Three Officials with City of Cudahy–Mayor, City Councilman, and Department Chief–Arrested on Federal Bribery Charges

Officials Allegedly Took Bribes from Person Who Wanted to Open Marijuana Store

LOS ANGELES—Special agents with the FBI this morning arrested the mayor of the city of Cudahy, a member of the Cudahy City Council, and the head of the city’s Code Enforcement Division on federal bribery charges.

A criminal complaint filed in United States District Court alleges that the three officials from the city in southeastern Los Angeles County accepted a total of $17,000 in cash bribes earlier this year. According to the affidavit in support of the complaint, the three officials requested and accepted cash payments in exchange for supporting the opening of a “medical marijuana” store in the city.

The three officials arrested this morning are:

Osvaldo Conde, 50, a member of the Cudahy City Council, who allegedly accepted two separate bribe payments;

David Silva, 61, the current mayor of Cudahy; and

Angel Perales, 43, who runs the Code Enforcement Division of the Cudahy Community Services Department (and is also the head of the Cudahy Parks and Recreation Department).

Conde, Silva, and Perales are expected to make their initial court appearances this afternoon in United States District Court in downtown Los Angeles.

“The stain left by public corruption is indelible, extending beyond any individual case because of the general erosion of public confidence in government,” said United States Attorney André Birotte, Jr. “The allegations in this case describe a corrosive and freewheeling attitude among certain officials in the city of Cudahy. The Department of Justice will aggressively investigate and pursue cases like this to ensure that the integrity of good government is protected and preserved.”

FBI Assistant Director in Charge Steven M. Martinez stated, “The alleged participation by multiple public officials in a bribery scheme is unfair to the residents of Cudahy. This case will send the right message to corrupt public officials and is a step toward restoring honest stewardship to the city of Cudahy.”

The affidavit summarizes the bribery allegations: “On the afternoon of February 28, 2012, following weeks of bribe solicitations and related discussions made during recorded meetings and telephone calls, Conde, Silva, and Perales met an FBI confidential informant at the El Potrero nightclub in Cudahy, California. The three Cudahy city officials accepted a total of $15,000 cash as bribe payments. Later that evening, Conde met the confidential informant to receive an additional $2,000 cash as a bribe.”

The 143-page affidavit, which was unsealed this morning, describes an investigation in which federal law enforcement agents recorded a number of conversations with Cudahy city officials. During those conversations, the city officials explained that the Cudahy City Council planned to approve only one or two permits for marijuana stores in Cudahy. According to the affidavit, Perales sought to broker an arrangement between an FBI informant and city officials in which the informant would make cash payments in exchange for the officials supporting a request for one of the permits.

Perales explained to the informant that “[t]here are three parts to this game”—Conde, Silva, and himself, according to the affidavit. Perales also allegedly told the informant that “these guys [Conde and Silva] are not your typical...council people. [T]hey’ve dealt with, uh, you know, people that throw money down.”

Prior to a meeting with Conde and Silva at a Pico Rivera restaurant, Perales instructed the informant how he should broach the topic of paying the bribes and later instructed the informant on how to present the bribes, specifying that the payments should be in cash only, according to the affidavit.

A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.

The charge of bribery carries a statutory maximum penalty of 10 years in federal prison.

This case is being investigated by the Federal Bureau of Investigation.

Former Upland Mayor Pleads Guilty in Federal Corruption Case for Accepting Bribe from Businessman Seeking Permit from City

RIVERSIDE, CA—The former mayor of Upland pleaded guilty today to a federal bribery charge, admitting that he accepted a $5,000 payment in exchange for helping a business obtain a conditional use permit from the city.

John Victor Pomierski, 58, who resigned as mayor last year after he was named in a grand jury indictment, pleaded guilty this morning before United States District Judge Virginia A. Phillips. Pomierski becomes the third defendant to be convicted in relation to a corruption investigation in the city of Upland.

As a result of today’s guilty plea to the bribery charge, Pomierski faces a statutory maximum sentence of 10 years in federal prison. Judge Phillips is scheduled to sentence Pomierski on August 6.

“The public is entitled to honesty and integrity from the elected officials whom they entrust with power,” said United States Attorney André Birotte, Jr. “Mr. Pomierski broke that trust when he decided to accept a bribe in return for a promise to circumvent the city’s well-established permitting system. This kind of conduct is an affront to the voters who follow the law and play by the rules, and who have a right to expect their elected officials to do the same.”

John Edward Hennes, 55, a former member of the Upland Building Appeals Board, pleaded guilty in November to conspiracy and making false statements to special agents with the FBI. The indictment in the case alleged that Hennes communicated Pomierski’s extortionate demands to the business owner and collected money on behalf of Pomierski. Hennes entered into consulting agreements with the business owner to disguise the nature of the payments and to protect Pomierski. Hennes is scheduled to be sentenced by Judge Phillips June 25, at which time he faces a statutory maximum sentence of 10 years in prison.

The third defendant to be convicted in this case—Jason Roy Crebs, 39—pleaded guilty in April 2011 to aiding and abetting bribery. Crebs, who was co-owner of a business in Rancho Cucamonga called Venture West Capital, is scheduled to be sentenced on June 25, at which time he faces a statutory maximum sentence of 10 years in prison.

The fourth defendant charged Anthony Orlando Sanchez, 36, is currently scheduled to go on trial before Judge Phillips on July 24. Sanchez, a co-owner Venture Capital West, is charged with acting as a conduit between the Upland business and Pomierski.

The investigation in this case was conducted by the Federal Bureau of Investigation, which received assistance from the San Bernardino County District Attorney’s Office. In 2010, the FBI, the San Bernardino County District Attorney’s Office, and the United States Attorney’s Office formed the San Bernardino Joint Corruption Task Force to investigate allegations of corruption in San Bernardino County.

Member of Commerce City Council Pleads Guilty to Conspiracy to Obstruct Investigation into Campaign Reimbursement Scheme

LOS ANGELES—Commerce City Councilman Robert Fierro has pleaded guilty to a federal conspiracy charge, admitting that he and others agreed to corruptly influence witnesses to make false declarations before a federal grand jury investigating Fierro’s role in an illegal campaign finance scheme.

Fierro, 40, a resident of Commerce, pleaded guilty to the felony charge yesterday before United States District Judge Philip S. Gutierrez.

Last Tuesday, Fierro’s sister-in-law and campaign treasurer, Ana Perez, 46, of Commerce, pleaded guilty to a conspiracy charge related to her conduct in the scheme.

Fierro and Perez are scheduled to be sentenced by Judge Gutierrez on April 23. At sentencing, each defendant faces a statutory maximum sentence of five years in federal prison.

“Fierro and his co-conspirators’ attempts to obstruct a federal investigation and the federal grand jury process amount to direct assaults on the integrity of the American judicial system,” said United States Attorney André Birotte Jr. “We will be always be vigilant in holding those accountable for compromising the integrity of the judicial system.”

According to documents filed by prosecutors in federal court, during the 2004-2005 City of Commerce election campaign, Fierro recruited family and friends to make contributions to his campaign, with Fierro secretly reimbursing the value of the contributions in cash. Fierro never disclosed the contributions or reimbursements to the State of California or on his campaign’s finance records.

According to Perez’s plea agreement, Robert Fierro collected and reimbursed illegal contributions on behalf of his campaign. In one instance, Perez wrote a $500 check to Fierro’s campaign, and another $500 check to the campaign of his running mate. Fierro reimbursed Perez with a $1,000 cash payment the following day, Perez admitted in court.

In the spring of 2006, Fierro, his wife, and Perez learned that the FBI was conducting an investigation into the illegal reimbursement scheme. During an interview with the FBI, Perez falsely denied she received a reimbursement for her $1,000 contribution, according to her plea agreement. Soon thereafter, Perez and others received subpoenas to testify before a grand jury looking into the scheme. In June 2006, Fierro, his wife, and Perez scheduled a meeting with contributors who had received subpoenas and attempted to convince them to falsely testify that they were not reimbursed for their contributions, according to Perez’s plea agreement.

In July 2006, Perez appeared before a federal grand jury and falsely testified that she was not reimbursed for her contributions in 2005 and that she did not participate in the June 2006 meeting, Perez admitted in her plea agreement.

Robert Fierro’s wife—Linda Fierro, who was named in an indictment along with her husband and Perez—is currently scheduled to go on trial on March 20.

This case was investigated by the Federal Bureau of Investigation.

Man Pleads Guilty to Civil Rights Violations in Connection with Arson at Planned Parenthood and Vandalism of Mosque in Madera

WASHINGTON—Donny Eugene Mower, 38, of Madera, Calif., pleaded guilty in federal court today to one count of arson, one count of damaging religious property and one count of violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to damage the property of a reproductive health services facility. These charges stem from Mower’s lighting a fire inside a Planned Parenthood clinic and throwing a brick at a mosque in Madera.

During his plea, Mower admitted that in the early morning hours of Sept. 2, 2010, he constructed a Molotov cocktail by stuffing a fuel-soaked cloth into a beer bottle. He then drove to Madera Planned Parenthood Clinic, lit the Molotov cocktail, and threw it through a ground-floor window of the clinic. As a result of the ensuing fire, the clinic sustained more than $26,000 of damage and had to close for two days.

Mower also acknowledged that on Aug. 20, 2010, two days after placing a sign in front of Masjid Madera, a local mosque, that read “No temple for the god of terrorism at ground zero. ANB,” he threw a brick at the front of the mosque and damaged its facade. On Aug. 24, 2010, Mower left additional signs at the mosque, stating “Wake up America, the enemy is here” and “American Nationalist Brotherhood.” Mower admitted that he threw the brick at Masjid Madera because of the race, color, or ethnic characteristics of the individuals associated with the mosque.

“Interference with the lawful work of reproductive health clinics will not be tolerated; nor will attacks directed at places of worship because of the perceived ethnicity of those who worship there,” said Thomas E. Perez, Assistant Attorney General for Civil Rights Division. “The Department of Justice will aggressively prosecute those who carry out these acts.”

“We will vigorously safeguard the right of Muslim Americans to practice their religion free from the fear of intimidation, and the right of reproductive health centers to conduct their activities free from violence,” said U.S. Attorney Ben Wagner for the Eastern District of California. “Donny Mower’s campaign of hate and intimidation is over, but the work of the U.S. Justice Department in protecting constitutional rights is unending.”

Sentencing is scheduled for Jan. 6, 2012. Mower faces a prison sentence of five to 20 years and a fine of up to $250,000 on the arson charge. He also faces sentences of up to one year in prison, a fine of up to $100,000, or both, on the damaging religious property and FACE Act charges.

This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Madera Police Department and the Madera County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Elana Landau for the Eastern District of California and Trial Attorney Chiraag Bains from the Justice Department’s Civil Rights Division.

Former General Manager Of Chukchansi Gold Resort & Casino Sentenced for Defrauding Casino

FRESNO, CA—United States Attorney Benjamin B. Wagner announced that today United States District Judge Lawrence J. O’Neill sentenced Jeff Livingston, 51, of Las Vegas (formerly of Fresno), to 24 months in prison for his conviction in June 2011 by a jury on six counts of mail fraud and three counts of theft committed during his employment as the general manager of Chukchansi Gold Resort & Casino.

The evidence at trial showed that from October 2006 through October 2007, Livingston, Chukchansi’s general manger, executed a scheme to defraud Chukchansi by making a series of personal purchases using his business credit card and other Chukchansi funds. By accounting for such purchases as business purchases, Livingston caused the casino to pay for the items and defrauded the casino of its money and property. The personal purchases included a golf package to Hawaii, down payments on personal vehicles, a diamond necklace, and autographed sports and music memorabilia, including an autographed Master’s jacket. Chukchansi Gold Resort and Casino is owned and operated by the Picayune Rancheria of Chukchansi Indians, a federally recognized Indian tribe in Madera County.

According to U.S. Attorney Wagner, “The United States will vigorously prosecute those who seek to defraud legitimate gaming establishments operated by federally recognized Indian tribes in California.”

This case is the product of an extensive investigation by the Federal Bureau of Investigation and the California Department of Justice, Bureau of Gambling Control. Assistant United States Attorneys Ian Garriques and Kirk Sherriff prosecuted the case.

Local Contractor Pleads Guilty to Defrauding City of Sacramento of Stimulus Funds

SACRAMENTO, CA—United States Attorney Benjamin B. Wagner announced today that Peter Scott, president of Advantage Demolition and Engineering (ADE), 47, of Roseville, pleaded guilty today to two counts of submitting false contractor bonds.

This case is the product of an investigation by the Environmental Protection Agency’s Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.

On February 19, 2009, President Obama signed into law the American Recovery and Reinvestment Act (ARRA), which provided $787 billion in stimulus funds to state and local agencies for infrastructure projects through federal agencies. These monies were provided through Executive Branch agencies such as the Environmental Protection Agency (EPA).

In 2009, the City of Sacramento received a grant from the EPA of federal stimulus funds to retrofit water meters on city homes. The retrofit contract was broken into 10 separate phases with each phase being separately bid upon. Bidders for the water meter retrofit contracts were required to have “surety bonds,” that is, insurance to cover any losses that may result during the project.

According to court documents, in August and September 2009, Scott, through his company ADE, bid on eight of the water meter retrofit phases, submitting surety bonds that were purportedly issued by Merchants Bonding Company. The bonds were for $5 million and contained a raised seal and signature of a California Notary Public, as well as the signature of an attorney purportedly representing Merchants, Jeremy Daniel Phillips.

In fact, as Scott well knew, these bonds were counterfeit and contained discrepancies when compared with legitimate Merchants’ bonds. The form upon which the bonds were printed was a 2006 form no longer in use by Merchants in 2009, the bonds did not contain a Merchants bond number, the Notary Public did not sign, and the date on the Notary Public’s signature line was incorrect.

According to the plea agreement, Scott admitted that the Merchants’ attorney who purportedly signed the bonds, Jeremy Daniel Phillips, was not a representative of Merchants, but was a fictional person. In support of his fraudulent presentation of the bonds, Scott purchased a cell phone and included the cell phone’s number with the submission, representing it as the phone number for the Merchants’ attorney, Jeremy Daniel Phillips.

As a result, the City of Sacramento awarded two of the contracts to ADE. The first contract was for $1.235 million (Phase 4); the second was for $2.230 million (Phase 10). The total value of federal stimulus money awarded to ADE in the two contracts was $3.465 million.

Advantage Demolition and Engineering began work on the water meter project in November 2009. In early January 2010, City of Sacramento inspectors noticed problems with ADE’s work on the water meter project. On January 7, 2010, the City of Sacramento determined that the surety bonds submitted with the ADE bids were fraudulent and issued a stop-work order for Phases 4 and 10.

Charges are pending against co-defendant Robert Robbie Scott. His next court date is December 20, 2011. The charges are only allegations, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Scott is scheduled to be sentenced by United States District Judge Lawrence K. Karlton on December 13, 2011. He faces a maximum statutory penalty for each violation of five years in prison, a $250,000, and three years of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.