San Francisco City Attorney David Chiu has filed a lawsuit against individuals accused of unlawfully attempting to take ownership of a $4 million mansion in the city's affluent Sea Cliff neighborhood. The legal action follows a year of alleged harassment and illicit activity by squatters, which has alarmed neighbors and prompted complaints to city officials.
The lawsuit, filed against Brandon Aadee and Diana Peng, accuses them of engaging in an "unlawful scheme to obtain ownership of a property located at 250 32nd Avenue… through the recording of forged deeds with the San Francisco Assessor’s office that were fraudulently notarized." Chiu stated that the defendants are "effectively trying to steal a house and sell it to make millions in profit."
Neighbors reported increasingly brazen activity at the mansion, which has reportedly been vacant since 2019. The escalating concerns include theft, suspicious individuals, and a significant flooding incident attributed to a damaged water main outside the property. Residents have documented the events, with some organizing a neighborhood watch group to share surveillance footage and address their fears.
Surveillance footage shared by neighbors allegedly captured unknown individuals loading items into a car at 4 a.m. and a scooter theft. Luxury vehicles, some reportedly without license plates, have also been observed outside the residence. Residents expressed feeling unsafe, with one neighbor telling ABC News, "I go to bed nervous. I wake up nervous."
Alleged Fraudulent Deed Scheme
Property records indicate the deed for the 32nd Avenue home has changed hands multiple times over the past year, involving Aadee and Peng. Both individuals have allegedly used questionable documents to assert ownership claims, leading to a dispute over who legitimately controls the property. Aadee reportedly attempted to sell the home, but the plan was thwarted when a realtor became suspicious.
The legal team for the city attorney's office alleges that the deed transfers were part of a fraudulent scheme, with forged documents and improperly notarized signatures used to manipulate property records. The National Notary Association has noted an increase in insurance claims related to seal fraud, with 12% of claims since 2023 involving such cases.
Criminal Histories Surface
Further scrutiny of Aadee and Peng revealed extensive criminal histories. Aadee was federally charged in 2008 for defrauding Hurricane Katrina relief funds and later pleaded guilty to charges including credit card fraud. He served federal prison time and has faced subsequent probation violations and felony charges, including identity theft and possession of a forged driver's license, with an active arrest warrant still outstanding.
Peng also has a history of legal troubles, including felony perjury convictions in 2008. She has faced charges related to forgery and identity theft, resulting in jail time and probation. In 2015, she was sentenced to two years for additional forgery-related charges.
City's Response and Property Taxes
Neighbors claim they have been reporting issues to city officials for approximately a year without significant action. The San Francisco Police Department confirmed that the District Attorney’s Office is investigating the case. The City Attorney's Office filed the lawsuit after the flooding incident and ongoing neighbor complaints.
The property's legal owner is reportedly Wei Wang, a Chinese national who has allegedly struggled to access the U.S. to manage the property. The home is also significantly delinquent on property taxes, with over five years of unpaid taxes. San Francisco's Board of Supervisors was recently asked to consider auctioning the property to recoup the outstanding taxes, which currently exceed $324,000. An auction would begin at $500,000, but could be canceled if the taxes are paid.
California's current laws are cited by some as a contributing factor, potentially preventing immediate removal of trespassers and necessitating lengthy legal processes for property owners.