN #'s 0458052050000, 0458052060000 and 0458052070000, and were indicated as acquired on 81212007. These parcels are further described by Postmus as a being vacant lots in "Lucerne Valley". In fact public records indicate that these parcels are located in Adelanto, not Lucerne Valley. Additionally, public records indicate that these three parcels were sold to Tri-Land. Inc. as to an undivided 2/3 interest, and Jeff Bentow as to an undivided 1/3 interest. Jeff Bentow is a high desert developer who does business in the County of San Bernardino.
A Grant Deed executed by Bentow on July 12, 2007, transferred these parcels from Bentow to Tri-Land, Inc. and Bentow. The deed was recorded on 8/2/2007 as document number 2007-0453I02. The Documentary Transfer Tax of $55 on the Grant Deed, which is assessed at $1.10 per $1000 in value conveyed, indicates that all three parcels of land were sold for a total price of $50,000. CI said Tri-Land acquired the three parcels in Adelanto, because Postmus had inside knowledge that the Lewis 1Development Company, a prominent high desert developer, was going to install large-scale infrastructure in the immediate vicinity of these parcels, as a condition of future development of their own parcels in the area.
The Grant Deed conveying title of these three parcels of vacant land to Tri Land, Inc. indicates that APN #'s 0458052050000,0458052060000 and 0458052070000 were recorded at the request of John Dino Defazio, et aI, under escrow number 9181. An examination of public records also indicates that there was no concurrent recording of a Deed of Trust evidencing that debt was utilized in acquiring these parcels. Additionally, the absence of a title order number on the Grant Deed indicates that this transaction was completed without the benefit of title insurance and the escrow number of 9181 may in fact, be an in-house escrow number for Dine Defazio, a Real Estate Broker licensed to conduct escrow transactions.
The fourth parcel is described by Postmus on his disclosure form as APN # 0450191280000, and was indicated as being acquired on 12/18/2007. This parcel is further described by Postmus as a vacant lot in "Lucerne Valley". A Grant Deed executed by Dino Defazio on December 14, 2007, transferred this parcel from Artisan Home Builders, Inc. A California Corporation, to Tri Land, Inc., A California Corporation and was recorded on 12/1812007 as document number 2007.0701816. Documentary transfer tax of "None" indicated on the Grant Deed, which is assessed at $1.10 per $1000 in value conveyed. Indicates that this parcel was transferred as a gift with no consideration paid. Postmus declared, under penalty of perjury, that this parcel has an actual value of between $10,001 and $100, 000. In that this parcel was acquired in the year 2007, Postmus appears to have failed to disclose the receipt of a personal gift, by way of this acquisition.
An examination of the Grant Deed conveying title to this fourth parcel of vacant land acquired by Tri Land, Inc. indicates that the deed was recorded at the request of Helen Hinkle. Notary Public for Tri Land Inc. at 14173 Green Tree Blvd. Suite A, Victorville, CA. The office at 14173 Green Tree Blvd also contains the business offices of John Dino Defazio. The Grant Deed contains no escrow number and no title order number, which indicates that this transaction was completed without the benefit of escrow or title insurance, providing further evidence that this conveyance was a gift. .
The fifth and sixth parcels were identified by Postmus in his disclosure form as APN #'s 0449181420000 and 0449181350000, and were indicated as acquired on 10/3/07 and 9/20/07 respectively. These parcels are further described by Postmus as a being vacant lots in "Lucerne Valley". Additionally, public records indicate that these two parcels were sold to Tri-Land, Inc. as to an undivided 2/3 interest, and to Jeff Bentow as to an undivided 1/3 interest.
A Grant Deed executed by Hardeep and Gurrneet Chowdhary on July 7, 2007, transferred these parcels from the Chowdharys to Tri-Land and Bentow, and was recorded on 10/3/07 and 9/20/07 as document numbers 2007-0563340 and 2007-0540605, respectively.
Documentary transfer tax of $192.50 indicated on the Grant Deeds, which is assessed at $1.10 per $1000 in value conveyed, indicate that each parcel of land was sold for $175,000. On his disclosure form, Postmus fails to indicate any valuation for these parcels, effectively hiding the fact that the investment in these two parcels totaled $350,000.
An examination of the Grant Deed conveying title to these two parcels of vacant land acquired by Tri Land, Inc. indicate that the Grant Deeds were recorded at the request of First American Title, under title order numbers 2828445 and 2828448-TE. The title order numbers, as well as the fact that Deeds of Trust were recorded concurrently with the recording of the Grant Deeds, indicate that the parties had obtained Title Insurance policies in connection with these transactions. The Custodian of Records for First American Title Insurance Company is located at 11175 Azusa Court, Rancho Cucamonga, CA 91730. Additionally, the escrow numbers 9190 and 9192 indicated on the Grant Deeds, may, in fact, be in-house escrow numbers for Defazio, a Real Estate Broker licensed to conduct escrow transactions.
Sale of Personal Residence
On Schedule C of Postmus' form 700, under Income, Loans, & Business positions (other than gifts and travel payments), Postmus declares that he received income in an amount over $100,000 through the sale of his house at 13352 Sunny Ridge Street in Hesperia, CA. Public records indicate that this home was purchased by Postmus on 5/12/03, and was transferred to Postmus by way of a Grant Deed executed by James L. Previti, President of Copper Crest, LLC. According to public records, Previti is a real estate developer who conducts business in San Bernardino County as president of Copper Crest LLC, and through other business entities. Documentary transfer tax of $192.50 indicated oil the Grant Deed, which is assessed at $1.10 per $1000 in value conveyed, indicates that this home was sold to Postmus for $175,000. The Grant Deed was recorded as document #2003-0315340.
In connection with the purchase of his home, Postmus obtained a new loan from Wells Fargo Home Mortgage in the amount of$139,663, evidenced by a Deed of Trust recorded as document number 20030315341. At a later date, on 10/12/06, Postmus obtained a revolving line of credit from Citizens Business Bank, in the amount of $160,000. A Deed of Trust recorded as document number 2006-0696719 evidenced this debt.
A Grant Deed executed by Postmus on July 19, 2007, transferred this home from Bill Postmus to Freida Rachal and Willie Butler, and was recorded on 8115/2007 as document number 2007-0476196. The Document Transfer Tax of $336.60 indicated on the Grant Deed, which is assessed at $1.10 per $1000 in value conveyed, indicates that the home was sold for a total price of$306,000. At the time of the sale of this property, on 8/15/2007, public records indicate thai Postmus had borrowed up to $299,000 against the value of his residence.
An examination of the Grant Deed conveying title to this home indicates that the Grant Deed was recorded at the request of First American Title under title order number 283679S-TE. The title order number indicates that the parties obtained a Title Insurance policy in connection with this transaction.The Custodian of Records for First American Title Insurance Company is located at 11175 Azusa Court, Rancho Cucamonga, CA 9173 O. Additionally, the escrow number of 9199, indicated on the Grant Deed, may, in fact, be an in-house escrow number for Dino Defazio, a Real Estate Broker licensed to conduct escrow transactions. .
In a newspaper article dated May 22, 2008, by Duane Gang of the Press-Enterprise, Gang quotes Postmus as stating, when asked about his investment in six vacant properties ."I sold my house and made a hefty profit and decided to invest it in land in the High Desert". In transcripts of sworn testimony by Postmus before the 2007-2008 Grand Jury, when asked about his purchase of the parcels of vacant land indicated on his form 700, Postmus stated, "I sold my house. Thank God I sold it at the right time too, just before the market really started collapsing in Hesperia. I took all the proceeds from that, and I bought land". When asked about his relationship with Dino Defazio, Postmus testified " we actually created a company called ... I think its Tri Land...Yeah. It's basically Tri Land. And I own six or seven parcels with Dino, and hopefully more in the future".
Despite sworn and public statements from Postmus that he took all the proceeds from the sale of his home to purchase the six vacant parcels of land through Tri LandI Inc public records indicate that it is likely that no such proceeds existed for such purchases. Indeed, three of the six vacant parcels of land were purchased before Postmus actually sold his home.
Opinions and Conclusions
Based on his education training and experience, Schreiber told me that persons engaged in the real estate business sometimes take title to an acquired property in a form that makes it difficult to ascertain the identity of the principals involved in the transaction. This can be done for legitimate purposes, or for the purpose of engaging in illegal conduct. A party to a legitimate real estate action may elect to take title in the name of an entity with a fictitious name such as a partnership, corporation or limited liability company (LLC). When this occurs, the identity of the principals unknown to the casual observer, however, the principals can still be identified through public records, which are properly execute such as Statements of Economic Interests, Fictitious Business Statements Of, in the case of a corporation, the articles of incorporation and other documentation that exists in the public domain.
When property is held in the name of an individual or entity who has no actual interest in it, or whose actual interest is bidden from an outside observer. the titleholder is commonly known as a "straw buyer". By utilizing a straw buyer, or by providing false and misleading information on documentation meant to be open to public inspection the true owner has the ability to engage in a wide variety of illegal conduct, including conspiracy, money laundering, and the ability to engage in prohibited conflicts of interest that can go undetected under close scrutiny. By failing to disclose the exact nature of his interests, Postmus' actual ownership interest becomes obfuscated, if not impossible to ascertain. This is contrary to the entire purpose of the disclosure statements required by law.
In his discussions with Postmus, C1 told investigators that it was Postmus' plan to hide profits from his real estate investments in San Bernardino County by either utilizing Defazio's company, funneling payments to Postmus' father, Bill Postmus Senior, or by simply directing that his profits be placed into Postmus' campaign account in the form of campaign contributions.
Schreiber told me that persons engaged in real estate fraud sometimes affiliate themselves with licensed real estate professionals and other seemingly legitimate professionals who may participate in varying degrees of fraudulent activity. Oftentimes these affiliated professionals will act as a "wrapper" which is a term used to describe a person or entity that lends legitimacy, or provides a protective shield to a suspect or their criminal enterprise.
Schreiber said that principals of real estate transactions. real estate companies, escrow companies, and title companies typically create and maintain extensive and detailed records of transactions involving the purchase, fInance and sale of property listed, sold or financed through their offices. These records are created at or near the time of the transaction, are made in the course of regular business and are an accurate reflection of the transaction. Further, a real estate company, escrow company or title company can retrieve those records with sufficient detail to reconstruct those transactions.
It is common for real estate agents, escrow officers , title officers, and principals in real estate transactions to keep records of their business dealings in their business offices as well as in their homes, computers electronic storage devices, vehicles, purses and briefcases. Documentation utilized for the purchase, financing, and registration of automobiles are also commonly kept in business offices, computers electronic storage devices, homes, vehicles, purses and briefcases. .
The documentation and records described above are not immediately recognizable as evidence of a crime to the casual observer. Further, these documents and records have continuing value to the suspect to further his or her scheme, keep track of transactions, and prepare other transactions. The documents and records are not contraband and there is no compelling reason to destroy them. Even when the conduct has been discovered, suspects often consider these records as being of no incriminating value. These records may be kept for weeks, months, or even years.
OPINIONS AND CONCLUSIONS:
There is probable cause to believe that William John Postmus, John Dino Defazio and CI entered into a conspiracy as described in California Penal Code, section 182 (Conspiracy) a felony to commit criminal offenses as described in California Government Code, sections 85201 and 85501, misdemeanors.
There is probable cause to believe that William John Postmus committed criminal offenses as described in California Penal Code, Sections 115 (Offering false instrument for record), 118 (Perjury) and 129 (Perjury false return required to be under oath), felonies.
