05/28/2026
A multi-agency investigation led by the Capitola Police Department and partner agencies resulted in multiple arrests and seizure of controlled substances, currency, and evidence related to suspected narcotics trafficking.
On April 29, 2026, Capitola Police responded to a shipping company in the City of Capitola regarding a suspicious package believed to contain narcotics. Officers located multiple vacuum-sealed packages inside a shipping box. A test indicated a controlled substance consistent with co***ne, with over five kilograms recovered. Additionally, detectives and SCCACT agents seized multiple packages from a Santa Cruz shipping company containing over 10 pounds of ma*****na linked to the investigation.
A follow-up investigation conducted with the Santa Cruz County Anti-Crime Team (SCCACT), developed additional information indicating suspected narcotics activity involving the transportation of controlled substances out of state. Continued multi-agency efforts led to the identification of additional individuals allegedly connected to the distribution activity.
On May 22, 2026, Detectives executed multiple search warrants in Capitola, Aptos, and Live Oak with assistance from SCCACT, CHP, Scotts Valley Police, Santa Cruz Police, Santa Cruz County District Attorney’s Office, SCARE, DEA, FBI, and the Santa Cruz County Sheriff’s Office Special Enforcement Team.
During these operations, Capitola Detectives and SCCACT agents seized suspected M**A (Ecstasy), suspected co***ne, ma*****na, packaging materials, vacuum seal bags, plastic baggies, a money counter, U.S. currency, and electronic devices associated with narcotics distribution.
As a result of the investigation, William Regallo, age 50, of Live Oak, and his mother, Karen Hasty, age 72, of Live Oak, were arrested on active warrants related to alleged narcotics offenses and booked into the Santa Cruz County Jail. Robert Donaldson, age 57, of Aptos, was also arrested in connection with narcotics offenses related to this case.
All suspects were booked into Jail on charges related to sales and transportation of controlled substances. The investigation remains active.