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10News Investigates Chula Vista Mayoral Candidate's Land Deal

The Randy “Duke” Cunningham and City Hall corruption cases exposed politicians taking bribes and gifts in exchange for political favors.

Now, a Chula Vista council member is involved in another alleged scandal.

“We don’t want another Chicago incident here, and we don’t want all of this corruption that starts at the top,” said retired Chula Vista police Officer Mark Croshier told 10News.

Croshier is worried about the city he loves.

That is why he filed a complaint with the Chula Vista Board of Ethics against city councilman Steve Castaneda.

Sources informed 10News that Castaneda has spent a lot of money campaigning to become Chula Vista’s next mayor.

However, where that money has come from has raised new concerns about Castaneda’s ethics and honesty.

"What he's doing and what he's been doing for others is avoiding the campaign finance laws," said Gus Slovinsky, Croshier’s attorney.

Ethics board members told Croshier and his attorney they could not do anything because Castaneda had not voted on issues that would create a conflict.

But that may have changed because of what was exposed -- the purchase and resale of a vacant lot at 40 L Street in Chula Vista.

“I’m a part-time council member. I have to work for a living, and that means from time to time,” said Castaneda.

According to reports, Castaneda profited from the sale of the lot with Henry Barros.

Barros is a man with extensive land holdings in Chula Vista.

“I have no idea. I don’t track all of Henry Barros’ properties,” Castaneda told 10News.

Castaneda told Chula Vista Star news reporter Frank Pruett in an article that he had put down $75,000 of his own money on the land and then borrowed $75,000 from Barros.

It was something Castaneda had originally told 10News.

However, 10News learned that Barros put down all of the money on the lot -- $305,000.

None of the money came from Castaneda.

"He puts up almost no money and makes a lot of money and fails to disclose it," said Slovinsky.

Castaneda backtracked and admitted he did not put down any money.

He received half of the profits on the land.

It was a $35,000 profit for Castaneda, with Barros putting up 100 percent of the financing.

Castaneda said, "I'm sorry I made some money, but that's just the way it is.”

10News attempted to contact Barros regarding the land deal, but he had not responded to calls or messages.

What exactly did Barros receive?

He got Castaneda’s council vote on zoning changes that made 12 of his 19 Chula Vista properties more valuable.

It was a vote made the same week Castaneda sold the vacant lot -- a sale that netted the mayoral candidate at least half of a $70,000 profit.

An expert in ethics said it looks like a conflict of interest.

"I think that's the thing that will stand out for people. The situation raises red flags," said ethicist Craig Barkacs.

10News learned Barros also owns the home where Castaneda once lived, an office he used as campaign headquarters for his council election, and the house he currently uses as headquarters for his mayoral campaign.

10News reporter Thom Jensen asked Castaneda, “You understand the conflict of interest laws in California, don’t you?”

Castaneda replied, “I very much do.”

Jensen added, “Do you know what a 1090 violation is?”

Castaneda answered, “I know what a 1090 violation is. You don’t know what the law is.”

Castaneda said he did not break any laws, including Government Code section 1090 -- the Conflict of Interest law.

Attorneys and Barkacs told 10News that Castaneda is treading a thin line along the state’s Conflict of Interest law and may have crossed the line in this particular land deal.

Castaneda is running against incumbent mayor Steve Padilla and two other candidates in Tuesday’s Chula Vista mayoral election.

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