| Businessman defends deal Teaming up with Chula Vista councilman to buy lot mischaracterized, man says By Tanya Mannes STAFF WRITER July 22, 2006 CHULA VISTA – Henry Barros was surprised to see his name in the news recently, the focus of allegations that he was involved in an improper land deal with City Councilman Steve Castaneda. JIM BAIRD / Union-Tribune Henry Barros did some maintenance work at one of his properties in Chula Vista. "I've always had a good reputation," he said. “I've always had a good reputation,” the local businessman said, his slow, measured voice reflecting his rural roots. “I have nothing to hide, but I feel like I've been blackballed.” Last year Barros and Castaneda jointly purchased a vacant lot, which they later sold at a profit. Critics complained that Barros had undue influence on Castaneda, who votes on zoning decisions that could affect the value of several properties Barros owns. The 2005 land deal is being reviewed by the Fair Political Practices Commission at the request of the city's ethics commission. Barros is an Imperial Valley native who got his start selling insurance. He built a real estate portfolio that includes properties in Chula Vista and Imperial Beach. He said he has done countless “handshake” deals with friends and doesn't see anything unusual about the transaction with Castaneda. Barros has been involved in loans with Tom Sokoff, owner of Jimmy's Family Restaurant; and land deals with partners, including his brother, Martin Barros; Gregory Montegna, a San Diego resident who owns a Chula Vista law firm; Chula Vista resident Ken Weimer; and Manu Melwani, a Guam native with several investments in San Diego County, according to property records. “I bring friends in on a lot of deals I could go alone,” Barros said during a recent interview in his paper-strewn office at 277 G St. “You share the wealth, and it keeps on coming.” Perceived conflict Several Chula Vista residents perceived that Castaneda had a conflict of interest. Mark Croshier, a retired policeman, filed the complaint that led to the ethics commission reviewing the purchase. Croshier said that when he heard about the deal it reminded him of the bribery scandal that led former Rep. Randy “Duke” Cunningham to plead guilty last November to conspiracy and tax charges. “When I see red flags popping up, I pay attention to them,” said Croshier, who said he doesn't know Castaneda or Barros. AdvertisementIn the July 14, 2005, land deal, Barros and Castaneda bought a vacant lot at 40 L St. for $305,000. They sold it five months later for $370,000, a gain of $65,000. Barros said he asked Castaneda to go in on the deal after other partners backed out. Castaneda had some cash but not enough for half the cost. To make it 50-50, Barros lent him $98,000 at 6 percent interest, which he said was the market rate. Castaneda said that after repaying the loan plus interest and other costs, his net profit was $16,638. He provided The San Diego Union-Tribune with documentation, including copies of canceled checks. The Barros-Castaneda land deal attracted attention when it was disclosed that Castaneda didn't report income from the sale on political disclosure forms, which all elected officials are required to file. The city's ethics commission last month referred the matter to the FPPC and requested an investigation by the San Diego County district attorney. An everyday matter Castaneda said the land transaction was “mischaracterized.” He described it as “something hundreds of thousands of people do every day: investing in real estate.” Castaneda and Barros met in 2004, when Castaneda launched his campaign for City Council. The two found common ground in their Imperial Valley roots. Castaneda's family owned an ice factory, and Barros remembered scrounging pieces of ice to make snow cones, although the two had never met. Barros, who was politically active in the 1980s and 1990s but had since become disillusioned with Chula Vista politics, said Castaneda was a politician he could support. Castaneda, a transportation consultant, ended up renting two properties from Barros: a business office on Third Avenue, which he also used for his campaign; and a house on J Street. He also received two contributions from Barros totaling $500, according to political disclosure forms. This year, Castaneda rented another office from Barros for his campaign for mayor. He came in third in the June 6 primary. Castaneda said he considers Barros a friend, but not a close friend. “He is somebody who is a very nice person and who you like to keep in contact with,” Castaneda said. Barros said he considers Castaneda an honest man. “He's a good person who would have made a good mayor,” he said. “He cares about the little people.” A simpler time Barros believes his preference for doing business with friends just reflects a simpler time. He has been known to pay for car repairs in exchange for avocados and oranges picked from trees in his yard on G Street. Last year, he traded a used TV for a doctor's visit. His favorite pastime is “treasure hunting” for collectibles, such as baseball cards, in the properties he buys. Barros said that years ago he held fundraisers for former mayors Greg Cox and Shirley Horton and former councilwoman Mary Salas, although no records could be found confirming those statements. Cox, a San Diego County Supervisor, said he vaguely remembers Barros holding a benefit at the old Bonita store “a number of years ago.” “I've known Henry a long time,” Cox said, adding that Barros was his insurance agent. In the late 1980s, both were members of the Chula Vista JCs, formerly the Junior Chamber of Commerce. Horton, who also purchased insurance from Barros, said she considers him a “supporter” but said she couldn't remember him hosting a benefit for her campaign. In a review of microfilm campaign forms dating to 1976 in the Chula Vista City Clerk's office, the Union- Tribune could not find a record of Barros being involved in campaigns for Cox, Horton or Salas. Barros was listed as donating $200 in 1998 to former councilwoman Patty Davis. Barros also was linked last year to a battle against high- rise development because he has a stake in the Lions Club building, where a community group held meetings. He denied any connection to the fight against the project known as Espanada. Earl Jentz, the Chula Vista landlord who bankrolled the anti- Espanada effort, confirmed that Barros wasn't involved and said the group paid rent to use the Lions Club. Barros added that he supports high-rise development because it would raise the values of his properties. A bachelor, Barros, 45, lives with his dogs in a house on J Street, one of eight South Bay properties he owns, including a chocolate shop on Third Avenue and waterfront land in Imperial Beach. He aspired to become a developer. He wanted to build a food court in a building he owned at 276 Third Ave., but gave up and sold it after city-mandated negotiations with a neighboring developer failed. Barros began acquiring land with money he made in the insurance business. He doubled his money on his first investment, a $135,000 house in Bonita that went cheap because its garage rested on a cracked concrete slab. Barros was born into a large Catholic family in Calipatria. In high school, he showed steers at county fairs and worked in the fields of squash farms. He moved to San Diego County in 1981 and got a job at Chula Vista's Dwight Gove Insurance Agency. Barros did so well selling insurance that he became full owner in 1994. He recently sold it. Weimer, who was company president, said he saw potential in Barros, describing him as a “natural investor” with a knack for finding a good deal. “He was wet behind the ears,” Weimer said, “but he was not afraid to talk to people or get involved in the community.” http://www.signonsandiego. com/uniontrib/20060722/news_6m22cbarros1 .html |
| Chula Vista City Councilman Steve Castaneda fights a bizarre prosecution by the secretive Patrick O'Toole, San Diego District Attorney Bonnie Dumanis' pal who suddenly went low-profile after a very public announcement of his "Public Integrity Unit." |
| SAN DIEGO EDUCATION REPORT |
| mauralarkins.com |
| Chula Vista City Councilman Steve Castaneda |
| State lets Castaneda vote on condo bid Conflict of interest in measure called 'remote' By Tanya Mannes STAFF WRITER September 15, 2006 CHULA VISTA – The state attorney general has weighed in on a controversy involving Councilman Steve Castaneda, who lived in an apartment complex while the owners sought council approval to convert the buildings to condominiums. A final vote on the condominium conversion for Sunbow Villas, at 750 East Naples Court, was originally scheduled for March 14. The council postponed it to allow for an investigation into whether Castaneda had a conflict of interest and, if so, whether that conflict would prevent other council members from voting on the project. Attorney General Bill Lockyer's opinion on the matter, issued Aug. 25, states that a council member's tenancy in a complex is a “remote interest” that shouldn't prohibit the City Council from voting on an issue affecting the complex. Lockyer states that the council “may execute the subdivision improvement agreement while one of its members is a tenant” as long as the landlord-tenant relationship is disclosed. Further, the council member can receive general relocation benefits as long as the council member doesn't vote on the agreement, he states. Castaneda said in an interview that he felt vindicated by Lockyer's opinion. “The attorney general just corroborated what I knew all along – that I did nothing wrong,” he said. “I have a right, the same as any other citizen of Chula Vista, to rent an apartment.” The conversion delay became an emotionally charged issue leading to the June 6 mayoral primary as buyers blamed Castaneda for holding up their purchase of the homes when he moved into the complex. Castaneda was running for mayor against the incumbent, Steve Padilla. Castaneda has publicly blamed Padilla for the Sunbow conversion delay, alleging that the mayor orchestrated the conflict-of- interest probe as a political move. In the election Padilla placed second, qualifying him for the runoff election Nov. 7; Castaneda came in third. Padilla and Castaneda had battled over whether the council could vote on the condo conversion. Under certain conditions of the state government code, if one council member stands to benefit from a vote, other members are prohibited from voting on it. City Attorney Ann Moore requested the outside opinion from Lockyer. At issue was a $1,000 relocation allowance for tenants of Sunbow, which has 202 apartments. Castaneda said he moved into the complex too late to receive the $1,000, under the original version of the conversion agreement. The council voted in March 2005 on tentative approval of the condo conversion, which was before Castaneda had moved in. He said Padilla's office later revised the agreement. Castaneda said the change extended the $1,000 moving allowance to all tenants, including himself – thereby creating a conflict of interest for him and triggering the inquiry by the city attorney. Padilla denied the accusation that he orchestrated the condo conversion delay, answering “absolutely not” when asked whether his office changed relocation benefit terms. “I think there was a difference of opinion as to what the tentative map conditions were at the time it was approved,” Padilla said. “My office worked with the city attorney and planning and building on behalf of residents at the time to get some assurance they would get their benefit.” Castaneda provided copies of internal city e-mails regarding Sunbow. The documents indicate that a city staff member complained to a supervisor that the mayor's office was getting overly involved in negotiating the Sunbow condo conversion agreement. The e-mails were exchanged in November and December 2005, after the initial vote and a few months after Castaneda had moved in. Padilla declined to comment on the e-mails, saying he wasn't aware of them. Castaneda, who lived 11 months in Sunbow Villas, said he never sought or received relocation money. “It's very sad that the property owner and the citizens who bought homes were dragged through this delay needlessly,” he said. In the meantime, the company doing the conversion, Pacifica Sunbow, sued the city over the delay. San Diego Superior Court Judge William Cannon ruled July 19 that the project could proceed because preliminary plans had already been approved, and the council had missed a deadline for the final vote. http://www.signonsandiego. com/uniontrib/20060915/news_6m15sunbow. html |
| Perjury trial commences today against Chula Vista councilman Judge dismisses request for probe By Tanya Mannes UNION-TRIBUNE STAFF WRITER April 9, 2008 Opening arguments will begin today in the perjury trial of Chula Vista City Councilman Steve Castaneda, who is charged with making false statements about his intentions when he rented an apartment for his wife in 2005. AdvertisementSuperior Court Judge Michael Wellington yesterday denied the defense attorney's request for time to investigate a potential conflict of interest involving prosecutor Patrick O'Toole's “social relationship” with a witness. Wellington did not publicly explain his decision. Castaneda is accused of lying during O'Toole's investigation into an allegation that Castaneda sought free rent, money or benefits from a developer, Ash Israni of Pacifica Cos., who converted his wife's apartment complex to condominiums. Castaneda has described the yearlong grand jury investigation as a “political witch hunt.” O'Toole looked into issues including a $1,000 relocation allowance that was available to tenants. He found that the councilman did not ask for that money or other benefits. Despite finding no evidence of misconduct, O'Toole said he decided to charge Castaneda with 13 counts of felony perjury for “lying about the facts” during his sworn testimony. The perjury charges stem from when Castaneda answered “no” when O'Toole asked him numerous times if he had thought about buying one of the converted condominiums. At least one witness testified that Castaneda asked about the price of a condominium, grand jury records show. O'Toole said he believes that inquiry indicates Castaneda once wanted to buy one, even though he didn't ultimately do so. It would have been perfectly legal for Castaneda to purchase one of the condos or accept a relocation allowance, according to an opinion he sought from the state Attorney General's Office. |
| In April 2007, the Public Integrity Unit of San Diego District Attorney Bonnie Dumanis began prosecuting political opponents of Cheryl Cox. Patrick O'Toole, who had previously been appointed as US Attorney for San Diego by Attorney General John Ashcroft, headed the unit. O'Toole prosecuted a staffer for mayor Steven Padilla who had taken two hours off work in an effort to get a photograph of Cheryl Cox with her disgraced family friend David Malcolm at a twilight yacht party fundraiser for Cox. The staffer was charged with five felony counts of perjury for telling a grand jury that he filled out his leave slip from work before rather than after he took off from his job at the City of Chula Vista. He pled guilty to lesser charges as part of a plea deal. The now-dormant unit ended its active phase with a second and final prosecution, that of Steve Castaneda, who had run against Cheryl Cox for mayor. Castaneda was prosecuted for allegedly lying about whether he planned to buy a condo, even though he never bought the condo in question. According to the San Diego Union Tribune, "Castaneda was a tenant at the complex and was accused of seeking favors, such as free rent, from Sunbow owner Ash Israni, according to the 1,200-page grand jury transcript. The investigation found that Castaneda paid his rent and didn't ask for special treatment. O'Toole told the grand jury the perjury charges are warranted because Castaneda should be held accountable for 'lying about the facts'; even if no crime was uncovered...Castaneda has been vocal about O'Toole's investigations, saying they are politically motivated. He contended that Dumanis conspired with Chula Vista Mayor Cheryl Cox, his political rival in the 2006 mayoral primary." "DA unit works as quietly as it began" "Trial and Re-election bid could coincide" |
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| Integrity is on trial, in an odd sort of way April 16, 2008 I don't know Chula Vista Councilman Steve Castaneda. But whenever a politician is accused of corruption, I want to be there for him – in body, if not in spirit. That impulse led me this week to the San Diego courtroom where Castaneda is on trial for perjury. He is accused of lying during an investigation into a crime he did not commit. His trial is the first prosecution by District Attorney Bonnie Dumanis' highly touted (by her) Public Integrity Unit, which spent nearly two years looking into the crime Castaneda did not commit. The legal stakes are high. The political stakes are higher. So why were jurors fidgeting and smirking? Well, as Superior Court Judge Michael D. Wellington noted in court Monday, “This is an unusual case in a number of ways.” For openers, there's the wacky route it took to the courthouse. Dumanis' unit began looking at Castaneda in 2006, after receiving a tip that he was getting special favors from Ashok Israni, a major Chula Vista developer. As it turned out, Castaneda got no special favors. As it further turned out, even if he had gotten the special favors that were alleged, it wouldn't have been illegal. Case closed? Dream on. Dumanis' office wasn't letting Castaneda off the hook that easy. It decided he lied to the grand jury about the crime he didn't commit, the one that wasn't a crime to begin with. So it charged him with 13 counts of perjury. Prosecutor Patrick O'Toole says Castaneda lied to throw the investigation off its track. Maybe he did. Maybe Castaneda wanted to throw the investigation onto the track of a crime he actually did commit, one that actually was a crime. As a public service. Anything's possible. Another odd thing about this trial: O'Toole keeps trying to talk about the suspicious circumstances that led him to investigate Castaneda in the first place, even though those matters – as Wellington has patiently reminded him – have limited bearing on this case. It's as if the crime that didn't happen is O'Toole's white whale – the one that got away. Here's what did happen: Castaneda rented an apartment for his wife and son (the couple had separated) in an apartment complex that was about to be converted to condos. Like anyone who rented at that time, Castaneda had first dibs on buying the condo. And he became eligible for a $1,000 relocation benefit when he didn't buy in the development. Israni, the complex's owner, had reason to curry favor with Castaneda, and they had the usual developer- politician relationship that involves private meetings and campaign contributions. Yet there's no evidence that Castaneda got a rent break, that the relocation benefit was tailored to line his pocket or that Israni did him any favors. That didn't stop O'Toole from ladling on the innuendo in his opening argument to the jury. “At the end of the day,” he said, “you're not going to be called upon to decide whether there was a corrupt relationship between Mr. Israni and Steve Castaneda – whether the law had been broken, whether it was about to be broken, whether it was ever going to be broken between the two of them. Because that's not the test.” He could just as well have told the jury that it wouldn't have to decide if Castaneda was a hit man for the Mexican Mafia – or was about to become one. So put that out of your mind. True to his word, O'Toole has introduced no evidence to suggest an illicit relationship with Israni. The developer testified for two hours and came across about as corrupt as Gandhi. As for the alleged lies, the most famous concerned whether Castaneda, by renting in Israni's complex, had been angling for a price break when it turned into a condo. Castaneda told an investigator, “I was not planning to buy a condo there.” To prove otherwise, the District Attorney's Office flew down from Washington the rental agent who showed Castaneda the apartment. She testified that Castaneda asked her how much it would cost once it became a condo. Can you imagine that? A Southern Californian curious about the price of real estate? O'Toole is lucky he didn't have to assemble a jury of people who wouldn't ask that very same question. I doubt he could find 12. The jury that did assemble, meanwhile, hardly seems to be in the prosecution's corner. I'm no expert on body language, and would never try to predict a jury vote. However, when jurors laugh at your questions, or roll their eyes, or mutter under their breath, it's probably not a good thing. Those things happened Monday when O'Toole's own investigator was on the witness stand. He and O'Toole had such profound communication problems it was as if they'd just met, rather than having worked on this case for two years. Later, during the cross- examination, the court waited four minutes while the investigator and O'Toole looked for a key passage in a transcript. I'm sure it took four minutes because I was watching the jurors who were turning around in their chairs to watch the clock. When the passage was found, one juror held up four fingers for the others to see. I don't want to jump to conclusions. Maybe Castaneda will be found guilty. Maybe he's a hit man. But we've all heard of runaway juries, and my guess is that this one wants to run away from this curious case as fast as it can. http://www.signonsandiego. com/uniontrib/20080416/news_1m16braun. html |
| No Delay for Chula Vista Councilman Trial Fox News Channel 6 San Diego April 8, 2007 A judge Monday denied a defense request to delay the trial of a Chula Vista city councilman accused of lying to a county grand jury about his personal interest in a condominium conversion project. Attorney Marc Carlos unsuccessfully urged Judge Michael Wellington to postpone trial for Steven Castaneda based on a pending motion in another case alleging that Hispanics are underrepresented in the downtown jury pool. Jury selection in Castaneda's trial is scheduled to begin Tuesday morning. His trial is expected to last two weeks. Though his attorney wanted more time to prepare, Castaneda told reporters outside court that he's looking forward to getting the matter behind him so he can get back to his job as a father, council member and businessman. "I'm very, very happy that this day has finally come," Castaneda said. The councilman -- who is running for reelection -- thanked his opponents for withholding judgment until the criminal matter is resolved. Castaneda contends the charges are part of a "politically motivated witchhunt" against him. He has alleged that San Diego County District Attorney Bonnie Dumanis ordered the investigation into his personal interest as a favor to Chula Vista Mayor Cheryl Cox, whom Castaneda unsuccessfully challenged in the June 2006 mayoral primary. Castaneda was indicted last June on 13 felony perjury charges and two misdemeanor counts of failing to disclose income on a statement of economic interests regarding a separate 2006 land deal in Chula Vista. Castaneda was a renter at Sunbow Villas apartment complex when its owners decided to convert the property and he allegedly considered becoming a buyer. Castaneda ultimately did not buy a condo. Prosecutor Patrick O'Toole said earlier that he has no evidence that Castaneda received special treatment at Sunbow or that the councilman lived at the complex for free and gave official benefits to the developer in return. The perjury charges relate to Castaneda's alleged lies pertaining to the facts of the case in front of the grand jury, O'Toole said. http://www.fox6.com/news/local/story.aspx?content_id=69a13ce3-b354 -4760-b491-375cf3c23791&rss=tick |
| Finally, Dumanis and O'Toole are ready to let go of whatever it was that was controlling them--or maybe "it" let go of them? |
| San Diego Channel 10 Case Against Chula Vista Councilman Dropped May 2, 2008 UPDATED: 5:53 pm Prosecutors announced Friday they will not pursue four unresolved charges against a Chula Vista city councilman who was accused of lying to the county grand jury regarding his personal interest in an apartment complex that was being converted into condominiums. Steve Castaneda was acquitted April 23 on six of 10 perjury counts, and prosecutor Patrick O'Toole said Friday that his office was dropping the case. O'Toole's boss, District Attorney Bonnie Dumanis, issued a statement Friday afternoon following a hearing before Judge Michael Wellington, who dismissed the remaining counts. "If a crime has been committed and we believe we can prove it beyond a reasonable doubt, we have a duty to file charges," she said. "I would like to thank the jury for its effort in trying to decide this difficult case. "Given the not guilty on some counts and the impasse on others, today we asked the court to dismiss the remaining charges in the interest of justice. The District Attorney's Office will continue fulfilling its duty as a watchdog on behalf of the people." From the time he was indicted last year, Castaneda maintained the charges against him were politically motivated. He alleged that Dumanis ordered the investigation as a favor to Chula Vista Mayor Cheryl Cox, whom Castaneda unsuccessfully challenged in the June 2006 mayoral primary. The grand jury investigating Castaneda cleared the councilman of any wrongdoing in connection with his involvement with the Sunbow Villas, an apartment complex being converted to condominiums where his estranged wife was living. During a June 2006 deposition, Castaneda said he didn't mention that he had met the project's developer, Ash Israni, because Israni didn't do anything for him with regard to the development. Castaneda said he was renting an apartment at the complex for his wife and didn't plan on buying a condo there and didn't expect any benefits. The councilman reiterated his testimony to the grand jury five months later. |
| Chief Deputy D. A. Julie Korsmeyer |
| San Diego District Attorney |