The San Diego District Attorney’s Office filed criminal charges this afternoon against Chula Vista Councilwoman Andrea Cardenas in Superior Court.
Cardenas’ brother, Jesus, was also charged in the seven count indictment.
Among the charges—resulting from of an investigation by the DA’s Public Integrity Unit and Department of Homeland Security – Office of Inspector General, Covid Fraud Unit— are fraud and other crimes associated with a government loan they obtained for their political consulting business, Grassroots Resources.
Both have been charged with seven felonies: Conspiracy to Defraud by False Pretense, Grand Theft, Conspiracy to Commit Money Laundering, Money Laundering, and Failure to File Tax Returns.
In the indictment, the DA listed the following charges:
•CONSPIRACY TO DEFRAUD BY FALSE PRETENSE
On or during the month of February 2021, Jesus Cardenas misrepresented that his business, Grassroots Resources, had 34 employees on an application that he submitted to PayPal for a loan under the Paycheck Protection Program. Andrea Cardenas supplied the Grassroots Resources business license and payroll calculation data for Harbor Collective, purporting to be payroll calculation data for Grassroots Resources, for the PPP loan application.
•GRAND THEFT OF PERSONAL PROPERTY
On or about and between February 1, 2021, and May 1, 2021, Andrea Cardenas and Jesus Adrian Cardenas did unlawfully take and steal money and personal property of the Small Business Administration, of a value in excess of $950.
•CONSPIRACY TO COMMIT A CRIME
Andrea Cardenas and Jesus Adrian Cardenas did unlawfully conspire together and with another person and persons whose identity is unknown to commit the crime of Money Laundering. On or about and between February 2021, and May 2021, Jesus Cardenas and Andrea Cardenas did knowingly commit the crime of Grand Theft by False Pretense by fraudulently obtaining $176,227 from the Paycheck Protection Program.
On or about May 5, 2021, Andrea Cardenas or Jesus Cardenas made two online transfers from the PPP funds totaling $2,000 from Grassroots Resources Wells Fargo Bank account to Andrea Cardenas’ personal Wells Fargo account. On or about May 5, 2021, after the PPP funds were transferred to her personal Wells Fargo account, Andrea Cardenas used the funds to make two online payments from that account to Venmo totaling $2,000. On or about May 6, 2021, Andrea Cardenas made a cash withdrawal of $5,000 of PPP funds from Grassroots Resources Wells Fargo account. On or about May 12, 2021, Jesus Cardenas, using the PPP funds, wrote a check to Andrea Cardenas in the amount of $35,000 from Grassroots Resources Wells Fargo Bank account. On or about May 12, 2021, Andrea Cardenas deposited check 3109 for $35,000 into her personal Wells Fargo account. On or about May 13, 2021, using the PPP funds, Andrea Cardenas wrote a check made out to “Andrea Cardenas for CV City Council D4” in the amount of $33,500 from her personal Wells Fargo account.
• MONEY LAUNDERING
On or about and between May 4, 2021 and May 6, 2021, Andrea Cardenas and Jesus Adrian Cardenas did unlawfully conduct and attempt to conduct more than one transaction involving monetary instruments of a total value exceeding $5,000 within a seven-day period through one or more financial institutions, with the specific intent to promote, manage, establish, carry on and facilitate the promotion, management, establishment and carrying on of criminal activity and knowing that the monetary instrument represents the proceeds of and is derived directly or indirectly from the proceeds of criminal activity.
• FAILURE TO FILE TAX RETURN
On or about April 15, 2020, ANDREA CARDENAS did willfully and unlawfully fail to file a return and to supply information with intent to evade a tax imposed by part 10 (commencing with Section 17001) or part 11 (commencing with Section 23001), and did willfully and unlawfully, with like intent, make, render, sign, and verify a false and fraudulent return and statement and supply false and fraudulent information
• FAILURE TO FILE TAX RETURN
On or about April 15, 2021, ANDREA CARDENAS did willfully and unlawfully fail to file a return and to supply information with intent to evade a tax imposed by part 10 (commencing with Section 17001) or part 11 (commencing with Section 23001), and did willfully and unlawfully, with like intent, make, render, sign, and verify a false and fraudulent return and statement and supply false and fraudulent information.
• FAILURE TO FILE TAX RETURN
On or about April 15, 2022, Andrea Cardenas and Jesus Adrian Cardenas did willfully and unlawfully fail to file a return and to supply information with intent to evade a tax imposed by part 10 (commencing with Section 17001) or part 11 (commencing with Section 23001), and did willfully and unlawfully, with like intent, make, render, sign, and verify a false and fraudulent return and statement and supply false and fraudulent information.
Andrea Cardenas was not available for comment.
The District Attorney’s Office did not have further comment.
Arraignment is scheduled for Nov. 9 at 1:30 p.m. at the San Diego Superior Court in downtown San Diego.
