California taxpayers are footing the bill to the tune of $10,500 a month to house a pair of convicted child molesters who aren’t even eligible yet to occupy the residence, the Turlock Journal has learned.
Meanwhile the owner of the proposed property claims a portion of those rental proceeds have been stolen from him.
Surjit Malhi, 57, owns the property at 400 N. Central Ave., just west of Turlock city limits, that was slated to house sexually violent predators Kevin Scott Gray and Timothy Roger Weathers upon their conditional release from the California Department of State Hospitals. The SVPs have admitted to molesting dozens of children dating back decades, and both have been held by the DSH for more than 20 years.
The placement of Gray and Weathers was blocked by Stanislaus County Superior Court Judge Carrie M. Stephens this past summer when authorities learned that a home school operated next door to the proposed site.
The case has since made it all the way to the California Supreme Court. Last week, it was returned to the Fifth District Court of Appeal, which was seen as a setback to the District Attorney’s case.
Mahli entered into a rental agreement with Liberty Healthcare — which oversees the SVP conditional release program (CONREP) for the state — in March of 2024 to receive $10,500 per month to house Gray and Weathers. Though Stephens ruled last July that the site was unsuitable, rental payments have continued ever since, and now total in excess of $100,000.
“As a parent and grandparent, I stand against enabling those who threaten our safety and will not stop until our most vulnerable population is protected at every front,” said Assemblymember Juan Alanis (R-Modesto), whose 22nd District includes Turlock. “The use of taxpayer dollars to house convicted child predators near schools should concern everyone.”
It’s those taxpayer dollars — in this case, rental proceeds — that are at the heart of Malhi’s small-claims court action against Varinder Kullar.
Mahli, who is seeking a total of $17,900, claims that Kullar intercepted checks intended for him and forged his signature in order to cash them, court documents show.
“He owes me money,” said Malhi, who owns R Millennium Transport Inc., which, according to a Google search, is run out of 400 N. Central Ave. “From the beginning, I trusted him, but he cheated me; he lied to me.”
According to Malhi, Kullar worked as an intermediary between him and Liberty Healthcare, and didn’t tell him who would be living at the property. Kullar, a real estate professional, denies this. He counters that Malhi sought his input about entering into an agreement with Liberty Healthcare.
“I don’t know what his problem is,” said Kullar. “This is all on him. He gets all the checks. It’s his name on the agreement.”
Kullar said he advised Malhi against renting the property to convicted child molesters.
“I think he’s scared of the backlash,” said Kullar, whose father, Harvinder Kullar, was the owner of a Merced County property that was previously eyed as a release site for Gray.
Private investigator Kelley Coelho, of B and C Investigations, inspected the Central Avenue residence last summer.
“I was invited by Mr. Malhi to go out and tour the property,” said Coelho, who was hired to investigate this matter. “There’s a main residence, where one of the SVPs would reside, and then there’s a separate apartment that’s attached to what appears to be a workshop.”
It’s that apartment that may prove helpful to District Attorney’s bid to keep at least one of the SVPs from being placed. If the apartment was an add-on, and not properly permitted, it would be nullified as an appropriate dwelling for which an SVP could reside.
An online search of planning department records showed no requests for permits.
“I think a lot of people failed to do their due diligence here,” said Coelho.
According to the DSH website, the state hospital “contracts with Liberty Healthcare to supervise, treat and monitor all SVP CONREP participants. The program includes individual contact, substance abuse testing, polygraph, and GPS monitoring.”
Last year, the California State Auditor issued a report that was critical of the program’s management by DSH and Liberty.
“Over the last 20 years of a no-bid contract, DSH has paid Liberty Healthcare nearly $93 million to manage just 56 individuals — averaging $1.66 million per SVP,” state Senate Minority Leader Brian W. Jones (R-San Diego) said in a press release. “With this price tag, Californians deserve real safety assurances, but the audit reveals critical lapses in safety oversight and even re-offenses among released SVPs. This longstanding contract has allowed Liberty Healthcare’s performance to slip, while DSH fails to hold them accountable.”
Alanis, who said he is considering legislation to protect home schools, agreed with Jones’ assessment.
“The lack of oversight and accountability by California’s administration endangers our children and erodes public trust,” Alanis said. “Transparency and safeguards for kids should be a guarantee, not something to constantly beg for.”
Information requested of the DSH — regarding the value of the contracts — was not received by press time.
