North County woman sentenced to prison for 2007 wildfire fraud scheme

San Diego Union-Tribune (CA)

Jan. 27--The Tumlinsons were among the hundreds of victims who lost property in the Witch Creek fire that swept through San Diego County's backcountry in October 2007. In their case, it was a large outbuilding adjacent to their Ramona home, prosecutors said.

If the couple had only taken the appropriate steps to recover damages, they wouldn't have been in San Diego federal court Friday morning, Assistant U.S. Attorney Christopher Tenorio said.

But Deborah Tumlinson had decided to go another route.

She lied about receiving a large settlement stemming from the fire damage so she could obtain a more than $700,000 loan to buy a new house, then failed to pay on the loan.

She pleaded guilty in May to aiding and abetting in a wire fraud scheme.

U.S. District Judge Janis Sammartino on Friday sentenced Tumlinson to a year and a day in prison, noting how the conduct had caused others severe mental anguish and pain.

Douglas Tumlinson, who signed many of the documents, entered into a deferred prosecution agreement. The U.S. Attorney's Office dismissed the charges against him Friday after his wife was sentenced.

The Tumlinsons had legitimately been part of litigation against San Diego Gas & Electric, as the other fire victims had, in San Diego Superior Court. The utility has conceded that high Santa Ana winds caused some of its equipment to spark, resulting in the fire.

In 2010, the couple took steps to buy a new home in Valley Center.

Tumlinson admitted to causing the family's friend and trust attorney, Carter Johnston, to send a letter to a New Jersey-based lender, U.S. Claims, that stated the couple had reached a $2.49 million settlement in the wildfire case and would be paid the money within 30 days, according to her plea agreement and other documents.

Johnston also falsely conveyed that he had represented the Tumlinsons in the settlement.

After further conversations with Johnston and Tumlinson, and reviewing what appeared to be the settlement document, U.S. Claims president Darryl Levine decided to loan the couple more than $700,000 for the purchase of the home, Levine said in a letter filed to the court.

He said he did not receive payment on the loan, and after investigation it became apparent that the settlement story was a ruse.

Levine said the fraud resulted in a "massive financial loss" and forced him to take the couple and Johnston to court to recover the money. After a bench trial, Superior Court Judge Joel Wohlfeil in 2012 awarded U.S. Claims $1.6 million in damages and fees.

Levine also had to disclose the fraud to the company's financial backers, which harmed his ability to obtain credit and forced him to sell the business in 2014, he said.

Johnston, the couple's attorney, was disbarred for his involvement in the case.

In addition to the U.S. Claims loan, Tumlinson also sought a new loan from Seaside Funding, a Carlsbad mortgage broker, falsely claiming the Valley Center home would be a rental property. She acquired a $250,000 home equity loan, which she also didn't pay on.

Some of the Seaside loan proceeds were later recovered when the home was sold as a foreclosure.

Deborah Tumlinson's attorney, Michael Berg, said several letters were sent on behalf of his client describing her as generous and loving. She grew up in a troubled family and later served honorably in the Navy, he said.

Tumlinson, who collapsed in court before the hearing began and said she suffers from health problems, apologized to the judge Friday. She said she didn't think her actions were criminal at the time and that she had -- and still has -- every intention of paying back the money.

The judge made repayment a priority, ordering the Tumlinsons to pay $1.8 million in restitution to U.S. Claims. Even though there is a civil judgment against them, U.S. Claims attorney Pat Swan argued Friday that a restitution order from a judge has more force and may give his client a better chance of getting paid.

Last big 2007 SDG&E fire lawsuit settled

[email protected]

Twitter: @kristinadavis

___

Visit The San Diego Union-Tribune at www.sandiegouniontribune.com

Distributed by Tribune Content Agency, LLC.