Local real estate investor and convicted fraudster Luke Brugnara, who recently erected an illegal fence at Thornton State Beach, was arrested at his Sunset home after six months on the run from a federal warrant over alleged pandemic relief fraud.

Luke Brugnara was taken into custody after US Marshals surrounded his Sunset District home last Thursday, ending a six-month period during which federal prosecutors say he remained wanted on a bench warrant, as ABC 7's Dan Noyes reports. Prosecutors also alleged that he tried to evade arrest by fleeing officers and climbing onto the roof of the church next door, a claim Brugnara disputed in court.

Brugnara had most recently been in the news for erecting an illegal fence at Thornton State Beach, where he was later arrested on suspicion of making threats and possessing a firearm.

Following his arrest, Brugnara appeared before a federal judge this week over allegations that he fraudulently obtained $422,000 through the government’s pandemic relief program. Prosecutors say he misrepresented the size of his business, including its number of employees and payroll, and used the money to purchase a house.

According to Courthouse News, Brugnara was indicted in May 2024 on nine counts of wire fraud and three counts of money laundering. Prosecutors allege he submitted fraudulent applications in 2021 on behalf of his real estate investment business, Brugnara Corporation.

The case had already taken a turn in February, when Brugnara reportedly failed to appear at a hearing concerning his release conditions. A judge issued a bench warrant, and prosecutors later argued that Brugnara knew he was wanted but did nothing to resolve the situation.

Brugnara denied knowing about either the hearing or the warrant, telling the court that his attorney had not notified him.

“I was not notified by my attorney,” he said.

Prosecutors pointed to an interview Brugnara gave to ABC7 after the warrant was issued, in which he was directly asked about it, arguing that the interview made it clear Brugnara knew about the warrant and still did not surrender.

The government's concerns also extended beyond the fraud case. Brugnara was arrested earlier this year after a dispute at Thornton Beach State Park, where he had fenced off about six acres despite owning only a fraction of the property. A sign posted by his girlfriend warned, “no trespassing, owner armed with 9mm gun.”

Prosecutors say Brugnara and his girlfriend approached a couple walking their dog near the fence, with Brugnara allegedly telling them, per Courthouse News, “If you get near the fence I will shoot and kill you” and “I have a gun and if you come on my property I’ll shoot you.”

Police responding to reports of threats found Brugnara in the back of a vehicle while Wen was driving away with a 9mm Glock in an unlocked case on the front seat. Brugnara was arrested on suspicion of being a felon in possession of a firearm and making threats, per ABC 7.

Brugnara admitted to putting up the fence but denied posting the warning signs, according to prosecutors. The fence was later removed after city officials determined it had been built without the required permits.

That incident raised questions about whether Brugnara had violated the conditions of his release in the federal fraud case. As Courthouse News reports, he had previously been released in 2024 as long as he did not commit new crimes, possess a firearm, and participated in mental health treatment.

"Brugnara has failed to abide by any of these conditions," federal prosecutors wrote.

Brugnara has a lengthy criminal history that includes convictions for wire and mail fraud involving $11 million worth of artwork, as well as violations of the Endangered Species Act and filing false tax returns. His 2014 art fraud case involved works by Willem de Kooning and Pablo Picasso stored in the garage of his salmon-colored Sea Cliff home, which he claimed were gifts after failing to pay for them. During that trial, Brugnara escaped from the federal building while meeting with his former attorney, evading authorities for six days. He was later convicted of escape in addition to the art fraud charges.

Brugnara was sentenced to seven years in prison and remained incarcerated until November 2020, when he was placed on supervised release. Courthouse News reports that in 2023, US District Judge William Alsup revoked Brugnara’s supervised release and sentenced him to more than a year in prison after prosecutors said he violated its terms, including possession of a firearm registered to his girlfriend. Brugnara also failed to appear for that March 2023 sentencing hearing and evaded a bench warrant for nearly two months before he was arrested in May.

In May 2024, while serving the remainder of that sentence at an Oakland residential reentry center, prosecutors say he escaped twice, as the Chronicle reported in February. He was arrested six days after the second notice at a hotel near San Francisco International Airport, where he was found with his girlfriend.

Brugnara was later charged in the pandemic relief case and initially detained, but a district court reportedly overturned that detention order in August 2024 and allowed him to remain free under the conditions that prosecutors now say he violated.

Brugnara’s hearing this week reportedly became contentious, with Brugnara repeatedly interrupting US District Judge Lisa Cisneros as she attempted to address his request for release. His attorney Matthew Dirkes proposed a $50,000 cash bond and ankle monitoring, while Brugnara argued that his health was deteriorating and that remaining in custody put his life at risk.

Dirkes told the judge the bond would be guaranteed by Brugnara's Sunset District landlord, where he had been living for six months. Prosecutors argued that an ankle monitor would not be enough given Brugnara's history.

"I'm trying to get a word in and explain," Judge Cisneros told him, per ABC 7.

The heated exchange continued until the judge asked the marshals to intervene, and he was escorted from the courtroom and into custody.

A written order issued Wednesday says Brugnara will remain detained while the case proceeds. His attorney previously asked to withdraw from the case, and that request remains pending. Brugnara is reportedly scheduled to appear in court in two weeks.

Previously: Likely Illegal Fence Near Daly City Beach Comes Down Today

Image: Luke Brugnara/X