CHULA VISTA, Calif. — Chula Vista City Councilmember Andrea Cardenas and her brother, Jesus Cardenas, are facing criminal charges for allegedly defrauding the federal government out of more than $176,000
According to the District Attorney's office, they used the Paycheck Protection Program, designed to help struggling businesses during the pandemic, for their own personal gain.
These charges range from conspiracy to commit fraud to money laundering to failing to file tax returns.
Jesus Cardenas, 40, had previously worked as chief of staff for San Diego City Councilmember Stephen Whitburn.
According to the criminal charges filed by San Diego County District Attorney Summer Stephan, the two had applied for and received more than $176,000 from the federal government's paycheck protection program in 2021, through their political consulting firm, Grassroots Resources.
On the application, they allegedly claimed to have 34 employees working for them. Which according to the District Attorney, was not true.
Instead, the employees listed worked for Harbor Collective, a marijuana dispensary in San Diego: a business that under federal law is illegal.
The charges also claim that Jesus Cardenas did not disclose that Grassroots Resources was a political consulting firm, which would have made the business ineligible for a PPP loan.
Those federal funds, meant for businesses struggling to stay afloat during the pandemic, were then funneled into the personal accounts of Andrea and Jesus Cardenas.
In fact, according to the DA's office, Andrea Cardenas used $33,500 of those federal funds to write a check out to her campaign for Chula Vista City Council in May 20221.
If convicted on all charges, Andrea Cardenas, who faces two additional counts of failing to file tax returns, could spend five years and eight months in state prison.
Jesus Cardenas faces a maximum of four years and four months behind bars.
CBS 8 has reached out to both Andrea and Jesus Cardenas for comment. but not have not year heard back.
They are both scheduled to be arraigned in Superior Court on November 9.
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