Jesus and Andrea Cardenas, two well-known Democrat political operative siblings in San Diego, are accused of scheming the federal government out of $176,000 in COVID-era loans.
In a significant blow to local Democrats, the former chief of staff to San Diego Councilmember Stephen Whitburn, Jesus Cardenas, and his sister, Andrea Cardenas, a current Chula Vista City Council member, were slapped with criminal charges this Wednesday.
District Attorney Summer Stephan has accused the siblings of orchestrating a fraudulent scheme involving $176,000 in federal COVID-19 relief funds earmarked for Grassroots Resources, a political consulting firm founded by Jesus Cardenas.
The District Attorney’s Office announced, “The defendants have both been charged with conspiracy to defraud by false pretense, grand theft, conspiracy to commit money laundering, money laundering (and) failure to file tax returns.”
The comprehensive six-page complaint accuses the Cardenases of a calculated fraud carried out in early 2021, while both held public offices. The charges claim that the siblings dishonestly secured $176,227 by falsely claiming that Grassroots Resources employed 34 individuals who, in reality, worked for a San Diego cannabis dispensary.
The meticulous investigation was spearheaded by the D.A.’s public integrity unit, backed by the Department of Homeland Security Office of Inspector General, Covid Fraud Unit.
Set to be arraigned next Thursday in San Diego Superior Court, both Cardenases have refrained from commenting on the allegations. If found guilty, Andrea Cardenas could face up to five years and eight months in state prison, while her brother could be looking at up to four years and four months in custody.
This is not the first time the Cardenas siblings have been accused of questionably ethical behavior.
Grassroots Resources, initially a consulting business aiding cannabis companies in acquiring licenses, has been instrumental in the political careers of both Whitburn and Andrea Cardenas. In 2020, the firm also advised Nora Vargas, who clinched a seat on the San Diego County Board of Supervisors.
Despite the looming legal battle, it remains uncertain whether Andrea Cardenas will suspend her re-election campaign slated for March, or how the charges may influence her current term.
In the past, Chula Vista council members have contemplated whether felony charges alone should trigger a City Council member’s removal from office. However, they chose not to incorporate this provision in the Charter amendments approved by voters in 2022.
Deputy Mayor Jose Preciado expressed his concern, stating he was “saddened to hear this news” and uncertain about the repercussions these allegations could have on the council.
Christine Brady, the lone District 4 challenger in the March primary, refrained from commenting on whether Andrea Cardenas should halt her campaign but acknowledged that the situation “looked really bad for her.”
The complaint also alleges the misappropriation of the relief funds, with substantial amounts diverted to personal expenses and campaign accounts.
The Cardenases are scheduled to respond to these criminal charges next Thursday at 1:30 p.m. in Superior Court. As of now, it is unclear whether they have secured legal representation.
