federal prosecutor

NORFOLK, Va. — New York Atty. Gen. Letitia James is set to make her first court appearance in a mortgage fraud case on Friday, the third adversary of President Trump to face a judge on federal charges in recent weeks.

James was indicted earlier this month on charges of bank fraud and making false statements to a financial institution in connection with a 2020 home purchase in Norfolk, Va. The charges came shortly after the official who had been overseeing the investigation was pushed out by the Trump administration and the Republican president publicly called on the Justice Department to take action against James and other political foes.

James, a Democrat who has sued Trump and his administration dozens of times, has denied wrongdoing and decried the indictment as “nothing more than a continuation of the president’s desperate weaponization of our justice system.”

The indictment stems from James’ purchase of a modest house in Norfolk, where she has family. During the sale, she signed a standard document called a “second home rider” in which she agreed to keep the property primarily for her “personal use and enjoyment for at least one year,” unless the lender agreed otherwise.

Rather than using the home as a second residence, the indictment alleges, James rented it out to a family of three. According to the indictment, the misrepresentation allowed James to obtain favorable loan terms not available for investment properties.

James drew Trump’s ire when she won a staggering judgment against the president and his companies in a lawsuit alleging he defrauded banks by overstating the value of his real estate holdings on financial statements. An appeals court overturned the fine, which had ballooned to more than $500 million with interest, but upheld a lower court’s finding that Trump had committed fraud.

James’ indictment followed the resignation of Erik Siebert as U.S. attorney for the Eastern District of Virginia after he resisted Trump administration pressure to bring charges. Siebert was replaced with Lindsey Halligan, a White House aide and former Trump lawyer who had never previously served as a federal prosecutor and presented James’ case to the grand jury herself.

On Thursday, lawyers for James asked for an order prohibiting prosecutors from disclosing to the news media information about the investigation, or materials from the case, outside of court.

The motion followed the revelation from earlier this week that Halligan contacted via an encrypted text messaging platform a reporter from Lawfare, a media organization that covers legal and national security issues, to discuss the James prosecution and complain about coverage of it. The reporter published the exchange that she and Halligan had.

“The exchange was a stunning disclosure of internal government information,” lawyers for James wrote.

They added: “It has been reported that Ms. Halligan has no prosecutorial experience whatsoever. But all federal prosecutors are required to know and follow the rules governing their conduct from their first day on the job, and so any lack of experience cannot excuse their violation.”

The motion also asks that the government be required to preserve all communications with representatives of the media as well as to prevent the deletion of any records or communications related to the investigation and the prosecution of the case.

Separately on Thursday, defense lawyers said they intended to challenge Halligan’s appointment, a step also taken this week by attorneys for former FBI Director James Comey in a different case filed by Halligan. Comey has been charged with lying to Congress in a criminal case filed days after Trump appeared to urge his attorney general to prosecute him, and he has pleaded not guilty.

A third Trump adversary, former national security adviser John Bolton, pleaded not guilty last week to charges against him of emailing classified information to family members and keeping top secret documents at his Maryland home.

The Justice Department has also been investigating mortgage fraud allegations against Democratic Sen. Adam Schiff of California, whom Trump has called to be prosecuted over allegations related to a property in Maryland. In a separate mortgage investigation, authorities have been probing allegations against Federal Reserve Board member Lisa Cook, who is challenging a Trump administration effort to remove her from her job. Schiff and Cook have denied wrongdoing.

Finely and Richer write for the Associated Press. Richer reported from Washington. Associated Press reporter Eric Tucker in Washington contributed to this report.

Aspiration Partners made a splash when it entered the green investing space in 2013.

The Marina del Rey firm billed itself as a socially conscious online banking company, offering investments and focusing its finances on the climate crisis. It also generated and sold carbon credits meant to help offset greenhouse gas emissions.

Soon, it collected celebrity investors such as Leonardo DiCaprio, Orlando Bloom, Robert Downey Jr., and Steve Ballmer, the former Microsoft chief executive, philanthropist and owner of the Los Angeles Clippers.

But 12 years later, things have turned sour.

Earlier this year, the co-founder and another top company official agreed to plead guilty to wire fraud charges and scheming to bilk investors using falsified documents. Aspiration went bankrupt.

And now, the company is at the center of a NBA investigation into whether a $28-million deal the firm cut with Clippers star Kawhi Leonard was designed to help the team circumvent the league’s salary cap.

The Clippers have strongly denied that, and said neither the team nor Ballmer played any role in Leonard’s deal and that there was no intention to violate any NBA rules. Leonard has also denied any wrongdoing.

In a statement, the Clippers said Ballmer and his family are “focused on sustainability” and built the Clippers’ home arena at the leading edge of environmental design. Aspiration was part of that effort, the statement said, and Ballmer was “duped on the investment and on some parts of this agreement, as were many other investors and employees.”

A review of hundreds of pages of court records offers a window into how the once high-flying green company fell amid illegal dealings and multiple federal criminal investigations.

A company’s rise and fall

Founded by Joseph Sanberg and Andrei Cherny, Aspiration Partners reportedly raised $110 million from venture capital funds in just its first few years of existence.

It came at a moment of rising concern about climate change, and Aspiration seemed to capitalize. Sizable deals rolled in, including a $315-million pact with Oaktree Capital Management and Ballmer.

The firm even partnered with rapper Drake in 2021, using its reforestation program to offset the artist’s estimated climate impact. The company at the time claimed its business partners and customers had funded the planting of 15 million trees over the course of a year.

In September 2021, the Clippers announced a deal with the company as the first “Founding Partner” for its state-of-the-art arena in Inglewood. The idea was fans would be able to offset their carbon impact when buying a ticket to watch the team. Aspiration even bid unsuccessfully for the naming rights to the venue, now known as Intuit Dome.

The partnership, the news release announcing it declared, “set a new standard for social responsibility in sports.”

But behind the cadre of celebrity sponsors and investors, court documents reveal trouble was brewing inside Aspiration.

In 2020, the company explored a potential $55-million loan from an investor fund in exchange for 10.3 million shares of stock, according to federal court filings. But the investor fund wanted a “put option” — a sort of safety net guaranteeing it would be able to sell its stock if Aspiration defaulted on the loan, according to federal complaints.

Sanberg, according to federal prosecutors, turned to Ibrahim Ameen AlHusseini, a venture capitalist and then-board member of Aspiration Partners.

According to a federal criminal complaint, Sanberg was aware AlHusseini didn’t have the funds to cover the “put option.” So he allegedly coordinated with AlHusseini to falsify financial records and inflate AlHusseini’s worth by tens of millions of dollars.

Federal prosecutors allege AlHusseini sent Sanberg a spreadsheet showing his investment portfolio from several years back and told Sanberg the spreadsheet was not accurate but a “hypothetical.”

Sanberg, according to the federal complaint filed against him, revised the spreadsheet to read as if it were from Dec. 31, 2019, and sent it to an investment advisor.

AlHusseini also used a graphic designer from Lebanon to falsify financial documents at least 24 times between April 2020 and February 2023, according to the federal complaint filed against Sanberg. The records sent to the financial advisor made it appear that AlHusseini’s investments and assets were worth more than $200 million, the records show.

But in reality, federal prosecutors allege his Bank of America account balance in September 2021 was $11,556.89. His Fidelity investment accounts, according to court records from federal prosecutors, totaled $2,963.63 at the time.

According to a federal complaint, Sanberg then refinanced the loaned $55 million, securing $145 million from another investment firm, again using a “put option” from AlHusseini. This time, AlHusseini promised to buy the shares for $65 million from that firm if Sanberg defaulted, according to the federal complaint.

AlHusseini did not have the funds to back that deal, federal prosecutors alleged in court papers. But he still banked $6.3 million for his role in securing it, the complaint alleged.

There were other signs the company was in trouble.

Federal prosecutors allege Sanberg moved money from his personal checking account between Aspiration and another one of his companies in March 2022, making it appear on paper as if new investments were coming in.

On Nov. 2, 2022, Sanberg defaulted on the loan, and AlHusseini agreed the following month to boost the put option value to $75 million.

Some contractors began to complain that they were not being paid, according to court filings. Lawsuits followed.

In July 2022, Cherny also notified the company he would step down as chief executive. The day after he and the company signed a separation agreement in October, Sanberg threatened to sue him, according to a letter from Sanberg’s attorneys sent to Cherny.

Cherny would later file suit against Aspiration Partners, alleging the company didn’t pay him the entirety of his severance package agreed to in October 2022, according to a complaint filed in federal court. The suit was settled out of court earlier this year.

Federal prosecutors filed charges against AlHusseini in October 2024. He later agreed to plead guilty to one count of wire fraud, as well as to work with federal authorities in their investigation.

He is expected to appear in court for a sentencing hearing on Feb. 26, according to court filings.

Aspiration Partners filed for bankruptcy in March.

Sanberg originally entered a plea of not guilty to the charges, but in August he agreed to plead guilty to two felony counts of wire fraud, according to federal prosecutors.

Court filings show he is expected in court on Oct. 20 for a change of plea hearing.

An NBA star’s deal

Aspiration cut its deal with Leonard in 2022. Although players are allowed to have separate endorsement and other business deals, the NBA probe is trying to determine whether the Clippers participated in arranging the side deal beyond simply introducing Aspiration executives to Leonard.

The investigation follows information detailed in the “Pablo Torre Finds Out” podcast, which reported that Leonard’s deal amounted to a no-work contract meant to circumvent the NBA’s salary cap rules.

The salary cap limits how much teams can spend on player payroll. It’s meant to ensure talent parity by preventing the league’s wealthiest teams from outspending smaller markets to acquire the best players.

Circumventing the cap by paying a player outside of his contract is strictly prohibited and can be severely punished.

Cherny, in a statement posted on X, disputed that the agreement with Leonard required no work from the basketball star.

“The contract contained three pages of extensive obligations that Leonard had to perform,” Cherny wrote in the Sept. 12 post. “And the contract clearly said that if Leonard did not meet those obligations, Aspiration could terminate the contract.”

In the statement, Cherny said he does not remember any conversations about the NBA’s salary cap when the contract between Leonard and Aspiration was signed.

“There were numerous internal conversations about the various things Aspiration was planning to do with Leonard once the 2022-23 season began, including emails from the marketing team about their plans,” he said.

Cherny declined to be interviewed for this article.

It was Aspiration’s collapse that shed light on the Leonard deal. According to bankruptcy filings, Leonard’s private company, KL2 Aspire, is listed as one of the company’s biggest creditors — being owed $7 million.

The Clippers are, by far, the biggest creditor listed for the company, with more than $30 million in outstanding debt.

In a statement, a spokesperson for the Clippers said the team terminated its relationship with Aspiration during the 2022-23 season, when the company defaulted on the agreement.

Ballmer has said he was duped by Aspiration, and insisted the Clippers followed all NBA rules. He also said he welcomed the investigation.

The Clippers signed Leonard to a four-year, $176-million contract in August 2021. In an interview with ESPN last month, Ballmer said that the sponsorship deal with Aspiration was completed in September 2021 and that the Clippers introduced Leonard to Aspiration two months later.

In a statement, a spokesperson for the Clippers said both the team and Ballmer were unaware of Aspiration’s suspicious dealings.

“Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation,” the statement read. “The team and Mr. Ballmer stand ready to assist law enforcement in any way they can.”

ALEXANDRIA, Va. — Former FBI Director James Comey pleaded not guilty Wednesday to face a criminal case that has thrown a spotlight on the Justice Department’s efforts to target adversaries of President Trump.

The arraignment is expected to be brief, but the moment is nonetheless loaded with significance given that the case has amplified concerns the Justice Department is being weaponized in pursuit of Trump’s political enemies and is operating at the behest of a White House determined to seek retribution for perceived wrongs against the president.

Comey entered a not guilty plea through his lawyer at the federal courthouse in Alexandria, Va., to allegations that he lied to Congress five years go. The plea kick-starts a process of legal wrangling in which defense lawyers will almost certainly move to get the indictment dismissed before trial, possibly by arguing the case amounts to a selective or vindictive prosecution.

The indictment two weeks ago followed an extraordinary chain of events that saw Trump publicly implore Attorney General Pam Bondi to take action against Comey and other perceived adversaries. The Republican president also replaced the veteran attorney who had been overseeing the investigation with Lindsey Halligan, a White House aide who had never previously served as a federal prosecutor. Halligan rushed to file charges before a legal deadline lapsed despite warnings from other lawyers in the office that the evidence was insufficient for an indictment.

What the indictment says

The two-count indictment alleges that Comey made a false statement to the Senate Judiciary Committee on Sept. 30, 2020, by denying he had authorized an associate to serve as an anonymous source to the news media and that he obstructed a congressional proceeding. Comey has denied any wrongdoing and has said he was looking forward to a trial. The indictment does not identify the associate or say what information may have been discussed with the media, making it challenging to assess the strength of the evidence or to even fully parse the allegations.

Though an indictment is typically just the start of a protracted court process, the Justice Department has trumpeted the development itself as something of a win, regardless of the outcome. Trump administration officials are likely to point to any conviction as proof the case was well-justified, but an acquittal or even dismissal may also be held up as further support for their long-running contention the criminal justice system is stacked against them.

The judge was nominated by Biden

The judge randomly assigned to the case, Michael Nachmanoff, was nominated to the bench by President Joe Biden’s Democratic administration and is a former chief federal defender. Known for methodical preparation and a cool temperament, the judge and his background have already drawn Trump’s attention, with the president deriding him as a “Crooked Joe Biden appointed Judge.”

Besides Comey, the Justice Department is also investigating other foes of the president, including New York Attorney General Letitia James and Democratic Sen. Adam Schiff of California.

Several Comey family members arrived in court Wednesday morning ahead of the arraignment, including his daughter Maurene, who was fired by the Justice Department earlier this year from her position as a federal prosecutor in Manhattan, as well as Troy Edwards Jr., a son-in-law of Comey’s who minutes after Comey was indicted resigned his job as a prosecutor in the Eastern District of Virginia — the same office that filed the charges.

Trump and Comey’s fraught relationship

The indictment was the latest chapter in a long-broken relationship between Trump and Comey.

Trump arrived in office in January 2017 as Comey, appointed to the FBI director job by President Obama four years earlier, was overseeing an investigation into ties between Russia and Trump’s 2016 presidential campaign.

The dynamic was fraught from the start, with Comey briefing Trump weeks before he took office on the existence of uncorroborated and sexually salacious gossip in a dossier of opposition research compiled by a former British spy.

In their first several private interactions, Comey would later reveal, Trump asked his FBI director to pledge his loyalty to him and to drop an FBI investigation into his administration’s first national security adviser, Michael Flynn. Comey said Trump also asked him to announce that Trump himself was not under investigation as part of the broader inquiry into Russian election interference, something Comey did not do.

Comey was abruptly fired in May 2017 while at an event in Los Angeles, with Trump later saying he was thinking about “this Russia thing” when he decided to terminate him. The firing was investigated by Justice Department special counsel Robert Mueller as an act of potential obstruction of justice.

Comey in 2018 published a memoir, “A Higher Loyalty,” that painted Trump in deeply unflattering ways, likening him to a mafia don and characterizing him as unethical and “untethered to truth.”

Trump, for his part, continued to angrily vent at Comey as the Russia investigation led by Mueller dominated headlines for the next two years and shadowed his first administration. On social media, he repeatedly claimed Comey should face charges for “treason” — an accusation Comey dismissed as “dumb lies” — and called him an “untruthful slime ball.”

Tucker, Richer and Kunzelman write for the Associated Press. Tucker reported from Washington.

A federal grand jury has charged two brothers in Southern California with tax evasion on more than $1.1 million in income they allegedly received in part from a years-long scheme selling tee times on local golf courses.

Se Youn “Steve” Kim, 41, and his identical twin brother, Hee Youn “Ted” Kim, 41, were arrested Thursday morning by federal authorities and pleaded not guilty.

From 2021 to 2023, the Kim brothers’ tee time brokering business scooped up thousands of reservation slots at golf courses across the U.S., including at least 17 public golf courses in Southern California, according to the indictment filed Wednesday in U.S. District Court.

The brothers used online platforms including KakaoTalk, a Korean instant messaging app, to reach their customers. Federal prosecutors say that by quickly nabbing popular early morning tee times almost immediately after they were available to the public, the brothers “created a monopoly” of Southern California golf courses.

The prevalence of tee-time brokering was reported by The Times last year, in which scores of local golfers shared frustrations over their inability to secure a tee time on public courses in L.A.

“Finally, it’s justice,” said Joseph Lee, a vocal critic of tee time brokers who helped collect evidence and met with federal prosecutors during their investigation of the Kim brothers. “For a long time, L.A. golfers have been frustrated by these illegal tee time brokers and their resale market. Authorities have finally recognized the seriousness of the issue.”

Anthony Solis, the attorney representing Ted Kim, said he did not immediately have a response on behalf of his client. The attorney representing Steve Kim did not respond to a message seeking comment.

Federal prosecutors said the brothers had customers pay reservation fees to their personal accounts via Venmo, Zelle, and other applications. The tee time brokering business netted the brothers nearly $700,000 between 2021 and 2023, according to the indictment. The brothers, who also worked as MRI technicians, are accused of willfully failing to report a combined $1.1 million in income to the Internal Revenue Service for 2022 and 2023.

The Kim brothers are also accused of failing to pay taxes that the IRS had assessed. Rather than paying off mounting tax debts, the indictment alleges that the brothers made lavish purchases at Chanel, Cartier, Prada and Louis Vuitton.

In a brief interview with The Times last year, Ted Kim said that he used up to five devices and relied on unspecified friends to secure tee times. He said he is on the same playing field as every other golfer in L.A. and does not use bots to game the system.

“It’s not like I’m taking advantage of technology. I’m booking myself,” Kim told The Times in an interview. “I’m not doing anything illegal.”

Kim told the newspaper that he profited a couple thousand dollars a month, and framed his business as a way of helping elderly Korean golfers without tech savvy to navigate the online golf reservation system.

“I’m just helping Korean seniors, because they have a right to play golf, because all the Koreans play golf, right? Without my help, they actually struggle,” he said.

This is a breaking news story and will be updated.

NEW YORK — Former U.S. Sen. Robert Menendez’s wife told a judge that her husband was “not the man I thought he was” before she was sentenced Thursday to 4½ years in prison for selling the powerful New Jersey politician’s influence in exchange for bribes of cash, gold bars and a luxury car.

U.S. District Judge Sidney H. Stein sentenced Nadine Menendez, 58, after she was convicted in April of colluding from 2018-23 with her husband, the former Democratic chairman of the Senate Foreign Relations Committee, in a variety of corrupt schemes, some involving assisting the Egyptian government.

Sobbing as she addressed the judge shortly before she was sentenced, Nadine Menendez described her husband as a manipulative liar.

“I put my life in his hands and he strung my like a puppet,” she said. “The blindfold is off. I now know he’s not my savior. He’s not the man I thought he was.”

Stein told the defendant that she wasn’t the person she was portrayed as during last year’s trial of her husband and two New Jersey businessmen, when the judge said she was painted “as manipulative, hungry for money and the true force behind the conspiracies.”

But he said she also wasn’t the “innocent observer of what was happening around you,” as she was portrayed by her lawyer at her trial.

“You knew what you were doing. Your role was purposeful,” he said.

When she spoke, Nadine Menendez partly blamed her husband, saying she was duped by his power and stature and that she felt compelled to do whatever he wanted, such as calling or meeting with certain people.

“I would never have imagined someone of his ranking putting me in this position,” she said, though she acknowledged that in retrospect, she was a grown woman and should have known better.

Before the hearing, Bob Menendez submitted a letter to the judge saying he regretted that he didn’t fully preview what his lawyer said about his wife during his trial and in closing arguments.

“To suggest that Nadine was money hungry or in financial need, and therefore would solicit others for help, is simply wrong,” he wrote.

In addition to prison time, Stein sentenced Nadine Menendez to three years of supervised release. He said he granted her leniency in part because of the trial she endured, her difficult childhood in Lebanon, her abusive romantic partners, her health conditions and her age.

Stein said a prison term was important for general deterrence purposes: “People have to understand there are consequences.”

Nadine Menendez won’t have to surrender to prison until next summer. Stein set a reporting date of July 10, accommodating a defense request that she be allowed to remain free to complete necessary medical procedures before she heads behind bars. Federal prosecutors did not object to the request.

Prosecutors had sought a prison sentence of at least seven years.

Her lawyer, Sarah Krissoff, asked that she serve only a year behind bars, citing her difficult recovery from breast cancer, which was diagnosed just before last year’s trial, when she was to be tried along with her husband. She ended up being tried separately.

Bob Menendez, 71, is serving an 11-year sentence after his conviction on charges of taking bribes, extortion, and acting as an agent of the Egyptian government.

Prosecutors say Nadine Menendez played a large and crucial role in her husband’s crimes, serving as an intermediary between the senator and three New Jersey businessmen who literally lined his coat pockets with tens of thousands of dollars in cash in return for favors he could deliver with his political clout.

During a 2022 FBI raid on the couple’s New Jersey home, investigators found $480,000 in cash, gold bars worth an estimated $150,000 and a luxury convertible in the garage.

Prosecutors said that, among his other corrupt acts, the senator met with Egyptian intelligence officials and speeded that country’s access to U.S. military aid as part of a complex effort to help his bribe-paying associates, one of whom had business dealings with the Egyptian government.

Sisak and Neumeister write for the Associated Press.

Federal prosecutors on Thursday sued Southern California Edison over its alleged role in the deadly Eaton fire, a blaze that killed 19 people and destroyed more than 9,000 homes and other structures in Altadena and the surrounding area.

In a civil complaint, prosecutors allege that the Eaton fire was ignited by “faulty power infrastructure or by sparks from faulty power infrastructure owned, maintained, and operated” by Edison.

The results of the official investigation of the fire by the Los Angeles County Fire Department and California Department of Forestry and Fire Protection have not yet been announced. The government’s lawsuit notes that the investigation into the fire remains ongoing.

The government also sued Edison on Thursday for its alleged role in the Fairview fire, which burned near Hemet in 2022. Prosecutors are seeking tens of millions of dollars in damages from Edison, alleging the company’s negligence caused both fires.

Together, the fires burned tens of thousands of acres of National Forest System lands, killed 21 people and destroyed thousands of buildings, according to the U.S. attorney’s office in Los Angeles.

Acting U.S. Atty. Bill Essayli said “there’s no reason to wait” for the results of the investigation into the Eaton fire. During a Thursday morning news conference, Essayli cited evidence and “Edison’s own statements … that there’s no other apparent cause for the fire.”

“We believe that the evidence is clear that Edison is at fault,” he said. “The reason not to wait is because fire season is coming up again. We want Edison to change the way it does business. It does not maintain its infrastructure in a way to prevent fires. We do not want another fire igniting.”

Essayli stressed that the intention is for the utility company and “not the ratepayers” to bear the burden of the costs.

“Innocent hardworking Californians who pay their electricity bills should not have to pay for Edison’s negligence by incurring higher utility rates,” he said.

Jeff Monford, a spokesman for Southern California Edison, told The Times that the company is reviewing the lawsuits “and will respond through the appropriate channels.” It is “committed to wildfire mitigation through grid hardening, situational awareness and enhanced operational practices.”

In addition, he said, “our thoughts are with the community affected by the Fairview fire. We continue our work to reduce the likelihood of our equipment starting a wildfire.”

Although the cause of the Eaton fire is still under investigation, Monford said, it “was heartbreaking for so many of us who live and work in the Los Angeles area.”

In April, Pedro Pizarro, chief executive of Edison International, the utility’s parent company, said that “a leading hypothesis” of Eaton fire investigators was that a century-old transmission line, last used during the Vietnam War, somehow became reenergized and sparked the fire.

The government’s lawsuit cites a July Edison filing with the U.S. Securities and Exchange Commission, in which the utility company stated it was “not aware of evidence pointing to another possible source of ignition” for the Eaton fire.

In March, the California Public Utilities Commission fined Edison $2.2 million for the Fairview fire, which killed two people and destroyed 36 homes and other structures in Hemet.

The commission said the utility violated state regulations by failing to cooperate with investigators and not safely maintaining its electrical equipment.

State investigators concluded that the 2022 Fairview fire was ignited when Edison’s equipment came in contact with a cable owned by Frontier Communications.

The government is seeking more than $40 million in damages tied to the Eaton fire. For the Fairview fire, the government is seeking to recover about $37 million in damages incurred by the Forest Service, including approximately $20 million in fire-suppression costs, according to the U.S. attorney’s office in L.A.

“The lawsuits filed today allege a troubling pattern of negligence resulting in death, destruction, and tens of millions of federal taxpayer dollars spent to clean up one utility company’s mistakes,” Essayli said in a written statement Thursday.

“We hope that today’s filings are the first step in causing the beginnings of a culture change at Southern California Edison, one that will make it a responsible, conscientious company that helps — not harms — our community.”

Edison is facing dozens of lawsuits from people who lost their homes or businesses in the Jan. 7 Eaton fire. A study by UCLA estimated that losses from the fire could be $24 billion to $45 billion.

State officials say damage claims from the Eaton fire could wipe out a $21-billion fund California created to shield utilities from the cost of blazes sparked by their electrical lines.

In December 2021, Eric Benjamin Halem was riding high.

Beyond his day job as an LAPD officer, he was juggling several lucrative side hustles, business records and court filings show.

Private security. An app for aspiring actors trying to land auditions. And an exotic car rental company, Drive-LA, that was gaining a following among rappers, influencers and executives.

But Halem’s comfortable life soon began to unravel. He left his full-time position with the LAPD after coming under internal investigation, according to records submitted as part of a lawsuit. Earlier this year, state authorities charged him with insurance fraud.

Then, a few weeks ago, L.A. County prosecutors accused him of masterminding a home invasion robbery with a man with reputed ties to the Israeli underworld — part of what authorities say is a growing trend of criminals targeting victims for their cryptocurrency profits.

How Halem, 37, became embroiled with one of his alleged co-conspirators, Gaby (sometimes spelled “Gabby”) Ben, remains a mystery.

Ben, who has twice been convicted of fraud, was a close business associate of Moshe Matsri, or “Moshe the Religious,” whom authorities describe as an L.A. leader of the Israeli underground who had long operated in the San Fernando Valley and had ties to the Abergil crime syndicate, according to court filings.

In the early morning hours of Dec. 28, 2024, Halem, Ben and Mishael Mann, 20, made their way into an apartment building in Koreatown, LAPD Robbery-Homicide Det. Guillermo De La Riva wrote in a sworn declaration in favor of denying Halem’s bail.

Pierre Louis, 26, had arranged to meet up with the victim for a “digital currency transaction,” which was a ruse to allow the three other men to enter the building and wait for the victim to return, De La Riva wrote.

The men handcuffed the victim and a second person, De La Riva wrote, ordering them at gunpoint to transfer money from a cryptocurrency account and fleeing with $300,000 worth of cryptocurrency, cash and jewelry.

De La Riva said he believed that after Halem’s arrest, other alleged victims might come forward.

When LAPD detectives arrested Halem earlier this month, they obtained search warrants for the $2.1-million home he had recently moved into in Porter Ranch, a scenic neighborhood in the Santa Susana foothills. They also reportedly recovered at least one of his guns from the home of his former police partner.

Halem, who went by Ben professionally, has pleaded not guilty to kidnapping and robbery and remains in Men’s Central Jail after a judge denied his application for bail. His attorney, George G. Mgdesyan, declined to comment, saying he hadn’t yet reviewed the evidence against his client.

Halem has also pleaded not guilty in the state insurance fraud case. Ben, 51, is jailed on a federal immigration hold in Florida.

Louis, Mann and another defendant, Luis Banuelos, have pleaded not guilty to felony charges. Their attorneys declined to comment.

As LAPD detectives investigated the kidnapping and robbery, they took a closer look at Halem’s side businesses, according to two department sources — including whether his startup funding came from organized crime and whether his companies were a front for money laundering. The sources spoke on condition of anonymity to discuss an ongoing investigation.

In recent years, business was taking off at Drive-LA, which boasted a fleet of rare luxury vehicles for rent, including a 2020 Bentley Continental GT and a Lamborghini Urus, and had nearly 60,000 Instagram followers. With glowing media coverage and venture capitalists opening their checkbooks, Halem planned to open a second location in Phoenix.

He was co-hosting a podcast for car enthusiasts, and former associates told The Times that a reality show based on his life was in the works. On social media, he cultivated the image of a carefree young entrepreneur, with photos of himself posing on the steps of a private jet, at a Formula 1 race and courtside with NBA superstars Dwight Howard and Shai Gilgeous-Alexander.

Halem launched an app called kaypr in 2017 that matched aspiring actors “to available roles,” allowing them to audition remotely from anywhere in the world. For a security firm where he had a leadership role, he worked “music festivals, celebrity details, and large-scale events.” Among his clients was action film producer Randall Emmett, who has faced fraud claims and allegations of abuse toward women. Emmett has denied the allegations.

In a blog post, Halem described himself as a thrill seeker who has always chased “speed, precision, and a little bit of calculated chaos.”

According to an online biography, Halem grew up in Los Angeles and attended UC Riverside before joining the LAPD. He spent nearly half his 13 years on the force as a training officer and was qualified as a sharpshooter.

His last assignment was at West Valley Division, which patrols areas featured in crimes involving suspects with ties to Israeli organized crime, including the wealthy enclave of Encino. Several former colleagues who spoke with The Times described Halem as a solid if unremarkable officer.

In 2014, Halem was injured during an encounter with a suspect in the West Valley area who had holed up inside an apartment and pelted officers with objects. An LAPD review board found that Halem’s decision to fire a beanbag shotgun at the suspect was in line with department policy.

By the time he left the LAPD in 2022, Halem was pulling in $188,500 in salary and benefits, according to the Transparent California database.

And his other businesses were apparently far more lucrative than his day job. In an interview with Internal Affairs detectives investigating him for insurance fraud, Halem boasted that he was raking in more than $1 million in profit annually from Drive-LA, according to a department source who reviewed the Internal Affairs file and was not authorized to discuss the matter.

Halem was also targeted by numerous lawsuits, one of which cited a WhatsApp conversation in which an LAPD sergeant said that Halem’s “business smells dirty” and suggested that there were other LAPD officers who were “involved in his business dealings.”

“[If] there is any misconduct on their part they will be held accountable,” the sergeant wrote in the WhatsApp exchange, referring to the other officers.

It’s not clear whether the LAPD investigated whether other officers were involved. The department did eventually clear Halem of the insurance fraud allegations. But his alleged misdeeds had come to the attention of the state Department of Insurance, which charged both him and his brother, Jacob Halem, with misrepresenting details in a roughly $200,000 insurance claim related to a Bentley crash in January 2023. The case is pending.

After leaving his full-time LAPD job, Halem worked as an unpaid reserve officer. In March, he was stripped of his police powers after he was charged in the insurance fraud case.

Ben, who moved to the San Fernando Valley from Israel as a young adult, worked in real estate and was a partner at his late mother’s restaurant.

Federal prosecutors described him as a flashy high roller with an affinity for high-end watches. His Israeli mafia connections allowed him to launder money through Jewish-owned businesses across the Valley, prosecutors alleged in documents filed in the case.

Ben was deported after each of his fraud convictions, federal court records show. In one of the cases, prosecutors alleged that he orchestrated a so-called bust-out scheme, recruiting people to open bank accounts on his behalf in exchange for a small fee.

He and his brother, Amin Ben, were also accused of defrauding senior citizens by entering their homes disguised as HVAC repairmen and then photographing their driver’s licenses and bank statements.

Based on wiretaps described in a federal sworn affidavit, federal investigators believed the brothers could move freely in and out of the country, despite their legal troubles, because of Amin Ben’s connection to an official at the Israeli Consulate who was “able to facilitate and issue travel documents.” Prosecutors also alleged that the brothers were captured on a recording threatening to kill the Israel-based family of an LAPD detective investigating one of the federal cases.

The check-cashing business that Ben ran with Matsri, the alleged Israeli crime boss, in an Encino strip mall was a front for alleged fraud schemes, according to a declaration filed in court by an LAPD Major Crimes detective.

Investigators determined that the pair bought more than 230 airline tickets, worth more than $600,000, using phone credit card approval codes and then resold the tickets to local Israelis at discount rates, an FBI agent wrote in a sworn affidavit.

When they arrested Ben and Matsri in October 2010, authorities seized 16 high-end watches and a handgun from Ben’s home.

In 2015, Matsri was sentenced in a separate federal case to 32 years in prison for drug trafficking, money laundering and extortion.

Land records show that Ben was living in a glitzy mansion in the Hollywood Hills, where neighbors said they often saw him driving a black Rolls-Royce. The mansion’s owner sued him after he stopped paying rent for five months, eventually racking up a $150,000 tab, court records show.

Ben continued to live at the residence until moving out in March.

WASHINGTON — The case of Jeffrey Epstein, closed long ago by investigators but nevertheless a constant source of fascination to conspiracy theorists, is the story that won’t go away for President Trump, who this week continued to resist releasing documents in the case against bipartisan calls and increasing national interest.

The case has dogged Trump’s second term from the start, ever since the attorney general, Pam Bondi, alluded to the existence of a list of Epstein’s clients sitting on her desk in February. Bondi later said she misspoke and that no such list exists. But the president’s MAGA base and Democrats alike are now calling for the entire Justice Department file of Epstein material to be released, an appeal so far rejected by Trump and his aides.

Trump’s defensiveness over the file has put Republicans on Capitol Hill in the difficult position of appearing to protect Epstein’s co-conspirators, as Democrats take advantage of the internal Republican divide with calls for a vote to release the documents. A poll conducted by the Economist/YouGov this month found that 83% of Trump’s 2024 supporters want the government to release all material related to the Epstein case — “past supporters,” as Trump referred to them Wednesday, calling them “weaklings” and “foolish” for pressing their interest in the case.

Epstein, a wealthy financier with a deep bench of powerful friends, died in a New York City prison in August 2019 facing federal charges over a child sex trafficking conspiracy. The charges followed reporting by the Miami Herald of a scandalous sweetheart deal brokered by federal prosecutors in Florida that had allowed Epstein to serve a months-long sentence and avoid federal charges that could have resulted in life imprisonment.

One of those prosecutors, Alexander Acosta, later became Labor secretary in Trump’s first administration. He resigned amid a public outcry, weeks before Epstein’s death.

The New York City medical examiner and the inspector general of the Justice Department have ruled Epstein’s death a suicide. This month, the FBI released what it characterized as the “full raw” footage from a camera near what it says was Epstein’s prison cell at the time of his death. But suspicions of conspiracy were only turbocharged by the release of the tape, which Wired first reported had three minutes cut from the original footage, according to metadata of the file.

Epstein’s known association with some of the world’s most famous men, including Bill Gates, Bill Clinton and Prince Andrew, have fueled calls for their release. But it is Trump’s highly public relationship with Epstein that has caused the story to resurface.

“Time to drop the really big bomb: @realDonaldTrump is in the Epstein files,” Elon Musk, Trump’s largest donor in the 2024 presidential campaign and his close aide in the White House at the beginning of his term, wrote on X during their fallout last month. “That is the real reason they have not been made public. Have a nice day, DJT!” (He later deleted the post.)

Photos of Trump and Epstein attending parties together have proliferated online. And Trump frequently acknowledged their friendship before entering politics. “I’ve known Jeff for 15 years. Terrific guy,” Trump told New York magazine in 2002. “He’s a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side. No doubt about it — Jeffrey enjoys his social life.”

On Wednesday, Trump said Bondi should release only material from the Epstein files that “she thinks is credible.” When asked whether he would support the appointment of a special counsel to examine the case, he replied, “I have nothing to do with it.”

“I would say these files were made up by [former FBI Director James] Comey and [former President] Obama, made up by the Biden [administration], and we went through years of that with the Russia, Russia, Russia hoax,” he said.

On Wednesday, Maurene Comey, James Comey’s daughter and a federal prosecutor who had worked on the Epstein case, was dismissed from the Justice Department. Comey said Thursday that the department gave her no reason for her firing.

In a briefing Thursday, White House Press secretary Karoline Leavitt reiterated the president’s opposition to a special prosecutor.

“The president would not recommend a special prosecutor in the Epstein case,” she said. “That’s how he feels.”

Legitimate concerns have been raised over releasing documents from the case that could reference individuals who are not credibly suspected of wrongdoing. But those calling for the release of the entire file now say that the scale of Epstein’s child sex trafficking ring, and the corruption around efforts to protect him over nearly two decades, are a matter of public interest.

“We want the entire file — we don’t trust Bondi to say what’s credible and what’s not,” Rep. Jamie Raskin, a Democrat from Maryland and ranking member of the House Judiciary Committee, told MSNBC on Thursday. “We can be the judge of that ourselves.”

On Capitol Hill, responding to Republican concerns over the optics of voting against the release, House Speaker Mike Johnson (R-La.) is considering a measure that would call for the files to be made public.

The measure would be nonbinding, a source familiar with the matter said.

PHOENIX — Former President Biden’s time in office is behind him, but his age and mental acuity have become an issue for the next leaders in his party.

Audio was published Friday from portions of interviews Biden gave to federal prosecutors in 2023, the latest in a stream of reports putting questions about Biden’s health back in the spotlight. Months after former Vice President Kamala Harris lost the presidential election to Donald Trump, a new book alleges that White House aides covered up Biden’s physical and mental decline.

Several potential Democratic contenders for the 2028 nomination have been asked in recent days whether they believe Biden was declining in office or whether he should have sought reelection before a disastrous debate performance led to his withdrawal.

Many Democrats would prefer to focus on President Trump’s second term and his sagging poll numbers. Trump has done his best to prevent that — mentioning Biden’s name an average of six times per day during his first 100 days in office, according to an NBC News analysis — and Republicans have followed his lead, betting that voters frustrated by Trump’s policy moves will still prefer him over memories of another unpopular presidency.

In the race for Virginia governor, one of this year’s highest-profile contests, Republican Winsome Earle-Sears is running a pair of digital ads tying Democratic former Rep. Abigail Spanberger to Biden, with images of the two hugging and the former president calling her a friend.

“The stench of Joe Biden still lingers on the Democratic Party,” Democratic strategist Sawyer Hackett said. “We have to do the hard work of fixing that, and I think that includes telling the truth, frankly, about when we were wrong.”

Democratic Sen. Chris Murphy of Connecticut told Politico this week that “there’s no doubt” that Biden, now 82, experienced cognitive decline as president.

Pete Buttigieg, who was Biden’s Transportation secretary, wasn’t as blunt but stopped short of defending Biden’s initial decision to run for reelection. He responded “maybe” when asked Tuesday whether the Democratic Party would have been better off if Biden hadn’t declared a bid for a second term.

“Right now, with the advantage of hindsight, I think most people would agree that that’s the case,” Buttigieg told reporters during a stop in Iowa.

Illinois Gov. J.B. Pritzker said he didn’t see signs of mental or physical decline in his meetings with Biden.

“I saw him a few times,” he told CNN this week. “I certainly went to the White House whenever there was an opportunity for me to make the case for something for people in my state. And I never had the experience of anything other than a guy who brought to the table a lot of good ideas about how to solve problems.”

The book “Original Sin,” by journalists Jake Tapper of CNN and Alex Thompson of Axios, revives a core controversy of Biden’s presidency: his decision to run for a second term despite voters, including Democrats, telling pollsters that he should not. Biden would have been 86 at the end of a second term had he won in November.

A spokesperson for Biden did not respond to a request for comment.

“We continue to await anything that shows where Joe Biden had to make a presidential decision or where national security was threatened or where he was unable to do his job,” the spokesperson has told many media outlets in response to the book.

Late Friday, Axios published portions from audio recordings of Biden’s six hours of interviews with prosecutors investigating his handling of classified documents after his term as vice president ended in 2017, for which he was not charged.

The Biden administration had already released transcripts of the interviews, but the recordings shed light on special counsel Robert Hur’s characterization of Biden as “a sympathetic, well-meaning, elderly man with a poor memory” and appeared to validate his claim that the then-president struggled to recall key dates, including the year his son Beau died of cancer — 2015.

Biden and his aides fiercely objected to Hur’s report, which they characterized as a partisan hit. Biden at that time — early 2024 — was still planning to run for a second term and fending off accusations that he was too old for another four years in the job.

The recordings released by Axios include Biden’s discussion of his son’s death. His responses to some of the prosecutors’ questions are punctuated by long pauses, and his lawyers at times stepped in to help him recall dates and timelines.

Before he dropped his reelection bid last summer, Biden faced widespread doubts within his own party, even as Democratic leaders dismissed a series of verbal flubs and Republican allegations about his declining acuity.

In January 2022, a year into Biden’s first term, an AP-NORC Center for Public Affairs Research poll found that only 48% of Democrats wanted him to seek reelection. That fell to 37% of Democrats in an AP-NORC poll in February 2023. Three-quarters of Americans — and 69% of Democrats — said in August 2023 that they believed Biden was too old to serve as president for another four-year term.

And shortly after his debate flop, nearly two-thirds of Democrats said Biden should withdraw from the race.

Biden and former First Lady Jill Biden appeared on ABC’s “The View” on May 8 in a preemptive defense of his health and decision-making before the first excerpts of “Original Sin” were published.

The former president said he’s responsible for Trump’s victory but attributed Harris’ loss, at least in part, to sexism and racism. He maintained that he would have won had he remained the Democratic nominee. Both Bidens rejected concerns about his cognitive decline.

Patricia McEnerney, a 74-year-old Democrat in Goodyear, Ariz., said Biden should not have tried to run again.

“I think it’s sad the way it ended,” she said.

She compared him to Douglas MacArthur, the World War II and Korean War general famously dismissed by President Truman.

“I think he needs to stop giving interviews. I think that would help,” McEnerney said. “Like MacArthur said, generals just fade away.”

Janet Stumps, a 66-year-old Democrat also from Goodyear, a Phoenix suburb, had a different view.

“I don’t think it’s going to hurt the Democrats,” Stumps said. “I feel badly that he feels he has to defend himself. I don’t think he has to. Everybody ages. And the fact that he did what he did at his age, I think he should be commended for it.”

Hackett, the Democratic strategist, predicted Biden won’t be a major factor in the 2026 midterms or the 2028 presidential primaries. But he said Democrats who want voters to trust them would be well-served “by telling the truth about the mistakes that our party made in the run-up to 2024.”

“Those mistakes were largely driven by Joe Biden, and I think any Democrat not willing to say that is not really prepared to face the voters, who want the truth and they want authenticity,” Hackett said.

Rick Wilson, a former GOP strategist who co-founded the anti-Trump group the Lincoln Project, said Republicans want to talk about Biden to avoid defending Trump. But he said the strategy is folly.

Besides “political nerds,” he said, “no one else cares.”

Cooper writes for the Associated Press. AP writer Thomas Beaumont in Cedar Rapids, Iowa, contributed to this report.