A major story is stirring in Santa Ana, where sources have indicated that on September 15, 2006, O.C. Supervisorial candidate (and Santa Ana Councilman) Carlos Bustamante and his wife, and Santa Ana Mayor Miguel Pulido, attended the Renee and Henry Segerstrom Concert Hall “Opening Concert and Gala” event. The minimum cost per ticket was $3,000 for the performance alone.
For additional sums of money, participants could attend a post-concert dinner held inside “the tent”. Tickets for the dinner were sold by tables, costing thousands and thousands of dollars, depending on the sponsorship level. My source indictated that Bustamante and his wife attended the Opening Concert and Gala, including dinner inside “the tent” as guests of Hadi Makarechian. These tickets were valued in excess of$35,000.
Mr. Hadi Makarchian is the owner of several well-known companies. These companies include Capital Pacific Holdings, which also does business as Makar Properties and NDC Development. These companies have also contributed to Bustamante’s supervisorial campaign.
This appears to be a blatant violation by Bustamante of Articles IX section 2-853(c) of the City of Santa Ana’s Municipal Code, “City of Santa Ana Gift Ban Ordinance” (Section 2-851 c). Section 2-853 reads: No city officer shall solicit or accept any gift from any person whom he or she knows or has reason to know is doing business with the city. The Gift Ban Ordinance subsection 2-852(d)(5) specifically defines “doing business with the city” as follows: Seeking, actively supporting, or actively opposing the issuance, by the city, of a license, permit, or other entitlement for use, or having done any of these things within the past twelve (12) months.
I am told that NDC Development has been doing business with the City ofSanta Ana for over a year. Bustamante has had numerous meetings with the developer over this period as well as having advocated on their behalf to the City Manager and officials in the city Planning Department. More recently, NDC Development has been before the city’s Planning Commission for entitlements for their property on east First Street. I am told this item will be placed on the agenda for City Council approval in the very near future.
The gift of these seats/tickets may also be in violation of the FPPC gift limitation of $360 from any one source in a calendar year. It may be an idea to review for possible violations of the County of Orange Gift Ban Ordinance (Article 2), given Mr. Bustamante’s position as a manager in their Planning and Development Services department and the Makerchian developments in the county.
This gift also should have been filed on Bustamante’s supervisorial “statement of economic interests.” So he could be in hot water in that regard too.
This information has been remanded by my source to the Orange County District Attorney’s office and to the O.C. Register.
BUSTED! Looks like Carlos has some “splainin” to do! I bet Tony and Shirley Grindle will be interested in this one. One more reason why Bustamonte is not fit to hold public office.
Maybe he can be bunk mates with George Jaramillo in the S.A. Jail!
“Maybe he can be bunk mates with George Jaramillo in the S.A. Jail!”
Hehe, they can have bets to see who got away with what and which one covered it up the best.
NDC is a subsidiary of Capital Pacific Holdings,which just received approval from the Santa Ana planning commission to build Metro East.These two towers will contain 374 units priced from the mid 400’s to almost 800 thousand dollars.No wonder home prices are so high.The cost of gifts to local elected politicians is driving up the cost.
If he did accept these gratuities it may not necessarily be a violation of gift or disclosure laws, depending on the source of the donor – if a non-profit provided the tickets, for instance. A ticklish legal issue that only knowledgeable legal counsel can answer. Sometimes, just because a ticket costs hundreds or even thousands to you and me, the value received is much less (a $ 3.98 chicekn dinner for intance)when it comes to gift and disclosure requirements.
Even if Carlos can prove in a court of law that it was “legal” a better question is whether or not it is ethical and clearly it is not. How many of Santa Ana residents would enjoy such an evening if they could go for free. Bustamonte is in politics to try to raise his social stature and make $$$ and it’s going to get him arrested some day.
Councilmembers sometimes try to get around this law when it is a SANTA ANA event put on by a non-profit but this was in Costa Mesa. Come to think of it, Bustamonte is lucky he didn’t have any trouble with ICE!
We need “Missy,” the poster on the OC Blog to give an opinion here. I don’t think it is a violation, but Missy always seems to know technical details. I really would like to know who is Missy is. I wonder if she is Peggy Lowe.
Andy Favor,
I really hope your kidding about it not being a violation of any laws.This guy and the Mayor Pulido took tickets to the show and the dinner that cost tens of thousands of dollars, and then have gone on to advocate for the metro east project and you think that’s ok?
Carlos also takes cash from Benny Mendoza to help offset his financial needs and I’d guess you’d assume that’s ok too?Carlos is a crook and does not deserve to be in office.He should be in jail.Let’s hope.
To Number 9,
But most of the cost of those tickes were a charitable donation. They marketed the charitable aspect when they sold them and allocate a face value to the food, free parking, and the show.
So if the guy who bought them claimed the charity part and a gift of the value of the concert, parking and food then at most it was worth $120 per ticket.
Heck, I went on the second night “Grand Opening” and and I know there was not enough food then. So I would say on opening night Carlos probably got chick scraps for food as well. Therefore I would say he got a food benefit of $2.50.
OK, Maybe I was wrong. I only focused on the $360 limit and not the Santa Ana rule. I guess thats what happens when I try to read the blog and do tax returns at the same time! I am staying out of this one and will focus on my work so I can go home.
Sorry!
Andy Favor,
Are you telling us that you were able to deduct the cost of the ticket and the cost of the party on your tax returns? What about the fact that Mr Bustamante accepted this “gift” from someone who is doing business in the city of santa ana? Section 2-853 reads: No city officer shall solicit or accept any gift from any person whom he or she knows or has reason to know is doing business with the city. Has he not broken the law?
If the developer wrote off any amount more than $360 would this also constitute a violation of the FPPC gift ban, or do you suppose the developer assumed a loss on that $ 2.50 worth of chicken?Tha facts are plain. Joe Citizen was not able to attend and hob nob at this special private party. It was not a charity event and Mr Bustamante broke the law. The only question that remains is this; What should be his punishment? Will he be arrested before the election or after?
The following is from the Santa Ana code. I will leave it to others to interpret because I am not a lawyer and for all I know there is some other provision that overrides this.
I need to learn to stay out of these things and focus on work.
e) Gift shall have the meaning it is defined to have in the California Political Reform Act, and the regulations issued pursuant to that act, except that the following shall not be deemed to be gifts:
(1) Meals, beverages, and free admission at any event sponsored by, or for the benefit of, a bona fide educational, academic, or charitable organization,
I’ve heard that Bustamante is Spanish for he who cheats on wife and accepts gifts from developers.
Is this true?