Ex-San Ysidro district superintendent Manuel Paul admits squeezing contractor for donations

If we look at the extremely high percentage of women and people of color among the officials indicted by the District Attorney's Public Integrity Unit over the years, we are forced to conclude one of two things:

1) either women and people of color are more corrupt than white males; or

2) the people who are targeted for prosecution do not enjoy the same protections and immunities that white male public officials in San Diego tend to enjoy.

I'm not saying that the DA is racist.  I don't think that's it.  I think the explanation for the gender and color imbalance is simply that the public officials with the most power tend NOT to be women or people of color.  The truly powerful public officials are mostly white males, and the DA wouldn't dare go after them.

And the big money isn't in parking lots in San Ysidro.  It isn't even in $20 million solar panel deals.

A few years ago the FBI was investigating kickbacks to public entities in San Diego from insurance companies. Nothing ever came of that. My guess is that they couldn't find an ideal defendant to indict: someone without connections in the high ranks of the San Diego political establishment.

Here is a link to my page about the County of Santa Clara vs. Driver Alliant Insurance Services, Inc., et al lawsuit.  These are the types of transactions that involve significant amounts of money.  The really big deals are not as much fun for the political establishment to talk about as a small cash envelope in a parking lot--so you don't read about them much in the paper. The big players almost always avoid criminal court. Note the lack of prosecutions in the 2009 Financial Crisis that was caused by the greed of the wealthy and powerful.

The big guys generally don't see the inside of a criminal court, and their civil cases get settled, not tried, where the public might get wind of what actually happened. (Of course, the Manuel Paul case wasn't tried in court, either. Why no trials? Who knows what information might come out in a trial that might expose a big fish?)

Here's a sample of a school district deal worth $1 billion: Superintendent John Deasy of Los Angeles Unified school district (LAUSD) probably isn't worried. I suspect that you need a lot better political connections to become superintendent of LAUSD than you do to get the top spot in San Ysidro School District.

Given that we live in a system in which huge corporation and billionaires believe they can buy elections, it's sort of embarrassing that the FBI is chasing down such small-time players.

Clearly, Bonnie Dumanis and the FBI aren't going to be able to stop campaign finance corruption.

But wouldn't it be nice if the public--and Bonnie Dumanis--started looking a little closer at some of the well-heeled districts on the north side of town?

In CVESD we also had a superintendent using his power to affect the school board election.



See all posts on white chalk crime.

Ex-San Ysidro district superintendent Manuel Paul admits squeezing contractor for donations
Channel 10 News
Aug 20, 2014

SAN DIEGO - A former San Ysidro School District superintendent pleaded guilty in federal court Wednesday to extracting political contributions from a prospective contractor by threatening to withhold work on future building contracts.

Manuel Paul, 63, faces up to a year in federal prison and a $100,000 fine when he is sentenced Nov. 18.

According to his plea agreement, Paul admitted he asked a contractor to contribute $3,600 to three political candidates for the 2010 School Board election...

Read more.

Sweetwater approves campaign finance reform; all it took was a few indictments; now what about other school districts?

An image captured in January 2012, at one of the many heated meetings of the Sweetwater trustees.

Sweetwater School Board to Consider Campaign Finance Reform
Under the current rules, a board member can accept an unlimited amount of money from a contractor seeking or performing work with the district.
By Wendy Fry
NBCSanDiego
Jan 14, 2014

The Sweetwater Union High School District will vote on campaign finance reform Tuesday in the wake of a two-year criminal probe into relationships between contractors and South County politicians.

The community has been persistent in getting the item on the agenda, despite being blocked in the past by the board and superintendent.

The proposal would limit campaign contributions to $750 for a single election contest for candidates for the board of trustees.

It also seeks to ban candidates running for school board to take contributions from anyone other than individuals or political party committees.

...This comes after three Sweetwater Union High School District board members were accused of accepting thousands of dollars on gifts and meals, allegedly for awarding construction contracts to contributing companies.

No limits are currently in place. Under the current rules, a board member can accept an unlimited amount of money from a contractor seeking or performing work with the district. For example, during his 2010 reelection campaign, Board President Jim Cartmill accepted a $20,000 contribution from SGI Construction Management, which working at the time for the district under the voter-approved $644 million bond measure.

The proposed campaign finance rules would do nothing to curb the often big amounts of money spent on behalf of candidates through independent committees. A political party could, for example, spend as much as it wants independently to promote a candidate, as long as the campaign was not coordinated with the candidate.

Sweetwater board approves campaign reform
By Allison Sampite-Montecalvo
SDUT
Jan. 14, 2014

CHULA VISTA — The Sweetwater Union High School District school board, with three members facing criminal charges in a pay-to-play case brought by the District Attorney’s Office, voted unanimously Tuesday in favor of campaign finance reform.

The reform was supported by trustees Jim Cartmill, John McCann and Bertha Lopez. Trustee Pearl Quiñones was absent. Cartmill, Lopez and Quiñones have been indicted in the corruption investigation.

Many residents consider the reform decision a huge step forward in transparency and restoring trust. Community member Maty Adato said the vote was a move in the right direction.

“This is the fifth time this issue have been on the agenda in two years,” she said. “They’ve never wanted to adopt it.”

The decision limited campaign contributions that can be made to board candidates to a maximum of $750. Only individual donors would be allowed to make contributions. Previously there was no limit on the amount or type of campaign contributions that a school board candidate could accept.

The resolution makes it “unlawful for an individual to make, or for a candidate or a controlled committee to solicit or accept” a contribution more than $750 for a single election contest.

“The limit would apply to both campaign committees and also to legal defense funds, which are additional separate fundraising mechanisms that elected officials may use when they’re facing particular illegal matters related to their office,” said Christine Cameron, an attorney who works for the district. Cameron also said the knowing solicitation of district employees for contributions is prohibited.

“The resolution also provides that at a later time the board would develop procedures for investigating violations of the rules but in the meantime a complaint submitted to the superintendent and signed by the complainant would have to be investigated using an independent investigator,” she said.

A controversial item on how to fill a board seat vacated by a member who pleaded guilty in the corruption case didn’t make it to a vote Tuesday. Although the members present formed a quorum, a decision on the vacant seat issue requires the support of three or more board members, and that appeared unlikely, so the matter was delayed. Board members also felt it was important to include Quiñones in the decision.

The vacancy was created when Arlie Ricasa resigned after pleading guilty Dec. 19 to a misdemeanor charge of accepting gifts above state limits. The Sweetwater indictments were among others at the San Ysidro School District and Southwestern College.

The board decided it would try and get in touch with Quiñones as soon as possible and set another meeting to either decide on a process for a provisional appointment or go forward with a special election.

But the trustees are up against a ticking clock.

The school district’s attorney, Dan Shinoff, said that according to board bylaws, members must fill the vacant seat within 60 days, or Feb. 17. The more time that passes the more likely it is a special election would be held, which Shinoff said could cost up to $1.5 million for a nine-month appointment (when Ricasa’s term would have expired). Shinoff said the special election would cause “a significant fiscal impact on the district.”

Southwestern College board member resigns in protest of secrecy regarding financial information

I've been wondering why school board members ALWAYS accept the corruption in schools, and simply join the club when they get elected. I thought that perhaps the idea of standing up for ethics, the rule of law and the public good had gone out of fashion. But Bill Stewart has proved me wrong.

Several officials have been charged with crimes related to relationships with contractors and Proposition R expenditures, including board member Yolanda Salcido.

How to solve the problem? Recall Yolanda Salcido and replace her with Bill Stewart. And if that doesn't give enough votes for transparency about finances, recall any other board members who are opposing it and replace them with people who believe in transparency.



Bill Stewart served as a Southwestern trustee for four months, December 2012 to March 2013.

Southwestern College trustee resigns in protest
By Susan Luzzaro
San Diego Reader
March 2, 2013

The latest at Southwestern College is the sudden resignation of trustee William Stewart, who gave an exclusive interview to the student newspaper, the Sun, on March 1. He told news editor Thomas Baker that he was quitting in protest; he said he is frustrated with the district’s lack of transparency and lack of shared governance.

Stewart, who is a realtor and a professor of philosophy at San Diego City College, was elected in November 2012 and began serving in December; his campaign rhetoric was optimistic. He told the Sun in October, “I think I bring to the board a very student-centric perspective because the questions are: how are the students being served? Is our budget best focused on meeting the needs of our students?”

Barely four months later, in his letter of resignation addressed to the faculty and staff of Southwestern, Stewart wrote:

“I hoped to bring a level of board oversight that was unprecedented in this district…to provide you, the stake holders, with a true sense of assurance that the numbers with which you were provided were real and reliable. I wanted to provide you with a board member that with certainty could tell you that income projections were reflective of most likely case scenarios, and not worst case scenarios, which can lead to significant underestimations in projected funding.

“I wanted to provide you with assurance that the information on our college expenses provided accurate information on real time savings, and did not look artificially inflated due to positions that were on the books but were not filled. In my judgment, such accurate numbers should not be withheld from anyone and certainly should not be withheld from the scrutiny of the board. Such real numbers should be used as the proper framework by which to plan the future and to work with its employees and their bargaining units. It is my opinion that Southwestern has a precious resource in its employees, not dangerous adversaries.”

Last week, faculty members protested to the board that incorrect data was being used to drive the education plan — which in turn is driving the Proposition R facilities plan.

Prior to Stewart’s resignation, a special board meeting — which many fear will pertain to pink slips — was called for March 4.

Southwestern articulation officer Veronica Burton commented on Stewart’s resignation and on the state of the campus:

...“We have all worked so hard to make positive change and this is a huge setback. We are once again making news because of questionable practices at Southwestern. This further perpetuates the atmosphere of lack of transparency and trust...”

Read more.

Bertha Lopez and Manuel Paul indicted, and, surprisingly, a white male Republican: Sweetwater's Jim Cartmill

Sweetwater Union High School District board
Back Row (Left to Right): Jim Cartmill, Dr. Ed Brand, superintendent, John McCann
Front Row (Left to Right): Bertha López, Arlie N. Ricasa, Pearl Quiñones

I am shocked. Bonnie Dumanis' Public Integrity Unit has indicted a white male Republican. Jim Cartmill has learned the hard way that he can't count on Bonnie anymore. But the D.A. has spent years going after people in the South Bay that Jim Cartmill wanted to destroy politically, so he should man up and pay the piper.

After Being indicted, former CVESD trustee Bertha Lopez (currently on the Sweetwater Union High School District board) said she has nothing to hide. In fact, she has been covering-up crimes at Chula Elementary School District for over ten years, along with CVESD board members Pamela Smith and Larry Cunningham. Teachers were pressured to perjure themselves to conceal the wrongdoing of Bertha and her fellow board members. The board included Pat Judd and current Chula Vista mayor Cheryl Cox.

The Union Tribune has long been a fan of Bertha Lopez.

Regarding Bertha Lopez:

"According to court documents, a contractor paid for Lopez and eight guests to attend an award ceremony hosted by the YWCA in 2009, which she did not disclose on state-mandated forms. She and her husband were also at Morton’s with Amigable and Paul, according to court documents, and she failed to report the meal on state forms."

3 more indicted in South Bay corruption probe
San Ysidro superintendent is among the new targets of the DA's investigation
Aaron Burgin
UTSD
Dec. 31, 2012

A probe into corruption among South Bay school leaders has widened to include another district, with indictments against three additional officials.

Manuel Paul

A grand jury has indicted San Ysidro School District Superintendent Manuel Paul and Sweetwater Union High School District board members Jim Cartmill and Bertha Lopez, according to a criminal defense attorney who represents all three.

Two other Sweetwater school board members were charged a year ago, along with a former board member and former Superintendent Jesus Gandara.

Attorney James Pokorny, who represents Paul, Lopez and Cartmill, said the grand jury has indicted them on multiple felony and misdemeanor counts including perjury, filing false documents, accepting gifts and bribery. He said they maintain their innocence.

“My take on this is that DA believes that they can target people in the community that have given their energy and lives for betterment of students and that they can topple these people and cripple them from running for office ever again,” he said. “Knowing the people the way that I do, I don’t buy what they are accused of, and I don’t think a jury will either.”

The District Attorney’s office declined to comment on the case.

Pokorny said he received a letter from the District Attorney’s office notifying him that his clients had been indicted, but has not seen the full indictment. He said that Lopez faces 19 felony and misdemeanor counts, Cartmill faces 10 counts and Paul faces six.

Paul admitted in a June deposition in an unrelated lawsuit that he had taken $2,500 in cash from a contractor seeking work from his district. He said the handoff in the parking lot of a steak house was a campaign contribution for a school board member.

It is not clear if the indictment stems from that incident, which has been under review separately by a federal grand jury.

Paul’s name has already appeared in some documents related to the Sweetwater corruption investigation, in which prosecutors are alleging meals, sporting events, plays and other considerations were exchanged for multimillion dollar construction contracts.

Paul and his wife, for instance, are listed in court documents as guests at a $1,700 meal at Morton’s steakhouse in July 2008 hosted by contractor Henry Amigable.

Other guests included three of those facing charges in Sweetwater — Gandara, former board member Greg Sandoval and current trustee Pearl Quiñones. They have all pleaded not guilty.

Amigable pleaded guilty to a misdemeanor in May and is cooperating with county prosecutors.

Lopez and Cartmill largely stayed out of the fray as their colleagues were charged a year ago, although Lopez’s home was raided a year ago and she has been questioned in connection with the case.

“The district attorney is doing their job and I don’t have anything to hide,” Lopez said the day of the raid. “That is the bottom line.”

According to court documents, a contractor paid for Lopez and eight guests to attend an award ceremony hosted by the YWCA in 2009, which she did not disclose on state-mandated forms. She and her husband were also at Morton’s with Amigable and Paul, according to court documents, and she failed to report the meal on state forms.


Update Jan. 16, 2013:

I found another white male Republican that Bonnie has indicted. The case is discussed in this article about the bizarre and unsuccessful prosecution of Steve Castaneda:

HIGH STAKES IN CORRUPTION PROBE
DA aims to regain credibility after unsuccessful prosecution while South Bay figures fight stereotypes
By Aaron Burgin & Katherine Poythress
U-T
JAN. 12, 2013

...Since 2007, only one case lodged by the unit against an elected official has resulted in criminal punishment. Former Encinitas Councilman Dan Dalager was fined $1,000 in 2011 after he pleaded guilty to a misdemeanor conflict-of-interest charge stemming from accepting deeply discounted appliances from a store owner, then voting in the owner’s favor in a dispute with the city. His case was prosecuted after the transaction was exposed by The Watchdog. A lot is riding on the outcome of the latest cases, also sparked by initial reports from The Watchdog about the relationships between contractors and officials in South County...

Bonnie Dumanis' Public Integrity Unit goes after another Mexican-American (current target: San Ysidro School District)

Manuel Paul

UPDATE: Manuel Paul indicted, along with Bertha Lopez and Jim Cartmill.

So far, Bonnie Dumanis' Public Integrity Unit has always acted on behalf of Republican officials.

Is it because Republicans in San Diego have more integrity than Democrats? Clearly not. Republican Mayor Dick Murphy planned the deal that earned San Diego infamy as "Enron by the Sea." But the only people charged by Bonnie Dumanis in the secret pension deal were employees, not officials.

The District Attorney is very selective about her public official targets.

With one exception, they are all from Greg Cox/Cheryl Cox's district (South Bay), and they are always Mexican-American (or assistants of Mexican-Americans), and they are all Democrats (except for one Republican Mexican-American who had the temerity to run against Cheryl Cox). The one exception is Kathleen Sterling, a North County Democrat.

Former Superintendent Lowell Billings of Chula Vista Elementary School District covered up crimes, and seems to have padded his pockets.

Superintendent Says Cash Exchange was for Campaign
By Wendy Fry
Aug 4, 2012
NBCSanDiego

The superintendent of San Ysidro school district said in a June 20 deposition that he accepted $2,500 in cash from a contractor in 2010 in the parking lot of the Chula Vista Butcher Shop, a South Bay restaurant that has since been renamed the Steak House.

The superintendent of San Ysidro schools said in a June 20 deposition that he accepted $2,500 in cash from a contractor in 2010 in the parking lot of the Chula Vista Butcher Shop, a South Bay restaurant that has since been renamed the Steak House.

San Ysidro schools superintendent Manuel Paul said the money was for a campaign contribution for board member Yolanda Hernandez.

“It was cash given to me by Mr. Loreto Romero,” Paul said. “He gave me cash for campaign posters for Mrs. Yolanda Hernandez.” Paul later added the amount was about $2,500.

Hernandez did not respond to multiple requests for comment made over several weeks. Loreto Romero concurred with Paul’s description of the cash exchange, saying the money was a political donation. When pressed, Romero admitted he was hoping to compete for a construction management contract with the school district at the time the money was dropped off.

A donation from Romero does not appear on any campaign finance forms available on the San Diego County Registrar’s website for Hernandez and the county campaign services supervisor confirmed Friday that no amendments have been made or filed recently. Even if the money was a political donation, San Diego State political science professor Brian Adams said exchanging that much cash breaches state campaign finance laws.

“For cash, it’s $99 for what you can receive. Everything else has to be in a check,” said Adams, who has written a book on local and state campaign finance laws. Paul’s deposition was taken as part of a lawsuit brought by Chula Vista-based Manzana Energy, a solar panel company suing the district for breach of contract. The approximately $18 million services contract would have allowed the school district to purchase solar power from political consultant Art Castañares’ company, Manzana or EcoBusiness Alliance - another business name for Manzana.

Under the deal, San Ysidro agreed to buy power generated by the panels from Manzana Energy over 25 years for a flat fee of $18.9 million. Manzana was to pay $16 million to buy and install the panels, which would have generated about 70 percent of the schools’ power needs. School district officials estimated at the time that the deal would save San Ysidro $10.5 million in energy costs over the 25 year life span of the contract.

The equipment was supposed to be installed in early February 2008, but not one panel had been put into place when the contract was terminated in October 2011. Because no panels were installed, no district funds were ever spent on the endeavor. Castañares’ is building a case that his contract was terminated because he refused to “pay to play.”

In the deposition, Paul said he took the cash from Romero to a business in Tijuana to make posters for Hernandez’s election campaign.

“That’s completely illegal. And it’s very clearly illegal,” said SDSU professor Adams, who said that all campaign cash must be deposited into a campaign account and then expenditures made from that account to promote transparency.

“You can of course amend your form and that does frequently happen with candidates who make mistakes, but the initial mistake is still there and they can still be fined for that. Also, what’s typical in these types of cases is the money has to be returned. Now, I don’t know if they’ve returned the money, but it is very likely they will be required to return the money to the contributor.”

San Diego County District Attorney Bonnie Dumanis is prosecuting six current and former officials in the neighboring Sweetwater school district for their role in what she has described as a pervasive and systemic “pay to play” atmosphere. Dumanis said the Sweetwater officials traded their votes on key contracts in exchange for Lakers tickets, Halloween costumes, expensive meals and other entertainment.

In an email statement in response to questions about the 2010 cash exchange, Paul wrote:

“We are in the middle of litigation with EcoBusiness System I am not willing to discuss anything relative to pending litigation. Apparently your interest involves information you have learned from a deposition. I am surprised that you would have a deposition that has not been filed in court in your possession. That being said, I believe that there are ulterior motives by parties to this case which relate to an effort to pressure an improper resolution. That will not occur, and I will not allow my position to be used for such a purpose. I must respectfully decline your request to go camera. I believe that the issue you have discussed with others in my office has been completely obfuscated. I believe the proper reporting regarding campaign contributions have been made."

NBC7 asked Paul why he was collecting campaign money on Hernandez’s behalf, as he is not listed as her campaign manager or treasurer in disclosure forms, but he has not yet responded to that question.

During the Fall 2010 cash exchange in the parking lot, San Ysidro schools was accepting bids for construction on a new school, Vista Del Mar. According to Paul’s testimony in the deposition, companies who competed for the contract included: Echo Pacific, Barnhart Balfour Beatty, Erickson Hall, GI Construction Management, Seville Construction Management and HAR Construction Management, a company headed by Loreto Romero’s brother, Hector.

Erickson Hall eventually won the contract.

The San Ysidro school district consists of seven schools serving about 5,200 students in kindergarten through eighth-grade, along the U.S. border with Mexico.

Source: Superintendent Says Cash Exchange was for Campaign | NBC 7 San Diego