Danny Carbajal, the older brother and former manager and trainer of former World Light Flyweight Champion Michael Carbajal, was sentenced to 4½ years in prison in February 2008 in connection with a fraud scheme.
Danny pleaded guilty in July 2007 to one count of fraudulent schemes and two counts of theft. He was accused of unlawfully transferring land and property that was jointly held by himself and his late wife, Sally Carbajal. Prosecutors said Danny submitted paperwork with false information to a divorce court and deeded all of the properties to himself over the course of three years. In the same case, Danny’s daughters, Josephine and Celia, pleaded guilty to forging their mother’s signature on legal documents and got two years of probation.
Sally Carbajal and her boyfriend, Gerry Best, were shot to death in 2005. The shootings took place three days before the Carbajals’ divorce trial. The case remains unsolved. Authorities strongly suspected Danny of being behind the killings, but weren't able to make a strong enough case against him.
Michael Carbajal accused his brother of stealing money from him. He sued Danny and other members of his brother's family in civil court in 2007 alleging fraud, theft and forgery. The lawsuit was resolved in December 2011 with members of the Carbajal family signing over titles to Michael for eight properties located along Fillmore Street in Phoenix, Arizona.