Political consultant Jesus Cardenas, who raised and spent millions of dollars getting his clients elected to public office across San Diego County, including his sister, and wielded broad control over Democratic Party endorsements, pleaded guilty Wednesday to two charges of grand theft.
Andrea Cardenas, who came from nowhere to win a Chula Vista City Council seat in 2020 and was a strong contender for re-election before her surprise resignation last week, admitted to the same felony charges.
They pleaded guilty to two counts of grand theft related to funds obtained from the federal Paycheck Protection Program and the state Employment Development Department.
Jesus Cardenas, 41, is scheduled for sentencing on March 27 and Andrea Cardenas on Aug. 28.
As a condition of their plea, they will be required to pay restitution.
A case-management conference held last week was delayed for nearly two hours while prosecutors and the defendants’ legal teams discussed a potential deal, but the parties were not able to reach an agreement.
The siblings acknowledged cheating the U.S. Government out of more than $175,000 in COVID-19 relief funds through Grassroots Resources, the political consultancy Jesus Cardenas launched nearly a decade ago.
The guilty pleas represent a stunning fall for a once-powerful political pair — the well-connected consultant and fundraiser and his council member sister.
Jesus Cardenas helped elect numerous other candidates to councils and school boards across South County, and Andrea Cardenas was a key vote on Chula Vista City Council decisions that sometimes affected her brother’s clients.
It is not yet clear how the criminal admissions might affect local Democratic Party politics, given both Jesus and Andrea Cardenas remain influential in the central committee that decides which candidates will receive endorsements and financial support.
They each face up to nearly four years in prison if they breach their probation.
Andrea Cardenas had been facing up to five years and eight months in prison if convicted of all the original counts; Jesus Cardenas was facing up to four years and four months in custody.
The brother-and-sister defendants were charged with a total of 12 criminal counts last fall, accused by District Attorney Summer Stephan of fraudulently obtaining a federal loan under the Paycheck Protection Program in 2021.
Prosecutors last week added an additional charge of grand theft to each defendant, alleging they unlawfully collected money from the California Employment Development Department in 2020.
At the time he applied for and accepted the federal relief loan, Jesus Cardenas had just begun working as chief of staff to San Diego Councilmember Stephen Whitburn, who also was elected under Cardenas’ guidance in November 2020.
Records show Jesus Cardenas was earning more than $100,000 a year from San Diego taxpayers at the same time he was running Grassroots Resources. Whitburn tolerated the two roles for months after the conflict was reported by The San Diego Union-Tribune in 2022.
Andrea Cardenas also was just months into her term representing District 4 constituents on the Chula Vista City Council when she illegally applied for and accepted the COVID-19 funds.
According to the criminal complaint, the Cardenases accepted a $176,227 loan to cover payroll expenses for 34 employees of Grassroots Resources even though the workers were actually employed by the San Diego marijuana dispensary Harbor Collective.
They used the money to pay personal expenses, credit card bills and even to pay off some of Andrea Cardenas’ leftover campaign debt.
Both defendants initially pleaded not guilty to all charges and insisted they would be cleared at trial.
Andrea Cardenas pushed forward with her re-election campaign, although she drew five challengers. The county Democratic Party, which had endorsed her for re-election before the criminal charges were filed, rescinded the endorsement late last year.
Jesus Cardenas and Andrea Cardenas grew up in the South Bay and spoke often of the poverty they overcame in their early years. At various times in their childhood, they said, they had to stay with friends to avoid becoming homeless.
Jesus Cardenas moved north to Los Angeles and worked as a field organizer for the state Democratic Party. He later migrated to Orange County to do similar work for the regional party there before returning to San Diego.
He opened Grassroots Resources about 15 years ago and began working to elect clients and consolidate political power.
Among other things, Jesus Cardenas organized young Democrats into a series of informal clubs and began exercising their influence over county party officials. He also cultivated ties in the pot business and helped dispensaries secure licenses from local government agencies.
Andrea Cardenas made it to college and earned a bachelor’s degree in political science from the University of California, Riverside. She worked for then-San Diego Mayor Kevin Faulconer as a community representative before taking a job with her brother’s consulting business.
By 2020, Grassroots Resources was one of the top fundraisers for the San Diego County Democratic Party.
Jesus Cardenas managed Whitburn’s winning San Diego City Council campaign and became his chief of staff. He also managed his sister’s successful Chula Vista council run and was a key adviser behind the scenes.
By his own acknowledgement, however, Jesus Cardenas was not adept at the minutia of running a business and filing all of the accompanying paperwork.
Grassroots Resources was suspended by the state Franchise Tax Board in January 2022. At one point, Jesus Cardenas also had at least 10 separate state and federal tax liens filed against him totaling more than $240,000.
“I will ensure that this issue is addressed promptly,” he told the Union-Tribune when asked about his suspension. “I am fully committed to serving our constituents and upholding the high standards of our city.”
Whitburn, who declined to comment on the criminal charges Jesus Cardenas admitted Wednesday, stood by his then-chief of staff for months after learning about the conflict of interest and the state suspension.
“Jesus is a highly sought-after adviser whom I respect greatly, which is why I asked him to help me get things done for the residents of our district,” Whitburn said at the time. “He brings a wealth of successful business experience to our city.”
Even though Grassroots Resources was legally prohibited from conducting business, public records show the company continued to raise and spend money to help elect Democratic Party candidates.
Specifically, campaign reports show Grassroots Resources raised and spent more than $200,000 on digital advertising to benefit candidates ahead of the November 2022 election.
Last fall, several central committee members and club presidents demanded an audit of the party’s fundraising and spending practices in the wake of reporting showing that Grassroots Resources was continuing to do business.
“Local press is reporting, daily, campaign finance irregularities and violations perpetrated by a Democratic consultant and an elected official who are members of this committee, and closely affiliated and connected to the San Diego County Democratic Party,” they wrote to party Chair Rebecca Taylor in November.
Taylor did not respond Wednesday to a request for comment on the guilty pleas by Jesus and Andrea Cardenas.
Jesus Cardenas resigned as Whitburn’s chief of staff 11 months ago.
Meanwhile, at Chula Vista City Hall, council members are preparing to appoint someone to the seat that Andrea Cardenas relinquished. At a public meeting earlier this week, the council formally declared the seat vacant.
Residents said the appointment process must include measures to better vet candidates so the city can avoid further undermining voter confidence.
“Do the background checks on them,” Delia Dominguez Cervantes told the council. “Give us that confidence because you know what we thought of Councilmember Andrea Cardenas stepping down? We thought, ‘Here we go again.’ That shouldn’t be how we feel.”
