SF Real Estate Investor Luke Brugnara Gets Bail in Pandemic Fraud Case, Faces State Warrant
A federal judge granted bail to Luke Brugnara, 62, charged with wire fraud and money laundering. San Mateo County authorities plan to arrest him on a separate warrant upon release.
Federal Bail Granted for Brugnara, But San Mateo County Warrant Awaits
A federal judge has ordered the release of Luke Brugnara, a former San Francisco real estate investor charged with pandemic relief fraud, Courthouse News Service reports. U.S. Magistrate Judge Lisa J. Cisneros ruled Monday that Brugnara had satisfied the conditions set by Senior U.S. District Judge Maxine M. Chesney to secure his release from pretrial custody.
Those conditions include a $50,000 cashier's check and a $100,000 bail bond. Brugnara must also wear an ankle bracelet for electronic monitoring, remain confined to his Outer Sunset residence, and leave only for legal, medical or court-related appointments. He is prohibited from possessing firearms and must stay away from weapons belonging to others.
His freedom, however, may be short-lived. San Mateo County District Attorney Stephen Wagstaffe confirmed that an active arrest warrant for Brugnara remains outstanding in his jurisdiction.
"We are hoping to pick him up before he gets out and breathes any fresh air," Wagstaffe told Courthouse News in a phone interview.
Indictment, a Firearm Incident, and a Missed Hearing
Brugnara, 62, was indicted in May 2024 on nine counts of wire fraud and three counts of money laundering. Chesney initially ordered his release in August 2024, on the condition that he commit no new crimes and not possess a firearm.
That condition was violated. On Jan. 21, Brugnara was arrested at Thornton State Beach in Daly City, California, after allegedly possessing a firearm and threatening to shoot two people he accused of trespassing. He posted $100,000 bail and was released the following day, according to San Mateo County court records.
Prosecutors moved to revoke his bail in February. Brugnara never appeared for that revocation hearing, even though he had filed court documents demanding his bond conditions be reinstated. U.S. marshals apprehended him on July 30.
When he returned to federal court on Aug. 3 before Cisneros, Brugnara denied knowing about the February hearing date. Cisneros ordered him detained, citing a lack of confidence that he would comply with release conditions or appear at future court dates.
$50,000 "In a Shoebox" and a Disputed Source of Funds
The path to Monday's bail ruling ran through a protracted dispute over money. Chesney was ultimately satisfied after Brugnara offered $50,000 in cash he described as his own, kept "in a shoebox." The government objected, pointing out that Brugnara currently owes more than $700,000 in restitution from a prior case, of which he has paid only $600.
Both sides returned to Cisneros last Thursday for three additional hearings in which the court examined who had provided the funds and whether the government could seize the money as restitution. Defense attorney Dirkes told the court that the check came from Margarita Prikhodko, the landlord of the residence Brugnara had rented for six months before his arrest this summer. Dirkes told Cisneros on Friday that Prikhodko had provided the money in exchange for Brugnara's assistance with her severely autistic son.
The government argued that Brugnara's account of the funds' origin "seems to change at every court hearing." Assistant U.S. Attorney Maya Karwande stressed at Monday's hearing that Cisneros had previously noted Brugnara's history of abusive behavior, raising concerns that Prikhodko was "either part of it or forced into supporting him in some way."
Cisneros dismissed those concerns, calling the government's inquiry into the $50,000 "a bit of a fishing expedition." She noted that the government retained its investigative powers and could bring new information to the court if warranted.
"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."
New San Mateo County Charges Filed Friday
Brugnara denied the existence of any warrant in San Mateo County, telling the judge he was "unaware of any warrant" and that "my understanding is it's dismissed" — an apparent reference to the January case, which online court records show remains active.
In addition, a new case was filed against Brugnara 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 charges stem from a potentially fraudulent deed that had been filed and processed, and are unrelated to the January firearm incident.
"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," Wagstaffe said.
Representatives for both parties did not immediately respond to requests for comment.
Following Monday's ruling, Brugnara's Oct. 19 trial date has been vacated. He is due back in federal court on Oct. 14.
Source: Courthouse News Service