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Chula Vista Councilwoman resigns amid fraud charges

Andrea Cardenas
Posted at 4:49 PM, Feb 19, 2024
and last updated 2024-02-20 09:04:27-05

SAN DIEGO (CNS) - Chula Vista City Councilwoman Andrea Cardenas, who is accused with her brother of fraudulently obtaining a loan for their political consulting business, has resigned, according to multiple media reports, and city leaders are reacting Tuesday.

According to the San Diego Union Tribune, Cardenas sent a memo to colleagues Monday announcing her decision.

"In an effort to prioritize my mental health, and the health of my community, I have made the very difficult choice to formally resign effective immediately from my position as Councilmember for our City's 4th District," she wrote, according to the newspaper. "It has been an honor and privilege to serve my community and work alongside all of you."

Attempts to reach Cardenas' office for comment Monday were not immediately successful.

Cardenas and her brother, Jesus Cardenas, have pleaded not guilty to criminal charges. They are scheduled to appear in a readiness conference for the trial Tuesday.

The siblings are accused of fraudulently obtaining a $176,227 Paycheck Protection Program loan in early 2021 intended for their firm, Grassroots Resources, then using the funds on personal expenses, including a $33,500 check to Andrea Cardenas' Chula Vista City Council campaign account.

They are accused of making several misrepresentations in order to secure that loan, including that they were using the funds to support 34 Grassroots Resources employees, when in reality those employees worked for a marijuana dispensary that was a Grassroots client.

Jesus Cardenas, 40, who served as chief of staff for San Diego City Councilman Stephen Whitburn until he resigned from that post in 2023, faces up to four years and four months in prison, while Andrea Cardenas, 31, faces up to five years and eight months if convicted of all charges, which include conspiracy to commit a crime, money laundering, conspiracy to defraud, grand theft, and failing to file tax returns.

The siblings have been allowed to remain out of custody on their own recognizance.

Some Chula Vista leaders including Mayor John McCann had called for her resignation.

Marco Verdugo, a Chula Vista city attorney candidate, said in a statement Monday that Cardenas' decision to resign was honorable.

"I was among the first to call for her resignation and, like so many Chula Vistans, I am relieved we can now begin the hard work of rebuilding trust at City Hall," Verdugo said. "Chula Vista taxpayers deserve better and this only strengthens my resolve to stamp out corruption in our city government."

Cesar Fernandez, a Chula Vista School Board member and Democratic candidate for the City Council District 4 seat, also issued a statement on the resignation.

"This is a pivotal moment for Chula Vista, and an opportunity for us to start fresh. I believe Councilmember Cardenas made the right decision by stepping down so the residents of District 4 can focus on what really matters: keeping our community safe, affordable, and fighting for Southwest Chula Vista's fair share from City Hall that has been long overdue," Fernandez said.

In a statement issued in early November of 2023, Cardenas said she and her brother "became aware of many of the details of these allegations through local media outlets, who received a full copy of the complaint before we did.

"Our American judicial system is built on the fundamental principle that our citizens are innocent until proven guilty. As someone who has spent more than half of my life working to support and elevate my community, I understand and respect the critical work that our District Attorney's Office does to uphold the law. While the DA's Office is tasked with the responsibility to protect our community and prosecute abusers of the law, as defendants, we are afforded the right to prove our innocence," she said.

"My intent has never been to harm or disappoint those who believed in me, both in life and at the ballot box. Many conversations are taking place around me about me and what others think is the best way for me to move forward. I would like to make one thing very clear -- my commitment to my community continues. As we move forward in this process, I hope to be given an opportunity by the media, folks in political circles, and, most importantly, my constituents to defend myself."

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