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Thursday, January 17 , 2019, 8:11 pm | Fog/Mist 58º


Judge Ups Bail to $4.5 Million in Fire-Rebuild Scam Case

A Santa Barbara Superior Court judge granted a request Wednesday to raise the bail for a woman suspected of swindling local fire victims to $4.5 million, a figure close to the amount she allegedly stole from her victims.

A Santa Barbara judge on Wednesday raised the bail for Peggy Art Estes to $4.5 million in her fire-rebuilding fraud case. (Santa Barbara County Sheriff's Department photo)
A Santa Barbara judge on Wednesday raised the bail for Peggy Art Estes to $4.5 million in her fire-rebuilding fraud case. (Santa Barbara County Sheriff’s Department photo)

Penny Art Estes, 63, who operated a company called Green Building America, is accused of defrauding 13 people in the Santa Barbara area after their homes were destroyed by wildfire, disappearing with nearly $5 million.

Estes was arrested on June 4 in San Bernardino County after a protracted run from law enforcement, and her bail was set at $2 million until Wednesday’s decision by Judge Thomas Adams.

According to court documents asking Thomas to increase the bail amount, Estes is also a suspect in a case pending in Riverside County where she allegedly defrauded an elderly person in another construction project. The losses in that case are alleged to be in excess of $500,000.

“Sufficient bail is necessary to ensure that the defendant is not released from custody and then disappears,” court documents state. “She would have an even greater motivation to flee the jurisdiction as well as the state of California, now that another criminal case is looming on her horizon.”

According to the criminal complaint filed against Estes in March, the Santa Barbara County crimes occurred between Aug. 25, 2010, and Sept. 30, 2011, and a warrant was issued for her arrest in February.


Estes’ arrest warrant was based on an investigation into her alleged defrauding of homeowners who were the victims of the Jesusita and Tea fires.

The complaint against Estes lists 24 felony counts, including diversion of construction funds, obtaining services by false pretenses, grand theft, and financial elder abuse, as well as failure to file income taxes for 2009, 2010 and 2011.

According to documents asking for an arrest warrant, Estes explained to fire survivors, many times after support meetings, that her company used mold- and fire-resistant hybrid blocks in construction.

The report said various stages of work on the homes transpired, and millions of dollars were turned over to her, but at some point she became unreachable.

Ultimately, the company abandoned the projects and Estes could not be contacted.

Estes is due back in court Sept. 11 for arraignment.

Noozhawk staff writer Lara Cooper can be reached at .(JavaScript must be enabled to view this email address). Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.

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