SAN FRANCISCO — During a July 8 trial in Department 29 of the San Francisco Superior Court, jurors heard sharply conflicting accounts surrounding a former Seal Rock Inn employee accused of carrying out a fraudulent refund scheme that allegedly cost the family-owned business more than $180,000. As testimony unfolded, jurors were presented with competing narratives over whether the transactions constituted theft or occurred with the knowledge and authorization of the motel’s general manager.
In his opening statement, Deputy District Attorney Chris Peurevelle told jurors the evidence would show the accused systematically stole approximately $180,000 from her employer through fraudulent credit card refunds.
“She lived large and lavishly while a 60-year-old business got crushed,” DDA Peurevelle said, arguing that surveillance footage, bank records and financial documents would demonstrate the alleged scheme beyond a reasonable doubt.
In contrast, Deputy Public Defender Thomas McMahon, who delivered the defense’s opening statement afterward, argued the prosecution was overlooking the circumstances behind the accused living “large and lavishly” and contended the motel’s general manager knowingly authorized the payments as part of their romantic relationship.
DDA Peurevelle alleged the accused redirected hotel funds into accounts she controlled and used the money on personal expenses, including “$300 at a steakhouse,” “$90 at a Sonoma winery,” purchases at “Tiffany & Co.,” hotel stays, laser hair removal treatments, dental appointments and transfers between the accused’s personal accounts.
DDA Peurevelle also referenced a $1,200 Venmo transaction and argued surveillance footage captured the accused operating the hotel’s credit card processing equipment while the disputed transactions occurred.
DPD McMahon then presented his opening statement, arguing the prosecution had overlooked the circumstances surrounding the transactions.
“Paper doesn’t lie, but people do,” DPD McMahon said, commenting on DDA Peurevelle’s opening statement and his reliance on financial records.
DPD McMahon argued the alleged victim, the motel’s general manager, knowingly authorized the payments as part of an alleged romantic relationship with the accused. DPD McMahon also argued the alleged victim accused her of the thefts only after WestAmerica Bank alerted the family to suspicious transactions, creating a risk that his then-pregnant wife would discover the alleged affair.
DPD McMahon urged jurors to critically examine the evidence, asking, “How does a 22-year-old girl with no industry experience fool a capital investment manager and attorney?” He argued the alleged fraud, which allegedly continued for approximately nine months without detection, raised questions about the prosecution’s theory that the accused acted alone.
During DPD McMahon’s opening statement, jurors first heard about the accused’s background. The accused immigrated from Poland to the United States in 2015. She came to America in search of better opportunities and the “American dream.” DPD McMahon said the accused had been hardworking and got her first job at 13 years old. In 2018, she moved from Montana to San Francisco.
Shortly after moving to San Francisco, the accused responded to an online job advertisement seeking a “personal assistant.” An interview was arranged between the accused and the alleged victim. After an hour of talking, the accused was hired to begin training at the Seal Rock Inn in November 2018 before officially starting work in January 2019 for minimum wage, generally working three shifts a week.
“The DA mentioned steakhouse dinners, trips to Sonoma and Napa, Lyft expenses numerous times to work on a daily basis… Tiffany’s… the dentist… laser hair removal,” DPD McMahon said, leading to his argument that the accused was not acting alone and that the transactions were part of the alleged affair.
DPD McMahon noted the alleged victim was a Stanford Law School graduate who managed an “$85 million fund,” leading him to question how the alleged victim did not know how to preserve video evidence or recognize that $180,000 was missing from the inn. Referring to WestAmerica Bank’s notification to the family and subsequent report to police, DPD McMahon argued the alleged victim had two choices: “fess up” or blame “the 22-year-old blonde girl,” for whom he never intended to leave his wife, or make the girl an equal partner.
Under direct examination, the alleged victim described growing up in a family that owned and operated the Seal Rock Inn, a business that has remained in the family since 1959. He testified he became the motel’s general manager in 2009 and was responsible for hiring staff, supervising hotel operations and managing vendors.
“It was a great resume… She’s articulate, bright, and qualified,” the alleged victim said, adding that the accused quickly earned positive reviews during her training.
According to the alleged victim, another manager reported she was a “quick study” who completed training with “flying colors.” As the motel transitioned to a new technical system, the alleged victim testified the accused “was given greater autonomy” because he was “delighted to know someone who was a quick study” and adapted quickly to the technology.
The alleged victim explained that during much of 2019 he visited the motel less frequently and was “less attentive” because his wife was pregnant with their first child, reducing his visits to approximately twice a month. He testified that he became especially busy with his “home duties” during the fall.
During direct examination, the alleged victim testified he did not become aware of the withdrawals until WestAmerica contacted the family regarding unusual transactions involving the hotel’s credit card processing system. After reviewing the financial records, he said his family discovered about $180,000 in unauthorized transfers dating back to January 2019.
When questioned by DDA Peurevelle about the amount allegedly taken, the alleged victim testified, “At one point I [he] knew that number…I [he] know roughly the amount…I [he] can never forget that.”
“Thank God she didn’t get to more money,” the alleged victim added.
The alleged victim testified that he and his sister compared employee schedules, surveillance footage and bank records in an effort to identify who was working during the transactions. The motel had about “12 [surveillance] cameras,” including one directed at the “front desk.”
“I feel embarrassed to ask this question, was there any romantic interaction happening?” DDA Peurevelle asked. The alleged victim responded, “No.”
DDA Peurevelle concluded direct examination, and DPD McMahon began cross-examination.
The trial was set to reconvene during the afternoon session on July 8.
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