Former San Francisco real estate investor accused of pandemic relief fraud granted bail

While the judge ordered Luke Brugnara released from federal pretrial custody, he is likely to be picked up by San Mateo County, where he has a warrant out for his arrest.SAN FRANCISCO (CN) — Former San Francisco real estate investor Luke Brugnara will be released from pretrial custody, a federal judge ruled Monday.U.S. Magistrate Judge Lisa J. Cisneros ruled Brugnara had met all the conditions previously ordered by Senior U.S. District Judge Maxine M. Chesney that would reasonably assure his appearance in court, including a $50,000 cashier’s check and a $100,000 bail bond.Under the judge’s conditions, Brugnara must wear an ankle bracelet for electronic monitoring and return to his residence in the Outer Sunset for home confinement, leaving the property only for legal, medical and court appointments. He is also prohibited from possessing firearms and ordered to stay away from weapons owned by other people.However, Brugnara currently has an active warrant for his arrest in San Mateo County and is likely to be picked up by local authorities following his release from federal custody, according to San Mateo County District Attorney Stephen Wagstaffe.“We are hoping to pick him up before he gets out and breathes any fresh air,” Wagstaffe told Courthouse News in a phone interview.Brugnara, 62, was indicted in May 2024 on nine counts of wire fraud and three counts of money laundering.In August 2024, Chesney, a Bill Clinton appointee, directed Brugnara to be released from custody on the condition that he not commit any crimes or possess a firearm.Prosecutors moved to revoke his bail in February following a Jan. 21 altercation in which Brugnara was arrested for possessing a firearm and threatening to shoot two people for trespassing at Thornton State Beach in Daly City, California. He was released from custody a day later after posting $100,000 bail, according to San Mateo County court records.However, Brugnara never showed up for the February bond revocation hearing, despite filing court documents demanding that his bond conditions be reinstated, according to prosecutors. He was apprehended by U.S. marshals on July 30.Brugnara returned to federal court Aug. 3 before Cisneros, denying he knew about the February court date. However, the judge ordered him detained, saying she was not confident he would abide by the conditions of his release and appear for future court dates.Chesney was finally appeased with Brugnara’s offer of $50,000 in what he said was his own cash “in a shoebox.” The government objected to that offer, arguing he currently owes over $700,000 in restitution stemming from a prior case, of which he has paid only $600.Both parties took their arguments back to Cisneros last Thursday, who, over the span of three additional court hearings, heard the government’s concerns about whose money was being used and the source of the funds, as well as the government’s ability to seize the money for restitution.Dirkes told to the court that the check would be coming from Margarita Prikhodko, the landlord of the residence Brugnara was renting for six months prior to his apprehension this summer. Dirkes told Cisneros last Friday that she had given Brugnara the funds in exchange for helping with her son, who he said was severely autistic.The government argued Brugnara’s account of where the funds are coming from “seems to change at every court hearing.” Assistant U.S. Attorney Maya Karwande emphasized at Monday’s hearing that Cisneros noted in her earlier order revoking Brugnara’s bond that he had a history of abusive behavior, raising concerns that Prikhodko is either “part of it or forced into supporting him in some way.”However, Cisneros said the government’s inquiry into the $50,000 was “a bit of a fishing expedition,” adding that the government can use its investigative powers and bring the court new information if it finds any.“There has been some inquiry in various proceedings about who Ms. Prikhodko is, and Mr. Brugnara has been in custody for some time. The government has been looking at his case, and nothing has been raised to suggest her money is from some illegitimate activity,” Cisneros said. “I think we’ve probed enough.”Karwande told the judge that if released, Brugnara would likely be taken to San Mateo County due to an outstanding arrest warrant.Brugnara denied the existence of a warrant, telling the judge he was “unaware of any warrant” and that “my understanding is it’s dismissed,” seemingly referring to the January case, which is currently active, according to online court records.However, an additional case against Brugnara was filed in San Mateo County Superior Court last Friday, charging him with filing false documents, perjury in a declaration, forgery and two counts of grand theft dating back to November 2025.Wagstaffe said the latest case against Brugnara stems from a potentially fraudulent deed that had been filed and processed and is unrelated to the January case.“It’s not like something just occurred, or we just learned of it. It’s something that we’ve been investigating for the last eight months,” he said.Representatives for both parties did not immediately respond to a requests for comment.Following his release, Brugnara’s Oct. 19 trial date is vacated. He is due back in federal court on Oct. 14.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads