Convicted Socialite Jailed; Violated Bail Conditions

Danny Hernandez, who stole nearly $8 million to finance his socialite lifestyle, will be eating Thanksgiving dinner in federal custody today after failing to pay minor costs of the electronic monitoring bracelet he must wear outside of prison.

Hernandez, 40, surrendered to federal authorities Wednesday, one day after U.S. District Judge Alicemarie H. Stotler issued a warrant for his arrest. The warrant marked the second time Hernandez had violated the conditions under which he had been free on bail since his conviction on charges of mail fraud and tax evasion.

“He’ll be having a special turkey plate dinner with all the trimmings” for Thanksgiving, said Chief Deputy Charles Almanza of the U.S. Marshal’s Service.

The arrest came after federal officials recently said they were concerned that Hernandez continued to live the high life while confounding efforts by authorities to recoup stolen funds.

After his arrest in February, Hernandez took a costly pleasure trip to see the Final Four college basketball tournament in New Orleans. When he feared being late, he chartered a $7,800 private jet to ensure a timely arrival at the game, court records show.

He also went to Las Vegas--a trip that cost at least $880 for his room and expenses. Moreover, Hernandez had planned a $3,000 weekend getaway for himself and his wife, Susie. As late as last month, he was tooling around town in a Mercedes-Benz.

The trips outside of Southern California cost Hernandez much more, however.

A federal judge in September determined that such trips violated the terms of his bail, and placed Hernandez under house arrest. The terms of his bail required Hernandez to pay the costs of the electronic ankle bracelet that alerts authorities when he leaves his house.

Failure to pay the electronic monitoring costs for the month landed Hernandez in jail for the holiday, according to the court order. The amount of the unpaid bill was not disclosed.

Hernandez faces a likely term of five to 10 years in federal prison when he is sentenced. His wife, Susie, faces more than a year in prison on tax-evasion charges. Both are scheduled for sentencing on Jan. 24.

The couple, who have two young children, were arrested in February on charges of siphoning nearly $8 million from a Santa Fe Springs precious metals firm where Danny Hernandez worked. The arrests shocked social circles in Newport Beach, where the couple were mainstays.

Danny Hernandez has alleged that the company encouraged its employees to skim funds--an allegation the company denies. However, the couple were allowed to plead guilty to lesser charges after they agreed to assist the government’s investigation of PGP Industries.

Assistant U.S. Atty. Stephen G. Wolfe declined to comment Wednesday. Danny Hernandez’s attorney did not return several phone calls.

The money stolen from PGP financed an opulent lifestyle that included at least 15 luxury cars and homes. Awe-struck neighbors reported extravagant shopping sprees and lavish fresh floral arrangements, hand-delivered each week.

The couple gave freely to charity and frequently earned prominent mention in society columns.

Danny Hernandez denied in a recent interview that he continued a lavish lifestyle. He said he was living on borrowed money and money earned honestly since his arrest.