Putting a damper on fireworks

Shared Spotlight
Times Change
Young stars, drug scandal
in focus at Olympic trials
Housing market mirrors
30 years of national trends
SPORTS C-1
WORK AND MONEY D-1
!
Weather
Sunny, a tad warmer.
High 89, low 61.
Yesterday: High 86,
low 57.
Details on Page B-8
THE VOICE OF THE VALLEY
!
December 21, 2004
FINAL EDITION, Pg. A1
WWW.MODBEE.COM
FRIDAY, JULY 9, 2004
PRICE 50¢
Putting a damper on fireworks
Today’s
Scoop Daniloos under arrest
DreamLife
CEO,
onuse41Weigand,
felony
theft
counts
Corporate scandals
fire marshal
of the Stanislaus
Consolidated
Officials
studywife
plan toheld
curb the
Undaunted by his arrest,
former Enron Chairman
Kenneth Lay confidently denied
any wrongdoing and posted
$500,000 bail. In New York,
Adelphia Communications
Corp. founder John Rigas and
his son Timothy were
convicted Thursday. Also, a
federal judge denied Martha
Stewart’s request for a new
trial. Pages D-1, D-4
Fire Protection District; Gary Hinshaw, who heads the
Stanislaus County Department of Emergency Services; and Mike Payton of the Modesto Fire Department.
Weigand said there were three legal aerial fireworks
By KRISTINA SEWARD
displays this year in the county: at John Thurman
BEE STAFF WRITER
Field in Modesto, Woodward Reservoir north of
Coming off what they said was one of the worst
Oakdale and California State University, Stanislaus,
Fourth of July holidays ever for illegal fireworks, local in Turlock.
firefighting officials aren’t wasting any time in preparBut people with an elevated vantage point could look
ing for next year.
in all directions and see fireworks bursting overhead.
Meeting Thursday to learn about methods other
Weigand said his investigators spent the night huntcounties use to curb illegal fireworks were James ing down and seizing illegal fireworks that were boom-
of illegal explosives by next season
By Todd Milbourn, Bee Staff Writer
ing out of residential neighborhoods throughout the
county.
During the meeting Thursday, the firefighting executives heard a presentation by Dennis Revell, president
of Revell Communications, about fireworks safety campaigns his firm has developed for Sacramento County
and the state.
Revell said Sacramento County has used a “No More
Mr. Nice Guy” campaign, which advertised a notolerance law enforcement crackdown on illegal fireworks. Most recently, he said, the county has
employed a “Private Eyes” campaign, which encour-
Tony Daniloo, chief executive officer of the now defunct Modesto-based
DreamLife Financial, and his wife, Nansi Masihi Daniloo, were arrested Monday
and charged with 41 felony counts of grand theft.
SEE BACK PAGE, FIREWORKS
Manteca
FULL OF POTENTIAL hospital
sale
wins
The Daniloos were taken into custody during a midafternoon raid at their
Turlock
home. The couple, each handcuffed, were taken to the Stanislaus County Jail.
approval
Authorities contend that the Daniloos, who in recent months pledged a total of
$5.5million
to Emanuel Medical Center and California State University,
Forty music acts from
across
the nation will play
Stanislaus,
bilked
Alameda County homeowners out of at least $1.4 million over a
at the fifth
Xclamation
Group
compiles
report
four-year period. Among
the alleged victims is a 74-year-old Newark woman.
Festival in
X-Fest X-citement
downtown
Modesto next
weekend, with
headliners such as Franky
Perez. Page H-14
SIDS discovery
listing ways to spruce up
Modesto’s downtown area
By TODD MILBOURN
BEE STAFF WRITER
Talk to folks along 10th Street and it
seems everybody has an idea for improving downtown.
Velma Tinkler of Modesto says more
high-rise buildings would create a
greater sense of place.
Chad Wakefield of Sacramento says
more local restaurants would add to the
area’s character.
And Terry Lee, a 19-year-old bass guitar player from Modesto, says increasing the number of music venues would
improve his chances of landing a gig.
“There is definitely a lot of potential,”
said Lee, hanging out Thursday at Tenth
Street Plaza across from the Brenden
Theatres.
As Modesto sorts out these issues, one
group has put its ideas on paper to create The Continuing Renaissance of
Downtown Modesto.
The 41-page report — compiled by 14
individuals, including business leaders
and community activists — is a list of
suggestions intended to make downtown more lively, livable and attractive
to tourists.
Downtown has experienced its share
of change over the years going from a
retail hub to a decaying city center.
It has undergone a renaissance of sorts
in recent years, thanks in large part to
the opening of the theater, new cafes and
restaurants.
But like many urban centers, downtown faces an uncertain future. There
remain safety issues, a dearth of housing and parking, and the struggles of
building a viable entertainment district.
Bruce Jones, a member of the DownBART AH YOU/THE BEE
town Modesto Blueprint Committee,
said the community needs to consider One of the ideas proposed for revitalizing Modesto’s downtown is the creation of
the question, “What does Modesto want a tree-lined corridor along 10th Street, seen here Thursday afternoon.
to be when it grows up?”
While there may be no single answer,
many agree that Modesto’s success is
closely linked to downtown’s.
A “Graffiti
.
The group’s ideas range from building
St
1
District”
more housing and parking areas to conDeveloping
anchored by a
Tent
2
struction of a Graffiti Museum and an
“Modesto’s
museum with
corr
Miracle Mile”
aquarium showcasing the fish of the San
an “American
“
Cent
along Ninth
Graffiti” theme
3
Joaquin Valley.
the G
Street between
for t
At the heart of the report, released pubNeedham
Tuol
licly in May, is a vision for turning 10th
Street and
Street into a tree-lined corridor stretchTuolumne River
.
ing from Modesto Centre Plaza to Tuol99
St
Regional Park.
H
umne River Regional Park.
Members of the group admit some of
the ideas could take decades to implement, especially in an era of lean public
financing.
But the idea isn’t to transform the cenN
ter of the city overnight. It’s about get-
Internal Revenue Service agents, according to witnesses, seized computers
and
Kaiser
to close deal on
documents as well as at least three of Daniloo's automobiles, including aSt. Dominic’s in October;
Lamborghini. Agents also raided DreamLife's corporate headquarters atModesto
1700 plans unaffected
By KEN CARLSON
Standiford Ave. in Modesto.
Researchers believe they have
learned why children die of
sudden infant death syndrome.
Page A-10
BEE STAFF WRITER
MANTECA — Catholic Healthcare
West and Kaiser Permanente have
reached an agreement on Kaiser’s purchase of St. Dominic’s Hospital at the
end of October.
In April, the health care organizations
announced they were negotiating the
sale of the 77-bed hospital and adjacent
property. St. Dominic’s, which opened
in 1990, is on a 35-acre site on West
Yosemite Avenue.
Financial terms have not been disclosed, but both organizations said
Thursday that their respective boards of
directors have approved the agreement.
The deal is still subject to regulatory approval.
“All the patients that are presently at
the hospital will continue to be treated
and discharged as appropriate for their
care,” said Jerri Randrup, a spokeswoman for CHW in Stockton.
Kaiser has plans to build a 225-bed hospital in north Modesto and continues to
say that the Manteca purchase does not
affect it.
At St. Dominic’s, Kaiser will continue
to operate a 38-bed “subacute wing,”
which cares for long-term patients, said
Kaiser spokesman Terry Lightfoot.
CHW and Kaiser representatives said
the number of beds at the Manteca hospital will expand from 77 to 99. The additional 22 beds are on a floor that has not
been in use.
Kaiser said the purchase will allow it
to better serve its 50,000 members in
Tracy and Manteca.
Most of them work for companies that
have contracts with the Oakland-based
health maintenance organization.
“Our membership growth is very significant in Manteca and Tracy,” Lightfoot said. “We expect that trend will continue, and I think this will help us serve
those members in the community close
to where they are working.”
CHW has said the Manteca hospital is
underused and has consistently lost
money.
There were about 1,800 acute care ad-
The Daniloos had been under criminal investigation for two years in Alameda
County, where Tony Daniloo worked in the mortgage business until moving to
Turlock in 2002 and opening DreamLife Financial, a division of DreamLife
Lunchbox lore
Investments Inc.
When Bryan Ehrenholm was in
elementary school, his mom
sent him off to class with
metal lunchboxes. The
Modesto man never outgrew
his interest in dinner pails.
Page G-1
DreamLife shuttered last week amid increased scrutiny of the Daniloos' legal
and financial troubles.
If convicted
Athlete money
of the Alameda County charges, which include allegations of elder
Tony Daniloo faces a maximum of 30years in prison, said Bill Denny, head
Some pro athletesabuse,
who
succeed in the field often fail in
ofa growing
the Alameda County real estate fraud unit. Nansi Masihi Daniloo faces a
finances. But there’s
group of them that is adhering
maximum of seven years.
to a modest lifestyle to ensure
easy living after their careers
end. Page C-1
.
St
th
10
th
St
Six
.
St
hth
Eig
St
.
hS
t
th
10
Cre
.
St
th
S
Signs lead visitors to a shaded
area with rows of benches
occupied by schoolchildren.
The pupils talk excitedly as
they wait for their tour to
begin. They are at the Cobb
Fif
Coming Saturday
th
Stanislaus, for the Human
Resource Games, but Stan
State handed Cornell its only
loss in round one. Page B-1
12
Bail is set at $800,000 for Tony Daniloo, 30; $100,000 for Nansi Masihi
Daniloo, 29, said Denny. However, bail cannot be posted until a hearing is held to
Three-time winner Cornell
University narrowlymake
beat
DESIGNING
DOWNTOWN
sure that the money used for bail is coming
from legal
sources.
California State University,
Humbling Goliath
That hearing has not been scheduled, Denny said.
Officials are still trying to determine what, if any, federal charges will be brought
against the couple, said Mark Lessler, an IRS spokesman in Oakland.
Just months ago, the Daniloos and DreamLife grabbed headlines by announcing
record-setting pledges totaling $5.5million to Turlock's Emanuel Medical Center
and Stanislaus State. Both institutions later rejected those offers, after a report in
The Bee detailed the Daniloos' history of bankruptcies, failure to pay bills,
allegations of fraud and a potential criminal probe.
The Daniloos were arrested about 12:15 p.m. at their home on Carriage Court in
Turlock, according to neighbors. They said more than a dozen cars had lined the
cul-de-sac, waiting for the Daniloos, when the couple arrived in their MercedesBenz S500 sedan. Neighbors said the Daniloos showed little emotion as they were
hauled away in handcuffs.
“He was so frivolous, we (suspected) something was going on," said one neighbor,
who did not want her name used.
Crowd members' mouths were agape as investigators drove from the garage a
Lamborghini Gallardo, which sells for more than $170,000. That car was
followed by a Mercedes-Benz G55 AMG sport utility vehicle that costs at least
$93,000 and then the sedan, which retails for about $100,000, according to
automobile guides.
Investigators searched each of the cars before they were hauled to an undisclosed
location. Agents combed the Daniloo home for hours. The home, estimated to be
worth nearly $1 million, is listed under the name of Nansi Masihi Daniloo's 24year-old college student sister, according to Stanislaus County records.
Federal authorities also have subpoenaed Tony Daniloo's receipts from Yonan's
Jewelers in Turlock, where Tony has been a customer for years, said Yonan
manager Manny Valasquez, who declined to comment further.
The Alameda County complaint lists three victims, although Denny said the office
would issue a toll-free number in coming days in hopes of finding more.
Among the alleged victims is Ernestine Malone, 72.
Much of the complaint focuses on Tony Daniloo's work as Malone's personal
financial manager. Malone trusted Daniloo to handle her finances and the five
rental properties she owned in Newark, according to the complaint.
Malone didn't suspect anything was wrong until 2002, when she saw a
newspaper notice that her home was being foreclosed upon.
The complaint alleges that the Daniloos stole hundreds of thousands from
Malone, much of it through property transactions. The complaint also alleges that
the Daniloos used her accounts to funnel money diverted from escrow accounts.
Daniloo was accused of similar wrongdoing in Stanislaus County last week,
when First American Title Insurance Co. of Santa Ana accused him of diverting
more than $4 million from the escrow accounts of DreamLife clients. That
money, according to the lawsuit, was funneled into Daniloo's personal Citibank
account.
A Stanislaus County judge has issued a freeze on that account.
The Daniloos owe at least $50,000 to the Internal Revenue Service, according
to a 2002 bankruptcy filed by Nansi Masihi Daniloo. The Chapter 7 filing also
states the couple owes tens of thousands in state taxes.
Daniloo and DreamLife also are the targets of investigations by the California
Department of Real Estate and the state Department of Corporations, which
asked one of DreamLife's founders to turn over company documents on Monday.
Paul Ovro of Turlock, Daniloo's brother-in-law and longtime business partner,
did not return a call for comment Monday.
Bee staff writer Todd Milbourn can be reached at 578-2339 or
[email protected].
Copyright 2004 McClatchy Newspapers, Inc.
All Rights Reserved