Archive for the tag “Santa Ana”

Co-Founder of Weed Retailer Wrote Ballot Measure in 2021 to Legalize Cannabis Businesses in Anaheim

The front entrance to the Catalyst Cannabis Co. retail outlet in Santa Ana which is located right next to the 55 Fwy.

By DUANE ROBERTS
Editor & Publisher

Damian Martin, Esq., co-founder of Catalyst Cannabis Co., an expanding retail chain of “weed stores” with locations in Long Beach and Santa Ana, told The Anaheim Investigator via email he authored a measure in June 2021 that would have put the question of legalizing cannabis businesses before Anaheim voters the very next year had it collected the signatures needed to qualify for the ballot.

In the email, Martin said his firm had “retained the services” of Adam Spiker, vice-president of Spiker Rendon Consulting, Inc., a lobbyist with offices in downtown Los Angeles, to “pursue cannabis policy advancement and licensing through cannabis ballot measures in the L.A. County South Bay, particularly the cities of Redondo Beach, El Segundo, Hermosa Beach, and Manhattan Beach.

“However as also widely reported the South Bay projects began to go very poorly,” he typed. “[T]he cities were very opposed to us and our approach, and there were internal disagreements on project strategy, and, as a result, there was a falling out between Catalyst and Spiker Rendon, such that by March 2022, Catalyst and Mr. Spiker / Spiker Rendon were no long actively working together.”

Damian Martin.

“Prior to the falling out, Anaheim was a city that Catalyst was planning to pursue cannabis policy advancement and licensing with Adam Spiker / Spiker Rendon as our consultant using the ‘South Bay Model’, i.e., through a ballot measure…. I was asked by Mr. Spiker to draft (and then drafted) the initial version of what became ‘The Anaheim Cannabis Regulation and Land Use Measure’ in June 2021.”

Martin said that after Catalyst and Spiker parted ways, his firm decided to completely abandon the initiative. “Other than the initial drafting, Catalyst did not play a behind-the-scenes role in trying to get ‘The Anaheim Cannabis Regulation and Land Use Measure’ going,” he said. Furthermore, he emphasized they were “not involved in any political / community coalition building” to support it.

When Martin was asked about a similarly named, albeit differently worded measure the city clerk’s office received from Stacy Silva on October 15, 2021, he said he was unaware of it. Evidence The Investigator has uncovered shows that Silva has been employed as an office clerk at the Buena Park headquarters of United Food and Commercial Workers Local 324 at least since 2009.

By early 2022, Adam Spiker had adopted Martin’s measure as his own. A version of it was submitted to the city clerk’s office by Belal Dalati on March 21st. In an email sent roughly two hours before Dalati dropped by to file the required paperwork, Kenneth G. Spiker, Jr., president and CEO of Spiker Rendon Consulting, Inc., asked a city official if he could call him to discuss “our Anaheim Initiative.”

But it never made it to the ballot. On May 16th, Dalati withdrew the measure at the urging of Paul Kott and Bill Taormina, two prominent businessmen who were anti-pot and opposed to the legalization of cannabis businesses in Anaheim. Taormina would allege in a text message to Councilman Trevor O’Neil that Dalati had been “forced” to file it “by Jeff Flint and other ‘dope deal’ promoters.”

As we first reported, Todd Ament, president and CEO of the Anaheim Chamber of Commerce, Jeff Flint, president of Core Strategic Group, and Mayor Harry Sidhu approached UFCW Local 324 between 2019 and 2020 and cut a deal: that in return for a labor peace agreement in any ordinance they introduced to legalize cannabis businesses, the union was to pressure the council to vote “yes.”

Earlier this month, Adam Spiker declined to speak to The Investigator about this affair citing ongoing “local and federal investigations.” Though we don’t know how he managed to muscle his way into the arrangement the Anaheim Chamber of Commerce made with UFCW Local 324, the Orange County Register reported in May 2022 he had been in close contact with both Ament and Flint.

Strange Bedfellows: UFCW Local 324’s Alliance With The Anaheim Chamber of Commerce to Legalize Cannabis

Ashleigh Aitken speaking at the headquarters of United Food and Commercial Workers Local 324 in November 2018.

By DUANE ROBERTS
Editor & Publisher

In early January, Ashleigh Aitken, the newly-elected mayor of Anaheim, did what many public officials before her had done. She took full advantage of her unfettered access to the city’s vast pool of free tickets to luxury suites at the Honda Center and Angel Stadium and gave a few of them away to supporters who helped put her in office. Several emails show the mayor rattled off names of those she felt deserved them.

Though her abuse of this privilege was modest compared to others who previously served on the council, it was nevertheless significant. According to a Form 802 that Aitken filed on January 8th, she reported giving two tickets worth $350 for a Ducks vs. Bruins game at the Honda Center to Derek Smith, political director of United Food and Commercial Workers Local 324, a union whose headquarters is based in Buena Park.

Derek Smith.

Besides the fact a Form 401 filed with the city clerk’s office reports that Smith was treasurer of an independent expenditure committee which spent $138,155 to help Aitken become mayor in 2022, The Anaheim Investigator has discovered his union has a “secret.” Though not criminal in nature, it’s deeply embarrassing. In fact, some people with intimate knowledge of it are apprehensive to talk about it openly with journalists.

It took The Investigator more than a year to find it, and that was only after painstaking research. However, all the effort put in was well worth it. We have uncovered a story that is not only remarkable, but lends credence to the old adage “politics makes strange bedfellows.” It involves an alliance of people with nothing in common, who were brought together by a shared interest. And it implicates Democrats and Republicans.

Todd Ament, Jeff Flint, and Harry Sidhu.

Reliable sources have told The Investigator that sometime in late 2019 or early 2020, Todd Ament, president and CEO of the Anaheim Chamber of Commerce, Jeff Flint, president of Core Strategic Group, and Mayor Harry Sidhu approached UFCW Local 324 and cut a deal: that in return for a labor peace agreement in any ordinance they introduced to legalize cannabis businesses, the union was to pressure the council to vote “yes.”

Ament, Flint, and Sidhu–sometimes euphemistically referred to as “the cabal”–already had three votes locked up, including Councilman Jordan Brandman’s, who reportedly was one of their point men. But they needed a total of four to get it passed. That’s where UFCW Local 324 came in. They would mobilize members of their union to aggressively lobby any possible holdouts. And indeed, there is evidence this did in fact occur.

In the ordinance that was ultimately drafted–which purportedly was written by Flint–a labor peace agreement was included. And ironically, it was more “pro-labor” than legislation backed by Governor Gavin Newsom in October 2019. Whereas the law Newsom supported required cannabis businesses that have more then twenty employees enter into such an agreement, Anaheim’s proposal only required two, but that they be full-time.

From the proposed ordinance.

Anaheim wasn’t the only city UFCW Local 324 was committed to getting a labor peace agreement. For example, minutes of one Stanton City Council meeting reveal: “Mr. Derek Smith, Political Director, UFCW 324, submitted an e-comment requesting that the City consider the inclusion of ‘Labor Peace’ language that would provide clarity to the cannabis industry and future workers regarding the quality of jobs that are expected from the City.”

The push to legalize cannabis businesses was derailed when The Investigator published articles in May 2020 which revealed Sidhu’s son not only was a pot consultant, but lived on his father’s four-acre Anaheim Hills estate. Though the Fair Political Practices Commission issued a letter clearing the mayor of any potential conflict of interests, one councilman sympathetic to the cannabis ordinance voted “no” because he distrusted Sidhu.

For reasons that aren’t clear, Ament, Flint, and Sidhu abandoned the idea of getting a cannabis ordinance passed by council. The November 2020 election led to Avelino Valencia III and Jose Diaz winning seats. Though backed by Anaheim Chamber of Commerce, they weren’t trusted. And Gloria Ma’ae–who opposed the original ordinance–later replaced Brandman. But in late 2021, a new strategy emerged, thanks to UFCW Local 324.

The Silva petition.

On Friday, October 15, 2021, the Anaheim City Clerk received a letter from Stacy Silva declaring that it was her “intention to circulate a petition” to gather signatures to put an initiative on the ballot entitled “The Anaheim Cannabis Regulation and Land Use Measure.” She filed all the required paperwork and paid a $200 filing fee. Silva instructed the city clerk that all correspondence be sent to her lawyer at his Woodland Hills office.

Evidence The Investigator uncovered shows that Silva, who is a resident of West Anaheim, wasn’t some middle-aged mom off the street who favored cannabis legalization. Public records available online from the U.S. Department of Labor reports that she has been employed as an office clerk at UFCW Local 324’s headquarters in Buena Park at least since 2009. Furthermore, Silva is listed as a “friend” on Derek Smith’s Facebook account.

Silva’s lawyer was Bradley Hertz, an election law attorney who had done work for Ament. A Form 410 filed with the city clerk’s office on September 26, 2018 reveals he was treasurer of an independent expenditure committee called “No on L, a Project of the Anaheim Chamber of Commerce,” which spent $932,053 in an unsuccessful attempt to defeat a measure which raised the wages of workers of hotels that received tax subsidies.

The text of the initiative Silva submitted was mostly a copy of the cannabis ordinance championed by Ament, Flint, and Sidhu in 2020. However, there were exceptions. First, the number of permitted cannabis retailers allowed to operate in the city was increased from from 20 to 30; one single entity could control up to five of them, instead of three. Second, the requirement workers be full-time to qualify for a labor peace agreement was scrapped.

Herein lies the “smoking gun” of UFCW Local 324’s alliance with the Anaheim Chamber of Commerce to legalize cannabis businesses. They first tried to pass an ordinance through the council, but failed. Now there was evidence they were collaborating on a ballot initiative. However, there is a catch. Ament had resigned before Silva filed her paperwork with the city clerk. That begs the question: who took his place?

Regardless of what the case might be, Silva withdrew her initiative on October 28th claiming it needed “minor edits.” Then she submitted a new version on November 22nd, which reinstated the requirement workers be full-time to qualify for a labor peace agreement. But after December 7th, everything stopped. When The Investigator asked City Clerk Theresa Bass what happened, she said Silva didn’t continue the filing process.

The Dalati petition.

Three months later, a new face appeared. Belal Dalati, a local real estate agent, walked into the city clerk’s office on Monday, March 21, 2022 with a letter notifying them it was his “intention to circulate a petition” to gather signatures to put a cannabis initiative on the ballot. Most of the paperwork he filed was identical to Silva’s. He used the same title, preamble, and law firm as a contact. But the text of the initiative was different.

Evidence suggests Dalati had a longtime interest in cannabis. Several emails show Councilwoman Lucille Kring–a close ally of the Anaheim Chamber of Commercepersonally set up a meeting between him, City Manager Chris Zapata, and City Attorney Robert Fabela to discuss this matter. “A friend of mine, who is a businessman in the city, would like to meet with you both about cannabis,” she told them on January 10, 2020.

Unlike Silva’s initiatives, Dalati’s came from Adam Spiker, of Spiker Rendon Consulting, Inc., a cannabis industry lobbyist located in downtown Los Angeles. The initiative he touted was very “pro-labor.” Not only did it drop the requirement workers be full-time to qualify for a labor peace agreement, but a points system was set up to give preferences to applicants of city licenses who had good employee and community benefits plans.

One of Spiker’s former clients was Catalyst Cannabis, a retail chain of “weed stores” with locations in Santa Ana and Long Beach. The workers at all of those outlets were organized by UFCW Local 324. The relationship between this company and the union was so positive they organized law clinics at the latter’s Buena Park headquarters in 2021 to help clean up employee criminal records. One of the attorneys present at the April clinic: Ashleigh Aitken.

Emails show Annie Mezzacappa, Sidhu’s chief of staff, was forwarding updates on how Dalati’s initiative was progressing to her boss, Flint, and Laura Cunningham, the new president and CEO of the Anaheim Chamber of Commerce. When The Investigator questioned Cunningham about this, she said “I am regularly cc’d on emails. I cannot comment on unspecified emails. Please note that I never sat in on any cannabis meetings.”

By May 16th, Dalati changed his mind. At the urging of Bill Taormina and Paul Kott, two local businessman who were opposed to legalizing cannabis businesses, he withdrew his initiative. In a text message Taormina sent to Councilman Trevor O’Neil, he alleged that “Bill Dahlati [sic] was forced into filing the petition by Jeff Flint and other ‘dope dealer’ promoters. He was actually threatened by them not to withdraw the petition ….”

File:Seal of the Federal Bureau of Investigation.svg

On the very same day Dalati yanked his initiative, State Attorney General Rob Bonta announced he was “pausing” an agreement his office made with the City of Anaheim settling a dispute over the state’s surplus land act. The reason? The Federal Bureau of Investigation notified him they were looking into allegations of political corruption in connection with the pending sale of the Angel Stadium to Arte Moreno, an Arizona billionaire.

In the days and weeks that followed, the public would learn–thanks to FBI affidavits released in court filings–this scandal wasn’t just about Sidhu and the stadium deal. At the very heart of it was Melahat Rafiei, a political consultant and Democratic Party operative, who is alleged to have committed various crimes in connection with the Anaheim Chamber Of Commerce’s attempt to legalize cannabis businesses.

However, in writing this article, The Investigator made a decision to mostly stay away from Rafiei. Why did we do this? First, her name didn’t pop up in anything having to do this story. Second, the FBI affidavits that have been released so far offer an incomplete and distorted view of what transpired. Third, the testimony offered in those affidavits are solely focused on proving violations of federal criminal laws. It doesn’t talk about what was legal.

Besides Rafiei, it’s erroneous to presume that everybody who worked along with Ament, Flint, and Sidhu to legalize cannabis businesses broke the law. Nothing can be further from the truth. The reality is, an overwhelming majority of people that ended up being dragged into this affair–including pretty much everybody we mentioned in this article–are innocent of any crimes. They are what we would call “victims of circumstance.”

The Investigator knows despite our good faith efforts to gather accurate information for this article, what we have written isn’t the full story. And it’s possible a few corrections will need to be made as we learn more. But what’s important is we have exposed the biggest “secret” of this scandal: UFCW Local 324s alliance with the Anaheim Chamber of Commerce to legalize cannabis businesses. And it implicates Democrats and Republicans.

The political ramifications of this “secret” are political dynamite. For example, during last year’s election, in order to win the endorsement of the Orange County Register, then-candidate Aitken told the editors “the former mayor and his tightly knit ‘cabal’ were allowed to run roughshod at City Hall, and created a culture of intimidation for staff, management, concerned residents, and the smaller business community.”

What Aitken neglected to mention is UFCW Local 324, a major union of whom she has had close ties to since 2018, was involved in a “pot deal” with the same “former mayor and his tightly knit ‘cabal.'” Though there is no evidence of any criminal wrongdoing, it does vastly complicate things. Maybe she didn’t know about it, but giving $350 worth of city-owned tickets to Smith, their political director, won’t help her in any pleas of innocence.

To further understand the magnitude of her quandary, the very same political director Aitken rewarded with tickets was also the treasurer of an independent expenditure committee which spent $138,155–most of it being UFCW cash–to help her become mayor. The only other group in town that invested almost as heavily in her campaign was the Anaheim Police Officers Association, and they came in a distant second at $92,556.

For matter of record, The Investigator asked for interviews or sent questions out to Belal Dalati, Harry Sidhu, Derek Smith, Stacy Silva, Adam Spiker and others we believed had knowledge about this matter. Most didn’t answer our emails or reply to voice messages. One person declined to speak citing ongoing “local and federal investigations.” Ashleigh Aitken ignored our request for comment on the Anaheim Ducks tickets she gave to Smith.

Six State Legislators Signed Letters Backing Santa Ana Police Union President’s Bid to Increase Pension

Six state legislators signed letters supporting efforts by Gerry Serrano, president of the Santa Ana Police Officers Association, to increase his pension.

By DUANE ROBERTS
Editor & Publisher

Two letters The Anaheim Investigator obtained from the California Public Employees Retirement System (CalPERS) through the public records act show that six members of the state legislature not only quietly lent their names in support of a bid by Gerry Serrano, president of the Santa Ana Police Officers Association, to increase his future pension earnings, but circumstantial evidence suggests at least five of them received hefty campaign contributions in return for their efforts.

Though nothing in the letters specifically mentions Serrano by name, they do make reference to a set of facts that are only unique to his case. Furthermore, the police union president himself actually entered them into evidence during a video conference hearing about his pension that was held before Adam L. Berg, an administrative law judge, on November 21, 2021. The sole reason why The Investigator became aware of their existence is because Berg cited them in a ruling released earlier this year,

Both letters, which were typed on official state government stationery, are identically worded. The only exception is they have different letterheads and signatories. The first one, dated May 14, 2021, uses a generic letterhead and is signed by Senator Bob Archuleta, Senator Tom Umberg, Assemblyman Tom Daly, Assemblyman Freddie Rodriquez, and Assemblywoman Sharon QuirkSilva. But the second one, dated June 3, 2021, is only signed by Senator Josh Newman and uses the letterhead of his office.

In the correspondence, all six state legislators expressed their deep and underlying concerns about a decision that CalPERS made to exclude “special compensation” earned by an “employee / union president” from being “used to determine the employee’s total monthly pension payments upon retirement.” It was their belief, they wrote, that “CalPERS has issued an interpretation of state law” that was “inconsistent with the clear language and legislative intent of the controlling statutes.”

The legislators argued that several government codes, including one passed by the state legislature in 2018, authorizes “public employers to grant a leave of absence and allow representatives of employee organizations to fulfill their union responsibilities without loss of compensation or other benefits.” For CalPERS to deny this “employee / union president” pension credit for the “special compensation” he earned while performing these duties was a direct violation of state law, they claimed.

But in the months that followed, their letters have so far had little, if any impact, on subsequent legal proceedings which dealt with Serrano’s pension. In Berg’s ruling, issued on February 15, 2022, he wrote that both letters “contain the authors’ opinion as to the meaning” of the government code “and what they believe the outcome of the case should be.” From the judge’s perspective, these were “inadmissible opinions as to the ultimate legal question in this case” and “were not considered.”

Excerpt from Berg’s ruling.

During a seven month period between June and December 2021, the Santa Ana Police Officers Association funneled a combined total of $24,100 into the campaign coffers of at least five of the six state legislators who signed the letters. And all of the contributions, interestingly enough, appear to have been curiously timed: they were either made roughly within 30 days of the date the letters had been written; or within 30 days of the hearing that Serrano submitted them as evidence.

For example, one Form 460 the Santa Ana Police Officers Association Independent Expenditure Committee filed with the City of Santa Ana on August 8, 2021 reported that Archuleta, Newman, and Daly each got $4,900 in June 2021. Another form that was filed on January 30, 2022 by the Santa Ana Police Officers Association Political Action Committee disclosed that in December 2021, Archuleta got another $2,000, Umberg about $4,900, and Rodriguez only $2,500.

This pattern of donor behavior is eerily reminiscent of the $15,900 the Santa Ana Police Officers Association gave to Fiona Ma, the state treasurer. In that case, she received the money at the same time her office was working closely with Serrano to draft two new laws that would exclusively benefit him. Likewise, it appears that five of the legislators who got campaign contributions from the police union received the cash within the time frame Serrano first began using their letters.

Regardless, this latest inquiry by The Investigator not only reveals there are no lack of elected officials eager to do special favors for Serrano, but it hints the latter uses the funds of his police union like a personal piggy bank, dispensing them to any politician he thinks will help him with his goal of securing a larger pension. And as we see now, this latest paper trail we’ve been following shows that the state treasurer isn’t the only person in Sacramento who has been implicated in this affair.

Below are the two letters signed by six state legislators that Gerry Serrano entered into evidence at a hearing about his pension on November 21, 2021.

State Treasurer Might Have to Testify in Court if Lawsuit by Santa Ana Police Union President Isn’t Quashed

California State Treasurer Fiona Ma has been named in court documents filed by attorneys representing Santa Ana Police Chief David Valentin.

By DUANE ROBERTS
Editor & Publisher

In a stunning development, an anti-SLAPP motion recently filed in Orange County Superior Court by attorneys representing David Valentin, chief of the Santa Ana Police Department, names Fiona Ma, the state treasurer, and suggests she might end up being called to testify as a witness in court if they are unable to convince a judge to quash a lawsuit initiated by Gerry Serrano, president of the Santa Ana Police Officers Association.

The motion in question, which was submitted on February 22nd, seeks to have Serrano’s lawsuit dismissed on the grounds it was “brought primarily to chill and punish Chief Valentin for engaging in constitutionally protected activities” and that its claims “are not legally cognizable, lack factual merit, and are barred by relevant defenses and immunities” because they “arise out of protected speech and petitioning activity.”

But if Valentin’s lawyers can’t get the suit tossed, it’s possible Ma could be subpoenaed as a witness if it goes to trial. One key argument they make is that Serrano has not only waged a campaign to “personally and maliciously attack” the police chief and other city officials as part of an effort to “reverse a CalPERS decision” which limits his future pension earnings, but that he has even used “union money” to pursue this goal.

Excerpt from the anti-SLAPP motion.

On page 11, the motion devotes an entire paragraph to evidence The Anaheim Investigator uncovered showing that Ma tried to help Serrano increase his pension by backing two new laws that would exempt him from rules which prohibit the California Public Employees Retirement System (CalPERS) from giving him service credit for “special compensation” earned while on a leave of absence from his duties as a police sergeant.

Emails revealed that the state treasurer, her executive staff, and employees of CalPERS not only drafted these laws exclusively for Serrano’s benefit, but even shared the proposed text with him. Furthermore, while all of this was occurring, the Santa Ana Police Officers Association Independent Expenditure Committee funneled $15,900 into Ma’s bid to get re-elected, making them one of her biggest campaign contributors.

It should be noted Ma isn’t the only public official named in this paragraph. Marcie Frost, the CEO of CalPERS, is mentioned. There is also a reference to a “CalPERs official” known to The Investigator as Anthony Suine, Deputy Executive Officer for Customer Services & Support. And Tina Arias Miller, a Rancho Santiago Community College District Trustee, is identified as being the “girlfriend of one of Serrano‘s associates.”

Serrano and Valentin in 2019.

The fact that Valentin’s legal team has brought up this issue is significant. It suggests that if they are unable to convince a judge to quash Serrano’s lawsuit, they are more than willing to put Ma up on the witness stand and ask some tough questions about her close relationship with the embattled police union president, including the role her office played in helping draft two new laws exclusively for his benefit.

And unlike the real world, there are criminal penalties if Ma is caught lying in a courtroom. The state treasurer won’t be able to utter the kind of deceptive remarks she made last month when she misled a journalist for the Voice of OC into thinking the legislation she backed for Serrano only dealt with Senate Bill 278. The proposed laws The Investigator reported about had nothing to do with that bill and were never voted on.

The anti-SLAPP motion is currently scheduled to be heard in Dept. C20 of the Central Justice Center on June 15th. However, a source has told us it will be costly for Serrano to fight and that the Santa Ana Police Officers Association doesn’t have enough money. In the meanwhile, there will be one politician in Sacramento who will be nervously watching this matter from afar, crossing her fingers and hoping it never goes to trial.

Below is the anti-SLAPP motion filed in Orange County Superior Court by attorneys representing Santa Ana Police Chief David Valentin.

California State Treasurer Backed Two New Laws to Help Santa Ana Police Union President Increase His Pension

Gerry Serrano, president of the Santa Ana Police Officers Association, with Fiona Ma, California State Treasurer, at police union headquarters in 2019.

By DUANE ROBERTS
Editor & Publisher

Internal emails The Anaheim Investigator obtained from the California State Treasurer’s Office show that Fiona Ma, the state treasurer, tried to help Gerry Serrano, president of the Santa Ana Police Officers Association, increase his pension, by backing two new laws that would exempt him from rules which prohibit the California Public Employees Retirement System (CalPERS) from giving him service credit for “special compensation” earned while on a leave of absence from his duties as a police sergeant.

Though an attempt to add them to a bill going through the state senate failed, the emails suggest Ma, her executive staff, and employees of CalPERS not only drafted these new laws for Serrano’s benefit, but that they even shared the proposed text with him. Furthermore, while all of this was occurring, the Santa Ana Police Officers Association Independent Expenditure Committee funneled $15,900 into the state treasurer’s bid to get re-elected, making them one of her biggest campaign contributors.

The Voice of OC was the first news outlet to break the story about Serrano’s aggressive efforts to “boost” his pension. In an article published last August, they made public letters, including one written by Sonia R. Carvalho, the Santa Ana City Attorney, who summed up the police union president’s goal: “During conversations between Mr. Serrano and the City’s special legal counsel, we understand that Mr. Serrano has expectations for an increase in his pension by up to $60,000 per year,” she said.

But at that time, journalists were preoccupied about what Serrano was doing at the local level. Nobody knew he had been in direct contact with Ma, who was pulling strings for him in Sacramento. The relationship between the two grew so friendly that the state treasurer actually listed him as a contact for a fundraiser she hosted for Tina Arias Miller, a Rancho Santiago Community College District Trustee, who is also the girlfriend of Ernesto Amado Conde, one of Serrano’s most trusted associates.

Ma listed Serrano as a contact for this fundraiser.

Emails reviewed by The Investigator show Serrano first began communicating with Ma on September 17, 2020. “My apologies for reaching out,” he wrote, “but I’m in dire need of some assistance resolving a minor issue with a CalPERS audit in regards to specifically my pensionable compensation.” For the most part, the state treasurer remained courteous but faintly aloof, asking Marcie Frost, Chief Executive Officer of CalPERS, and members of her executive staff, to look into this matter for her.

From September to October, a flurry of messages were exchanged between Serrano, Ma, her executive staff, and CalPERS employees, all focused on resolving his problem. But the issue here, as one auditor wrote, is when Serrano became police union president, his pay was lowered. The City of Santa Ana gave him “special compensation” to make up for it. However, since he was the only one getting this type of pay, and was on a leave of absence from the city, these earnings weren’t “pensionable” per CalPERS rules.

By mid-October, it appears that once Serrano began to realize he was at an impasse with CalPERS and wouldn’t be getting what he wanted, his emails to the State Treasurer’s Office suddenly came to an abrupt halt. All discussions about his pension ceased. There are no public records indicating that Ma nor any members of her executive staff had any further communications with him about this matter in 2020. But five months later, there was a new development. And here is where the real story begins.

Ma with Serrano at an event in Santa Ana in 2021.

On Wednesday, March 10, 2021, Serrano sent an email to Rita Clark, an administrative assistant at the State Treasurer’s Office, telling her that he would be in Sacramento the following Monday and wanted to meet with Ma and Irwin Nowick, her senior advisor. A copy of a calendar notification obtained by the The Investigator shows all three of them gathered in a large conference room at her office at 3 p.m. on Monday, March 15th. The meeting lasted thirty minutes. There are no records about what was said.

But an email sent out three days later may offer a clue. On Thursday, March 18th, Anthony Suine, Deputy Executive Officer for Customer Services & Support at CalPERS, sent a message entitled “POA President Compensation” to Frost, the CEO, which contained a draft for two new laws which would enable a police union president to bypass rules which prevented Serrano from increasing his pension. Suine, it should be noted, was no stranger to Serrano: emails show he had communicated with him in October 2020.

Two email chains show Suine’s message was not only forwarded to Ma and her executive staff for review, but to Ryan Sherman, a lobbyist for the Riverside Sheriffs’ Association, which represents 3,500 law enforcement personnel in Southern California. Nowick would later send it to Serrano on Thursday, June 10th, who became ecstatic after reading it. “Thank you my friend! You are absolutely, and without a doubt, the best!” he typed. Two minutes after Nowick received Serrano’s response, he shared it with Ma.

Nowick sharing Serrano’s response with Ma.

Then on Tuesday, June 15th, Nowick sent yet another email to Serrano. But he wasn’t the only the intended recipient. It was also sent out to Sherman and Cesar Diaz. Public records show Diaz is a consultant that works for State Senator Toni Atkins, who represents the 39th District in San Diego County. Besides the fact Atkins has been a longtime ally of Ma, she is currently President pro Tempore of the California State Senate, one of the most powerful politicians in the state legislature.

The email Nowick sent was blank, but entitled “language,” and had a file attached to it called “Levyaa Cortese.docx.” Not only did this document contain a copy of the text for the two new laws that Suine wrote in his March 18th message, but it was essentially a proposal to add them as an amendment to SB 411, a bill authored by State Senator Dave Cortese, which would make adjustments to CalPERS rules dealing with retired annuitants. “Can you point me to the amends?” Diaz asked Nowick in one message.

Another email chain shows that on Friday, June 18th, Nowick also forwarded this document to Randy Perry, a legislative advocate for Aaron Read & Associates, one of Sacramento’s most powerful lobbying firms. Nobody should be surprised he received it. Perry’s biography shows one his clients is the Peace Officers Research Association of California, which “represents over 76,000 public safety members and over 930 associations, making it the largest law enforcement organization in California.”

Atkins and Ma in 2019.

Roughly two months after Serrano asked Ma for help, the Santa Ana Police Officers Association Independent Expenditure Committee started pumping cash into her re-election bid. According to a Form 460 filed with the City of Santa Ana, they reported making a $7,800 contribution on December 1, 2020. Another form shows they gave $8,100 on June 8, 2021. Of course, these numbers don’t reflect the fact Serrano himself chipped in $500 as well, according to the California Secretary of State website.

During a six month period between December 2020 and June 2021, the Santa Ana Police Officers Association became one of Ma’s biggest donors, funneling $15,900 into her campaign coffers. Contrast that with the San Francisco Police Officers Association, which is based in the state treasurer’s hometown. They represent a police force that is about seven times larger than that of Santa Ana’s. Campaign finance data shows that so far they have given her a combined total of $17,800 since 2004.

To put things in perspective, the Los Angeles Police Protective League gave $16,200 to Ma in 2021. They represent about 9,900 officers. Each of their members contributed about $1.64 to her re-election bid. However, the Santa Ana Police Officers Association, which only represents 300 officers, gave her $15,900. Their members each contributed $53. Though campaign finance laws limit how much money anyone can give, it’s clear someone inside the latter union wanted the state treasurer to get a lot of cash.

Campaign finance data from the California Secretary of State.

For reasons which aren’t entirely clear, SB 411 was never amended to include the text of two new laws drafted for Serrano’s benefit. When The Investigator asked Noah Starr, External Affairs Manager for the State Treasurer’s Office, about why it didn’t happen, he told us to direct what questions we had about this matter to State Senator Cortese, the bill’s author. Additionally, several emails that we sent out more than a week ago to State Senator Atkins have gone unanswered.

Though we did not reach out to Serrano for this article, the embattled police union president has repeatedly denied he has done anything improper with respect to his pension. In numerous emails and legal documents reviewed by The Investigator, he claims that when he became leader of the Santa Ana Police Officers Association in 2016, he was completely unaware some of the pay he would be getting couldn’t be applied as service credit toward his future retirement benefits.

Regardless of what the case may be, Serrano’s hope for another quick legislative fix from Ma apparently is no longer an option. In response to a question The Investigator posed to Starr, her spokesman, about whether or not the State Treasurer’s Office is planning to ask any state legislators this year to introduce bills that would include language similar to what they wanted as an amendment to SB 411, his answer was quite simple. “No,” he said.

Campaign Backers Who Spent $39K to Elect Councilman Avelino Got City-Owned Tickets Worth $5,740

Councilman Avelino Valencia III gave city-owned Angels tickets to the wife of the president of the Santa Ana Police Officers Association.

By DUANE ROBERTS
Editor & Publisher

A careful review of all the Form 802s that Councilman Avelino Valencia III filed in April and May reveals he gave 28 city-owned Angels baseball tickets worth $5,740 to 13 campaign backers who spent $38,938 to help him get elected to his seat. That number reflects 60% of all the tickets the councilman has handed out during those months especially if one takes into consideration the fact a Long Beach supporter got tickets twice.

Furthermore, it appears Valencia has borrowed a trick other council members have used to conceal the identity of the intended recipient of tickets by giving them to their spouse instead. This questionable practice was first noticed by Gabriel San Roman, a former investigative journalist for the defunct-OC Weekly, when he discovered Carrie Nocella, a lobbyist for the Walt Disney Company, was getting tickets through her husband.

For example, a Form 802 the councilman filed last month states he gave Serina Serrano two tickets valued at $410 for an Angels vs. Dodgers game on May 8th. Besides the fact Serina works for the Orange County District Attorney’s Office, her husband is Gerry Serrano, president of the Santa Ana Police Officers Association. Public records show Gerry and his union made $2,850 in campaign contributions to Valencia in 2020.

Many recipients of free tickets earn six-figure incomes.

In the article The Anaheim Investigator published on June 1st, we reported about the Form 802s Valencia filed in April, pointing out that of the ten people he gave tickets to that month, eight were close friends and campaign backers of his. Five had close ties to unions that each made a $2,100 contribution to his city council campaign last year. Two were top Democratic Party operatives. And most don’t live in Anaheim.

The councilman’s filings for May show a similar pattern of behavior. Out of the 13 people he gave tickets to, ten were also friends and backers. Nine of them–or 70% of all the persons who received tickets that month–either contributed money directly to his city council campaign, or have close ties to unions that did. One is linked to a committee that spent $24,288.20 on his election. And again, most aren’t residents of this city.

Below is a list of those ten individuals:

BERENICE BALLINAS

Valencia gave Ballinas two tickets valued at $410 for an Angels vs. Rays game on May 4th.

Ballinas is a resident of Santa Anaa member of that city’s Personnel Board, and Senior District Representative for Democratic State Senator Josh Newman.

SERAFIN TINAJERO-JAUREZ

Valencia gave Tinajero-Jaurez two tickets valued at $410 for an Angels vs. Rays game on May 5th.

Tinajero-Jaurez is a resident of Anaheim and is employed as a senior analyst for a healthcare company.

Form 460s filed by the “Valencia for City Council 2020” committee report that he made a $250 contribution on May 23, 2020.

VALERIE AMEZCUA

Valencia gave Amezcua two tickets valued at $410 for an Angels vs. Dodgers game on May 7th.

Amezcua is a resident of Santa Ana and a member of the Board of Trustees of the Santa Ana Unified School District.

Form 460s filed by the “Valencia for City Council 2020” committee report she had contributed $200 to his campaign by August 21, 2020.

SERINA SERRANO

Valencia gave Serrano two tickets valued at $410 for an Angels vs. Dodgers game on May 8th.

Serrano is a resident of Garden Grove, an employee of the Orange County District Attorney’s Office, and is married to Gerry Serrano, president of the Santa Ana Police Officers Association.

Form 460s filed by the “Valencia for City Council 2020” committee report that the Santa Ana Police Officers Association Independent Expenditure Committee (ID# 1255606) made a $2,100 contribution on August 21, 2020.

Her husband Gerry made a $750 contribution on September 22, 2020.

PAUL R. MORENO

Valencia gave Moreno two tickets valued at $410 for an Angels vs. Indians game on May 17th.

Moreno is a resident of Mission Viejo and a Business Agent for the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers Local 433.

Form 460s filed by the “Valencia for City Council 2020” committee report that the District Council of Iron Workers Political Action League (ID# 831693) made a $1,000 contribution on June 22, 2020.

ALEX RUIZ

Valencia gave Ruiz two tickets valued at $410 for an Angels vs. Indians game on May 19th.

Ruiz is a resident of Anaheim and owns Alex’s Flooring Company.

Form 460s filed by the “Valencia for City Council 2020” committee report that Ruiz made a $200 contribution on May 19, 2020.

JOSHUA LAFARGA

Valencia gave LaFarga two tickets valued at $410 for an Angels vs. Twins game on May 20th.

This is the second time Valencia has given him tickets.

LaFarga is a resident of Long Beacha member of that city’s Planning Commission, and Recording Secretary for the Laborers International Union of North America Local 1309.

Form 460s filed by the “Valencia for City Council 2020” committee report that the Laborers International Union of North America Local 1309 PAC (ID# 851621) made a $2,100 contribution on June 30, 2020.

BRENT BEASLEY

Valencia gave Beasley two tickets valued at $410 for an Angels vs. Indians game on May 21st.

Beasley is a resident of Rancho Santa Margarita and Financial Secretary for the United Union of Roofers, Waterproofers & Allied Workers Local 220.

Form 460s filed by the “Valencia for City Council 2020” committee report that the United Union of Roofers, Waterproofers & Allied Workers Political Education and Legislative Fund (ID# 850568) made a $500 contribution on June 26, 2020.

JAMES RAMIREZ

Valencia gave Ramirez two tickets valued at $410 for an Angels vs. Athletics game on May 22nd.

Ramirez is a resident of Anaheim and Vice-President of Anaheim Firefighters Association Local 2899.

Form 460s filed by the “Valencia for City Council 2020” committee report that Firefighters for Anaheim made a $2,100 contribution on September 14, 2020.

A Form 496 Independent Expenditure Report filed by Firefighters for Anaheim on October 15, 2020 reported that they spent $22,188.20 for mailers, signs, banners, and other items on Valencia’s behalf.

IZEAH GARCIA

Valencia gave Garcia two tickets valued at $410 for an Angels vs. Rangers game on May 25th.

Garcia is a resident of Fullerton, a former Deputy Director of the Democratic National Committee, and Political & Community Organizer for the National Union of Healthcare Workers.

Form 460s filed by the “Valencia for City Council 2020” committee report that the National Union of Healthcare Workers Candidate Committee (ID# 1318200) made a $1,000 contribution on September 29, 2021.

Between April and May, Valencia gave 28 city-owned Angels baseball tickets worth $5,740 to 13 campaign backers who spent $38,938 on his election–a whopping 60% of all tickets he handed out during those months. We determined this by gathering names from all the Form 802s that he filed, running them through various databases to identify who they were, and cross-referencing them with available campaign finance data.

On June 17th, The Investigator sent out an email to Valencia with a list of names of the 22 people who received tickets from him requesting more information about the type of “volunteer public service” each of them engaged in. “The rationale you gave in all of these cases is that tickets were given ostensibly for the purpose of ‘attracting or rewarding volunteer public service,'” we wrote. But he never responded to our inquiry.

For matter of record, Valencia isn’t the only council member who has hijacked the city’s ticket system for selfish political purposes. His abuses are roughly comparable to those of Councilman Jordan Brandman, whose Form 802 filings this year are also highly questionable. Though Brandman has handed out less tickets than Valencia, both have given them to some of the same people–a matter we’ll report about in the future.

Councilman Valencia Gave City-Owned Tickets Worth $3,280 to Campaign Backers, Top Democrats

Councilman Avelino Valencia III gave $3,280 worth of city-owned Angels tickets to close friends, campaign backers, and top Democrats in April.

By DUANE ROBERTS
Editor & Publisher

Before Councilman Avelino Valencia III was elected to his seat, he told a reporter from Anaheim Exclusivo what his main priority would be. “I would like the residents of Anaheim to know that I am dedicating the next four years of my life to improving the quality of life for our residents,” he said. “I will be selfless in those endeavors; I will put the residents’ needs first.”

But there is an old adage about politicians: watch what they do, not what they say. And evidence is mounting that there is a big difference between Valencia’s behavior as a councilman and his rhetoric as a candidate. Thanks to Gabriel San Roman, a former investigative journalist for the defunct-OC Weekly, we know as a fact that this happens to be the case.

In an article San Roman recently posted on his Slingshot blog, he observed that with the reopening of Angel Stadium and Honda Center due to relaxed COVID-19 restrictions, a once “dormant political patronage system” has sprung back to life “with Anaheim city council members able to dole out free tickets to their well-connected friends and political backers again.”

San Roman should know. In 2019, he looked at more than 1,539 ticket disclosure formsForm 802s as they are called–to see who received the hundreds of thousands of dollars worth of tickets the city gets each year from these venues through various agreements. His award-winning investigation exposed a system rife with cronyism and corruption.

In reviewing the latest filings for April, he discovered not much had changed. For example, Councilman Jordan Brandman, who is a notorious peddler of city-owned tickets to lobbyists, campaign contributors, and even his former employer, gave two Angels tickets worth $410 to a businessman who appears to have been one of his clients at a previous job.

Even Valencia has gotten tickets.

The most astonishing revelations, however, came from Valencia’s filings. Being a newcomer, one thinks he would have been a bit more circumspect in his actions. But San Roman reported that his Form 802s showed the councilman freely gave away tickets to close friends, trade union leaders who helped finance his campaign, and known Democratic Party operatives.

In response, The Anaheim Investigator launched its own investigation into this matter and carefully scrutinized all of the Form 802s Valencia filed in the month of April. The documents not only corroborate the initial claims San Roman made in his piece, but new information has been uncovered which reveals that what he reported was just the tip of the iceberg.

The Form 802s show Valencia gave tickets to ten people, eight of which could be positively identified. Of those eight, all are “well-connected friends and political backers” of the councilman. Five have close ties to unions that each made a $2,100 contribution to his city council campaign last year. Two are top Democratic Party operatives. And most don’t live in Anaheim.

Below is a list of persons of who benefited from his largess:

ERNESTO MEDRANO

Valencia gave Medrano two tickets valued at $410 for an Angels vs. White Sox game on April 1st.

Medrano is a resident of Anaheim, a member of the Public Utilities Board, and a Business Representative for the Los Angeles / Orange Counties Building & Construction Trades Council.

Form 460s filed by the “Valencia for City Council 2020” committee report that the Los Angeles / Orange Counties Building and Construction Trades Council PAC (ID# 822029) made a $2,100 contribution on August 19, 2020.

ROBERT RUIZ

Valencia gave Ruiz two tickets valued at $410 for an Angels vs. White Sox game on April 2nd.

Ruiz is a resident of Irvine, a member of the Orange County Fair and Event Center Board, and Secretary-Treasurer for the Laborers International Union of North America Local 652.

Form 460s filed by the “Valencia for City Council 2020” committee report that the Laborers International Union of North America Laborers Local 652 (ID# 72-151970) made a $2,100 contribution on June 29, 2020.

ERNESTO AMADO CONDE

Valencia gave Conde two tickets valued at $410 for an Angels vs. White Sox game on April 3rd.

Conde is a resident of Santa Ana, a retired sergeant with the Santa Ana Police Department, and is Director of Communications for the Santa Ana Police Officers Association. In 2018, the Voice of OC reported he has a cozy relationship with Gerry Serrano, the president of that association.

Form 460s filed by the “Valencia for City Council 2020” committee report that the Santa Ana Police Officers Association Independent Expenditure Committee (ID# 1255606) made a $2,100 contribution on August 21, 2020.

Serrano made a $750 contribution on September 22, 2020.

LUISANDRES PEREZ

Valencia gave Perez two tickets valued at $410 for an Angels vs. White Sox game on April 4th.

Perez is a resident of Anaheim, a member of the Planning Commission, and Political Director for UA Plumbers & Steamfitters Local 582. Not only was he previously employed as Political Director of the Orange County Democratic Party, but he currently serves on their Central Committee and is an alternate for State Assemblyman Tom Daly.

Form 460s filed by the “Valencia for City Council 2020” committee report that the UA Plumbers & Steamfitters Local Union No. 582 PAC (ID# 890440) made a $2,100 contribution on July 31, 2020.

Perez made a $250 contribution on May 22, 2020.

LUIS ALEMAN

Valencia gave Aleman two tickets valued at $410 for an Angels vs. White Sox game on April 5th.

Aleman is a resident of Santa Ana, Secretary of the Orange County Democratic Party, and President of the Latinx Young Democrats of Orange County.

JOSHUA LAFARGA

Valencia gave LaFarga two tickets valued at $410 for an Angels vs. Astros game on April 6th.

LaFarga is a resident of Long Beach, a member of that city’s Planning Commission, and Recording Secretary for the Laborers International Union of North America Local 1309.

Form 460s filed by the “Valencia for City Council 2020” committee report that the Laborers International Union of North America Local 1309 PAC (ID# 851621) made a $2,100 contribution on June 30, 2020.

AJAY MOHAN

Valencia gave Mohan two tickets valued at $410 for an Angels vs. Twins game on April 16th.

Mohan is a resident of Irvine, a member of that city’s Children, Youth and Families Advisory Committee, and Executive Director of the Orange County Democratic Party. He was previously employed as their Political Director.

JOHNATHAN HERNANDEZ

Valencia gave Hernandez two tickets valued at $410 for an Angels vs. Rangers game on April 19th.

Hernandez is a resident of Santa Ana and a member of the Santa Ana City Council.

Total value of tickets given: $3,280.

On all of the Form 802s that Valenica filed, he stated he gave away tickets for the purpose of “attracting or rewarding volunteer public service.” Maybe so. Perhaps he wanted to encourage charity work in Irvine, Santa Ana, and Long Beach. And it could be a coincidence half of the recipients of his tickets apparently helped steer large amounts of cash into his city council campaign.

But the evidence speaks for itself. The Form 802s make a mockery of Valencia‘s promise to “put the residents’ needs first.” That he decided to shower close friends, trade union leaders who helped finance his campaign, and top Democratic Party operatives–most of whom don’t live in Anaheim–with $3,280 worth of tickets demonstrate that his priorities lie elsewhere.

Indeed, The Investigator believes he is only using his seat on the Anaheim City Council as a stepping stone to get elected to the state legislature in the 69th State Assembly District. After all, Tom Daly, his boss, is termed out in 2024. But to do that, he’ll need to build a base of support not only in Anaheim, but in Santa Ana. That’s where giving away free tickets comes in handy.

For matter of record, Valencia isn’t the only politician in this town who has taken advantage of the ticket system and exploited it for selfish political purposes. Sometime in the future, The Investigator plans to publish more in-depth articles like this one exposing how past and present council members, both Democrat and Republican alike, have done similar things.

Santa Ana-Based Advertising Firm Hidden Force Behind Chamber-Backed Group Anaheim First

Tony Serna, Vice-President of Agency 51, a Santa Ana advertising firm that has been a hidden force behind Anaheim First.

By DUANE ROBERTS
Editor & Publisher

Much has been written about Anaheim First, the faux grassroots organization which, according to legal documents filed with the California Secretary of State in 2019, is controlled by Todd Ament, President and CEO of the Anaheim Chamber of Commerce. But very little, if anything, has been said about another entity that has been a hidden force behind it.

If you have ever seen Anaheim First’s full page ads in a newspaper, a slick mailer inviting you to attend one of their town hall forums, or observed members wearing those proverbial blue shirts, you saw the handiwork of Agency 51, an advertising firm located in downtown Santa Ana, literally a block away from the Ronald Reagan Federal Building and Courthouse.

Contrary to what is publicly known, Anaheim First made its debut, at least unofficially, on August 3, 2017 when Tony Serna, Vice-President of Agency 51, registered the domain “AnaheimFirst.com” using his name and his firm’s Santa Ana business address, email, and phone number. Records show this domain was later transferred to Visit Anaheim in 2018.

Message posted to Agency 51’s Facebook page.

But Serna does more than just run Agency 51. Not only was he a founding member of the Anaheim First Advisory Council in District 6, but he sits on the Board of Directors of the Anaheim Chamber. According to IRS Form 990 filings compiled by ProPublica, a non-partisan investigative journalism website, Serna has served on the latter body at least since 2013.

On its LinkedIn page, Agency 51 describes itself as a “full-service integrated marketing communications agency with offices in Orange County, CA, specializing in implementing complex, strategic advertising programs.” Founded as a partnership in 2001, it has two offices nationwide: one in Santa Ana and another in Philadelphia, Pennsylvania.

Anaheim First is not the only major project Agency 51 has been involved with. It has an impressive list of past and present clients, including Comcast, Cox Communications, Disney’s Grand Californian Hotel, House of Blues Anaheim, and the Muzeo Museum and Cultural Center. Furthermore, the firm has done some work for the Anaheim Family YMCA.

Agency 51 boasting about Anaheim First on its website.

Because of the COVID-19 pandemic, Anaheim First was reinvented as a marketing tool to help local restaurants, microbreweries, wine bars, and other businesses survive the economic downturn. For months, residents have seen ads on social media sites, much like the one on Agency 51’s YouTube page, offering discounts for food, drink, and other items.

However, as more people get vaccinated and life returns back to “normal,” it will undoubtedly revert to its original form. At the March 23rd meeting of the Anaheim City Council, Mayor Harry Sidhu reaffirmed his commitment to the Chamber-backed group. He is up for re-election next year. Given Anaheim First is stacked with his allies, he’ll need all the support he can get.

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