SAN FRANCISCO (KRON) -- A woman who is suspected of fraudulently taking control of a multi‑million‑dollar Sea Cliff house in San Francisco appeared in court Tuesday to face a slew of criminal charges.
Prosecutors filed felony charges against Diana Peng, 42, after a search warrant was served at the home on 32nd Avenue. Investigators found "several" neglected dogs, methamphetamine, and a gun inside the house on November 6, according to the San Francisco District Attorney's Office.
The house is reportedly worth $4.4-million and notorious for squatters.
A neighbor told KRON4, "We just want her out. She stole this house and she's terrorized the neighborhood for 18 months. It's been awful. There's constantly people coming and going at all hours of the night and day. There's animal torture. The sounds the poor dogs were making were absolutely unbearable."
In connection to the search warrant, Peng was arrested and charged with drug possession, firearm possession, ammunition possession, and animal neglect. She pleaded not guilty at the Hall of Justice courthouse Tuesday afternoon.
Dogs are seen at 250 32nd Avenue in San Francisco.
Prosecutors said Peng is prohibited from possessing firearms as a result of prior felony convictions.
Investigators have had Peng on their radar for months, according to the City Attorney's Office.
In September, City Attorney David Chiu filed a civil lawsuit against Peng and a co-defendant, Brandon Aadee. The duo is accused of orchestrating a scheme to unlawfully take ownership of the Sea Cliff home using forged and fraudulently altered property deeds.
"Defendants are effectively trying to steal a house and sell it to make millions in profit," Chiu said in September. "Several notaries have said defendants forged their signatures or illegally altered the deeds. That is fraud."
Between 2013 and 2025, the property at 250 32nd Avenue was believed to be owned by Wei Wang, investigators discovered. At some point, Wang left the country, stopped paying property taxes on the home, and racked up $320,000 in back taxes owed to the city, Chiu's office said.
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The city attorney's office wrote, "In July 2025, Aadee recorded a fraudulent deed that purportedly transferred the property from Wang to Aadee. After the initial fraudulent deed, Aadee and Peng repeatedly transferred the property back and forth between themselves over the course of thirteen months. They have recorded eight deeds, at least five of which contain forged notary signatures, fraudulent stamps, or attestations that were altered after notarization."
The duo claimed that they were transferring the home's ownership because they were getting divorced. However, there is no record of Aadee and Peng ever being married, Chiu's office said.
They are accused of attempting to sell the home under market value in a quick transaction before anyone could detect the alleged fraud.
