California family feels ‘victimized’ after real estate investor allegedly exploits tensions, forges documents and puts up a fence on their property

Victoria VesovskiFri, March 6, 2026 at 12:15 PM UTC

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One California family in the thick of tension has had its property challenged after a real estate investor allegedly muscled his way into ownership.

A felony case has been filed against real estate investor Luke Brugnara after he installed a controversial fence at Thornton State Beach, blocking public trails leading to the shoreline.

The dispute centers on a six-acre parcel of land overlooking the beach that has been in the Fragulia family’s possession since 1931. Relatives say Brugnara took advantage of tensions among family members who share ownership, allowing him to secure a portion they believe was transferred improperly.

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In 2024, Luke Brugnara offered about $2 million to purchase the entire property. An investigation by ABC7 Eyewitness News I-Team found that the portion of land Brugnara acquired, which he reportedly obtained “for free,” may not have been legally transferred in the first place.

Brugnara has denied any wrongdoing, maintaining that he operates within the law and that his acquisition was legitimate. But members of the Fragulia family say the situation has felt like watching someone annex land that has belonged to them for generations.

"I feel awful. It's horrible. It's absolutely like a nightmare to me," Pat Fraguglia told ABC7's Dan Noyes (1). “You know, you're having somebody try to steal your property from you."

A family property divided

The Fragulia family once operated several businesses on the property, including horse stables, a garden supply store and the Silver Saddle Restaurant and Bar. After those ventures closed, the land gradually became an informal path used by residents heading toward the beach. For decades, the family has tried to sell the property, which is now divided into 24 ownership shares among relatives.

Divisions like this are not uncommon. They often arise when land is passed down through generations. In those cases, each person typically holds what’s known as an undivided interest, meaning they share equal rights to the entire property rather than a specific portion (2).

“Under our partition laws, any outside party can acquire any of the heirs' interest in the property, and file a partition action,” Heather Way, director of the Housing Policy Clinic at the University of Texas School of Law, told the Lincoln Institute. Courts can then decide whether the property should be divided or sold, a process that can force families to cede land they have owned for generations.

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Concerns about investors acquiring small stakes in inherited land have prompted reforms in many states. California adopted the Uniform Partition of Heirs Property Act in 2021, expanding those protections with the Partition of Real Property Act in July 2022 (3). Those amendments took effect on January 1, 2023. The law reshaped how courts handle disputes over jointly inherited property, giving co-owners additional protections.

That framework helps explain why even a small ownership stake can carry leverage in disputes like the Fragulia property. One of the owners, Paul Nagy — Pat Fragulia’s cousin — transferred his 1/24 stake to real estate investor Brugnara, hoping to receive a payout if the property is eventually sold. Nagy has acknowledged that the decision went against the wishes of other family members.

"This property was inherited by all of us who own it now," Fraguglia said. "I think we're being victimized by this guy, and he wants our property, and he wants it for nothing."

Disputed deed raises new questions

The deed did not assign the stake directly to Brugnara. Instead, it was transferred to an LLC created by Brugnara’s girlfriend, Yitong Emily Wen.

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The property dispute has grown more complicated due to a 2019 court ruling. The decision determined that any sale must be approved by a majority of the owners and receive the consent of Bruce Norton, who holds the largest ownership share.

Nagy told investigators he later discovered an additional document, Attachment A, had been added to the deed. He said the attachment appeared to grant Brugnara rights not only to his 1/24 share but also to the future shares of Carolyn Nagy and James Nagy after their deaths.

Nagy says he never approved that addition and believes the initials appearing on the document may have been forged. According to the FBI, more than 58,000 victims reported $1.3 billion in losses tied to real estate fraud between 2019 and 2023 (4). The category includes scams where forged documents are used to transfer property ownership.

San Mateo County Supervisor David Canepa referenced the allegation during a county meeting, stating that Nagy has asserted the initials on the documents are not his.

Further escalation

As tensions over the property grew, the conflict spilled beyond the Fragulia family and into the surrounding community. Brugnara’s girlfriend admitted to posting a sign reading, “No trespassing, owner armed with 9mm gun.”

One couple later called 911, accusing Brugnara of threatening them. When police stopped a vehicle driven by Wen, officers found a handgun on the front seat and Brugnara in the back. He was arrested and charged with felon in possession of a firearm, a serious offense under federal law.

The arrest also drew the attention of a federal judge overseeing Brugnara’s separate case stemming from pandemic relief fraud charges. Prosecutors allege he misrepresented the size of his company and payroll to obtain roughly $422,000 in federal aid.

For the Fragulia family, many of whom are elderly and living on modest incomes, the dispute has taken a heavy toll.

"I mean, where are the laws protecting us? I feel victimized. You know, we all feel victimized. How could this happen?" Pat Fraguglia said.

Brugnara did not respond to the I-Team’s request for comment. He now faces additional charges connected to the Thornton State Beach dispute. Meanwhile, Wen has filed a motion seeking sanctions against Daly City after officials removed the fence, with a court hearing scheduled later in March.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

ABC7 (1); Lincoln Institute (2); Gokal Law Group (3); Federal Bureau of Investigation (4).

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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