SF real estate investor wanted in pandemic relief scam for over 6 months finally in custody

Updated 2 hours ago
SAN FRANCISCO (KGO) -- San Francisco real estate developer "Lucky Luke" Brugnara had to be escorted from a contentious federal court hearing this week and into custody. Prosecutors say he was a fugitive, wanted for six months before a dramatic arrest in the Sunset District.

Violating the Endangered Species Act, filing false tax returns, wire and mail fraud in connection with $11 million worth of art -- those are some of his convictions. His latest charges involve threats and a 9mm Glock out at Thornton State Beach, and the government's pandemic relief program.

In early January, Luke Brugnara fenced off six acres at the entrance to Thornton Beach State Park, even though he owned only 1/24th of the land. The other owners were furious, as were people who were used to open access to the trails. The temperature rose after his girlfriend posted this sign: "no trespassing, owner armed with 9mm gun."

RELATED: Felony charges filed in Thornton State Beach fence case; new questions about real estate investor

Video shared with ABC7 Eyewitness News showed some of the confrontations Brugnara had with the public.

LUKE BRUGNARA: "This is actually on our-- right where that line is, is our property, so you're actually standing on our property."

DOG WALKER: "Alright, are you going to shoot me for it?"

One couple accused Brugnara of saying, "If you get near the fence, I will shoot and kill you."



They called 911. Police arrived and stopped Brugnara's girlfriend driving away with a 9mm Glock in an unlocked case on the front seat, Brugnara in the back. They arrested Brugnara for felon in possession of a firearm and making threats.

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The Thornton Beach case got the attention of federal prosecutors. Brugnara has an ongoing pandemic relief fraud case. He's accused of lying about the size of his company, the number of employees, its payroll and receiving $422,000 that he used to purchase a house. In February, Brugnara failed to attend a hearing to revoke his bond in that case, so the judge issued a bench warrant for his arrest.



Last Thursday, US Marshals surrounded this house in the Sunset District. Prosecutors say Brugnara tried to escape by climbing onto the roof of the church next door.

Brugnara told the court, "I never climbed on any church. The church roof is eight stories tall. OK, how can I go eight stories when it's a one-story house? It's a lie."

In court, Brugnara also denied knowing about the February hearing or the arrest warrant that followed.

"I was not notified by my attorney," he said. "I'm legally required to notification by counsel of a court hearing to be held as a failure to appear. OK, I did not appear because I was not notified of the hearing."

RELATED: Daly City officials remove controversial fence at Thornton State Beach

But in their court filings, prosecutors cited our exclusive report from February in which we questioned Brugnara about being a wanted man.

DAN NOYES: "There's a bench warrant. Are you going to turn yourself in?"

LUKE BRUGNARA: "I'm, I'm, I'm not aware of any bench warrant. That's the surprise, I guess, of the day."

Prosecutors wrote, "He certainly knew that a warrant existed after (that interview). Again, he took no steps to remedy his failure to appear."

RELATED: Judge denies couple's restraining order to keep up Thornton State Beach fence

Brugnara's attorney proposed allowing him to be released while the case proceeds, with an ankle monitor and a $ 50,000 cash bond. Brugnara chimed in that his blood pressure was dangerously high.

LUKE BRUGNARA: "This my liberty that you're playing with."

JUDGE LISA CISNEROS: "I'm trying to get a word in and explain."

LUKE BRUGNARA: "I know, but you're trying to steal from me -- possibly my life. I could die tonight from a heart attack or stroke. You don't care."

JUDGE CISNEROS: "I do care."

RELATED: Judge orders arrest of man who put up fence, sign to block visitors at Daly City beach

The hearing dragged on, Brugnara repeatedly interrupting the judge.

JUDGE CISNEROS: "So, I want to ask the marshals. I think we're done today."

LUKE BRUGNARA: "Am I going to trial?"

MARSHAL: "Stop talking."

LUKE BRUGNARA: "How can you put an innocent man in jail?"

The marshals escorted Brugnara to jail, and the judge issued a written order on Wednesday. He will remain in custody until the case is finished. His attorney filed a motion to be removed from the case earlier this year; that's still pending.





The next court date is in two weeks.

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