$1.5M In Diverted COVID Funds, Influence-Peddling And More: Here’s What A 353-Page Report Says About Anaheim Politics
A massive report released this week on corruption and influence-peddling in Anaheim city government details a wide range of wrongdoing, including possible theft of taxpayer money.
The 353-page independent report is the result of a nearly year-long investigation carried out by an outside legal firm, JL Group, run by a former police investigator. It was commissioned last summer by city officials in an effort to demonstrate transparency and restore public confidence after the FBI revealed it was investigating former Mayor Harry Sidhu and other key Anaheim figures for corruption.
Investigators said their findings "tended to reinforce" observations laid out by the FBI that a small group of powerful individuals wield heavy influence over city government.
Key findings
The report’s key findings include:
- The city awarded large contracts to the Anaheim Chamber of Commerce "with little or no oversight or meaningful deliverables."
- A "potential criminal conspiracy” to divert $1.5 million in federal COVID recovery funds to a nonprofit affiliated with the Anaheim Chamber of Commerce. The report describes it as a possible “theft” of public money.
- Former Mayor Harry Sidhu engaged in "influence-peddling" with former Chamber of Commerce CEO Todd Ament. "The evidence pointed to the fact that individuals who wanted to meet with the Mayor first had to meet with Ament and then pay some form of tribute in order to reach Mayor Siddhu," investigators wrote.
- The Anaheim Chamber of Commerce took over or supported various community groups and city initiatives, and then used them to gather personal data in order to target residents with campaign materials for candidates supported by the chamber.
- The chamber "acted virtually as a money-laundering operation" for cannabis businesses and lobbyists who sought to influence city policy for the industry.
- Two former elected city officials, former Mayor Curt Pringle and former Councilmember Kris Murray, may have violated the city policy by lobbying on behalf of clients soon after leaving office.
- Jeff Flint, whose clients included the Angels and reportedly Disney, and several other high-profile lobbyists, including Pringle, routinely failed to report lobbying activities as required by city law. Investigators also found that city officials failed to enforce its lobbying rules.
Also of note:
- Less than 40 pages of the report contain redactions. Some watchdogs had worried that the public version of the report would be heavily redacted and shield people involved in wrongdoing. The full report is being shared with the Orange County District Attorney, the California Attorney General and the FBI.
- The Walt Disney Company and Angels baseball "flatly refused to cooperate at all" with the investigation, according to the report. In a statement to LAist, Disney disputed that part of the report, saying it wasn’t asked to participate beyond a request for an interview to the company's chief lobbyist, Carrie Nocella, who declined to talk to the investigators.
- The report includes a matrix created early in the investigation that outlined 58 potential crimes, including money laundering, obstruction of justice, theft or bribery, and misuse of campaign funds.
- The report also mentions “rumors” that Nocella bragged about having inside information from city council closed sessions, which would be illegal to leak to her. Investigators wrote they couldn’t confirm this because Nocella refused to talk, though they did not outline any other attempts to verify the claims.
- The city-hired investigators met with O.C. District Attorney Todd Spitzer and his staff in early February to provide information about possible crimes — specifically around the diverted $1.5 million. But Spitzer’s office didn’t follow up with the independent investigators and it’s unknown whether the DA launched an investigation, according to the report. In a statement, Spitzer’s office told LAist the information is being reviewed.
LAist also requested comment from Sidhu, Nocella, Pringle, Ament, Flint, Murray and current Anaheim Chamber of Commerce CEO Laura Cunningham. None returned calls and messages Tuesday.
Current mayor: ‘Rampant’ wrongdoing in city
Anaheim Mayor Ashleigh Aitken told LAist Tuesday the report "confirms the wrongdoing that was rampant in the city."
Am I shocked about the information contained in the report? No. But am I livid? Absolutely.
Aitken ran for mayor in 2022, and won, on a platform of reform following the FBI revelations.
"Am I shocked about the information contained in the report? No," she said. "But am I livid? Absolutely."
Aitken said she planned to form an advisory committee of city leaders from different sectors to review the report and make recommendations for changes to campaign finance and other city laws.
"I don't want this to just get put on a shelf and a year from now people can say nothing has changed. I'm not going to let that happen," she said.
Last week, Ely Flores, executive director of the nonprofit Orange County Communities Organized for Responsible Development, told LAist despite campaign promises from Aitken, he hasn't seen any related action from the mayor or current city council so far.
"No one is championing any campaign finance reform ideas or proposals at all," he said, referring to Anaheim’s operations as "business as usual."
Aitken told LAist it would've been "premature" to take action before the report was completed.
"But now that the report has been concluded and we have an outside source that has looked at us and has documented all of these wrongdoings, I think it is time to look at our election system because the biggest losers in all of this are the people," she said. "We're diluting our own residents' vote and our own residents' voices by allowing these actions and lobbyists and these PACs and [independent expenditures] to just go unfettered."
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Read the full report yourself: You can find it here.
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How to stay updated: The next city council meeting is Aug. 15. Check the council calendar here.
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Where to submit feedback: You can contact the mayor or your city councilmember directly. You can also request a meeting with the mayor.
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Send us a tip: We welcome your insights. Submit a tip at the bottom of this story or send an email to our Orange County correspondent: jreplogle@scpr.org.
Former City Councilmember Jose Moreno was a vocal critic of the Anaheim stadium deal during his time in office and regularly called out the influence of the Chamber of Commerce and Disney in city governance. He told LAist Tuesday the report reflects his experiences in office.
"Sometimes you wish you were wrong but on this one, unfortunately, we were not," he said.
Moreno said he hoped the results of the independent investigation would help people understand that the corruption and influence peddling at Anaheim city hall extends well beyond Sidhu, the former mayor.
"How were they able to get five councilmembers regularly to vote consistently with little discussion on major public projects, land sales, ordinances?" he asked.
Moreno said the fact that Disney and the Angels declined to participate in the investigation was telling.
"The Disney Corporation … they're the purse string to all of this," Moreno said.
In a statement to LAist, a Disney representative said the report "erroneously states that there were repeated requests for Disney to participate. While Carrie Nocella was asked to be interviewed and her attorney declined, no other Disney staff were ever asked to participate.”
Moreno said the core problem is the lack of strong campaign finance and lobbying rules in the city. As a councilmember, Moreno proposed enhanced campaign finance rules several times in recent years, including limiting the amount of time that candidates can fundraise. But he failed to get them passed.
"It's very difficult to ask a working class city of its residents to keep monitoring their elected officials," he said. "You gotta mitigate as much as possible the influence of money in the elections."
In the report, investigators renewed calls for the city council to approve campaign finance reforms put forward last year by Moreno.
‘Like mob behavior’
Jodi Balma, a Fullerton College political science professor who closely follows Anaheim politics, says the report shows a “blatant disregard for the law” and feels “like mob behavior.”
“It felt like the worst of Tammany Hall, which resulted in those Boss Tweed political machines,” Balma said, referring to infamous corruption in New York City in the mid-1800s.
That corruption, she noted, “resulted in the progressive movement that really reformed government.”
That means Anaheim has an opportunity, Balma said, to develop reforms “that will not just stop the next scandal from happening, but give themselves a city that is transparent, that is responsive, and that truly serves the people of Anaheim.”
“That's what my hope is.”
Read the full (redacted) report
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