Bijian Madjlessi was arrested and charged with 4 counts of insurance Fraud in May 2011. The case is still under trial in Marin County.
This is an example of the character Sonoma Valley Bank dealt with and essentially bet the bank on. He was the largest borrower in the bank and an out of town borrower and all his projects were out of Sonoma Valley as well. Evidently the State Insurance Commissioner after his investigations felt strong enough he had a case.
All the while this was going on the Index Tribune never reported on these related developments. This was the period they went dark, took the archives down and prayed their silence would get their cronies at the bank off the hook.
This is also the time the Pulitzer Prize nominated writer from the Press Democrat was writing his trilogy of front page feature articles with some real investigative reporting.