James Ramos, former chairman of the San Manuel Band of Mission Indians, with San Bernardino County District Attorney Mike Ramos, Wednesday evening at a campaign fundraiser at the National Orange Show Events Center in San Bernardino, Calif., May 2, 2012. (Redlands-Loma Linda Patch photo by Guy McCarthy.)

By Guy McCarthy
May 2, 2012

The campaign for James Ramos, candidate for county supervisor in the Third District that includes Redlands and Loma Linda, released part of a letter Wednesday from the Fair Political Practices Commission stating his disclosure of economic interests are appropriate.

Ramos supporters said the FPPC’s enforcement division chief “today dismissed a frivolous complaint from a Neil Derry supporter that alleged improper reporting of Form 700 disclosure forms.”

A press release from Ramos’ campaign quoted part of the letter from Gary Winuk:

“This letter concerns the Fair Political Practices Commission’s Enforcement Division’s review of your complaint alleging James Ramos’ inaccurate completion of his Statements of Economic Interests.

“After review by staff, it was determined that because his Statements of Economic Interests were filed for several agencies, they appropriately reflect the different disclosure requirements attached to each position he holds, which leads to a difference in the levels of disclosure on each statement.”

The portion of Winuck’s letter released by Ramos’ campaign did not mention current Third District Supervisor Neil Derry, who is running for re-election against Ramos.

“This is the type of political gaming voters have come to expect from Neil Derry,” Ramos campaign spokesman Andre Levesque said in a prepared statement. “We knew all along these reports were a desperate attempt by Neil Derry to divert attention from Derry’s criminal past.”

Reached Wednesday evening, Derry said the FPPC did not dig deep enough.

To read entire story, click here.

Joe Nelson, Staff Writer
Posted: 04/20/2012 12:11:17 PM PDT

A San Bernardino Superior Court judge on Friday lifted bail for four defendants in the Colonies Partners corruption scandal, freeing them from having to pay an annual bond premium as the one-year anniversary of their arrest nears.

On behalf of defendant and Colonies’co-managing partner Jeff Burum, attorney Stephen Larson said Burum poses no flight risk and has abided by the terms of his bail since posting bond on the $10 million bail days after his arrest last May.

Larson also spoke on behalf of the other three defendants – former county Supervisor Paul Biane, former Assistant Assessor Jim Erwin, and Mark Kirk, former chief of staff for Supervisor Gary Ovitt. Their attorneys joined Larson in his motion.

“We believe it’s appropriate to release them on their own recognizance,” Larson told Judge Michael A. Smith. He said requiring each defendant to continue paying the annual bond premiums would pose financial hardship on them.

Prosecutors did not oppose the move on condition the defendants continued to abide by the travel restrictions previously imposed upon them by the court. They are not allowed to leave the country while their case is being adjudicated and must notify prosecutors if they plan to leave the state.

To read entire story, click here.

Published: 20 April 2012 11:42 AM

A San Bernardino County Superior Court judge agreed Friday to lift bail for three former county officials and a developer facing corruption charges.

Judge Michael Smith agreed to allow the four men to remain free on their own recognizance as the case continues to remain in the pre-trial stage almost a year after the defendants were indicted.

Last May, a grand jury charged Colonies Partners co-managing partner Jeff Burum, former county Supervisor Paul Biane, former Assistant Assessor Jim Erwin, and Mark Kirk, former chief of staff to Supervisor Gary Ovitt, with conspiracy and bribery-related charges.

They are accused of taking part in a conspiracy that led to a $102 million settlement paid by the county to Burum’s company in November 2006.

Burum’s defense attorney Stephen Larson argued that the defendants have proven they are not a flight risk with their regular appearances in court over the past year.

“These defendants have demonstrated they are very vigorously dedicated to staying here and proving their innocence,” he said.

To read entire story, click here.

BY RICHARD K. De ATLEY
STAFF WRITER
rdeatley@pe.com

Published: 16 March 2012 08:03 PM

Attorneys for Colonies case figure Jeffrey Burum have filed a motion that seeks to force prosecutors to hand over all material that could include evidence helpful to Burum in his defense.

The motion is necessary, defense attorney Stephen G. Larson said in the document, because he believes there is evidence that the San Bernardino County District Attorney’s office has not been handing over all such material in a timely way to the defense, despite several requests to do so.

He said prosecutors have “engaged in what appears to the defense as a game of ‘cat and mouse.’“

The Colonies case focuses on a $102-million settlement the county paid Rancho Cucamonga developer Colonies Partners in November 2006. Prosecutors contend the deal was a result of bribery and extortion.

Colonies co-managing partner Burum, former county Supervisor Paul Biane, former Assistant Assessor Jim Erwin, and Mark Kirk, former chief of staff to Supervisor Gary Ovitt, face conspiracy and bribery-related charges.

In his motion, Larson pointed out the defense’s receipt in early January of the transcript of an Oct. 14, 2011 FBI interview with key prosecution witness, former County Supervisor Bill Postmus. In the transcript, Postmus described his continued addiction to methamphetamine during his settlement negotiations over his role in the case; it also revealed that Postmus doubted the truthfulness of another prosecution witness, Adam Aleman.

To read entire story, click here.

Postmus

By Joe Nelson, Staff Writer
Posted: 03/10/2012 03:03:31 PM PST

An admission by former San Bernardino County Assessor Bill Postmus to federal authorities that he used methamphetamine dozens of times in 2011 has a defense attorney in a far-reaching county corruption case questioning the tactics of prosecutors.

The admission came during an Oct. 14 interview with assistant U.S. attorneys Jerry Behnke and Joseph Widman and FBI agent Jonathan Zeitlin, when Postmus told the trio what he knew about an alleged corruption scandal state and local prosecutors are calling the biggest in county history.

It raises the question of whether Postmus may have violated a plea agreement he struck with state and local prosecutors in March 2011, which stipulated he was to violate no laws and could be committed to a state corrections drug rehabilitation program if he were found to be abusing drugs.

“Mr. Postmus’ admitted, extensive use of drugs both during and after the settlement negotiations, as well as during the period that he has been cooperating with and supervised by the prosecutors in this case, raises disturbing questions about his reliability and the conduct of the prosecution,” said Stephen Larson, attorney for Rancho Cucamonga developer Jeff Burum, a defendant in the corruption case.

Prosecutors allege a $102 million settlement between the county and Burum’s Rancho Cucamonga investor consortium Colonies Partners LP was tainted by bribery and extortion. The settlement, approved by the Board of Supervisors on a 3-2 vote on Nov. 28, 2006, ended a contentious land-rights lawsuit over who was responsible for building and paying for a flood-control basin at the Colonies’ 434-acre residential and commercial development, Colonies at San Antonio and Colonies Crossroads, respectively, in Upland.

In May, four people were indicted on multiple charges of criminal conspiracy, bribery and conflict of interest, among other charges, in connection with the Colonies case: Burum, former county Supervisor Paul Biane, former Assistant Assessor Jim Erwin, and Mark Kirk, former chief of staff for county Supervisor Gary Ovitt. All four deny any wrongdoing.

Under a proffer agreement, Postmus, who said he has struggled with methamphetamine addiction since the end of his first term as a county supervisor in 2004, told Behnke, Widman and Zeitlin what he knew about the alleged bribery case.

A proffer agreement, also referred to as a “queen for a day” letter, is a written agreement between federal prosecutors and individuals under criminal investigation that allows them to tell the government about their knowledge of crimes, with the supposed assurance that what they say will not be used against them in any later criminal proceedings.

When Behnke asked Postmus if he could recall the last time he used drugs, Postmus said it was the early part of 2011, when he purchased some methamphetamines to use by himself at home, according to the interview transcript.

During his testimony before a criminal grand jury in April, Postmus told Deputy District Attorney Lewis Cope he had been drug free for more than nine months. Zeitlin noted in a cover letter included in the October interview transcript that Postmus, in the six months prior to the interview, admitted to using methamphetamine roughly a “couple dozen times.”

Originally a defendant and faced with multiple felony charges in the Colonies case and a companion corruption case alleging he abused his elected position as county assessor, Postmus in March 2011 entered into a plea agreement with state and local prosecutors. He agreed to cooperate in the Colonies investigation and prosecution and to testify against the four defendants at trial in exchange for reduced charges.

At the time of his plea agreement, Postmus was facing three separate felony drug charges and multiple felony charges in the Colonies and Assessor’s Office criminal cases.

Postmus remains out of custody on his own recognizance.

Prosecutors decline to comment on the case, but believe their evidence is solid.

“In order to protect the integrity of the case and each defendant’s right to a fair trial, we are required to continue to reserve our comments for the courtroom,” said Christopher Lee, spokesman for the District Attorney’s Office.

In his cover letter included in the October interview transcript, Zeitlin also noted that during the first half of the interview, Postmus appeared “nervous and reserved,” doodling shapes on a notepad. After returning from a break, Postmus appeared visibly more animated and relaxed,” and his answers to questions provided significant detail and was far more conversational in tone.

Larson declined to comment on why Zeitlin may have felt that information was important to note.

“The significance of that information will be presented in the courtroom,” Larson said.

To read entire story, click here.

May I have some more please sir?

Friday, February 24, 2012 – 05:30 p.m.

San Bernardino County Board of Supervisors candidate and San Manuel Band of Mission Indians Chairman James Ramos, a man burning through a hefty war-chest at a record clip, appears to be trying to tap non-gambling sources.

Ramos, who’s own campaign polling shows the candidate having serious problems with name identification with voters and several other heavy negatives, is trying to unseat Third District Supervisor Neil Derry.

So far, in his attempt at ousting Derry, Ramos has relied heavily on money from gambling-related interests throughout California.

As of December 31, 2011, Ramos, in his attempt at buying a seat on the Board of Supervisors, had raised more than four-fifths (nearly $700,000) of his campaign funding from gambling sources.

Ramos’ latest attempt at fundraising is scheduled for March 14th at the Cardenas Family (owners of Cardenas Markets) residence in Alta Loma.

Yes, a location outside the Third District.

The evening bash is being headlined by Fifth District Supervisor Josie Gonzales, District Attorney Michael Ramos and State Senator Bill (Republican-in-name-only) Emmerson.

Gonzales hates Derry over his desire to cut elected official benefits, refusal to vote for her to become board chairperson, and lastly because he’s white, and Ramos is Native American/Hispanic. The illustrious District Attorney despises Derry for calling for an investigation into alleged sexual improprieties with his county staff. And Emmerson just does whatever Ramos wants for reasons that can’t be disclosed now.

Ramos even orchestrated Derry being charged for campaign finance violations in an effort to keep him from running.

Not to mention all three have been heavy political beneficiaries of the San Manuel Tribe’s largess.

Amazingly, the invites haven’t even went in the mail as of yet, with the event just nineteen days away.

I served as chief deputy district attorney for the District Attorney’s Office Central Division between October 2006 and June 2009. The city of San Bernardino and the San Manuel Indian Reservation were within my area of responsibility, as was overseeing the DA’s Central Gang Unit. In this capacity I was very familiar with the investigation into problems relating to gang presence at San Manuel and the “killer for hire” case alluded to by county Supervisor Neil Derry (“Crime ties are a serious issue,” Feb. 10).

I am compelled to correct misinformation being propagated by Mr. Derry.

As pointed out by retired Sheriff’s Capt. Mike Howell (“False allegations,” Feb. 6) and retired Redlands Police Chief Jim Bueermann (“Supervisor Derry’s constituents deserve better,” Feb. 8), the name of James Ramos never came to light as having any involvement in any type of criminal activity whatsoever. I saw no evidence at any time that James Ramos had any ties to gang members, drug dealers, killers for hire, or any other criminal. The truth is that Mr. Derry’s accusations are without merit.

As for the “killer for hire” scandal involving two tribal members who supposedly received a “slap on the wrist,” as Mr. Derry puts it, the facts are contrary to his assertions and implications. The case was complex and difficult. It was handled independently and appropriately by the District Attorney’s Office.

James Ramos had no control over the case. The disposition of the case resulted in felony convictions by plea of both defendants, initial grants of felony probation, and ultimately sentencing of the more culpable of the two tribal members to 17 years in state prison when the terms of probation were violated.

To read entire story, click here.

Sunday, February 12, 2012 – 01:00 p.m.

It’s said that money makes a difference in how you are treated in our criminal justice system.

A saying that’s absolutely true. Especially if your a member of the San Manuel Band of Mission Indians.

The Tribe’s current chairman, James Ramos, says he’s cleaned up the reservation and its ties to the infamous Mexican Mafia.

Ramos was even recently quoted in a local newspapers as saying his brethren are held to answer in “Tribal Court”.

A statement clearly coming from a man living in fantasy land.

Not so fast

In just a couple of years after two of the Tribe’s members were given probation after pleading guilty in a murder-for-hire scheme, involving the Mexican Mafia, another egregious incident has come to light.

Information is steadily flowing from the reservation regarding shenanigans occurring on the reservation that have been quietly disposed of.

Here is the first story to come forward.

This time the subject of a ‘free pass’ is San Manuel Tribal member Raymond Green.

On October 29, 2009, Green was charged with trying to harm his girlfriend with a caustic chemical.

Like allegedly trying to set her on fire.

Here is an excerpt from the court docket:

.

Case FSB904686 Defendant 5894 GREEN , RAY CARR – Status

Case FSB904686 Defendant 5894 GREEN , RAY CARR – Charges

.

Two serious cases consolidated

On August 13, 2009, Green had been charged by the San Bernardino County District Attorney with the following crimes:

.

Case FSB903342 Defendant 5894 GREEN, RAY – Status

Case FSB903342 Defendant 5894 GREEN, RAY – Charges

.

The October 2009 case was subsequently consolidated into the later.

At one point Green’s ordered bail was $2,000,000.

Here’s the docket ordering the consolidation of the two felony cases:

Case FSB904686 Defendant 5894 GREEN , RAY CARR – Actions/Minutes

.

Consolidated case dismissed

On July 15, 2011, something very irregular happens.

An evidence suppression motion brought per Penal Code 1538.5 was on calendar to be argued.

Instead something else happens.

The case is dismissed on a motion by the District Attorney.

Green stipulates that probable cause existed to arrest him and the case falls quietly away.

Here is an excerpt from the court docket where the dismissal occurs.

.

Case FSB903342 Defendant 5894 GREEN, RAY – Actions/Minutes

All occurring under the watch of San Bernardino County District Attorney Michael Ramos and San Manuel Tribal Chairman James Ramos.

Two politically-connected friends and benefactors.

.

To place the situation into better context. Here is a court record of all of Green’s past traffic and criminal cases:

.

Case FSB903342 Defendant 5894 GREEN, RAY – All Defendant’s Cases

.

Campaign Contributions

Here’s a partial listing of recent financial support the San Manuel’s have given District Attorney Michael Ramos:

.

DATE     CONTRIBUTOR                           AMOUNT

02/22/11 San Manuel Band of Mission Indians    $ 10,000.00
04/01/10 San Manuel Band of Mission Indians    $  7,500.00
08/01/09 San Manuel Band of Mission Indians    $ 10,000.00

.

District Attorney and Sheriff Budgets

The San Manuel Tribal Government has provided millions of dollars in funding to operations of Ramos and Sheriff Rod Hoops.

The funding given to Ramos pays for hand-picked prosecutors, who review all criminal matters brought before them by Hoop’s deputies, who are responsible for patrolling the reservation.

Not the first time

This isn’t the first time preferential treatment has been given to a San Manuel.

Back in 2006, Tribal members Stacey Barajas-Nunez and Erik Barajas were convicted in a murder-for-hire scheme involving the Mexican Mafia criminal organization.

The criminal element had clearly penetrated the Tribal structure in order to access the vast wealth of its members.

What is striking about the situation is that on November 6, 2008, the Barajas brother and sister duo received probation with the blessing of the District Attorney.

However, Nunez-Barajas ultimately violated her probation and now sits in State Prison serving an 18 year sentence.

Meaning she will actually serve 9 years in custody.

District Attorney Endorsement

As expected District Attorney Michael Ramos, a public official who knows no bounds in the use of his authority, has endorsed the San Manuel Chairman against incumbent Supervisor Neil Derry.

Derry has been critical of DA Ramos’ various professional escapades.

And now the DA is looking for some payback.

BY IMRAN GHORI
STAFF WRITER
ighori@pe.com

Published: 10 February 2012 07:59 PM

Prosecutors and defense attorneys in the Colonies corruption case continued to haggle over evidence in San Bernardino County Superior Court Friday, with both sides saying they are continuing to make progress in turning over documents as part of the discovery process.

The county’s flood control district handed over documents from the arbitration proceedings in the Colonies lawsuit against the county, but at the county’s request Judge Michael Smith issued a protective order. Jerome Friedberg, an attorney for the county, said the documents are confidential and the order allows the documents to be used only as part of the criminal case.

The $102 million settlement the county paid Rancho Cucamonga developer Colonies Partners in November 2006 is the subject of a criminal case in which prosecutors contend the deal was a result of bribery and extortion.

Colonies co-managing partner Jeff Burum, former county Supervisor Paul Biane, former Assistant Assessor Jim Erwin, and Mark Kirk, former chief of staff to Supervisor Gary Ovitt, face conspiracy and bribery-related charges. Only Biane appeared in court Friday as part of a status conference. Smith had waived their appearance at a previous hearing last month.

To read entire story, click here.

Administrator’s note: This article will be updated with a more detailed version on Sunday morning.

Thursday, February 9, 2012 – 10:45 a.m.

It’s said that money makes a difference in how you are treated in our criminal justice system.

A saying that’s absolutely true. Especially if your a member of the San Manuel Band of Mission Indians.

The Tribe’s current chairman, James Ramos, says he’s cleaned up the reservation and its ties to the infamous Mexican Mafia.

Ramos was even recently quoted in a local newspapers as saying his brethren are held to answer in “Tribal Court”.

A statement clearly coming from a man living in fantasy land.

Not so fast

In just a couple of years after two of the Tribe’s members were given probation after pleading guilty in a murder-for-hire scheme, involving the Mexican Mafia, another egregious incident has come to light.

Information is steadily flowing from the reservation regarding shenanigans occurring on the reservation that have been quietly disposed of.

Here is the first story to come forward.

This time the subject of a ‘free pass’ is San Manuel Tribal member Raymond Green.

On October 29, 2009, Green was charged with trying to harm his girlfriend with a caustic chemical.

Like allegedly trying to set her on fire.

Here is an excerpt from the court docket:

.

Case FSB904686 Defendant 5894 GREEN , RAY CARR – Status

Case FSB904686 Defendant 5894 GREEN , RAY CARR – Charges

.

Two serious cases consolidated

On August 13, 2009, Green had been charged by the San Bernardino County District Attorney with the following crimes:

.

Case FSB903342 Defendant 5894 GREEN, RAY – Status

Case FSB903342 Defendant 5894 GREEN, RAY – Charges

.

The October 2009 case was subsequently consolidated into the later.

At one point Green’s ordered bail was $2,000,000.

Here’s the docket ordering the consolidation of the two felony cases:

Case FSB904686 Defendant 5894 GREEN , RAY CARR – Actions/Minutes

.

Consolidated case dismissed

On July 15, 2011, something very irregular happens.

An evidence suppression motion brought per Penal Code 1538.5 was on calendar to be argued.

Instead something else happens.

The case is dismissed on a motion by the District Attorney.

Green stipulates that probable cause existed to arrest him and the case falls quietly away.

Here is an excerpt from the court docket where the dismissal occurs.

.

Case FSB903342 Defendant 5894 GREEN, RAY – Actions/Minutes

All occurring under the watch of San Bernardino County District Attorney Michael Ramos and San Manuel Tribal Chairman James Ramos.

Two politically-connected friends and benefactors.

.

To place the situation into better context. Here is a court record of all of Green’s past traffic and criminal cases:

.

Case FSB903342 Defendant 5894 GREEN, RAY – All Defendant’s Cases

.

Campaign Contributions

Here’s a partial listing of recent financial support the San Manuel’s have given District Attorney Michael Ramos:

.

DATE     CONTRIBUTOR                           AMOUNT

02/22/11 San Manuel Band of Mission Indians    $ 10,000.00
04/01/10 San Manuel Band of Mission Indians    $  7,500.00
08/01/09 San Manuel Band of Mission Indians    $ 10,000.00

.

District Attorney Budget

The San Manuel Tribal Government has provided millions of dollars in funding to operations of Ramos and Sheriff Rod Hoops.

The funding given to Ramos pays for hand-picked prosecutors, who review all criminal matters brought before them by Hoop’s deputies, who are responsible for patrolling the reservation.

Developing…..

Wednesday, February 8, 2012 – 10:00 a.m.

So much for equal treatment under the law.

Especially when there’s money involved.

It appears another member of the San Manuel Band of Mission Indians quietly escaped serious violent felony charges last year.

New information has come forth that the case in question, involving a previously convicted felon, was dismissed upon the motion of the District Attorney.

A detailed story is forthcoming.

Supervisor Josie Gonzales

BY IMRAN GHORI
STAFF WRITER
ighori@pe.com

Published: 24 January 2012 07:08 PM

San Bernardino County supervisors moved forward Tuesday with a proposal to require voter approval of future pension increases but face opposition from employee unions who quickly announced plans for a competing measure aimed at supervisors.

The board agreed to have county staff draft a ballot measure requiring voter approval before retirement benefits for county employees, legislative officers and elected officials could be increased. But final approval is not assured with supervisors split 3-2 on whether to consider the proposal.

Board Chairwoman Josie Gonzales, who cast the tie-breaking vote, expressed serious misgivings but said she would wait until seeing the ballot measure language before making a final decision.

Supervisor Janice Rutherford said the measure allows voters a say in long-term costly financial decisions. For every dollar the county spends on salaries, 27 cents is paid for pension costs for general employees and 47 cents for public safety employees, she said.

“This is simply insurance for the taxpayers who will be footing the bill long after politicians and union leaders are out of the picture,” Rutherford said.

She said she hoped to have the ballot measure ready for the June election. She noted that other counties, including Riverside and Orange, have enacted similar measures.

But leaders for the two largest unions representing county employees said it could hurt the county’s ability to work with the groups in the future.

“Do you not trust your own ability to make decisions you were elected to make?” Bob Blough, general manager of the San Bernardino Public Employees Association, representing about 11,000 county employees, asked them.

Laren Leichliter, president of the Safety Employees Benefit Association, representing about 3,100 public safety employees, echoed those sentiments. He said unions would not be able to trust negotiations with the county, knowing that it could ultimately hinge on an election campaign.

Rutherford said the proposal does not take away employees’ benefits but merely requires them to make the case for any increases to voters. However, only Supervisor Gary Ovitt, who co-sponsored the measure, expressed support.

To read entire story, click here.

Two San Bernardino County supervisors are requesting that benefits for all county elected officials, not just the Board of Supervisors, be reduced to be in line with elected officials in other counties.

Supervisors Neil Derry and Janice Rutherford are pushing for the ordinance, which comes less than two weeks after the board approved a similar ordinance that reduced total compensation for future supervisors by roughly $48,000 annually.

Derry argued that ordinance didn’t go far enough and that benefits for elected San Bernardino County officials far exceed those of officials in comparable Southern California counties.

Rutherford wants county administrators to review compensation for elected officials in Riverside, Orange, Los Angeles, Kern, Ventura and San Diego counties and report back to the board with a draft ordinance.

The county’s other elected officials are: Auditor-Controller/ Treasurer/Tax Collector Larry Walker, Sheriff Rod Hoops, District Attorney Michael A. Ramos and Assessor/Recorder/County Clerk Dennis Draeger.

If such an ordinance is adopted, benefits would remain at a level necessary to attract candidates to run for office, according to a report prepared for the board.

Derry voted for the benefits cuts to supervisors at the Jan. 10 board meeting but argued the cuts should apply to all elected officials in the county, whose benefits far exceed those of their counterparts in Riverside, San Diego, Orange, Los Angeles, Kern and Ventura counties.

For example, Walker has a benefits package totaling $178,364, while his counterparts in Riverside County bring home less than half that amount in benefits: $73,105.

Draeger collects $151,694 in benefits annually, while his counterpart in Riverside County collects $73,105.

To read entire story, click here.

Monday, January 23, 2012 – 09:30 a.m.

An anti-recall effort meant to protect certain members of the Fullerton city council flopped last week when recall backers turned in an overwhelming number of signatures to qualify a recall ballot.

The city council targets?

• Don Bankhead: 17,064 signatures
• F. Richard “Dick” Jones: 17,587 signatures
• Patrick McKinley: 17,603 signatures

Of interest is news that the anti-recall effort was mounted by a figure familiar to San Bernardino County political circles.

That figure, David Ellis, owner of Delta Partners LLC, is political consultant to San Bernardino County District Attorney Mike Ramos and Sheriff Rod Hoops.

Ellis was probably paid a pretty penny for his failed effort.

Ellis can also be credited for Ramos and Hoops opposition to cuts to there own benefits under the disingenuous guise of “It affects are independence as county-wide elected officials”.

Anyways, here is the link to a post at FullertonsFuture.org

Derry

Saturday, January 21, 2012 – 06:15 p.m.

The highway funding arm of the U.S. Department of Transportation has cleared San Bernardino County Third District Supervisor Neil Derry to resume voting on federally-funded expenditures in his duties as an elected official.

The Federal Highway Administration gave Derry the green light effective Friday.

Derry lost his voting authority last year after he was charged with two felonies and a misdemeanor for failing to properly report a single $5,000 campaign contribution.

The charges arose when Derry fell prey to San Bernardino County District Attorney Michael Ramos, who pushed a politically-motivated investigation of Derry to the state Attorney General’s office with a request that Derry be charged.

Former Senior Assistant Attorney General, and Ramos friend, Gary Schons agreed.

A move designed to hurt Derry’s reelection bid and assist Ramos’ friend and political ally James Ramos.

Ramos, a life-long democrat and chairman of the San Manuel Band of Mission Indians, is trying to unseat Derry in June.

However, a San Bernardino County Superior Court Judge saw through the sham and forced the dismissal of both felonies and refused to strip Derry of his right to hold office and seek reelection.

Confidential sources say Ramos’ own campaign polling shows the legal blow leveled against Derry has had little effect on his positive name identification with voters.

The fed move officially closes the door on the matter.

San Bernardino County Auditor/Controller/Treasurer-Tax Collector Larry Walker

BY IMRAN GHORI
STAFF WRITER
ighori@pe.com

Published: 21 January 2012 05:49 PM

After slashing their own benefits earlier this month, San Bernardino County supervisors on Tuesday will start taking aim at extra compensation for other county-wide elected officials.

The board will vote on a proposal by Supervisors Janice Rutherford and Neil Derry to direct the county administrative and counsel offices to prepare an ordinance that would cut benefit packages for the assessor-recorder, auditor/controller/treasurer-tax collector, district attorney and sheriff. If a majority of supervisors agree, the ordinance will return to the board at a future meeting for a vote.

The agenda item does not provide a specific amount to cut but seeks to bring benefits, which include supplemental retirement and medical payments and car and cellphone allowances, in line with comparable Southern California counties.

“It’s very clear from the information we have already, our benefits are out of line for all elected officials,” Derry said.

Supervisors’ benefits were cut by about $48,000 — a 39 percent reduction — in the ordinance, which will return for a second reading Tuesday. A survey of supervisors’ compensation in surrounding counties found that San Bernardino officials received the second highest salary and benefits among seven Southern California counties.

A similar draft study comparing the other four elected officers with their counterparts found that for all but one of those positions, San Bernardino County paid the highest amount of benefits in the region and twice as much as Riverside County in some instances.

In San Bernardino County, the assessor-recorder receives an annual salary of $204,352 plus $151,694 in benefits. By comparison, Riverside provides $73,105 in benefits and Los Angeles, the second highest, offers $132,386. The average benefits paid in Ventura, Los Angeles, Riverside, Kern and San Diego counties is $97,440.

For the auditor/controller/treasurer-tax collector, San Bernardino pays an annual salary of $252,288 plus $178,363 in benefits. Riverside pays $73,105 in benefits while Los Angeles provides $141,769 in benefits. The five-county average is $96,536.

San Bernardino County pays the district attorney $208,458 in annual salary and $152,821 in benefits. Riverside provides $86,869 in benefits while Los Angeles offers the highest in the region, $181,762. The five-county average is $117,826.

To read entire story, click here.

Tuesday, January 10, 2012 – 11:25 a.m.

The San Bernardino County Board of Supervisors, while adopting cuts to their own benefits package, wouldn’t go near a proposal by Third District Supervisor Neil Derry to have the cuts apply to all of the county’s elected officials on Tuesday morning.

Derry was unable to obtain even a second to his substitute motion to include Sheriff-Coroner-Public Administrator Rod Hoops, District Attorney Michael Ramos, Auditor-Controller-Treasurer-Tax Collector and Assessor-Recorder Dennis Draeger in the reductions.

Supervisors Josie Gonzales and Gary Ovitt spoke in favor of delaying any action and to have the matter studied further.

Gonzales also spoke in favor of not cutting benefits of the other officials.

Even though the county human resources staff had already completed a survey of surrounding counties.

It doesn’t take a rocket scientist to figure out the reason the supes are afraid.

But, Ovitt did state for the record to the county-wide officials that no one is elected to public office for the money, but to serve the taxpayers.

Supervisor Janice Rutherford commented that the benefits of the others also appeared out of line.

The approved cuts are indeed a long time in coming and will save county taxpayers about a quarter-million dollars per year.

Tuesday, January 10, 2012 – 08:30 a.m.

The San Bernardino County Board of Supervisors will consider slashing their own lavish benefits package Tuesday morning.

A benefits package unmatched anywhere in the state and possibly country.

The key being their “own” benefits.

Supervisors have been reluctant to apply the same cut to the offices of Sheriff-Coroner-Public Administrator, District Attorney, Auditor-Controller-Treasurer-Tax Collector, and Assessor-Recorder.

All high-paying positions.

Supervisors appear fearful of backlash from certain members of the group.

The county has examined the compensation of the four countywide elected officials and the results show the need for the same reduction.

Will it happen?

Probably not.

Rep. Jerry Lewis, R-Redlands

BY BEN GOAD
WASHINGTON BUREAU
bgoad@pe.com

Published: 09 January 2012 09:29 PM

WASHINGTON — The field of Democratic candidates for California’s new 31st Congressional District is quickly solidifying, but potential GOP candidates appear to be awaiting a decision from incumbent Rep. Jerry Lewis before entering what is certain to be a high-profile race for the seat.

Redlands Mayor Pete Aguilar, a Democrat, confirmed in recent days that he is exploring a run for the seat, which includes Redlands, San Bernardino, Rialto and surrounding communities. He would join businessman Russ Warner and non-profit founder Renea Wickman on the Democratic side of the ticket.

While there’s plenty of rumor and speculation on the Republican side, no candidates have formally declared intentions to run. Lewis, R-Redlands, the most senior of California’s House Republicans, could seek election to the seat, which likely would keep other would-be candidates out of the race. Lewis has until March to announce his intentions.

San Bernardino County District Attorney Mike Ramos, a Republican who describes Lewis as a mentor, has expressed interest in the seat but said he would stand down if Lewis wants another term. The seat also is seen as a potential place to land for either Rep. Gary Miller, R-Diamond Bar, or Rep. David Dreier, R-San Dimas. The state panel created to establish new political lines over the summer drew both Miller and Dreier into tough spots.

To read entire story, click here.

Assemblyman Paul Cook, R-Yucca Valley

Monday, January 9, 2012 – 10:00 a.m.
Last Modified: Monday, January 9, 2012 – 11.24 a.m.

According to the Z107.7 website in Morongo Basin, Assemblyman Paul Cook (R-Yucca Valley) has dropped his bid for a seat on the San Bernardino County Board of Supervisors.

The radio station apparently let the cat out of the bag early.

Instead, Cook has announced he will run for the newly created 8th Congressional District.

A seat covering the conservative Desert Communities, and one well-suited to Cook.

The Cook switch-over leaves County Supervisor Neil Derry with one opponent.

That being James Ramos, Chairman of the San Manuel Band of Mission Indians.

Ramos, who was goat-ed into running by District Attorney Mike Ramos, has the backing of former Supervisor Dennis Hansberger.

Hansberger was defeated by Derry in June 2008.

Today’s news makes the Ramos bid problematic.

In a currently head-to-head contest, and considering Ramos’ baggage, it’s hard to see him pulling off a primary election victory against Derry.

Ramos’ own polling, conducted about a month ago, says as much.

Ramos’ vulnerabilities include admitting the existence of Mexican Mafia activity on the reservation, earning more than $1.5 million annually without paying state income taxes, operating failed businesses, poor name identification with voters, being the leader of a gaming tribe, and not-to-mention, a life-long democrat running in a highly republican district.

Also of interest is the announcement that Chad Mayes, Chief of Staff to Second District Supervisor Janice Rutherford, will be Cook’s campaign manager.

The news is surprising since Rutherford, who has been touting campaign and ethics reforms in county government, has railed against board staff working on political campaigns.

Tuesday, January 3, 2012 – 3:30 p.m.

Another blip has showed up on the San Bernardino County political radar.

Thursday’s agenda for the San Bernardino County Employees Association (SBCERA) contains an interesting little tidbit.

The son of a former trustee is being appointed to the panel hearing disputed disability retirement applications.

Michael Reiter, son of former retirement board trustee Marvin Reiter, is one of five hearing officers to be appointed under agenda item 14b.

Last year, the elder Reiter, who is also District Attorney Michael Ramos’ campaign treasurer, was not reappointed to the retirement board by county supervisors.

Monday, January 2, 2012- 1045 a.m.

The fight over the future of Victor Valley Community Hospital (VVCH) has some interesting twists.

Dr. Prem Reddy, who operates Prime Healthcare Services, wants the bankrupt facility as part of his network of highly-profitable hospitals.

However, California Attorney General Kamala Harris wants a different owner because of Prime’s history of dumping less-profitable forms of insurance coverage, which has caused community access issues.

The hospital chain is also under scrutiny for alleged billing and patient care issues.

The hubbub comes after a tentative deal with KPC Global, owned by Dr. Kali P. Chaudhuri fell through over alleged problems with VVCH’s financials.

Chaudhuri and Reddy, according to sources, don’t care much for each other.

AG Harris has steadfastly refused to sign-off on the Prime acquisition of VVCH.

A legal requirement in California.

But this fact hasn’t stopped Reddy or the VVCH Board of Directors.

Prime has been the beneficiary of management contracts approved by the VVCH board, while at the same time being permitted to loan the facility funds to continue operations.

All with the backing of the U.S. Bankruptcy Court and a local Superior Court Judge.

In other words Reddy has been allowed a foothold.

What’s even more interesting is who sits on the VVCH board.

Assistant District Attorney Michael Fermin, the number two man in the DA operation,  is currently on the hospital board. Fermin’s family has been a part of VVCH for years.

Fermin has recently enjoyed a meteoric rise to his current position by vaulting from a Supervising Deputy District Attorney to Assistant DA in the blink of an eye.

Reddy has been a staunch financial backer of District Attorney Michael Ramos. And Fermin, who wants to be the next DA, knows this.

In another development, the latest news coming from sources at VVCH involves former San Bernardino County chief executive Mark Uffer.

Uffer who just stepped down from his role at Colorado River Medical Center in Needles is, according to sources, slated to join VVCH.

Uffer is to be charged with prepping the facility for a potential sale transfer.

The move brings Uffer closer to his home in Highland.

From left, Mark Kirk, former chief of staff to Supervisor Gary Ovitt, developer Jeff Burum, former assistant assessor Jim Erwin, and former supervisor Paul Biane, at an August court appearance.(STAN LIM/STAFF PHOTOGRAPHER)

BY IMRAN GHORI
STAFF WRITER
ighori@pe.com

Published: 31 December 2011 05:39 PM

A panel of California appellate judges could soon be deciding how, and possibly if, the Colonies corruption case will proceed to trial.

The Fourth District Court of Appeal in Riverside is considering an appeal filed by the San Bernardino County district attorney and state attorney general offices seeking to restore charges that were dismissed in August against Rancho Cucamonga developer Jeff Burum, former Supervisor Paul Biane, former Assistant Assessor Jim Erwin and Mark Kirk, former chief of staff for Supervisor Gary Ovitt.

The court completed briefings from prosecutors and defense attorneys on the appeal last month and also agreed to consider writs of mandate filed by the defense seeking to have more charges dismissed against the four. A decision is expected in the next few months.

The defendants will be returning to San Bernardino County Superior Court on Jan. 6 for a status hearing but the main focus now is at the appellate level. Except for discovery issues, further proceedings in the case have been suspended pending the outcome of the appeal.

Prosecutors have argued that the lower court erred in dismissing five of the seven counts against Burum and one count each against Biane, Erwin and Kirk from the original 29-count indictment that a grand jury returned in May.

The defendants are accused of taking part in a scheme to net Burum’s company, Colonies Partners, a $102 million legal settlement. Prosecutors allege the deal, approved by the Board of Supervisors in November 2006, was a result of extortion and $400,000 in bribes by Burum and intermediaries acting on his behalf. The settlement ended a lengthy legal battle over flood-control improvements on a Colonies’ development in Upland.

To read entire story, click here.

From left to right: Colonies scandal defendants Jeff Burum, Mark Kirk, Jim Erwin, and Paul Biane stand during a motion to delay their arraignment hearing in a San Bernardino Superior Courtroom

Joe Nelson, Staff Writer
Created: 12/30/2011 11:37:49 AM PST

Investigations into corruption in San Bernardino County advanced in fits and starts over the past year.

Prosecutors gained ground when former Supvervisor-turned-Assessor Bill Postmus agreed in March to plead guilty to bribery, conflict of interest and misappropriation of public funds and to cooperate with the ongoing investigation.

His testimony bolstered the case and resulted in charges against Rancho Cucamonga developer Jeff Burum and three other former county officials – former county Supervisor Paul Biane and former supervisorial chiefs of staff Mark Kirk and Jim Erwin – related to the county’s $102 million legal settlement with Colonies Partners LP in 2006.

A few months later, in August, Judge Brian McCarville dealt investigators a major blow when he dismissed five of the seven felony charges filed against Burum, citing insufficient evidence or prosecutorial error.

McCarville also dropped one charge of misappropriation of public funds against each of the other defendants.

Prosecutors have appealed McCarville’s August dismissal of the charges, while Burum’s attorney, Stephen Larson, has appealed McCarville’s upholding of the two remaining charges against Burum.

“Frankly, the last seven months have been very difficult for Jeff Burum and his family,” Larson said. “Jeff’s been accused of crimes he did not commit. We’ve known that from the start, and now it’s becoming increasingly clear to the community as the evidence and prosecution’s tactics come to light.”

State and local prosecutors maintain their case is on solid ground.

“We continue to be confident in the facts of this case, and in order to protect the integrity of the case and each defendant’s right to a fair trial, it would be inappropriate to comment any further,” District Attorney’s officials said in a statement earlier this month.

Just weeks after McCarville dismissed the charges against Burum and the other defendants in the Colonies’ case, FBI and IRS agents served search warrants at the homes and businesses of the four Colonies’ defendants and other figures tied to the investigation, including the Fontana home and business of former state Sen. Jim Brulte and the Riverside office of publicist Patrick O’Reilly.

O’Reilly’s attorney, Bill Lehman, said he was told by the FBI that O’Reilly is a witness, not a suspect, in the investigation.

Federal agents sought evidence of bribery, extortion or fraud, including “cash in an amount or concealed in such a manner as to indicate it is proceeds of criminal activity” according to one of the search warrants.

The momentum of the investigation this year seems to stem from information provided to investigators by Postmus, who pleaded guilty in March to 15 felonies tied to scandals at the Assessor’s Office and the county’s 2006 settlement with Colonies.

The settlement ended nearly five years of heated legal battle over who was responsible for paying for flood control improvements at the developer’s 434-acre Colonies at San Antonio residential and Colonies Crossroads retail center in Upland.

To read entire story, click here.

Eyler

Mike Cruz and Joe Nelson, Staff Writers
Posted: 12/09/2011 12:50:39 PM PST

Greg Eyler
SAN BERNARDINO – Gregory Eyler, a former taxpayer advocate for the San Bernardino County Assessor’s Office, pleaded no contest Friday to an allegation that he drew pay from the county for work he never performed.

Under a plea bargain with prosecutors, Eyler, 35, pleaded no contest to one misdemeanor count of presenting a fraudulent claim. He was initially charged in July 2009 with felony grand theft and public officer crimes.

Prosecutors alleged Eyler was given the job, which paid $130,000 annually, by his boyfriend and then newly elected Assessor Bill Postmus. But Eyler seldom showed up for work and when he did, his work product was minimal, they said.

Under the conditions of his plea agreement, Eyler will serve 120 days on a home-monitoring program, to be completed by July, and serve one year of felony probation.

“(Plea) discussions have always been a part of the process as this case has gone on, but it hadn’t gotten to the point of being resolved until today,” prosecutor Lewis Cope said.

Eyler initially faced a maximum of three years in prison.

He was charged in 2009 along with Postmus, who faced greater culpability in the crimes. Postmus faced additional charges of misappropriation of public funds, perjury and drug possession.

Postmus pleaded guilty in March to the charges in the Assessor’s Office case and a separate scandal relating to the county’s $102 million legal settlement with Rancho Cucamonga investor consortium Colonies Partners LP in November 2006. Postmus served as chairman of the Board of Supervisors at the time of the settlement.

Prosecutors allege the county’s settlement with Colonies was tainted by bribery and extortion, and that Colonies’ co-managing partner Jeff Burum offered Postmus $100,000 in exchange for Postmus’ vote in favor of the settlement.

Burum and the other three defendants in the Colonies’ case – former county Supervisor Paul Biane, former Assistant Assessor Jim Erwin and Mark Kirk, former chief of staff for Supervisor Gary Ovitt, deny any wrongdoing and are fighting the charges.

To read entire story, click here.

Sunday, December 4, 2011 – 12:30 p.m.

Now San Bernardino County supervisors want to cut their benefits package again.

They shouldn’t think twice about.

The benefits package afforded the county’s elected officials is the richest in the state, and can be adjusted by a mere majority vote of the supervisors.

Interestingly, the last time the Board of Supervisors voted to cut the benefits of all elected’s, they had to be shamed into it.

It’s still uncertain as to whether or not county supervisors will actually go through with it. Since the proposed ordinance will not come back to the body until sometime next year.

It should be noted that it doesn’t really take any time or effort to make changes to the county’s exempt compensation plan and related ordinance.

How about as little as two weeks?

This new proposal was brought forward by Second District Supervisor Janice Rutherford. So far Rutherford has made several grandiose proposals attracting her positive press coverage. But, so far, those proposals have failed to materialize into official actions.

The newly-proposed cuts won’t affect anyone currently seated, unless the individual official accepts the cuts voluntarily.

Any new changes would only take effect on the official assuming a new term of office.

Another interesting twist is the fact the supe’s appear resistant to cutting the benefits packages of Assessor-Recorder Dennis Draeger, Auditor-Controller-Treasurer-Tax Collector Larry Walker, Sheriff-Coroner-Public Administrator Rod Hoops and District Attorney Michael Ramos.

The four represent the highest-paid elected officials in the county, and any cuts to countywide elected officials is either all-or-none..

Earlier this year, Ramos and Hoops declined to accept voluntary pay cuts that all other officials agreed to.

It’s uncertain as to whether Draeger will seek a second term. Walker, who is on pace to be the county’s highest paid retiree, is likely to seek reelection. And all in-the-know say Hoops will not seek a second-term, and may actually want to get out of town early. Ramos currently intends on running again, unless another opportunity comes up. It’s no secret Ramos has aspirations for higher office.

The resistance to cutting the compensation of the countywide’s is no secret. Sources, both inside and outside the county government center, say some supervisors want nothing to do with cutting the compensation of Hoops or Ramos out of fear of retaliation.

Ramos, who never seems to be able to make enough cash, reportedly pretty much blew a gasket when Third District Supervisor Neil Derry was able to push through limited cuts prior to his (Ramos) assuming a new term of office.

Derry, for his efforts, ended up being on the receiving end of a criminal complaint and booking number, via former Senior Assistant Attorney General Gary Schons, and courtesy of an investigation conducted by Ramos’ Public Integrity Unit.

Schons, who had developed a close relationship with Ramos, now works as a Deputy District Attorney in the San Diego County District Attorney’s Office.

San Bernardino County District Attorney Michael Ramos

By Mark Gutglueck
Friday, December 2, 2011

Federal prosecutors have horned in on an unprecedented number of high profile political corruption cases that would otherwise be handled by the district attorney’s office in San Bernardino County. In some matters, the U.S. Attorney’s Office has wrested from district attorney Mike Ramos prosecutorial authority or has opened with the FBI parallel investigations into issues Ramos or the San Bernardino County Grand Jury have delved into without reaching a successful conclusion. In at least three matters, federal prosecutors and investigators have taken on probes or investigations of elected officials or political donors with whom Ramos was politically aligned.

In total, five matters in which current or former elected officials are alleged or suspected to have engaged in bribery or some other form of wrongdoing are being prosecuted by the U.S. Attorney or being reviewed for their prosecutorial potential by the FBI.

The U.S. Attorney’s Office in February and March 2011 obtained from a federal grand jury indictments in the Upland corruption case, in which former mayor John Pomierski, his appointee to the Upland Housing Authority, John Hennes, and their associates Anthony Orlando Sanchez and Jason Roy Crebs have been charged with participation in a bribery and extortion scheme allegedly involving using Pomierski’s authority at City Hall to shake down businessman with permit applications pending before the city. Pomierski and Ramos were political allies. Ramos endorsed Pomierski in his successful runs for mayor in 2004 and 2008. In 2010, Pomierski endorsed Ramos in his run for reelection for district attorney. Two days after Ramos held back two challengers in the June 8, 2010 election, the FBI and IRS served search warrants at Pomierski’s home and at Upland City Hall, seizing documents and other evidence used to convince a federal grand jury in Los Angeles to indict him a little less than nine months later. Part of the formula Pomierski and Hennes were allegedly able to apply in extorting money from their victims was the claim that Pomierski functioned under an umbrella of protection provided by the district attorney’s office. And indeed, Pomierski had enjoyed an uncommon degree of tolerance from San Bernardino County’s highest law enforcement authority in perpetuating his alleged depredations. Despite widespread whisperings heard as early as 2006 that Pomierski was on the take, Ramos went out of his way to endorse him in his electoral effort against councilman Ray Musser in 2008.

In addition to accusations that Ramos deliberately obstructed justice in curtailing the investigative and prosecutorial processes from running their course with regard to his political ally Pomierski, there is further information to suggest that Ramos acted to prevent the wheels of justice from churning through several top county officials who had been accused of bastardizing the function of the county hospital, which is intended to provide care for the county’s indigent population. Located in Colton and known as Arrowhead Regional Medical Center, the county hospital has allegedly been exploited by current and former hospital officials for their own personal and financial benefit, as well as by elected officials, who used their position of authority over the hospital’s administrators to obtain free medical care.

As early as 2007, Ramos, his public integrity unit and the grand jury were informed of a circumstance which involved the city of Colton in a highly questionable acquisition of an eleven acre parcel from Retail Development Group, an outfit owned by Gary Schafer. The $3.65 million purchase was championed by then-Colton assistant city manager Mark Nuaimi, who justified the acquisition as a strategic move that would satisfy the U.S. Fish & Wildlife’s requirements that habitat for the endangered Delhi Sands Flower Loving fly be preserved, and thereby allow other development in the area to proceed. But the property Colton acquired from Schafer was not prime Delhi fly habitat. Nor did the city do an adequate appraisal of the property, as was legally required, and instead, Nuaimi substituted a $3.8 million offer on the property, which was of unsubstantiated provenance, as justification for the sum paid. It would later turn out that the property was coveted by Dr. Dev GnanaDev, Arrowhead Regional’s medical director, who was looking to have the city of Colton write down the cost of the property and sell it to him so he could house his own surgical group’s operations there.

Dr. GnanaDev, who in addition to being the medical director at Arrowhead Regional, owns and controls Arrowhead Regional Surgical Group, Inc., with which the county hospital has a $1.343 million annual contract for the provision of administrative, supervision, secretarial and directorship services for the hospital’s general surgery division, including the trauma, otolarynology, burn surgery, oral surgery, neurological surgery, plastic surgery, opthalmologic surgery and transplant surgery departments.

GnanaDev’s actions in his capacities as both medical director and provider of service to the hospital, like his involvement in the questionable land deal involving the city of Colton and Schafer, was widely perceived by doctors working at the hospital as improper, involving a conflict of interest they felt compromised the quality of medical care and patient safety at the institution. Like the land deal, that conflict became the subject of complaints to the district attorney’s office’s public integrity unit and the county grand jury.

According to doctors and other staff members at the hospital, Dr. GnanaDev not only wrote the contract for his own surgical group, he has his own medical billing company which he utilizes to divert large amounts of money from the operations at the institution into his own accounts. Some of those doctors maintain that GnanaDev improperly used his status as medical director and his domination of the man who is supposed to oversee his function for the county, Arrowhead Regional executive director Patrick Petre, to punish doctors who refuse to use his billing company by having those doctors’ contracts with the hospital terminated.

Doctors and other medical professionals allege that in his rush to enrich himself, GnanaDev compromised the quality of care, and his policies resulted in scores of lapses in professionalism and medicine jeopardizing the well being of the patients at the facility. On multiple occasions, that negligence and malpractice resulted in severe injury and death, they say.

A report consisting of a “stack” of 40 to 50 cases was prepared by several doctors at Arrowhead Regional and delivered to Petre, in which specific acts of medical malpractice involving the action of several doctors including those in the obstetrician unit and Dr Guillermo Valenzuela, the head of the ObGyn department, were alleged. Petre then turned the information over to Dr. GnanaDev, who, according to several doctors, attacked the doctors who had prepared the report. At least four of the cases involved patient deaths. After Petre took the matter no further, several of the doctors went to the district attorney’s office and the grand jury with the report.

Those doctors were frustrated in their quest, however, when the district attorney’s office and the grand jury, which is advised by a prosecutor from the district attorney’s office, took no action.

Doctors and other professionals at the hospital have pointed out that Dr. GnanaDev uses some of the proceeds from his business and work for lobbying and making sizeable contributions both directly and through others to members of the board of supervisors as a means of compromising them.

According to Arrowhead Regional personnel, high ranking county officials, including members of the board of supervisors and former county administrative officer Mark Uffer, who prior to being elevated to the senior administrative position in the county had served as the hospital director, received treatment at the hospital to which they should not have been entitled. Both Petre and GnanaDev facilitated this or allowed it to take place to ingratiate themselves with the county’s decision makers and benefit themselves and the institution, those doctors alleged.

According to those doctors, GnanaDev bent or broke hospital rules, protocol and the law when he provided free care to former supervisor Paul Biane, current board of supervisors chairwoman Josie Gonzales and Uffer and at least one other member of Uffer’s family. In addition, those doctors have alleged, GnanaDev instructed hospital personnel to generate no records with regard to this specialized treatment and no bills were sent. The treatment included MRIs and surgeries, the doctors said.

According to doctors, GnanaDev, who was president of the California Medical Association from October 2008 to October 2009, arranged to have Petre remove a clause from the contracts of full time physicians working at Arrowhead Regional which prohibited those doctors from working at other hospitals. While president of the California Medical Association, Dr. GnanaDev maintained his role as medical director and chief of surgery while spending no more than three to four days per month at the hospital, those doctors said. He delegated very few of his responsibilities to others, physicians reported, reducing oversight of the doctors working at Arrowhead Regional to a dangerously low level.

By allowing a large number of the physicians who were the heads of the various medical groups at Arrowhead Regional to work at other sites, doctors report, GnanaDev facilitated them in receiving hospital subsidy money directly. Those heads of the individual groups were then able to pay lesser-experienced physicians who work for them bottom dollar for their services, increasing the profitability of the head physicians, the doctors reported to the grand jury and district attorney, leading to an absence of physician presence and an absence of quality physicians at the county hospital. In this way, the doctors alleged, GnanaDev had shirked his responsibility as medical director to audit the work of the groups the hospital contracts with to ensure the hospital’s operating funds are properly dispersed and that the hospital was getting the quality of care taxpayers were paying for. This has led to a situation at Arrowhead Regional, the doctors alleged, where it is common for respiratory therapists, nurses, and other personnel to function like physicians throughout the hospital, practicing, on a daily basis medicine without a license. In some cases, the doctors charged, the unlicensed staff members were teaching the student and resident physicians how to take care of patients.

It was also alleged that Dr. GnanaDev allowed the doctors employed by his surgical group to monopolize most of Arrowhead Regional’s 19 operating suites, such that a large backlog of orthopedic and urology patients developed, so they had to wait months for their surgeries. This led to the state citing the hospital for the backlog of orthopedic patients awaiting surgery.

Doctors who complained to the district attorney and grand jury about GnanaDev were also critical of his policy of accepting all trauma patients even though Arrowhead is not equipped to handle pediatric and major chest trauma. Doctors said they had witnessed incidents in which Dr. GnanaDev, who is recognized as a surgeon of considerable skill, perform surgeries on children less than two years of age using adult laparoscopic equipment and on other occasions using adult equipment on very small children. Doctors said that GnanaDev resisted transferring pediatric patients to other hospitals that were better equipped to operate on them because he was seeking to enhance the earnings of his own surgical group. Having pediatric patients in Arrowhead Regional’s intensive care unit in many cases resulted in injury or damage to patients through improper management and improper care, doctors reported, and in some cases children with severe brain injuries or other trauma who were improperly treated at Arrowhead died.

Between 2004 and 2010, at least 95 complaints pertaining to Arrowhead Regional were filed with state regulators, of which 28 were determined to be substantiated.

Jorge Valencia, the official spokesperson for Arrowhead Regional, said attacks on Dr. GnanaDev alleging he puts profit above safety, utilizes equipment that is not suitable for the operations he or others are performing or does not adhere to professional medical standards are unfounded. Reports that GnanaDev is involved in any form of conflict of interest or being investigated along those lines is also inaccurate, Valencia asserted. Valencia further denied any relationship between Arrowhead Regional and GnanaDev’s billing company. And though Valencia did not dispute that a number of deaths had occurred at the county hospital, he insisted that “concerns regarding patient care are handled by the medical staff through the peer review process. He said that the review was “comprehensive” and “governed by the bylaws of the medical staff and various other rules and regulations.”

But in the perception of many of the medical professionals working under GnanaDev, there had been inexcusable deviations from medical standards driven by the profit motive that had resulted in deaths and injuries and crossed the line into criminal conduct.

It is believed by at least some of those knowledgeable about the situation that Ramos was reluctant to act with regard to these issues because one of those implicated in the scandal at Arrowhead Regional is supervisor Josie Gonzales, a key Ramos supporter on the board of supervisors.

In the late winter of 2010, after the San Bernardino County district attorney’s office had failed to take action on the matter, doctors approached the FBI, passing along much of the same information to the federal agents that had been provided to the district attorney’s office and the grand jury. On November 4, 2010, a team of FBI agents, armed with search warrants, swooped down upon the county hospital, seizing documents relating to its operation and GnanaDev’s role in overseeing the 456-bed facility, in particular.

As of this week, no charges have been filed in that matter.

In November 2006, after litigation between the Rancho Cucamonga-based development company Colonies Partners and the county over flood control issues at the company’s Colonies at San Antonio development in Upland had dragged on for four years, a three member majority of the board of supervisors – then supervisors Bill Postmus and Paul Biane and supervisor Gary Ovitt – voted to settle the case by conferring a $102 million payment on the company.

More than three years later, in February 2010, the district attorney’s office joined with the California attorney general’s office in obtaining an indictment against Postmus and his one-time political associate, Jim Erwin, which alleged a criminal conspiracy involving an effort by Colonies Partners’ managing principals Jeff Burum and Dan Richards to first extort Postmus and Biane, and then bribe them to obtain the settlement. Prosecutors alleged that Ovitt’s chief of staff, Mark Kirk, was also bribed. While Postmus and Erwin were criminally charged, Burum, Richards, Kirk, Biane and the Colonies Partners’ public relations consultant, Patrick O’Reilly, were identified as unnamed and unindicted co-conspirators.

In May of this year, less than two months after Postmus pleaded guilty as charged and then testified in April and early May along with 44 others before a specially-impaneled grand jury, Burum, Kirk, and Biane were indicted, along with Erwin, who was reindicted. That indictment alleged that separate $100,000 contributions Burum and Richards made in 2007 to each of three political action committees founded, controlled or secretly controlled by Erwin, Biane and Kirk were bribes, and two $50,000 contributions made to political action committees controlled by Postmus also constituted bribes made in return for the settlement vote. Burum, according to the indictment, had served as an aider and abettor in the delivery of the bribes.

At once, the timing of the indictments fell under question. The original case against Postmus and Erwin had not been filed for more than three years after the November 2006 vote. And the superseding indictment came nearly four-and-a-half years after the vote. A major technical legal issue in the case was the elapsing of the statute of limitations, an issue seized upon by the lawyer for Burum, former U.S. District Court Judge Stephen Larson, who pointed out in court papers that “the prosecution is improperly attempting to charge Mr. Burum under conspiracy and aider and abettor theories because the statute of limitations had run on direct charges of bribery,” which Larson pointed out, “if timely brought would not have been precluded under the allegations of this indictment.”

Thus, the more than four-year delay in obtaining the indictment against Burum appeared to be a trap door built into the charges that in time will bring about the collapse of the case.

While the district attorney’s office’s temporizing appeared inexplicable to many, an examination of Ramos’s campaign financing records provided a possible explanation of the delay which appeared to be a fatal flaw in the case. Burum, over the first six years Ramos was district attorney, was a major contributor to Ramos’s electioneering fund. On May 14, 2003, a little more than four months after Ramos became district attorney, one of Burum’s companies, Jeffrey Burum Enterprises, provided Ramos with a relatively modest $1,500. On September 10, 2003, Burum provided Ramos with another $1,000. On November 22, 2005, another of Burum’s companies, Diversified Pacific, donated $10,000 to Ramos’s political war chest. On July 13, 2007, Diversified Pacific endowed Ramos’s campaign fund with another $5,000. On May 27, 2008, Diversified Pacific provided Ramos with $7,000.

In addition, over the last eight years, the Colonies partners and Burum donated over $400,000 to the political action committee controlled by SEBA, the San Bernardino County Safety Employees Benefit Association, which serves as the union for San Bernardino County’s sheriff’s deputies and district attorney’s office investigators. In 2010, the SEBA PAC gave Ramos $42,947.41 toward his election effort that year.

Unwilling to simply allow Ramos’s office and the state attorney general to usher what was increasingly viewed as a flawed case through state courts, the U.S. Attorney’s Office in September obtained search warrants that targeted the offices and/or homes of Burum, Kirk, Biane, Erwin, and O’Reilly, as well as the home and office of former state assemblyman and state senator Jim Brulte, a Colonies Partners consultant whose aggressive lobbying of Postmus and Biane and other county officials in an effort to obtain the settlement had been overlooked by Ramos’s investigators. Those warrants were served on September 15, signaling that federal authorities are now second guessing the district attorney’s office and the state attorney general’s office with regard to the Colonies settlement case.

In Victorville, a series of actions widely characterized as mis- or malfeasance by public officials has garnered the attention of citizens for some time. In response to citizen complaints, the 2009-10 first took up a probe of that city’s handling of its finances, along with the mismanagement of an effort to build an electrical generating plant, the misapplication of sequestered project funds, securities fraud, and improprieties with regard to a foreign investment program. When the 2009-10 grand jury concluded its session without taking any action with regard to Victorville or delivering a report about its investigation, the 2010-11 grand jury took that matter up where its predecessor had left off. But at the conclusion of its term on June 30 of this year, the 2010-11 grand jury had not come to closure on any of the Victorville issues. Likewise, the district attorney’s public integrity unit, which had also been vectored into Victorville to look at the situation there, took no action. On October 31, 2011, Ted Burgnon, the foreman of the 2011-12 San Bernardino County Grand Jury, in writing informed Victorville city officials the current grand jury is extending the two-year running probe into city finances and actions.

Well before Burgnon’s announcement, however, it was known around Victorville City Hall that federal officials have taken an interest in reports of violations of the public trust that have allegedly occurred within its confines.
Victorville delayed for two years an audit pertaining to its 2007 operations, leading to suggestions that city officials were seeking to hide information that was embarrassing, incriminating or both. Upon release, that audit showed the city had mounting financial problems. Another audit, completed by the firm of Mayer Hoffman McCann and released in March of this year, indicated those problems had worsened, and its authors expressed “substantial doubt about the city’s ability to continue as a going concern.” According to Mayer Hoffman McCann, it uncovered tens of millions of dollars in internal loans that were never approved, three funds that were $180 million in the hole and dwindling cash reserves.

As of March 2011, Victorville’s utility fund was $78 million upside down, while cash in the water district had dropped from $15 million in 2009 to $8 million as of June 30, 2010 despite a $20 million loan made to the district from the Southern California Logistics Airport Authority, the entity that oversees the effort to convert the former George Air Force Base into a civilian airport.

City officials have now reluctantly acknowledged that Victorville has lost an amount approaching $200 million on two abandoned power plants, an outgrowth of the city’s effort to create an electrical utility division, the Victorville Municipal Power Authority.

The Foxborough power station, which the city initiated in 2004 as what was supposed to be a $22 million, 14-megawatt electrical generating plant that would bypass the state power grid to provide affordable energy to industrial users and thus attract employers to the city and spur economic growth, has cost the city a whopping $126 million without being completed. Mismanagement of the project came in multiple stages, first at the hands of community services director Richard Bunnell; then deputy city manager Doug Robertson; followed by Wayne Campbell, who was hired as the plant manager in 2005; and then Glen Casanova, who was hired to replace Campbell as municipal utilities director in 2007.

By October 2006 the price tag for the project had escalated to over $54 million.

Construction delays and changes in state law that mandated that at least 20 percent of all energy produced in California by 2010 come from renewable sources resulted in the city jettisoning earlier plans for gas-fired combustion turbines, the pricey components for which were already purchased, and substituting in even more costly generators capable of running on biodiesel. The unused original equipment had to be sold at a substantial loss.

In addition to the initial and then follow-on equipment acquisition and construction costs, the utility division in 2005 incurred an operating deficit for the plant of $4.5 million. That hemorrhaging of red ink increased each year thereafter such that it had reached an annual operating deficit of $8 million by fiscal 2007-08. By 2007, the city began borrowing from its general fund to shore up the project. The city council, as quietly as it could get away with, issued $90 million in bonds to cover the entire cost of Foxborough. By May 2008, all of the bond money had been eaten up by the Foxborough power plant project and another $5 million beyond that was consumed, bringing the total cost on the facility to $95 million even before the facility’s permanent turbines had begun to generate electricity. At that point the city abandoned its initial intention of having the plant bypass the state power grid and avoid the imposition of a ten percent energy delivery fee being tacked onto the price of the power. Instead, the project was then scheduled to be hooked up to the state power system, canceling in the process the delivery of low cost energy, which had been the justification for the project in the first place.

Seven years after the project was undertaken, the city has failed to see that project through to fruition and the city council abandoned it altogether, after having sunk $126 million into the project.

The city is currently in default on an $83 million bond for Foxborough.

The city was simultaneously pursuing the development of another, much larger power plant, dubbed Victorville 2. The city was assisted in developing that plant by Newport Beach-based Inland Energy, which had successfully developed the 830-megawatt High Desert Power Plant with Baltimore-based Constellation Energy Group a decade ago. The High Desert Power Plant is now referred to as Victorville 1. Inland Energy had also served as a consultant with regard to the development of the Foxborough plant.

In November 2007 the Victorville city council authorized a $173 million purchase of natural gas-fired turbines from General Electric for the 563-megawatt Victorville 2 plant.

The city, which owed $126 million to General Electric for equipment for the Victorville 2 power project, fell into arrears on its payments to General Electric and in May 2010, simply surrendered a $50 million deposit it had made with the company for components. The Victorville 2 project was originally scheduled to include a 513-megawatt natural gas-fired generating plant on 133 acres coupled with an adjohining 250-acre solar power field capable of producing 50 megawatts of electricity. The solar component of the project has since been entirely abandoned and the remainder of Victorville 2 shelved, although in recent months some discussion has taken place between the city and Massachusetts-based QGEN about that company taking on the completion of the project.

Robertson has since been promoted to Victorville city manager.

In the summer of 2010, the Securities and Exchange Commission opened an investigation focusing on Victorville’s issuance of bonds and how that bond funding was spent. In May of 2010, the board of supervisors acceded to a grand jury request that the county retain the forensic auditing firm of Kessler International to review the city’s finances. The board did so, authorizing $195,000 for that audit. Kessler has not said whether the audit is yet concluded.

In making his announcement on October 31, grand jury foreman Burgnon indicated the grand jury has retained the independent San Francisco-based auditing firm of Harvey M. Rose Associates to go over both the city’s books and those of the Victor Valley Economic Development Authority, a joint powers authority involving the county, Victorville, Apple Valley, Hesperia and Adelanto which is involved in the provision of infrastructure to support Southern California Logistics Airport. It is not clear to what extent the ground covered by Kessler will be revisited by Harvey M. Rose.

It is known is that more than $80 million of the $300 million in outstanding bonds floated specifically for airport operations actually funded city of Victorville operations or projects off Southern California Logistics Airport property, including $1.8 million utilized to acquire land for a city library. According to Mayer Hoffman McCann, at least $21.8 million was not spent in accordance with the bond covenants. Other airport money was used toward work on the Victorville 2 power plant. The city also loaned $20 million in 2007 airport bond proceeds to the water district to help build a wastewater treatment plant. Those expenditures were made without informing or getting the consent of the bonds’ insurer, Radian.

The Southern California Logistics Airport Authority (SCLAA) has accumulated debt of $102 million, twice the burden it had in 2009-10.

Mayer Hoffman McCann reported that Victorville officials have not properly documented and sought city council approval for the city’s numerous interfund loans. The city had nearly $90 million in outstanding interfund loans as of last June. But only $30 million in loans had been formally approved by the council, according to the audit report.

Another issue dogging Victorville is its now-dormant EB-5 program. The EB-5 program is a federal one that allows entities such as cities or redevelopment agencies to arrange for the provision of visas for foreigners who invest at least $500,000 in projects pre-qualified by the federal government. In April 2008, the city entered into a relationship with CMB Export, LLC to manage an EB-5 program for Victorville at and around Southern California Logistics Airport. The city, however, abrogated that contract in June 2008 and in December 2008 CMB filed a $33 million lawsuit against the city claiming breach of contract, fraud, unfair competition and business interference. CMB refiled the claim in February 2009, including charges of misrepresentation and fraud by former city manager Jon Roberts and former mayor Terry Caldwell.

In April 2010, the city settled that lawsuit with CMB for $200,000. The following month, however, the U.S. Citizenship and Immigration Service suspended Victorville’s EB-5 program, stating that city officials had misrepresented the projects to be funded by the investment program. It was the first time the federal government had moved to terminate an entity’s EB-5 authority.

The U.S. Attorney’s office, alarmed at the wholesale squandering of financial resources in Victorville’s municipal operations as well as blunders with regard to federal law governing securities and its foreign investment programs and further dismayed by the inability of the local district attorney’s office and grand jury to take action, leapt into the breach and has now assigned FBI agents to examine Victorville with a scrupulously mean eye.

On September 21, 2011 the FBI served as the lead agency in serving search warrants at the headquarters of the San Bernardino International Airport Authority [SBIAA] and the Inland Valley Development Authority [IVDA], the joint powers agencies involving the county and the cities of San Bernardino, Colton, Loma Linda and Highland in the conversion of the former Norton Air Force Base into a civilian airport and the redevelopment of the surrounding property. Warrants were also served at the offices of the San Bernardino Million Air Franchise; three hangars, including Hangar 763, where two companies affiliated with the airport’s contract developer, Scot Spencer, Norton Aircraft Maintenance Services and SBAM Technics, are located. According to the search warrants, the authorities were seeking information regarding suspected misuse of federal funds, bribery, mail fraud, wire fraud and conspiracy.

Of interest to investigators were Spencer; SBIAA executive director Donald L. Rogers, who has since resigned; assistant SBIAA executive director Michael Burrows; aviation director Bill Ingraham; former SBIAA and IVDA director and current SBIAA and IVDA consultant T. Milford Harrison; San Bernardino International Airport Authority counsel Tim Sabo; San Bernardino mayor and SBIAA and IVDA board member Pat Morris; county supervisor and SBIAA and IVDA board member Josie Gonzales.

Spencer entered into the agreement with SBIAA and the Inland Valley Development Authority to oversee what was supposed to be a $38 million renovation of the airport’s passenger terminal and a $7 million development of its concourse. Spencer undertook that appoinment amid confident predictions that upon completion of those assignments the airport would attract at least one passenger carrier and as many as a half dozen airlines. The cost of the passenger terminal and the concourse escalated to $142 million and the airport has yet to host any commercial airlines, although corporate jets and other private pilots have been landing at the Million Air corporate aviation facility, for which Spencer is the franchisee, since last year.

The cost overruns for the terminal project, the failure of San Bernardino Airport to attract commercial airlines and Spencer’s relationship with Rogers, Harrison and SBIAA and IVDA counsel Timothy Sabo have raised eyebrows and brought SBIAA and IVDA under increasingly critical scrutiny.

On June 30, the San Bernardino County 2010-11 Grand Jury delivered a report that questioned several elements of Spencer’s performance and that of Rogers, calling into question what was characterized as lax oversight of the airport’s operations and favorable treatment accorded Spencer with regard to leasing arrangements.

Spencer’s influence over operations at the airport, where several companies he owns are housed, is increasingly perceived as being in conflict with and counterproductive to the goal of bringing in aeronautics oriented companies interested in remaining at the airport for the long term. In some cases, Spencer’s pursuit of his own imperatives conflicted with the corporate aims of others companies functioning at the airport, resulting in those companies departing.

Spencer now owes the county more than $604,000 in unpaid taxes on property and equipment at the airport since 2005. The county had made no effective effort to collect on those unpaid taxes until three weeks after the September 21 FBI raid.

The FBI’s action at the airport was taken as yet another indication of federal prosecutors’ lack of confidence in the San Bernardino County district attorney’s ability, willingness and resolve to aggressively act with regard to issues involving malfeasance on the part of local governmental officials.

At the San Bernardino County district attorney’s office, Ramos and other officials were reticent about what the federal government’s active interest in local political and public agency corruption cases signifies. “That sounds like a question for the FBI,” district attorney’s office spokesman Christopher Lee told the Sentinel. “We’re not going to speak about another agency’s handling of cases in our county.”

Lee said he could not say whether information churned up by the FBI will be used exclusively by the U.S. Attorney’s Office in any criminal cases it elects to pursue or whether the information might be provided to his office for potential prosecutions in state court.
“I don’t have that knowledge,” he said.

A defendant in the Colonies corruption case wins the unsealing of comments from a different grand jury

BY IMRAN GHORI
STAFF WRITER
ighori@pe.com

Published: 29 November 2011 09:29 AM

A San Bernardino County judge on Tuesday ordered the grand jury testimony of a former county official unsealed as part of a government corruption case.

Superior Court Judge Michael Smith agreed to release the testimony after a request by defense attorney Stephen Larson, who argued in a motion that it may include evidence helpful to his client, Rancho Cucamonga developer Jeff Burum.

In May, a criminal grand jury indicted Burum, former county Supervisor Paul Biane, former Assistant Assessor Jim Erwin and Mark Kirk, former chief of staff to Supervisor Gary Ovitt, on conspiracy and bribery related charges. They have all pleaded not guilty.

Prosecutors have alleged that a $102 million settlement the county approved in November 2006 with Burum’s company, Colonies Partners, was the result of bribery and extortion.

James Lindley, who worked for the county for five years, most recently as public health director until he was fired in March 2010, testified before a separate civil grand jury in April, at the same time the criminal grand jury convened.

Lindley’s testimony was not presented to the criminal grand jury, but Deputy District Attorney Lewis Cope summarized some of his comments to the panel toward the end of the proceedings — a decision questioned by defense attorneys.

“Mr. Burum is anxious to obtain all of the discovery and all of the grand jury testimony,” Larson said. “We continue to believe once all of the evidence is out in the open it will be clear that Mr. Burum did nothing wrong.”

Prosecutors did not object to the request to unseal the testimony. Cope said under state law only the presiding judge can unseal grand jury testimony so that it’s available to attorneys on both sides. In this case, Smith said Presiding Judge Douglas Elwell relayed to him that he had reviewed the testimony and gave Smith the authority to have it released.

Lindley’s testimony became an issue because of a comment attributed to him by Dennis Wagner, a former county counsel. Wagner testified that Lindley told him he had overhead Burum say he had golfed with one of the judges who heard the Colonies civil case.

To read entire story, click here.

Saturday, November 19, 2011 – 05:00 p.m.
Last Modified: Sunday, November 20, 2011 – 05:10 a.m.

The suspense if finally over.

After months of rumors swirling within Inland Empire political circles. The much anticipated event ended up being anti-climactic.

What you ask?

The just-announced appointment of San Bernardino County District Attorney Michael A. Ramos to the California Commission on Peace Officer Standards and Training, otherwise known as the P.O.S.T. Commission.

Last week, Governor Jerry Brown, a democrat, appointed Ramos to the commission charged with administering uniform standards for the training and conduct of peace officers statewide.

It’s been rumored for months that Ramos, a republican-in-name-only, was being slotted for a six-figure full-time Sacramento gig in an effort to bail him out of a political time-bomb, commonly known as the Colonies prosecution.

Looking at the make-up of the current commission, we’re sure they must be just tickled by the news of Ramos’ impending arrival.

The P.O.S.T. commission appointment is a non-compensated position requiring confirmation from the democrat-controlled Senate.

Which should be no trouble for Ramos.

But, at least it’s another excuse for Ramos to travel to Sacramento.

How disappointing.

“There really is no such thing as insider trading for real estate,” said Milsap. “It goes on in real estate all the time. That’s the benefit of local knowledge.”

Ryan Milsap, Adjunct Professor at USC School of Real Estate and Broker

Joe Nelson, Staff Writer
Posted: 11/14/2011 08:19:46 PM PST

Authorities looked hard at several land deals involving former San Bernardino County Assessor Bill Postmus during their investigation of the county’s $102 million legal settlement with Rancho Cucamonga developer Colonies Partners LP, according to recently released search warrants.

The District Attorney’s Office, however, was unable to provide sufficient evidence to charge Postmus or his business partner, John Dino DeFazio, with any crimes. Postmus was the assessor at the time he and DeFazio acquired the six parcels through their company, Tri-Land Inc. between August and December 2007.

“I think the DA made the decision that there was no case and did not file in that regard,” said Postmus’ attorney, Stephen Levine. “And I tend to agree with them that there was no case.”

Prosecutor John Goritz with the district attorney’s Public Integrity Unit declined to comment due to the ongoing criminal cases.

Postmus has pleaded guilty to felony charges stemming from corruption cases in the Assessor’s Office and the Colonies settlement. He admitted to voting in favor of the settlement in exchange for a $100,000 bribe while chairman of the Board of Supervisors and has agreed to testify against a Rancho Cucamonga developer and three former county officials in exchange for reduced charges. All four defendants have denied any wrongdoing.

DeFazio is facing two felony counts of perjury for allegedly lying to the Grand Jury about control of a political action committee that received one of the alleged bribes in the Colonies case. He denies any wrongdoing and is fighting the charges.

Several things about the land acquisitions raised an eyebrow with district attorney’s investigators, mainly Postmus’ failure to disclose certain information about the acquisitions on public financial disclosure forms known as statements of economic interest, or form 700s.

Postmus and DeFazio formed Tri-Land Inc. in May 2007, and though Postmus disclosed on his Form 700 that he was a partner in the company, he was not listed as a principal officer on incorporation papers filed with the state, according to a March 2009 search warrant.

Former Assistant Assessor Adam Aleman, a key witness in the corruption cases involving the Colonies settlement and the Assessor’s Office, told investigators that Tri-Land acquired the Adelanto parcels because Postmus had inside knowledge that the Upland-based Lewis Group of Companies was going to install large-scale infrastructure in the area, according to the search warrant.

Randall Lewis, executive vice president for the Lewis Group of Companies, said his family’s company purchased more than 1,000 acres of land in Adelanto in 2005 and 2006 for residential and commercial development. He said the High Desert was a mecca for real estate investors at the time, and it was no secret what his family’s company was doing, as well as other developers.

To read entire story, click here.