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Los Gatos Home Building Fraud Case Leads to Santa Cruz Woman's Arrest

Contractors State License Board investigation leads to arrest of Sandra Nora Greenwell, who formed Los Gatos Group LLC.

A Santa Cruz County woman faces a series of felony and misdemeanor charges after a lengthy investigation by the Contractors State License Board revealed fraudulent activity in a Los Gatos business she had created that enlisted investors in a $3.2 million home project.

Authorities arrested Sandra Nora Greenwell, 56, Feb. 8 in Boulder Creek after a $100,000 warrant was issued in Santa Clara County, the Contractors State License Board said in a press release.

The CSLB investigation found that in December 2010, Greenwell and her son formed Los Gatos Group LLC to build a residential home in Los Gatos. She then enlisted a number of investors to provide financial backing for the project, valued at $3.2 million, the release stated.

Investigators found that Greenwell used her position to divert at least $46,500 in investors’ money into the bank account of another company she ran, Eagle Consulting Team, authorities said.

The investigation also determined that Greenwell hired licensed and unlicensed contractors to work on the residence, and illegally used a licensed contractor’s number to pull a building permit for the project, the release added.

Greenwell is facing felony fraudulent use of a contractor’s license number, felony theft, felony grand theft and misdemeanor diversion of funds and misdemeanor contracting without a license charges, according to the CSLB.

Greenwell’s next court date is scheduled for 1:30 p.m. March 21 in the Santa Clara County Superior Court in San Jose.

“It’s important to note that cases like this are the exception rather than the rule when it comes to the character of people in the construction industry,” said CSLB Registrar Steve Sands. “This complex investigation is another example of the lengths some unscrupulous people will go to in order to take advantage of consumers.”

The CSLB operates under the umbrella of the California Department of Consumer Affairs

Sheila Sanchez (Editor) February 19, 2013 at 09:16 PM
The CSLB just told me that no charges have been filed against Greenwell's son, so he's not being named at this point. Looking in records for Nevada corporation, Los Gatos Group LLC under Greenwell's name.
Irene Aida Garza-Ortiz February 19, 2013 at 09:38 PM
I believe we will see more of these type of cases....
Mat Johnson February 19, 2013 at 10:31 PM
They are going after her son next. That's what I heard.
Los Gatos Observer February 19, 2013 at 10:36 PM
Sheila, Does she have bail? Thanks, Ralph
Sheila Sanchez (Editor) February 19, 2013 at 11:03 PM
She was arrested by Santa Cruz County Sheriff's Office. She's out on bail. Warrant was $100K.
Kimberlee Hamilton-Alarcon March 21, 2013 at 03:18 PM
The case for Sandra Nora Greenwell arraignment is today in SJ At 1:30 190 West Hedding !
Sheila Sanchez (Editor) March 21, 2013 at 03:27 PM
Thanks for the heads up. Will be there.
Watchdoggy April 09, 2013 at 03:06 PM
Sheila, any updates?
Sheila Sanchez (Editor) April 09, 2013 at 03:10 PM
Defendant is back in court at 9 a.m. April 11. Will try to follow then.
Watchdoggy April 09, 2013 at 06:59 PM
great. I'm sure her boyfriend is next. keep your eyes peeled.

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