Former Chula Vista City Councilwoman Andrea Cardenas, who pleaded guilty to fraudulently obtaining pandemic relief funds and unemployment benefits, is slated to be sentenced Wednesday.
Cardenas, 32, and her brother, Jesus Cardenas, admitted to fraudulently obtaining a $176,227 Paycheck Protection Program loan in early 2021 intended for their political consulting firm, Grassroots Resources. The money was meant to support payroll for 34 employees, most of whom actually worked for a marijuana dispensary that was a Grassroots client.
The pair then used the funds on personal expenses, including a $33,500 check to Andrea Cardenas’ Chula Vista City Council campaign account and $21,000 that Jesus Cardenas owed American Express, prosecutors said.
Additional charges were added later for taking funds from the state Employment Development Department while both were employed.
Andrea Cardenas’ sentencing comes about five months after her brother was sentenced to two years probation and 180 days in custody, with the custodial time spent in the work furlough program and home detention. As part of their pleas, six other felony counts of conspiracy, money laundering and failing to file tax returns were dismissed.
Both siblings will likely seek to have their felony convictions reduced to misdemeanors at some point.
Andrea Cardenas resigned from the City Council shortly before pleading guilty. About a year prior to the guilty pleas, Jesus Cardenas resigned his post as chief of staff to San Diego Councilman Stephen Whitburn as questions swirled over Grassroots’ PPP loan and whether Cardenas’ dual role with Grassroots and the city presented a conflict of interest.
City News Service contributed to this article.
