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Allegations paint picture of influential cabal in Anaheim politics

By Randell Zeff 1 month ago

Table of Contents

  • Mystery meetings
  • Inappropriate influence?
  • The stadium deal

Sometime following Harry Sidhu was elected in 2018, nearby enterprise leaders gathered for a meet up with-and-greet with the new mayor at the Anaheim Chamber of Commerce.

Even though then-chamber CEO Todd Ament did not operate for Town Corridor, the concept to the assembled group was: The path to get a task authorized or do business with the metropolis was by way of Ament, recalled Paul Kott, who’s had a genuine estate organization in city for 40 yrs.

“Todd was introduced by Harry as, if any person needed to provide a project right before the city of Anaheim, they ended up to bring it before Todd Ament,” Kott mentioned.

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Small business leaders hobnobbing with elected officials is very little new, but some Anaheim people have extensive felt the city’s partnership with its Chamber of Commerce has been at situations, as Kott put it, “too close for ease and comfort.”

Now federal investigators are alleging that a self-described “cabal” of small business and political leaders held key retreats and exerted “significant influence” around how the town is operate, bypassing the community system.

To protected lookup warrants for Sidhu’s electronic mail and cellphone, the FBI filed on Could 12 an affidavit that outlined allegations of fraud relating to the purchase of a helicopter, and also bribery, obstruction of justice and witness tampering in connection with the city’s deal to offer Angel Stadium to SRB Management, Angels operator Arte Moreno’s business enterprise partnership. Sidhu has not been billed with something.

And Ament appeared in federal courtroom Tuesday, May well 17, on rates of lying about his belongings when acquiring a dwelling in Huge Bear Town he did not enter a plea. In an affidavit, FBI Distinctive Agent Brian Adkins alleged Ament engaged in things to do that recommend affect peddling, defrauding a enterprise and exerting impact about Anaheim city officials.

Ament and Sidhu have not responded to requests for comment, and their respective lawyers have declined to comment on the allegations.

Federal authorities would not verify the two investigations are linked, but context in courtroom paperwork factors to a connection. Situations described in the affidavits – for search warrants in the investigation of Sidhu and for an arrest warrant of Ament – took location in related time frames and the Ament affidavit mentions multiple unnamed Anaheim elected officers.

The Sidhu affidavit refers to an FBI investigation that led to a cooperating witness who was an staff of the Anaheim Chamber of Commerce. Names in the document have been redacted, except in one particular section transcribing a taped conversation concerning Sidhu and the cooperating witness, when Sidhu addresses the person as Todd.

These alleged cozy relationships and guiding-the-scenes impact have led to just one arrest so significantly, they might have served get the last town manager booted from his position, and they could spell the conclusion of the mayor’s political job and cause the unraveling of the city’s most significant true estate offer ever – the sale of the 150-acre Angel Stadium property for $320 million.

Mystery meetings

Listening in by way of wiretaps and intercepting emails since 2019, Particular Agent Adkins alleges a picture emerged of a small group of organization and political figures, with Ament and an unnamed political expert as its ring leaders, that was exerting influence on city procedures and steps.

Ament was not on the city’s payroll, but Sidhu taken care of him as a shut advisor and he was a frequent customer at City Hall, quite a few persons interviewed explained.

Todd Ament, former CEO of the Anaheim Chamber of Commerce, at an event in 2011. (File photo by MARK RIGHTMIRE, THE ORANGE COUNTY REGISTER)
Todd Ament, former CEO of the Anaheim Chamber of Commerce, at an event in 2011. (File photo by MARK RIGHTMIRE, THE ORANGE COUNTY Register) 

“His existence on the seventh flooring (exactly where the mayor and council customers have places of work) was ideal away,” stated previous councilwoman Denise Barnes, who served from 2016 to 2020. “I try to remember seeing him there and asking yourself, ‘Why is the chamber so included here?’”

Listening in on a Nov. 23, 2020, mobile phone get in touch with between Ament and the political expert, FBI brokers claimed in the court paperwork they listened to the two debating who should get an invite to just one of their “retreats” and how to handle associations with council associates. Names were redacted throughout the affidavit.

“Ament: For me, we know [Elected Official 2] this considerably appropriate, so if we go get him into the cabal and he’s actively playing double agent, then we are all screwed.

“Consultant: Right, that’s my point, I believe, like for case in point, at the retreat, I want to have a topic remaining, how substantially do we belief [Elected Official 5]? How a great deal do we have confidence in [Elected Official 2]? I really don’t have any doubt about [Elected Official 7]. I’m not advocating that we invite him, I’m just stating I really do not believe we need to stress about him. I consider ideologically he is a true believer.”

Other opinions in the intercepted connect with provided featuring a single official the mayor professional tem placement to hold him happy and reminding him that due to the fact they just “got [him] reelected,” he need to continue on to perform ball.

Councilman Avelino Valencia, who was elected in 2020, mentioned he was informed the group existed, but was never officially invited to its conferences.

“I had a sense of it, but the actuality that there was this method in put of key conferences and retreats was stunning,” he stated.

Valencia mentioned he “didn’t imagine it was right and didn’t want to be a element of it,” and the ringleaders did not involve him due to the fact they realized he’d drive back again.

Other city officers who stated they went to meetings with Ament characterised them as innocuous situations centered on financial concerns.

Councilman Steve Faessel and Metropolis Supervisor Jim Vanderpool, who took the submit in September 2020, recalled attending a assembly hosted by the chamber that December, but they stated it wasn’t like the alleged cabal retreats the affidavit describes.

The meeting involved reps of Anaheim motels and other firms and chamber staff, and the subjects discussed have been the rollout of COVID-19 vaccines, the metropolis funds and how to get firms open and individuals back again to function, they claimed.

“I never feel political intrigue was any aspect of it,” Faessel reported.

Though the affidavits in the Ament and Sidhu investigations do not identify the political marketing consultant who was component of the so-identified as cabal, they cite information – the consultant’s company is in the very same building as the Anaheim chamber, and lobbying stories demanded by Anaheim present the consultant did do the job for stadium buyer SRB Administration – that are reliable with Jeff Flint of FSB Public Affairs. Many individuals interviewed claimed Flint frequently participated in conferences with Ament and Sidhu relating to city enterprise.

Requested about Ament and Flint’s involvement in metropolis troubles, previous metropolis manager Chris Zapata said, “Ultimately, they have been the genuine shot callers in Anaheim.”

Zapata verified he has been interviewed by the FBI.

In an emailed assertion, Flint said, “I have no hesitation in expressing that I firmly believe I did nothing erroneous nor illegal.” He extra that it’s painful to imagine the allegations staying built may possibly hurt his business, and he’s getting a depart of absence as CEO of FSB General public Affairs.

Councilman Trevor O’Neil stated he fulfilled and talked with Flint and Ament on lots of instances, given that the chamber and a business lobbyist would obviously want to explore economic challenges and advancement tasks.

“To the extent that there’s a cabal managing metropolis choices is not my practical experience,” O’Neil mentioned. “It’s up to us (council members) to make independent selections on the troubles prior to us and that is just what I did.”

Councilman Jose Diaz, elected in 2020, and former council associates Jordan Brandman and Lucille Kring, in business office throughout some of the time period in problem, could not be attained for comment. Councilman Jose Moreno, who generally dissents from the council majority, mentioned he wasn’t invited to the alleged retreats.

Inappropriate influence?

The investigations into Sidhu and Ament grew out of an unrelated probe into a person suspected of “theft or bribery” involving federal resources linked to a hashish plan, in accordance to courtroom filings in Ament’s circumstance. Melahat Rafiei, a Democratic chief and hashish specialist in Orange County, on Thursday discovered herself to the Sign-up as the human being being investigated in that case.

Rafiei started cooperating with the FBI just after remaining arrested in 2019 she denies the allegations in opposition to her and the charges had been later dismissed – even though in a way they could most likely be refiled. Rafiei mentioned in a assertion that she “cooperated fully” with the FBI “in their effort and hard work to root out corruption in Anaheim town authorities.”

In 2019, Ament and the political guide allegedly told Rafiei, who was carrying a wire, that paying dollars to join a chamber “task force” would get her client a seat at the table to help write procedures for the metropolis that would give their small business an edge.

Some of the $225,000 Rafiei’s consumer compensated for that accessibility is alleged to have finished up in Ament’s pocket.

Rafiei told an FBI agent that her comprehending was the consultant’s community affairs organization would draft a coverage to be rubber-stamped by the undertaking power, and it would get despatched more than to Anaheim city workers, who would existing it to the Town Council to consider.

Zapata offered another illustration of alleged influence. He claimed Ament and Flint had been associated in the Sidhu-driven proposal to give $6.5 million in city reserve funds to tourism bureau Visit Anaheim in March 2020 – considerably less than two weeks soon after all key points of interest in the city, which include the Disneyland Resort and Honda Heart, experienced shut down and tourism plummeted as the coronavirus fast unfold.

Zapata experienced proposed employing $3 million from reserves, split evenly amid aid for citizens, enable for having difficulties firms and unanticipated town charges, this kind of as more cleansing and having pandemic info out to the community, he reported.

Sidhu referred to as him back and suggested $14 million, so Zapata reported Ok, let us spherical it up to $15 million, nonetheless break up evenly among company, residents and city demands.

Anaheim Mayor Harry Sidhu holds a press conference to discuss the Angel Stadium lease talks on the 7th floor of Anaheim City Hall in Anaheim on Tuesday, August 27, 2019. (Photo by Kevin Sullivan, Orange County Register/SCNG)
Anaheim Mayor Harry Sidhu retains a push conference to examine the Angel Stadium lease talks on the 7th ground of Anaheim Town Corridor in Anaheim on Tuesday, August 27, 2019. (Photograph by Kevin Sullivan, Orange County Sign-up/SCNG) 

In a subsequent meeting with Ament, Flint, Pay a visit to Anaheim CEO Jay Burress and metropolis executive staff members, Sidhu mentioned they should give $6.5 million of the full to Check out Anaheim. Publicly, Sidhu reported the funds would ensure the business would be all set when tourism resumed.

Zapata questioned if it would be a bank loan and was advised no, it would be a grant.

“I simply cannot advocate that and I won’t, so I’m telling you privately what I’m heading to say publicly,” Zapata reported he explained to people in the assembly.

At a March 26 exclusive council conference to vote on the help package deal, Zapata questioned that the city at least get a enterprise prepare from Pay a visit to Anaheim before handing about the dollars, and that there be some sort of metric to gauge a return on the investment. The council bulk declined to insert all those provisions.

Council associates accredited the funding bundle. A month later on, they voted 5-2 to give Zapata a $475,000 severance deal to resign council customers Moreno and Barnes voted no.

Sidhu’s only general public clarification at the time was “a greater part of this City Council expressed its wish to shift in a diverse path with our metropolis supervisor.”

The stadium deal

Sidhu campaigned for mayor on keeping the Angels in city. Following they exercised their lease’s opt-out clause on the very last day prior to it expired in 2018, Sidhu made resuming the stalled talks a major precedence upon successful election that November.

In January 2019, Sidhu gained the council’s approval to reinstate the previous lease, ostensibly to get time to negotiate a new offer.

Zapata mentioned he prompt the town could leverage the lease extension to find a hire hike, as Oakland was doing with the Raiders at the time.

“My response to the mayor was, ‘What are you likely to cost them?’” Zapata claimed. “He explained, ‘Free – nothing.’”

Sidhu then gave Zapata an aggressive negotiating timetable that had conversations with the staff beginning in April and a council vote on a plan for the stadium and encompassing growth in June.

Zapata said when he described to Ament a number of months afterwards the proposed timeline was “asinine,” Ament replied, “You did not like my schedule?”

Zapata was organized to handle the negotiations with a few executive workers and exterior consultants with the correct know-how, he explained, but Sidhu insisted on using element.

After section of the negotiating crew, Specific Agent Adkins’ affidavit alleges Sidhu appeared to have leaked the appraisal figures to the cooperating witness, who was intended to share it with Angels representatives. Adkins also alleges Sidhu shared with the witness and the political marketing consultant a city document outlining “key issues” for Anaheim in the negotiations around establishing the home. Several months later, the expert was employed by the stadium purchaser to foyer the town pertaining to the sale.

Sidhu’s hope, the affidavit alleges, was to get the deal finished so he could hit up the Angels for $1 million to aid his reelection marketing campaign this fall.

Nonetheless, the document only goes as considerably as indicating it “appears” Sidhu furnished data and says FBI Unique Agent Adkins is “unaware of any facts confirming that Angels Consultant 1 has, in fact, been solicited by Sidhu” for marketing campaign contributions, or that the consultant was conscious of Sidhu’s intention to do so.

Metropolis officials had repeatedly rebuffed criticisms that the offer appeared slanted toward the interests of the buyer, at the price of Anaheim people.

Now, the $320 million deal – projected to build a lively entertainment district with dining establishments, outlets, hundreds of flats and condos and 45,000 careers – seems to be like it could evaporate, and each member of the council has called on Sidhu to resign.

On Tuesday, the Anaheim Metropolis Council will talk about how to proceed.

Although the council embarked on the stadium deal in good religion, knowing that it may well have “an ingredient of corruption” associated, Councilman O’Neil stated, “I do not believe there is a path to continue to transfer it forward and really don’t guidance it, and alternatively support a fresh get started and beginning the course of action around once more.”

Friday night, Allen Abshez, an legal professional representing Angels Baseball and SRB, despatched the metropolis a letter demanding the council complete the offer by June 14.

Abshez reported Angels Baseball and SRB Management “have acted in fantastic faith through their dealings with the city,” and SRB is all set to close the deal. He also wrote the offer achieved “was the final result of an truthful arms-length negotiations with town staff members and its advisors, and has been carefully analyzed and debated.”

Metropolis spokesman Mike Lyster said the lawful ramifications of unraveling the deal aren’t entirely apparent, but it seems “there would be some rights in the settlement and it would be up to them (SRB Administration) no matter whether they pursue those rights or not.”

The metropolis could experience implications from the purchaser if it does not proceed with the deal, or a lawsuit from the condition – for the reason that of an unresolved inexpensive housing dispute – if it does.

If the deal falls aside, Lyster said, the $50 million in deposits the city has now received would be returned to SRB.

Team Writers Brooke Staggs and Teri Sforza contributed to this report.

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