CHULA VISTA, Calif. — Chula Vista City Councilwoman Andrea Cardenas, who is accused with her brother of fraudulently obtaining a loan for their political consulting business, resigned Monday.
The City of Chula Vista confirmed Cardenas' resignation on Monday.
In a memo to Mayor John McCann and City Council members, Cardenas resigned and said, "in an effort to prioritize my mental health, and the health of my community” and that “it has been an honor and privilege to serve my community and work alongside all of you.”
Cardenas and her brother, Jesus Cardenas, are now each facing an additional charge of grand theft in connection with allegedly taking funds unlawfully from the state's Employment Development Department sometime between April and December of 2020, during the early months of the coronavirus pandemic.
Regarding the new grand theft count, Andrea Cardenas' defense attorney, Pedro Bernal, said his client is accused of applying for unemployment insurance without a valid reason.
"Like millions of Americans, she applied for unemployment insurance during that period of time and we still have to review the evidence to see if mistakes were made," he said.
Bernal said negotiations took place Tuesday morning between the defense and the San Diego County District Attorney's Office toward "a resolution" to the case, but those discussions were not fruitful prior to the Cardenas' brief readiness conference that took place at the downtown San Diego courthouse.
Another hearing is scheduled for next week, by which time Bernal said the parties would "attempt to reach a resolution to this case."
The initial charges filed last year stem from allegations that the siblings fraudulently obtained a $176,227 Paycheck Protection Program loan in early 2021 intended for their firm, Grassroots Resources, then used the funds on personal expenses, including a $33,500 check to Andrea Cardenas' Chula Vista City Council campaign account.
The siblings have pleaded not guilty to all charges.
Bernal said it was "a difficult decision" for Cardenas to resign from the city council.
"Obviously, the last several months have taken a significant toll on her mental health and she wants to be able to focus on her health and on her mental health and make that a priority," Bernal said. "She knows that her fellow former city council members are going to be able to adequately represent her former constituents and that they'll do a good job for the citizens of Chula Vista."
Cardenas remains on the ballot for Chula Vista's District 4 council seat. Bernal said it was too late to remove her from the ballot, but Cardenas is not actively campaigning.
The City of Chula Vista Charter requires the city council to declare Cardenas' District Four seat vacant. The city said staff plan to bring an item forward during next week's meeting.
The city council is also required to use its "best efforts" to fill the vacancy within 45 days. If the seat is not filled within 45 days, it will stay vacant until the next election.
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.
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."
WATCH RELATED: Cardenas siblings appear in court