SAN FRANCISCO (KRON) — The city attorney said a real estate developer excavated under San Francisco houses in landslide hazard zones without permits so he could flip single-family homes in the Miraloma Park neighborhood for profits.
Kevin O’Connor “created a web of fraudsters who did his bidding to quickly flip these properties and turn a profit,” City Attorney David Chiu’s office wrote Wednesday.
Following a bench trial, a judge ordered O’Connor to pay the city $1 million for violating state and local laws, as well as lying to city officials.
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“Excavating tons of dirt and rocks in a landslide zone with no permit, no legitimate engineering and no soils report is a recipe for disaster,” said Department of Building Inspection Director Patrick O’Riordan. “Safely built homes are not constructed with lies, forgeries and fakes. I am hopeful that this ruling will discourage others from trying to boost profits by cutting corners.”
Workers and neighboring properties were endangered by construction projects at 107 Marietta Drive and 147 Marietta Drive, which were owned and managed by O’Connor, attorneys said.
“O’Connor intended to flip the properties to make a profit, at one point telling a co-defendant the goal of one property was to ‘turn it and burn it,'” Chiu’s office wrote.
In order to add a retaining wall and additional living space to double the square footage at 147 Marietta Drive, O’Connor needed to perform excavations. Because the property is located in a landslide hazard area, and excavations required extra review and permits to ensure seismic stability.
Attorneys said O’Connor hired an unlicensed contractor, an illegitimate special inspector, and a “disgraced” structural engineer, Rodrigo Santos, for his home flipping projects.
On October 21, Judge Garrett Wong found O’Connor violated San Francisco’s Building and Planning codes, California’s Unfair Competition Law, and State Housing Law. The judge also said O’Connor was not a credible witness, writing, “The evidence shows his proclivity for deceit and opportunity, even under oath.”
Chiu said, “Kevin O’Connor intentionally defrauded the city and put San Franciscans in danger. He recklessly excavated under homes without a permit in order to turn a quick profit. In total, our litigation against O’Connor, Santos, and their co-defendants brought in over $3 million.”
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The judgment against O’Connor stems from an investigation and civil lawsuit filed by the city in 2018 against O’Connor, Santos, and several co-defendants. In June, the city reached a $1.4-million settlement agreement with Santos and his construction engineering firm, Santos & Urrutia Associates, Inc.
