HAYWARD (BCN)–A former Hayward police sergeant has been charged with nine felony counts of grand theft for allegedly stealing more than $500,000 from a former prostitute who suffers from mental illnesses, prosecutors said.
Michael Scott Beal, 55, falsely promised the alleged victim, Nancy Joe, that he would marry her and told her they were jointly investing in the purchase of a home, according to a probable cause statement by Alameda County District Attorney Inspector Jeff Israel.
Beal allegedly used the money to secure cars, houses and lines of credit, according to a declaration filed in court by Alameda County Deputy District Attorney Connie Campbell. He owns five cars, including a Lexus, Campbell said.
Beal filed for bankruptcy in 1999, was sued by his wife for divorce in 2006, fell behind in his mortgage payments on his primary residence in 2008 and sold that house for a loss in January 2009, according to Israel, who formerly served as Oakland’s deputy police chief.
Beal met Joe in 2002 when he arrested her for prostitution during an undercover sting, according to Campbell.
Beal cultivated a relationship with Joe that included her providing sexual favors to him in his patrol car while he was on duty, Campbell said.
In 2007, Beal persuaded Joe to invest in a home in Alameda County by paying half the mortgage and half the property taxes. He promised that after he retired he would marry her, sell the property and split the proceeds, Israel wrote in the probable cause statement.
Joe gave Beal more than $500,000 from 2008 until this month but Beal never bought a home, as records indicate that he doesn’t have any property under his name in Alameda County, Israel said.
Beal convinced Joe to enter into the agreement after learning that she had more than $300,000 in her investment portfolio and knowing that she “suffers from a diminished capacity due to her mental illnesses, schizophrenia and depression,” Israel wrote.
Joe finally discovered that Beal had been defrauding her when she called the Hayward Police Department and was informed that he was already retired, according to Israel.
When Joe confronted Beal with that information, he “lied to her and stated he was still working at the Hayward Police Department,” Israel said.
Beal retired from the department in July 2013 after 27 years as an officer, Sgt. Ryan Cantrell said today.
The department wasn’t aware of any illegal activity that Beal may have been involved in while he was employed there, Cantrell said.
At an April 9 meeting at a fast food restaurant that was secretly recorded by investigators Beal again asked Joe for more money but refused to provide any paperwork about the investment property, according to Israel.
Beal also continued to deny that he was retired and accused Joe of wearing a wire and trying to set him up, Israel said.
Shortly after the meeting ended and Joe walked away, Beal called her, according to Israel.
During the phone call, Israel said, Beal told Joe, “The bottom line is, Nancy, I still don’t have what I need and I gotta get that. Today. You know that.”
According to Israel, Joe told Beal that she didn’t want to meet him again because “it’s too risky” and not to call her again.
Beal, who’s being held at the Santa Rita Jail in Dublin in lieu of $420,000 bail, was arraigned in Alameda County Superior Court in Hayward on Tuesday and is scheduled to return to court on Friday for a bail hearing and to possibly enter a plea.
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