In the following press release San Francisco District Attorney Kamala D. Harris announced that John McTaggart, age 45, was arraigned on charges of residential burglary, grand theft and grand theft from an elder for allegedly stealing $140,000 from an 86-year-old San Francisco woman as part of an annuity scam.

“Mortgage fraud and investment scams are intolerable,” said San Francisco District Attorney Kamala D. Harris. “This defendant may have thought that by fleeing the state, he could get away with financial fraud and violating one of our seniors, but thanks to the tireless work of prosecutors in my office who cut through the red tape and coordinated law enforcement efforts across state lines, this defendant has been brought back to San Francisco to face prosecution.”

Defendant McTaggart is scheduled to appear before the Honorable Gail Dekreon in Department 10 of San Francisco Superior Court on April 3, 2009 for arraignment on the following charges: Residential burglary, in violation of Penal Code section 459, grand theft from an elder, in violation of Penal Code section 368(d), and grand theft, in violation of Penal Code section 487(a). If convicted, he could face up to eight years in state prison, a fine of $10,000 and an order to make full restitution to the victim.

According to court documents, in February 2008 defendant McTaggart, a former broker, convinced his elderly victim to sign over $140,000 in monies received through a legitimate reverse mortgage he had helped the victim secure. Once the victim received the money from the reverse mortgage, the defendant allegedly convinced her to dedicate a portion of the funds to two separate annuity accounts. Instead of depositing the victim’s money into actual annuity accounts, he deposited the money into his personal account. The defendant then allegedly attempted to mask this fraud, by sending monthly checks to the victim, essentially paying her “dividends” from the money he had stolen directly from her. Defendant McTaggart then fled to Tennessee, where he resided until he was arrested on the DA arrest warrant that was issued on November 24, 2008.

Defendant McTaggart was arrested December 4, 2008, in Memphis, Tennessee, on a San Francisco District Attorney’s arrest warrant. Defendant McTaggart then chose to fight his extradition to California on the charges. This required the DA’s Office to make a formal request to the Office of Governor Arnold Schwarzenegger for a Governor’s Warrant to bring defendant McTaggart back to California. After the California Governor’s Warrant was obtained, it was forwarded to Tennessee Governor Phil Bredesen, according to the usual procedure. Then, Tennessee Governor Bredesen issued his own Governor’s Warrant based on California’s. Defendant McTaggart was then served with this warrant on March 3, 2009 in Memphis. Ten days later, on March 13, 2009, he was brought back to California by San Francisco police inspectors and booked into San Francisco County Jail, where he remains with bail set at $300,000.

Defendant McTaggart made his initial court appearance in San Francisco Superior Court, Department 10, on March 16, 2009. He was not arraigned as he informed the court he had private counsel who would be available to appear for him on April 3, 2009.

“During tough economic times we see an increase in exploitation and abuse of vulnerable populations, like seniors,” said District Attorney Kamala D. Harris. “Now more than ever, our seniors need help and protection so they don’t fall victim to financial crimes and elder abuse.”

This prosecution is the first since the District Attorney announced on Wednesday, April 1, 2008, a three-part initiative to combat mortgage and financial fraud that includes public education, legislative advocacy, and prosecution. The public education and outreach component of the campaign will be delivered at churches, community centers, and senior centers so residents are armed with the information they need to protect themselves from scams and other cons.