Daily Business Report: Tuesday, April 2, 2024
California community colleges are
losing millions to financial aid fraud
By Adam Echelman | CalMatters
They’re called “Pell runners” — after enrolling at a community college they apply for a federal Pell grant, collect as much as $7,400, then vanish.
Since fall 2021, California’s community colleges have given more than $5 million to Pell runners, according to monthly reports they sent to the California Community Colleges Chancellor’s Office. Colleges also report they’ve given nearly $1.5 million in state and local aid to these scammers.
The chancellor’s office began requiring the state’s 116 community colleges to submit these reports three years ago, after fraud cases surged.
At the time, the office said it suspected 20 percent of college applicants were frauduleng.
Because of the COVID-19 pandemic, the federal government loosened some restrictions around financial aid, making it easier for students to prove they were eligible, and provided special one-time grants to help keep them enrolled. Once these pandemic-era exceptions ended in 2023 and some classes returned to in-person instruction, college officials said they expected fraud to subside. It hasn’t. In January, the chancellor’s office suspected 25 percent of college applicants were fraudulent, said Paul Feist, a spokesperson for the office.
Top Photo: Martin Romero, a journalism major at East Los Angeles College in Monterey Park, said he was wrongly dropped from a class when financial aid fraud detection went awry. (Photo by Jules Hotz for CalMatters)
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California home insurance market in flux
as officials race to enact reforms
Calmatters
With more California homeowners just discovering their insurance policies are getting canceled — and hundreds of thousands of others stuck with a pricey option of last resort — state Insurance Commissioner Ricardo Lara’s efforts to fix the home insurance market can’t come quickly enough.
Lara has introduced two main regulations, with more to come. The first, unveiled last month, aims to streamline rate reviews. State law gives the Insurance Department the power to approve or deny insurers’ requests to raise premiums. Insurance companies complain the process has been holding up the increases they seek as a result of what they say are increased costs due to rising climate-change risks and inflation.
The second regulation will let insurers use catastrophic modeling — which combines historical data with projected risk and losses – along with other factors when setting their premiums. California is the last state to allow for catastrophe modeling.
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Downtown Oceanside development
means millions in fees for city services
An eight-story complex proposed for North Coast Highway would bring Oceanside about $9.2 million in development impact fees, according to a representative of the Modera Neptune project.
The combination of 360 apartments and 62 hotel rooms would replace an old Motel 6 that some have called “an eyesore” north of Neptune Way near the state Route 76 entrance and exit ramps. The 1.72-acre site just off Interstate 5 is considered a gateway for visitors arriving in Oceanside.
The fees help offset the city’s costs for a variety of services related to the development, from water and sewer connections to parks and community centers.
Part of the money, about $1.8 million, would go to the Oceanside Unified School District where some of the apartments’ younger residents could attend classes, said Dan Niebaum of the Lightfoot Planning Group in Carlsbad, who represents the developer.
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Global warming is influencing global timekeeping
One consequence is giving society a few extra years to prepare for a potential Y2K-style glitch
By Robert Monroe
A problem is coming for global timekeeping, according to a paper published in the March 27, 2024 issue of Nature by Duncan Agnew, a geophysicist at Scripps Institution of Oceanography, and global warming is influencing when that problem might arrive.
Worldwide coordination of timekeeping is how all smartphones and computers can keep the same time. This timekeeping includes, every so often, an extra second, called a leap second, which makes a particular minute last for 61 seconds. Anyone who has forgotten the change to or from daylight saving time and found themselves an hour early (or late) the next morning knows how confusing it is to be out of sync with everyone else’s time.
The same thing can happen with leap seconds: if a computer network doesn’t know about them, it will become out of sync with everything else. For example, if an online store’s computer and your bank’s computer keep different times, clicking the “order” button will appear to create two actions at different times, not just one.
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Kratos and Shield AI conduct AI-piloted flights on the Kratos tactical Firejet
Kratos and Shield AI conduct AI-piloted flights on the Kratos tactical firejet
San Diego defense firm Kratos Defense & Security Solutions Inc., a technology company and provider of high-performance, jet-powered unmanned aerial systems (UAS), and Shield AI, Inc., a defense technology company building the world’s best AI pilot, announced the successful completion of the first phase of Shield’s AI-piloted flight-testing on-board the Kratos family of UAS as the two companies move toward productizing Shield AI’s pilot on these systems.
The Firejet, in its jet target system role, fills a variety of end-to-end weapons-release training, supporting surface-to-air and air-to-air engagements. Additionally, the Tactical Firejet offers an offensive/defensive jet UAS system in the sub $500K price range per aircraft with substantial mission systems and performance capabilities.
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MiraCosta College to host Festival de Música Latina
Get ready for a family-friendly and culturally enriching celebration on May 5 at MiraCosta College’s Oceanside Campus (1 Barnard Drive, Oceanside, CA 92056). MiraCosta College is excited to announce two dynamic events on the same day: the 19th annual STREAM (Science, Technology, Reading, Engineering, Arts, Math)Festival and the inaugural Festival de Música Latina. From hands-on science and technology activities to lively Latin music performances, there’s something for everyone to enjoy at these engaging events.
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San Diego’s Groves Capital announces big expansion
San Diego-based Groves Capital announces a major expansion into commercial markets, both domestically and internationally. Chris Groves and his wife Aleyna Groves are the power couple behind the business, one of the fastest growing mortgage companies in the United States. Emerging areas boasting high potential returns, such as the Bahamas, Cabo, Belize, and the Middle East, are now at the forefront of their focus.
Smart & Final to open first store in Temecula
Smart & Final, the smaller, faster grocery warehouse store, is opening its first Smart & Final Extra! store in Temecula on April 24. Located at 32937 Temecula Parkway, the new 30,000-square-foot store will offer communities in the Temecula Valley, located just north of San Diego, a new shopping destination for quality groceries at everyday low prices. The opening marks the company’s second location in the region, alongside its existing store in Murrieta.
GeneCentric Therapeutics to present at cancer research meeting
GeneCentric Therapeutics, a company making precision medicine more precise through RNA-based diagnostics, announced upcoming presentations at the American Association for Cancer Research Annual Meeting 2024 being held in San Diego from April 5-10. Presentations will include a poster describing a new colorectal cancer predictive response signature (MSS-PRS) that selects tumors not identified with conventional MSI testing but have molecular characteristics consistent with microsatellite instability, making them a potential target for immune checkpoint inhibition.
Charles River Laboratories showcases technology
Charles River Laboratories International Inc. announced that its industry-leading team of oncology experts will attend the American Association for Cancer Research annual meeting. Charles River will present technology-driven capabilities and highlight the latest advancements in immuno-oncology, in vitro assays, and more. The meeting is taking place from April 5-10, 2024, at the San Diego Convention Center.
World’s first LGBT certified and ISO 17025
accredited calibration laboratory
Joint Matters Inc., operating as Joint Matters Calibration Services, has been recognized as a certified LGBT Business Enterprise through NLGLCC. This company is also an accredited calibration laboratory for ISO 17025 under PJLA. The combination makes for the world’s first LGBT owned calibration lab (as found from PJLA accredited lab search and NGLCC directory). — March 26, 2024 – Joint Matters Inc.
ELM completes acquisition of HLC
ELM, a subsidiary of LDI, completes the acquisition of HLC (Holmes Landscape Company) in Oceanside. Founded in 1974, HLC brings 50 years of expertise in commercial landscape maintenance. The strategic move adds 130 professionals, expands into San Diego, and aligns with ELM’s growth strategy.
Pala Casino announces product launch of Pala PURL
In a landmark joint development and product launch, Quick Custom Intelligence (QCI) and Pala Casino Spa & Golf Resort unveiled the Pala PURL, a revolutionary product for the casino industry. This unprecedented technology empowers players with instant access to their player accounts via their mobile devices, giving them the ability to self-comp (instantly redeem player points for free play, concert tickets, hotel rooms, food comps, and more).
Kellen Gill named chief audit and risk officer for California Coast Credit Union
California Coast Credit Union, the longest serving financial institution based in San Diego, with over $3.5 billion in assets, has named Kellen Gill as chief audit and risk officer. In his role at Cal Coast, Gill will oversee internal audit, compliance, risk management, and legal for the credit union. For the past 16 years, he has worked in several roles of increasing responsibility at Sempra Energy and San Diego Gas and Electric Company.
CHALK Digital acquires Unique Homes
CHALK Digital announced the acquisition of Unique Homes, the leading luxury property magazine, from duPont Publishing. The company will operate as an independent subsidiary, allowing it to continue its publication products, including the flagship Unique Homes and custom publications for leading real estate companies Berkshire Hathaway HomeServices, Coldwell Banker Real Estate, and Luxury Portfolio International. The addition of industry-leading digital technologies from CHALK Digital will enable an entirely new generation of marketing services and integrated products found nowhere else.
Brentwood expands manufacturing capacity in Tijuana
Brentwood Industries, a Pennsylvania manufacturer of plastics and advanced polymer solutions, announced a manufacturing expansion project in Tijuana, Mexico. This development reinforces the company’s commitment to meet growing customer demand and to provide quality products, improved lead times, and increased supply chain resiliency. The new facility will add an additional 100,000 square feet of production space adjacent to the initial site.
Cannibite announces patent for the prevention and treatment of dental diseases
Belgian company Cannibite has recently made waves in the dental and pharmaceutical industries with its groundbreaking patent for the prevention and treatment of dental pulp-related diseases. The patent presents a unique opportunity for Cannibite, a registered company in the USA, to collaborate with partners in the pharmaceutical and oral care sectors for further research and development. Cannibite’s patent has garnered significant attention due to its high commercialization prospects.
