Crime Voice

SANTA ANA – The FBI arrested a prominent Irvine attorney Tuesday for allegedly bilking about 150 investors out of an estimated $20 million dollars in what authorities say amounted to a Ponzi scheme.

Jeanne Rowzee was arrested at her Irvine home only hours after agreeing in civil court to pay over $60 million dollars in punitive damages to victims that had filed a civil lawsuit against her and her partner, Santa Ana insurance salesman, James Halstead.

Rowzee’s agreeable acceptance of the huge settlement raised concerns in the minds of the plaintiffs as they, along with their lawyers, immediately expressed to the U.S. Attorney’s Office that Rowzee’s behavior pointed to her being a considerable flight risk.

According to William L. Buus, a lawyer representing some of the victims, “There was certainly an increasing concern that this was the end and she was going to flee.”

Victims of the scheme first sparked an investigation last summer when they alleged that Rowzee was soliciting public investments in private entities (PIPEs) but not investing the money as promised. “Instead … Rowzee would use victims’ money to make phony investment return payments to other victims, for her own personal use, and for the personal use of others involved in the scheme,” wrote FBI Special Agent Brad Howard in an affidavit that was filed with Rowzee’s arrest warrant.

According to Laura Eimiller of the FBI, Rowzee also claimed that she had never lost money with the type of investment presented, that she had worked for the Securities and Exchange Commission, and that she’d thoroughly investigated the companies that would supposedly be receiving the loans.

Rowzee was scheduled to appear in court Wednesday and could face up to 20 years in Prison if convicted, according to Eimiller.

Rowzee’s alleged accomplice, Halstead, has not yet been charged but as contended by the suits, he is believed to have spent lavishly on such things as strip clubs, jewelry, high end sports cars and two homes overlooking Las Vegas.

Halstead wouldn’t comment on Rowzee’s arrest or whether he too would be charged, saying only, “They are going to do what they’re going to do.”

COSTA MESA, CA – A search warrant served by the Costa Mesa PD at a residence in the 900 block of Joann Street led to the discovery of a suspected methamphetamine lab, a foot pursuit of one of the suspects and a 6 year old being taken into custody by social services Tuesday afternoon. (more…)

Early this morning, a gunman bound a man and his girlfriend with duct tape before forcing his way into their Antioch home and stealing property.

At about 2:20 am, while leaving his home on San Joaquin Avenueto go to work, the victim was approached by a man in his early 20’s armed with a handgun. The attacker allegedly forced the victim back into his house, bound him and his girlfriend with duct tape, and stole several items, including the victim’s vehicle.

As soon as the gunman left, the victim called 911. Police spotted the stolen vehicle moments later, but the suspect fled the scene and managed to escape capture.

Late Wednesday, a 35 year-old-man was robbed while taking out the trash in central Stockton. In the 300 block of East Pine Street at about 11:40 pm, the man was robbed by two men, police reported. The men carried firearms and held the victim at gunpoint while searching him and stealing cash, a cellular telephone, and keys before fleeing north on Sutter Street. A week earlier, two people were robbed at gunpoint while taking trash to the curb in the 600 block of
Garfield Street.

This is at least the second time in a week that someone has been robbed in Stockton while taking out the trash. Descriptions of the burglars from both robberies are similar.

One robber from the most recent robbery was described as 5 feet-9 inches to 5 feet-10 inches tall black male, around age 20 to 22. He was armed with a silver handgun, and was wearing a dark blue denim jacket, a hat, and blue jeans.

The second burglar was described as a thin, 5 feet-7 inches tall black male, about 18-year-old. He was wearing dark pants and a white hooded sweatshirt with black spots.

Anyone with information is asked to contact the Stockton Police Department at (209) 937-8377.

Thursday morning, San Leandro police raided several East Bay locations, confiscating millions of dollars in drugs and cash in a blockbuster marijuana bust, authorities reported.

About 1,000 marijuana plants, more than $150,000 in cash, firearms, and advanced indoor growing equipment were seized by authorities, San Leandro police Lt. Tom Overton said.

“It’s one of the biggest busts I’ve seen in 23 years,” Overton commented. The Drug Enforcement Agency aided police in the bust, which was the conclusion to a two-month investigation.

Officers managed to make six arrests, but the suspected leader of the indoor growing operation escaped. Near his lavish Berkeley hills home, Brian Molitaris, age 30, jumped from a steep 25-foot embankment into rocky terrain and fled the scene, Overton explained. Molitaris remains at large.

Molitaris was suspected to be involved in the indoor marijuana growth operation at two homes in the 7100 block of Buckingham, Oakland, one of which he owned. Police served simultaneous warrants to these homes, as well as Molitaris’ Berkeley hills home in the 6700 block of Elverton Drive and at a warehouse in the 2800 block of Chapman.

At the Chapman warehouse, police confiscated 400 plants.

In one of the Buckingham homes, authorities seized about an ounce of marijuana and $1,200 in cash. The house also appeared to be in the process of being prepared for a major growing operation, Overton explained.

An advanced upstairs harvesting room was found inside the other Buckingham home, as well as $100,000 in cash, 200 plants, at least 25 pounds of “finished product,” and two handguns.

In the Elverton home, 400 plants, around 6 pounds of finished product, and $50,000 in cash was found by authorities.

On suspicion of cultivating marijuana and possession of marijuana for sale, and increased possession of firearms charges in connection with the drug possession charges, police arrested six suspects- Patrick Fisher, 30, Noah Daar, 32, and Angela Deluca, 31, all from Oakland; Rosario Archimedes, 34, of El Cerrito; Leonardo Martinez, 22, of Berkeley.

Overton said he didn’t know how long the operation had been running, but it was clear that it was sophisticated and profitable. Noting that the cultivators used an elaborate combination of timers and electronic equipment that required minimal manpower, DEA agents described the operation as “very sophisticated.” Overton explained that “It looked like they had top-of-the-line equipment.”

Overton explained that Molitaris owned two homes that both valued over $1 million; the bare income Molitaris claimed he earned from a computer-related field was “nothing that would allow him to have that kind of lifestyle.”

Overton also explained that Molitaris had surveillance equipment spread across his home, and therefore likely saw police before they broke into his home. Molitaris must have escaped by leaving through a side door, jumping over railing, and tumbling down a hill. Overton said authorities found money that flew of Molitaris’ backpack, and explained that Molitaris likely suffered injuries in the fall. Molitaris is described as a 5-foot-8-inch, 180 pound, white male.

Overton stated that Molitaris’ disposition could be unpredictable because of his current predicament, despite the fact that he has no known violent history. “We don’t have any indication that he’s dangerous, but someone who’s running that kind of operation with that kind of money can become pretty desperate,” Overton said.