. >> new at 11:00 federal appeals court panel threatening to find governor brown and other top officials in contempt if they don't comply with order to reduce the state prison population. 3 judge panel denied governor brown request to end year of court oversight of the prison system. governor sought to end the court oversight in january citing billions spent to relieve overcrowding. >> action following 7 on your side investigation. agents from the department of justice descend on north bay mortgage company accused of making promises it never kept. sky 7 hd was over the petaluma home when agents served search warrants in connection with more than modification scheme. they also served warrant at his office. word spread quickly upon people who accused the firm of charging them 2000 dollars but never modifying the mortgage. >> i think i have been through hell and back knowing that somebody duped me and not just me but so many other people. >> we tried contacting lopez today for comment but his number has been disconnected. >> humboldt county sheriff's department tonight lacking foreperson wh

. >> new at 11:00 federal appeals court panel threatening to find governor brown and other top officials in contempt if they don't comply with order to reduce the state prison population. 3 judge panel denied governor brown request to end year of court oversight of the prison system. governor sought to end the court oversight in january citing billions spent to relieve overcrowding. >> action following 7 on your side investigation. agents from the department of justice descend on north bay mortgage company accused of making promises it never kept. sky 7 hd was over the petaluma home when agents served search warrants in connection with more than modification scheme. they also served warrant at his office. word spread quickly upon people who accused the firm of charging them 2000 dollars but never modifying the mortgage. >> i think i have been through hell and back knowing that somebody duped me and not just me but so many other people. >> we tried contacting lopez today for comment but his number has been disconnected. >> humboldt county sheriff's department tonight lacking foreperson wh

a federal appeals court panel threatening to find governor brown in contempt if they don't comply with an order to reduce the state prison population. >> well, jarring news tonight from the state department of corrections since late 2011 near bli 5,000 sex offenders disappeared into the communities after cutting off their gps ankle trackers. we started seeing large newspapers of fugitives after they started sending paroles to county jail. >> they're not cutting them off to drink a cup of coffee. they want opportunities to go commit new crimes. >> we'll go after them and 90% of the time we catch them. >> critics say parolees are ditching their gps trackers because of weak consequences. being caught means just a few more days of jail. >> a long list of recommendations caused the police chief to throw in the towel n tasers. he wanted to arm a small group of officer was tasers. the police commission made so many recommendation that's the chief says it would just confuse the cops. those recommendations include not daysing women, people who are wet or people near roadways. chief sur says he

federal appeals court panel threatening to find governor brown and top officials in contempt if theydo not comply with an order to reduce the state prison population. the courtçó denied the governor request to end years of federal oversight of the prison. fight he promised to take to the supreme court if necessary. >> drawing news this evening from the state department of corrections. since late 2011 nearly 5000 sex offenders have disappeared into our community after cutting off the gps ankle track ragger. we start the state changed the policy and started sending parolee to county jail instead of state prison for certain relatively minor violations. >> they are in the cutting them off. they can go drink a cup of coffee unmontortd. they nt opportunity to commit crime. >> we go after them an 92 percent of the time we catch them and we do so within 12 days on average. >>reporter: critic say parolee are ditching the gps tracker because of weak consequences being recap toured means only few days in jail. if that facility is over crowded it could mean no jill time at all. so it's worth the

. >> while governor brown was in china, a federal appeals court denied the lift on the cap on california's prison population. a three-judge panel threatened him and other state officials with contempt of court. brown will fight all the way to the supreme court if he has to. joining us to discuss this and other stories of the week are chuck nevius and josh richman. the politics reporter for the bay news area. josh, why is governor brown being so defiant on this issue? >> he declared victory after getting the prison population decreased through realignment. spinning what had been state prison inmates to county jails and other facilities to bring the population down fast. now he is between a rock and hard place. he is taking a lot of flack from his political foes for letting people out who subsequently may commit crimes. every time there is one that commits a crime, they are critical of it. he has the courts breathing down his neck. you made good progress, but you are not done yet. you still have a major overcrowding problem and problem with provision of mental and other health services. >> a bit of a lose-lose. you cannot go wron

federal court demand that the state keep reducing its prison population. governor says he will appeal the case to the u.s. supreme court. 3 judge panel contend the state request to be release from the court order and threatened brown and other state officials with contempt if reform weren't made. >> we were ordered to reduce the population so that we could provide constitutional level to health care to inmates. now already doing that so no need according to the courts own terms for to us keep reducing the population. >>reporter: the state correction department says to meet the court mandate california would need to build 3 more prisons in the next 8 month. impossible task given the state of finances. >> cocoa college in san pablo hit by financial fraud ring. prosecutors say close to 2 dozen people are facing charges0 for receiving money to go to school but never actually attending class. wayne has the story. >> cocoa college almost ancient history and yet two years after the fact scam that allowed non-students to steal 83,000 dollars in federal grant money just won't go away. >> i don't think it's right. it's unfair to kids that do c

. >> a federal appeals court in san francisco is debating the legality of the state to ban on use their be based on their sexual orientation. yesterday's, a three judge panelask whether the license mental-health professionals to offer sexual orientation there be all protected by free-speech rights. the judges also asked whether the medical treatment can be regulated by the government. the bay and being put on hold until the appeals court decides the case. >> san francisco mayor illegal sign new legislation today, that will require upgrades on some buildings soleras different the event of an earthquake. the new law will require more than 3000 soft story buildings in san francisco to beat side thematically retrofitted. the price tag could be anywhere from 60,000 to $150,000 to update each building. if you read a south story building, a landlord can up your right depending on your income. >> these increases. >> renters who make less than average san francisco income of $75,000 a year will be exit from rent increases brought on by retrofitting. >> how about the golden state warriors. 18 most thought would not make the playoffs ceiling six seed in the last get