BafkokcC9irqENDnUD-RgOOact00347951A retired Hayward police officer was arrested at his north Modesto home Monday morning on suspicion of defrauding a woman out of more than $500,000 since 2007.

Michael Scott Beal, 55, was arrested on nine counts of grand theft, one for each year authorities say money was taken from the victim under false pretenses. He also faces two enhancements because of two years in which the victim’s loss was more than $65,000 and because of overall excessive loss of more than $200,000.

Agents with the Federal Bureau of Investigation assisted the Alameda County District Attorney’s Office with serving the arrest warrant at Beal’s home in the 3700 block of Viader Drive. A neighbor said about a dozen police cars swarmed the house at 6 a.m. and law enforcement in SWAT uniforms surrounded the house.

The Alameda County District Attorney’s Office’s case is outlined in an arrest affidavit as follows:

Beal entered into a verbal agreement with the victim, Nancy Joe, in 2007 to invest together in real estate in Alameda County.

Joe agreed to pay Beal half of the monthly mortgage, $1,100 to $1,565, plus annual property taxes. Beal agreed to give Joe a 50 percent interest in the property, free of transfer tax liability, by marrying her upon his retirement from the Hayward Police Department.

“Beal entered into the oral agreement with Joe in 2007 as he was being sued by his wife for divorce (2006),” reads the affidavit. “He was also falling behind in his mortgage payments (2008) on his primary residence after previously filing bankruptcy (1999) and later selling his house at a loss (Jan 2009).”

Beal bought his house on Viader Drive for $370,000 in 2011, the year he is accused of defrauding Joe of the the largest sum of money, $160,000.

He entered into his agreement with Joe after learning that she had more than $300,000 in her bank portfolio and with the knowledge that she suffered from schizophrenia and depression, the affidavit says.

Joe never saw or signed any paperwork related to the investment property, nor was she told an address of the property. Beal has no property in his name in Alameda County. Joe’s statements to police were corroborated by her bank records and recorded telephone conversations she had with Beal.

She reported the situation in February after calling the Hayward Police Department and being told Beal had retired in July 2013.

“Since Joe stopped making payments … Beal has made and continues to make statements to Joe threatening her with losing the property if she does not continue to pay him,” reads the affidavit.

Beal is being held at the Santa Rita jail on $420,000 bail.

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