3 plead not guilty in fraud case
Three men facing federal charges stemming from an alleged Ponzi scheme based in Scotts Valley pleaded not guilty last week.
John Geringer and Christopher Luck of Scotts Valley, as well as Keith Rode of Franklin, Wis., were indicted last month by a federal grand jury. The three were partners in an investment company called Geringer, Luck and Rode LLC, which managed an investment fund called GLR Growth Fund. Geringer was the managing partner.
In the criminal complaint, federal authorities allege GLR defrauded their investors, receiving more than $60 million from investors and then diverting half of the money to themselves and private companies in which they held an interest.
The three men face multiple charges for "engaging in a scheme, plan and artifice to defraud investors" and obtain money through fraudulent pretenses, the complaint alleges.
All three pleaded not guilty in federal court in San Jose on Thursday. They're due back in court Feb. 7 for a bail bond hearing.
There also is a pending civil suit against Geringer and his companies filed by the U.S. Securities and Exchange Commission. There is a pending motion filed by the federal agency to amend that complaint to add Rode and Luck as defendants, court records show.
Two arrested after traffic stop
Monterey County sheriff's deputies arrested two Castroville residents on suspicion of drug possession after a traffic stop in Prunedale on Monday afternoon.
Deputies stopped a car in the area of San Miguel Canyon and Highway 101 for vehicle code violations. A strong odor of marijuana emanated from inside the car, deputies said.
Driver Robert Reeder, 49, admitted he possessed a half-ounce of methamphetamine packaged for sale and marijuana, deputies said. The passenger, 37-year-old Meshell Jimenez, admitted she had marijuana and another controlled substance in the car.
A search of the car turned up methamphetamine packaged for sales, three ounces of marijuana, drug paraphernalia and illegally possessed prescription medications.
Reeder consented to a search of his home, where deputies found more marijuana, a methamphetamine pipe, digital scales and surveillance cameras. Deputies also found a .22-caliber firearm in the home, which Reeder isn't allowed to have because he is a convicted felon.
Shark warning signs remain
Santa Cruz County Sheriff's Office fliers at the Hook and other areas of Pleasure Point remained Monday after two people said they saw a shark in the water Saturday morning.
Someone reported what appeared to be a shark's dorsal fin in the water off Rockview Drive and another person saw a similar fin at Second Peak, said Santa Cruz County sheriff's Sgt. Joe Clarke. Others said it might have been a dolphin.
The beaches were not closed, but fliers were posted Saturday. Clarke said the fliers didn't seem to deter many surfers at the Hook on Sunday or Monday.
Man rescued after fall
A man was rescued after he apparently fell from a cliff near Davenport Beach on Saturday.
About 3:55 p.m. someone reported that a person was injured on the beach off Highway 1 and Center Street in Davenport, said Mike McMenamy, State Parks public safety superintendent.
It was unclear how far the man fell. State Parks, Cal Fire, American Medical Response and Santa Cruz County sheriff's deputies responded to the call.
The man was brought up the cliff in a basket and transported by ambulance to Dominican Hospital, McMenamy said. Authorities did not release the man's age, the extent of his injuries or why he fell.