Cost of Anaheim’s Corruption Investigation Grows to $1.5 Million

Angel Stadium in Anaheim, Calif., on Sept. 16, 2020. (John Fredricks/The Epoch Times)

The price has doubled to $1.5 million for an independent investigation into corruption allegations surrounding the sale of Anaheim Stadium.

The JL Group, a Laguna Niguel law firm, and Judge Clay Smith, a retired Orange County Superior Court judge who is overseeing the probe, were hired in August by Anaheim city officials to investigate campaign contributions made to former Mayor Harry Sidhu and previous city councilors revealed in two FBI affidavits published last year.

In February, the Anaheim City Council approved a request (pdf) to add $750,000 to fund the remaining investigation after learning the law firm had exceeded its original $750,000 budget.

City councilors also granted the firm permission to share information with the Orange County District Attorney’s Office of any criminal activity uncovered during their investigation to avoid running over the legal time limit on filing charges.

“This is an important step to restore public trust in city government,” newly elected Councilman Carlos Leon, said while discussing the increase at a Feb. 28 council meeting. “I do think we owe it to our residents, our voters, our staff, and ourselves to have a completed investigation.”

City Hall in Anaheim, Calif., on Aug. 26, 2021. (John Fredricks/The Epoch Times)

Former city councilors hired the JL Group to look into any possible inappropriate conduct by the former council and mayor related to the lease agreement and $320 million sale of Anaheim Stadium between the city and the Angels baseball organization.

The firm is also charged with examining possible local corruption issues claimed by the FBI investigation, including the conduct of city staff and local officials, consultants, lobbyists, and others involved in various transactions.

The FBI investigation, released in May 2022, detailed allegations that Sidhu expected to receive a $1 million campaign donation from Angels executives in exchange for approving the sale. He is also suspected of giving the team confidential information during negotiations.

Sidhu resigned shortly after the allegations of bribery, fraud, obstruction of justice, and witness tampering were made public.

“This is the pay-to-play scheme we’re looking into,” JL Group’s owner Jeffrey Love told city councilors.

The mayor was a member of the stadium sale negotiating group that reached an agreement with the team in December 2019. However, the sale was voided by the city council in May 2022 following public backlash over the corruption claims.

Investigators are now examining 10 years of campaign donations and financial interactions dating from 2012.

So far, the group has completed more than half its investigation and has interviewed several witnesses, Love said.

Criminal Activity

According to Love, it is expected the FBI will come forward in the next few months with criminal charges related to their four-year investigation.

“I can’t speak for them, but that is my belief based on some confidential information that we’ve received,” he said.

Councilman Jose Diaz, who is one of only two members still serving from the previous city council, said he supported continuing the group’s work.

“I do want to continue the investigation,” he said. “I want to get to the bottom of this. I also support contacting law enforcement, and also support making the report public.”

Media Blackout

The firm received some backlash from the city council for granting interviews last month to a local news outlet, the Voice of OC. Newly elected Mayor Ashleigh Aitken’s father is the chair of Voice of OC’s board of directors.

“They wanted to do a profile of JL Group and of Judge Smith, and we accommodated that—as is our right,” Love told the council.

As a result, the group will not be allowed to speak to the media for the remainder of the investigation. Councilwoman Natalie Rubalcava requested the restriction after raising the issue and calling the articles a breach of contract.

“There are some concerning quotes that you guys gave,” she said. “I have lost confidence in the fact that you guys can be neutral and do a proper investigation.”

Smith refuted the accusations during the council meeting.

“I’d like to assure you that we have had no intent whatsoever to use the media to bring any pressure or exert any influence on the council or anything else,” he said.

Smith has, thus far, billed the city about $60,000 and is not expected to exceed his original $100,000 budget, according to Anaheim City Manager Jim Vanderpool.