Uncategorized

Former Morgan Hill producer Gary Harmon ran a vast, pyramid-style scheme to defraud investors in his various entertainment ventures by dropping celebrities’ names and promising to help young people gain training and careers in the arts, according to court documents.Harmon, a 41-year-old former Sobrato High School teacher, faces two counts of grand theft and three counts of communications containing untrue statements and omissions of material facts in Santa Clara County Superior Court.He was arrested March 23 in Nevada, on a Morgan Hill warrant, in relation to these charges. He has since been released on $250,000 bail, and his next hearing is scheduled for July 13 at South County Courthouse in Morgan Hill.Harmon also faces a “white collar crime enhancement,” based on the allegation that he used “fraud and embezzlement” to steal more than $500,000 from the victims, according to the criminal complaint filed by the Santa Clara County District Attorney’s Office.Morgan Hill Police reports contained in the case’s court file list at least four victims who Harmon allegedly convinced to invest in his production companies or projects, with promises of repayment and profits that were never realized. The reports claim Harmon exaggerated or fabricated relationships with beloved celebrities—including country music legend Willie Nelson, Apple co-founder Steve Wozniak and former Motley Crue frontman Vince Neil—to fraudulently sell hundreds of thousands of dollars worth of investments to the marks, according to police.The fraud goes back to 2012, when Harmon—then the director of ISE Entertainment—asked Drew Perkins to loan him $125,000 to help produce “The Vince Neil Poker Series,” according to the police reports. Harmon promised to pay Perkins back in full by September 2012, plus interest and a share of the television series’ future profits.Perkins transferred the money to Harmon’s ISE account at Wells Fargo, but he was never fully repaid, according to police. ISE and Neil signed an agreement to produce the series in August 2012, but the television program never got off the ground.  Neil himself gained an advance payment of $20,000 for the series. This sum came from the ISE account into which Perkins dropped $125,000, according to police.The MHPD investigation report claims Harmon spent large sums of Perkins’ investment on transfers to other accounts, luxury car rentals, airfare and credit card payments.Complex scheme?Then in summer 2012, Harmon met Morgan Hill couple Jesse and Roni Jo Castillo, according to the police reports. Harmon told the couple that he was Nelson’s manager, and expressed interest in representing the Castillos’ daughter, a musician and artist.Harmon introduced the couple to another producer, Kerry Wallum. Wallum and Harmon later claimed they were the owners of another film production company, Luck Films, as well as Boulder Creek Guitars, which was based in Morgan Hill at the time, the court documents claim.Harmon also told the Castillos he was about to close a $10 million deal with Wozniak, the couple told police.The Castillos were thus convinced by Harmon to invest $125,000 in Boulder Creek Guitars, which Harmon said was going to “help students work with other musicians” and “work with Sobrato Arts to help students be involved in the arts.”The Castillos were promised they would be repaid in 90 days, with a profit on their investment, but they haven’t seen a dime, according to police.When Jesse Castillo started asking questions of Harmon about where the money went, Harmon allegedly told him Boulder Creek Guitars was raking in at least $60,000 per month, but did not present any paperwork proving that claim. Furthermore, the company was not paying rent or other bills, the police reports say.When the Castillos demanded a list of Harmon’s expenses made with their investment, he omitted thousands of dollars’ worth of cash withdrawals, transfers to other accounts controlled by Harmon, restaurant purchases and even a cruise, according to the police report.Around November 2012, Harmon convinced another victim—Mary McGreevy—to loan him $140,000, the court documents say. Harmon told McGreevy he needed the cash to pay off his debt to Perkins so Harmon could begin marketing a new program called “iJams,” which he said was developed by Wozniak.Harmon promised to repay McGreevy’s $140,000 by February 2013, plus 10 percent interest and 5 percent of proceeds from the Vince Neil series, reads the police report. McGreevy told police she has not been repaid.MHPD investigators could not find any evidence of a deal or personal relationship between Harmon and Wozniak.Police reports claim Harmon used McGreevy’s investment to repay Perkins $100,000, but also for personal purchases at airlines, restaurants, bars, movie theaters, limousine services and other expenses.Partial repayment allegedHarmon’s latest victim, according to the court documents, was his former friend and business partner Mike DiRubio, also a Morgan Hill resident. Harmon and DiRubio had worked together with the ARTTEC production company, and in 2014 brought big-name acts such as Kiefer Sutherland, Queensryche and Survivor to perform in Morgan Hill.DiRubio claims that in 2013, Harmon embezzled more than $250,000 from him by reneging on a promise of a share of ISE and recurring income, in return for the investment. Harmon only returned about $71,000 to DiRubio, according to the police investigation.As the weeks went by after making his initial investment, DiRubio noticed his name had been removed from the ISE bank account and he began asking Harmon about it, according to police. Harmon eventually told him his money went toward the Boulder Creek Guitars transaction.Harmon allegedly made about $72,000 worth of cash withdrawals from DiRubio’s investment, police claim. He also spent $26,000 on personal credit card payments, $20,000 to Luck Films (partially to repay McGreevy), $70,000 to Boulder Music Group and $97,000 to a nonprofit of which Harmon was director until May 2013.Wallum did not receive any of the funds invested by Harmon’s alleged victims, and he was not an authorized signer on any of the bank accounts into which the investments were deposited, the police report says.Boulder Creek Guitars is now based in Gilroy, and is not affiliated with Harmon or Wallum. Current owner Tom Strametz declined to comment on the Harmon case.In recent years, Harmon has filed a number of civil lawsuits against DiRubio, Wallum and other parties who have accused him of fraud.The court documents add that Harmon’s employment with Sobrato High was terminated in 2011, “after he was caught removing equipment from the school theater.”

Santa Clara County’s Board of Supervisors approved a $6.5 billion operating budget for the 2017-18 fiscal year at their June 16 meeting with a focus on affordable housing, services for homeless, jail operations and infrastructure.

In the summer before her sophomore year, Morgan Salzwedel was content just playing soccer and watching football from the stands.

Fines in Morgan Hill for local fireworks violations will triple during the upcoming Fourth of July period, when calls to the police department for such violations historically reach sky-high volumes.The tripled fines will apply to specified violations cited between July 2 and July 8, according to an announcement on the Morgan Hill Police Department Facebook page. Violations of three municipal code violations—possession of fireworks, discharge of fireworks and drunk in public—will be subject to tripled fines.With the typical violation of a Morgan Hill municipal code section costing $100 in the off-season, these fines will thus rise to $300 per citation under the holiday triple fine ordinance, which the city council approved at the May 3 meeting.“With hundreds expected to visit Morgan Hill over the upcoming Independence Day week, the Morgan Hill City Council has taken steps to ensure the City remains safe for everyone,” reads the MHPD post, adding, “Every available Morgan Hill Officer will be on duty throughout the week to ensure that residences and visitors enjoy a safe holiday week.”The city council approved the triple fines for the specified violations during the Fourth of July period, as well as the days before, after and including New Year’s Eve. A city staff report notes that residents surveyed January 2017 indicated a preference for more enforcement of the violations during these times of celebration, which can bring thousands of visitors to town and associated illicit behavior to local neighborhoods.“Although most (Fourth of July and New Year’s) celebration activities are law abiding, some have included excessive alcohol consumption, fights, overcrowded parks, packed recreational centers, and the use of illegal fireworks,” reads the May 3 staff report.The use of illegal fireworks was “one of the top areas of concern” identified by respondents to the January 2017.“Violations dramatically increase in many neighborhoods during the Fourth of July period because of the influx of patrons to the city events compared to other large celebrations such as Memorial Day weekend,” the May 3 staff report continues.In 2016, MHPD responded to 35 calls reporting illegal fireworks from July 3 to July 5. During the same three days in 2015, police responded to 20 calls reporting illegal fireworks. In 2014, those calls tallied 50.Morgan Hill city staff came up with the triple fine ordinance by researching what other cities in the region have done to crack down on illegal holiday fireworks. The City of Santa Cruz enacted a triple fine ordinance in 2014 for the 48 hours surrounding July 4, and the number of calls for service and citations has dropped since then, according to the Morgan Hill staff report.In 2016, the cities of Oakland and San Jose also increased their fines for fireworks violations during the summer holiday.The Morgan Hill staff report added that the holiday triple fine ordinance will help “educate, deter and mitigate the potential threat to safety by illegal fireworks during the specified periods.”

Robert “The Ghost” Guerrero said he is more prepared for a fight than he has been for a long time.

BurglaryA thief broke into House of Meatball, 632 Tennant Station, and stole about $1,250 worth of cash that was left in the register after the restaurant closed. Surveillance video showed the suspect was dressed in a hoodie and was wearing gloves. The video appeared to show the suspect knew the key code to open the door. The crime was reported 11:27 a.m. June 5.Petty theftSomeone stole a computer, phone charger and other items from a Toyota Corolla parked at the Holiday Inn Express Hotel, 17035 Condit Road. The victim said she might have left the vehicle unlocked. The crime was reported 8:46 a.m. June 8.A male suspect was arrested after he allegedly stole baby formula from Safeway grocery store, 235 Tennant Station. The theft was reported 8:49 a.m. June 9.A female victim reported her cell phone was stolen while she was checking out at Wal-Mart, 170 Cochrane Plaza. The crime was reported 9:05 p.m. June 4.Narcotics complaintA witness reported two males were smoking out of a glass bong while traveling in a white Dodge Charger near Monterey Road and Tennant Avenue. The complaint was reported about 4 p.m. June 9.DisturbanceThree juveniles were seen using a net to try to catch ducks at the Community Park pond, 225 W. Edmundson Ave. The incident was reported about 5 p.m. June 9.Firearms reportsPolice responded to a call near Hill Road and East Main Avenue of a man crouched down in the bushes with a rifle. Officers determined the man was shooting squirrels on private property. The incident occurred 12 p.m. June 8.A victim called police when a man entered the property near Hale and Kalana avenues and displayed a handgun. The suspect showed the victim the gun, which was in his waistband under his shirt, when the victim asked him to leave. Police and sheriff’s deputies responded and detained the man with a gun. No injuries were reported. The incident was reported 2:59 p.m. June 8.AccidentA 6-year-old girl was treated for injuries after a three-car vehicle accident near Burnett Avenue and Monterey Road. A green Toyota Camry, silver Toyota Sequoia and silver mini-van were involved in the collision. The accident occurred 3:26 p.m. June 8.FraudA woman with a warrant for her arrest was arrested after she tried to purchase a gift card at Wal-Mart, 170 Cochrane Plaza, using counterfeit $20 bills. The incident was reported 1:24 p.m. June 3.A pizza delivery driver received a fake $100 from a customer to whom he delivered at Extended Stay America hotel. The crime was reported 3:27 p.m. June 5.VandalismA vandal or vandals slashed a tire and scratched the side panel of a 2016 Nissan Sentra on the 17700 block of Park Way. The vandalism was reported 10:32 a.m. June 5.Stolen vehicleSomeone stole a gray 1995 Honda Civic from a spot on Peak Avenue. The crime was reported 2:24 p.m. June 5.A white 1995 Toyota Tacoma was stolen from the area of Second Street and Monterey Road in downtown Morgan Hill. The theft was reported 11:49 p.m. June 5.Grand theftTwo thieves pushed a cart containing about $1,000 worth of merchandise out of Target, 1061 Cochrane Road, without paying for the items. The suspects were described as a white male adult and a white female adult, both in their 40s. The crime was reported 10:22 June 6.Auto burglaryA thief or thieves smashed the rear window of a Dodge vehicle and stole a laser scanner and other items. The vehicle was parked at Holiday Inn Express Hotel, 17035 Condit Road, at the time of the theft. The crime was reported 4:44 a.m. May 30.All subjects are innocent until proven guilty. Information is compiled from public records.

Editor's note: A previous version of this story reported the mayor's seat will continue to be elected by the voters at large under the chosen district-based system. City Attorney Don Larkin clarified this has not yet been determined. The council will determine how the mayor will be elected under the district system in the coming weeks.Starting November 2018, voters in Morgan Hill will begin electing their city councilmembers in a district-based election process. That’s a sharp change from the current and long-standing at-large system where every eligible voter within the city limits can choose who they want to represent the entire community.The sitting council unanimously approved this change at the June 7 meeting, not because they wanted to but because they’re certain it’s the only way to avoid a costly lawsuit that would force them to alter the election system anyway. In fact, councilmembers think the district-based system will have the opposite of its intended effect, and will make it more difficult for voters to gain adequate representation.Morgan Hill is now following a similar path as other nearby jurisdictions that have switched to by-district voting, prompted by threats from attorneys who claim the at-large system violates the California Voting Rights Act.The at-large system results in “vote dilution” and prevents under-represented groups such as Latino voters from “influencing the results of elections,” reads a May 2 letter to Morgan Hill City Manager Steve Rymer from the law firm Goldstein, Borgen, Dardarian & Ho.City Attorney Don Larkin recommended the council switch to a district-based election system at the June 7 meeting, based on the high improbability that the city could keep its current system in the face of legal challenges now that it has been threatened.“The California (VRA) has a strong preference for district elections,” Larkin told the council. “If someone can show there is polarization (of minority voters), they can sue… No city has ever successfully defended itself from claims of minority polarization” under the CVRA.Under a by-district or district-based election system, each elected official—in this case a city councilmember—must reside within the designated councilmember area boundary within the city limits, and is elected only by the voters in that area.City staff and councilmembers will spend the next three months conducting public meetings trying to get as much community input as possible as they establish four or five (depending on whether the mayor’s office remains elected at large) new council districts within the city limits. The council will likely consult with a demographer to help draw the city up into four districts of equal populations.The next public meeting on the matter will take place 7 p.m. June 21 at council meeting chambers, 17575 Peak Ave., the focus of which, Larkin said, is to begin gathering input from the community.This outreach is the most crucial part of the process, according to councilmembers who devoted the bulk of the June 7 discussion to determining the best methods to reach every voter in Morgan Hill.“I suggest we start now with informing the community,” Councilmember Caitlin Jachimowicz said.Between June 21 and Aug. 23 will be three more public hearings devoted to the task of dividing up the city into four council districts. A council subcommittee or citizens advisory committee (which one is yet to be determined) will oversee the drawing of draft district maps from June 29 to July 7. Draft maps will be published July 14.The district-based election system will roll out for the November 2018 election, in which the seats occupied by Councilmembers Rich Constantine and Jachimowicz will appear on the ballot. Councilmembers Larry Carr and Rene Spring will continue to serve the city at large until their seats next appear on the ballot in November 2020, after which those seats too will be elected within their respective new district.The council has not determined if the mayor will continue to be elected at large under this system, but it is currently leaning that way, Larkin said.Another option is to make the mayor’s office essentially a fifth council seat elected from within a city district equal in size and representation to those designated to the other four seats on the body.Attorney Mike Baller, who signed the May 2 letter from Goldstein, Borgen, said the council will not meet its requirements under the CVRA if it keeps the mayor’s seat elected at large.“If the city is trying to shield itself from being sued, this plan (an at-large elected mayor) will not do it,” Baller said.Under the current system, the mayor’s seat is up for election by the voters every two years, but the seat is equal in voting power to the other four councilmembers, who face election every four years. In many other cities, the office of mayor is assigned to a sitting council member, by a majority of the council as a whole, often on a rotating basis.Council: No other choiceCouncilmembers at the June 7 meeting had no praise for the new system, and were sharply critical of the May 2 letter signed by attorneys with the Goldstein, Borgen firm. All four councilmembers present—Mayor Steve Tate was absent—declared their only choice was to switch to a by-district system.The May 2 letter is “rubbish,” said Councilmember Rene Spring.“I’m all for being an inclusive city, but (this) will set wrong expectations, and it’s probably unlikely it will lead to the results those pushing the changes are hoping for,” Spring said. “I don’t think it will raise the inclusiveness. That will come with great candidates stepping up.”Jachimowicz added, “Going to district elections does not mean more people will have a voice…A law firm will get a large sum of money from the city.”Larkin explained to the council that the May 2 letter, titled “Demand for Compliance with California Voting Rights Act,” started a 90-day timeframe during which the city cannot be sued as long as the council chooses to change to a district-based system. Because the council made that decision June 7, any damages, fees and other costs claimed by the attorneys are capped at $30,000.Larkin said these costs could include the drafting of the demand letter and any oversight the firm might conduct to ensure the city is drawing adequate district maps.The letter from Goldstein, Borgen states the firm represents “Latino citizens and voters of the City of Morgan Hill.” It does not specify who these clients are.“Based on our review of election returns and demographic information… it is clear that disproportionately few Latinos, and other candidates favored by non-Latino voters, have been successful in winning election to the Morgan Hill City Council,” the letter states, in part. “For instance, none of the five current members of the City Council (including the mayor) is a Latino.”Morgan Hill attorney Armando Benavides, who unsuccessfully ran for seat on the council in the 2016 election, was one of three local voters who expressed support for the council’s change to a by-district system. Benavides, who is Latino, declined to say if he is one of the clients represented by Goldstein, Borgen. Benavides was an advocate for MHUSD board of trustees’ change in 2015 to a by-district election system.“It’s a better opportunity for all the community’s needs to be considered, because each councilmember has a particular district they have to account for,” Benavides said of the council’s June 7 decision.

The driver in a one-car accident was killed after their car drove off Uvas Road, turned over and caught fire, according to the CHP.

After circulating a surveillance photo of a man who allegedly attempted to sexually assault a woman at a Morgan Hill gas station, police arrested the suspect June 10.Richard Dollarhide, 27 of Morgan Hill, was arrested about 5 p.m. Saturday on suspicion of attempted sexual assault, kidnapping, false imprisonment and a parole violation, according to a press release from the Morgan Hill Police Department.The arrest was related to an attack on a female employee of the Shell gas station, 810 E. Dunne Ave., earlier the same day, according to police.About 6:30 a.m. June 10, the victim called MHPD to report an unknown man had tried to assault her at the gas station, according to police.Officers arrived and spoke to the woman, who told police a man walked into the business and began acting nervous, according to police. The victim told the man he needed to leave because he was asking for free merchandise.The man then grabbed the woman around the arms and dragged her toward the storage room in the back of the building, police said. The woman fought off the attacker by hitting him in the face.The man suffered injuries to his face and ran away from the gas station on foot, police said. He was last seen running east through the parking lot of nearby Home Depot.MHPD was able to identify the suspect as Dollarhide and arrest him later in the day “with the help from the public as well as other law enforcement tools,” according to the press release. The suspect was booked at Santa Clara County Jail after he was arrested.Anyone who has information about this incident can contact MHPD Det. Del Moral at (669) 253-4964, or the anonymous tip line at (408) 947-7867.