ALMOST A YEAR and a half in the past, a San Joaquin County sheriff’s investigator offered a choose with a doc that helped launch a legal case towards Stockton college board member AngelAnn Flores.
Throughout almost 40 pages, that search warrant affidavit laid out the potential of far-reaching misconduct and monetary crimes: two public figures wielding secret affect over the Stockton Unified Faculty District board; a board member killing building charges to boost a neighborhood developer’s earnings; and indicators per fraud and cash laundering in a number of board members’ political campaigns.
But the legal case finally filed towards Flores exhibits nearly no signal of the sweeping corruption investigators had mentioned of their affidavit.
Now, a evaluation of the doc’s sprawling narrative, by Stocktonia and unbiased specialists, raises new questions in regards to the Sheriff’s Workplace’s justifications for looking out Flores, and info on the coronary heart of the case.
Lawyer Tori Verber Salazar and her consumer former Stockton Unified Faculty District (SUSD) Trustee AngelAnn Flores after Flores’ arraignment in Stockton on Could 6, 2024. (Victoria Franco/Bay Metropolis Information)
Amongst Stocktonia’s findings:
The narrative about improper affect on the college board is predicated on the accounts of a single supply.
The affidavit speculates a few board member manipulating district charges to learn a developer, however the proof it offers doesn’t assist that conclusion.
“Red flags” of fraud and cash laundering are attributed to an unnamed state investigator, however state officers didn’t present Stocktonia any response corroborating or refuting these suspicions, and even confirm whether or not that investigator exists.
To make certain, affidavits searching for search warrants don’t carry as excessive a burden of proof as legal expenses. It’s common for investigators who safe a search warrant on one suspicion to finally pursue different expenses, or none in any respect.
“It is our practice to not disclose investigative methods and/or internal deliberations our office utilizes. As this case is still ongoing, we are not inclined to speak on any investigative matters that may relate to others.”
Heather Brent, San Joaquin County Sheriff’s Workplace spokesperson
“Unfortunately, these questions are subjective,” a press release from Sheriff’s Workplace spokesperson Heather Brent stated. “It is our practice to not disclose investigative methods and/or internal deliberations our office utilizes. As this case is still ongoing, we are not inclined to speak on any investigative matters that may relate to others.”
The workplace didn’t say whether or not it has investigated anybody else named in these claims, or whether or not it plans to carry expenses. And the DA’s Workplace didn’t reply questions on whether or not a search of Flores’ digital gadgets, messages and search historical past was essential to prosecute the present case towards her.
“We have no comment on ongoing investigations or cases. Our priority has been and always will be, maintaining the integrity of the legal process,” DA spokesperson Erin Haight stated in a press release.
Stockton Unified Faculty District constructing. (Stocktonia file picture)
Although the search warrant was launched to the media by a Superior Courtroom official, most of its claims have by no means been publicly detailed.
Stocktonia requested specialists — who weren’t concerned within the case — to evaluation the affidavit based mostly on their skilled expertise with search warrants, corruption investigations and marketing campaign finance. These specialists questioned the scope of the affidavit’s argument — for instance, that it factors to publicly disclosed marketing campaign contributions as a sign of improper affect over the board, however by no means connects them to any particular act of quid professional quo.
“What took place there, if true, is not unusual in our current (political) system,” stated Patrick Murphy, a former FBI agent and supervisor for almost 30 years, who has investigated quite a few public corruption and complicated monetary crimes instances.
“They’re clearly trying to suggest that these campaign contributions were made to unduly influence Flores, but … they don’t come out and directly say that,” Murphy stated. “They’re just trying to create this cloud of potential corruption.”
Flores now faces felony expenses of constructing a false insurance coverage declare and of embezzlement for alleged misspending. She has pleaded not responsible; the subsequent listening to in her case was scheduled for March 11.
Whereas the affidavit does embrace details about the alleged bank card misuse for which Flores was finally arrested, it takes up lower than 4 of the doc’s dozens of pages of element. The insurance coverage challenge seems nowhere within the affidavit.
Claims about two distinguished businessmen
The search warrant affidavit airs one witness’s allegations that Flores and three different Stockton Unified trustees had been making choices on the behest of a businessman and a high-profile training advocate, and in violation of state open-meetings legislation.
Investigators cite the witness’s claims that Flores, in addition to different college board members, had been being influenced by actual property developer Fritz Grupe and constitution college founder Donald Shalvey.
Referring to Flores with the prefix “(S)” for suspect, the affidavit cites the witness alleging that Shalvey held sway over the board majority, which might profit him and Grupe.
“She believes Shalvey has direct involvement and influence on (S) Flores and three other Board members (majority) related to SUSD matters, decisions and voting beginning in December of 2022,” the affidavit says.
The witness cited is Traci Miller, Stockton Unified’s interim superintendent from July 2022 till June 2023. The affidavit says Miller went to the Sheriff’s Workplace in April 2023, a couple of months earlier than the contract for her interim job was set to run out.
Traci Miller was Stockton Unified’s interim superintendent till June 2023. (Stocktonia workers picture)
In line with the affidavit, Miller stated “unspecified board members” advised her about trustees holding official discussions “outside of what is required by the Brown Act.”
However Miller was not current for these conferences, the doc says.
The one particular incidents described within the affidavit to corroborate Miller’s claims about improper conferences had been a pair of cellphone calls she stated she acquired in December 2022 from Shalvey and Grupe. Miller stated the 2 males advised her the board majority deliberate to seek for alternate candidates for superintendent — that’s, to switch Miller — earlier than the difficulty was ever mentioned publicly.
Primarily based on Miller’s account, the investigator concluded “There is probable cause to believe that Brown Act Violations occurred,” including, “large donors appeared to have knowledge and influence on SUSD related business.”
The Brown Act bars authorities boards from making choices behind closed doorways, together with utilizing intermediaries to reach at a call exterior of an official assembly.
However it’s not clear from Miller’s claims that the board majority did so. The doc gives no different proof that board members had been improperly conferring.
In an interview, Grupe advised Stocktonia he had by no means had any contact with the board majority.
“I have never met any of those people who are on the board or talked to them,” he stated. “I donated to them, but I wasn’t the only one.”
Grupe stated he supported them as candidates after listening to that earlier college boards had been “doing not-so-good things.” He stated Shalvey had requested the Enterprise Council of San Joaquin to lift funds for brand new candidates. “I never interviewed them,” he stated, “I never met them.”
Grupe additionally stated he had by no means had any discussions with Miller in regards to the board planning to rent another person.
Shalvey, a former CEO of San Joaquin A+,was recognized for sponsoring California’s first constitution college and founding the statewide Aspire Public Faculties constitution system, which has 10 faculties in Stockton. He died in March 2024.
San Joaquin A+’s present CEO, Kai Kung, advised Stocktonia the group has no remark.
Marketing campaign donations not essentially improper
Whereas it’s true that Flores and different board members acquired marketing campaign contributions from Shalvey and Grupe in 2022, these aren’t essentially proof of improper affect, two specialists stated.
Murphy, the previous FBI agent, stated if legislation enforcement officers wish to present that marketing campaign donations functioned as bribes, they need to present a direct correlation between a donation and an official act. “That didn’t happen here,” he stated of the Sheriff’s Workplace’s argument.
“It’s not unusual for people to expect something in return for contributing,” stated Mike Galli, a veteran Santa Clara County prosecutor. However that doesn’t present impropriety, he stated, “unless I specifically say, ‘I’m giving you $1,000 because I want you to vote a certain way.’”
Flores acquired $1,200 complete in particular person donations from Shalvey and Grupe in 2022, marketing campaign finance information present. Different board candidates acquired comparable sums.
The affidavit additionally consists of little dialogue of how Miller’s employment on the time hinged on the choice of the board members — and whether or not her stake within the matter may doubtlessly shade her notion of them, whilst a lot of the affidavit’s image of their doable misconduct rests on her phrase.
Galli didn’t say Miller’s statements had been essentially biased. However as a former prosecutor who has written greater than 2,000 search warrants, he famous that when citing in an affidavit proof supplied by a witness who is likely to be biased, “I will flag that issue directly to the judge or the magistrate who reviews the affidavit,” he stated.
That approach, the choose can say: “OK. As I read this, I’m going to read this with a grain of salt and say … they don’t like this person. They’re saying this. Is there something to back this up?” Galli stated.
The affidavit additionally says Miller thought Flores was inappropriately searching for the termination or resignation of district staffers, when elected board members should not licensed to make these choices.
Claims about developer charges
In line with the affidavit, Miller claimed that Flores had the power to personally profit Shalvey, Grupe or their enterprise pursuits, by altering charges the district collects from actual property developments.
Shalvey was not an actual property developer. Grupe and his corporations have developed properties throughout the nation and are recognized for growing a lot of north Stockton.
Throughout California, college boards have the facility to cost charges on improvement as a method of funding college building to serve the realm’s new residents.
The affidavit by no means spells out how investigators consider Flores may have manipulated the charges herself.
In line with the affidavit, Miller advised investigators a few board assembly in December 2022, during which Flores requested for a report about developer charges to be faraway from the assembly’s consent agenda. This early portion of the assembly usually permits officers to approve sure gadgets in a batch, however board members are allowed to take away gadgets for additional consideration.
Miller claimed this was uncommon; as an investigator wrote: “Miller believes it was to either amend future developer fee rates or hide those that were not charged to select contractors from the public.”
On Dec. 13, 2022, Flores and 4 different board members did vote to take away a report about developer charges from the consent agenda. However that report didn’t set charges; it outlined charges set by earlier boards.
Flores was on the board on the time these charges had been set. She had voted towards one of many charges, abstained from voting on one other and, together with the remainder of the board, authorized a 3rd, prior agendas present.
In June, the board voted to lower residential improvement charges, based mostly on an expert evaluation, a decision exhibits. Earlier than the vote, Stockton Unified’s Interim Chief Enterprise Official Joann Juarez reviewed the modifications, and Miller introduced the merchandise to the board. Flores, Sofia Colon, Donald Donaire, Kennetha Stevens, Alicia Rico and Raymond Zulueta voted sure on the brand new charges, whereas Cecilia Mendez was absent.
One board member can not unilaterally alter charges with out a board vote. The varsity’s finance chief should additionally current a justification of the charges to the board, and the superintendent should carry it to a vote.
The affidavit’s conclusion gives no particular “probable cause” to consider against the law associated to these charges had occurred.
Grupe and a enterprise affiliate each dismissed the concept that a board member had manipulated charges for his or her profit.
“I have no idea where this came from,” Grupe advised Stocktonia.
Grupe stated the Grupe Firm had no present tasks topic to SUSD charges. He is also a shareholder within the Grupe Huber firm. Kevin Huber, president and CEO of Grupe Huber, stated the agency has had few current tasks that may have been topic to Stockton Unified charges. “There was certainly no quid pro quo for a donation,” Huber stated.
The affidavit gives yet one more questionable element: In outlining the significance of developer charges, it cites a “recent Grupe project” known as Chateau de Lyon for example, and describes how eliminating or waiving the developer price on that mission would have allowed the developer to “enhance nearly $200,000 in profits.”
In line with builder Visionary Residence Builders, Grupe was the overall contractor for Chateau de Lyon. It was accomplished 10 years in the past. And it’s within the Lincoln – not Stockton – college district.
Claims of marketing campaign finance fraud, cash laundering
The affidavit makes many references to a “board majority,” typically calling it “the newly elected board majority.” The newly elected members of the board ran for workplace in 2022, on the similar time Flores ran for reelection: Colon, Donaire and Stevens.
The affidavit raises the concept that all 4 had been improperly influenced by marketing campaign contributors. However it later makes a extra explosive allegation.
The sheriff’s investigator tells the choose that he has sought an evaluation from a particular investigator on the California Truthful Political Practices Fee. He claims the investigator advised him that marketing campaign donations the board majority acquired from two political committees had been per fraud or cash laundering.
The affidavit says the state investigator pointed to the candidates’ massive battle chests, the dimensions of sure donations and one committee’s alleged ties to a on line casino exterior the county. It offers no identify for the particular investigator.
Colon, Donaire and Stevens didn’t reply to requests for remark.
All 4 candidates raised between $76,000 and $87,000 in 2022, marketing campaign statements present. One massive sum the investigator flagged, in keeping with the affidavit, was a $43,000 donation the Central Valley Management Fund committee gave Flores.
(The affidavit additionally notes different folks and teams concerned with the committee, together with a member of a former Stocktonia nonprofit board. Stocktonia has no connection to the fund.)
These quantities should not essentially uncommon in class board races, relying on the extent of competitors, in keeping with John Pelissero, director of presidency ethics on the Markkula Heart for Utilized Ethics at Santa Clara College.
The affidavit additionally claims the state investigator discovered that one other committee that donated to every candidate “has ties to” a non-local on line casino.
Along with 11 native donors to that committee, state marketing campaign finance information present, three southern California Native American tribes gave between $3,000 and $9,000 to the committee. The committee in flip donated $4,375 to every candidate in 2022, marketing campaign statements present.
It’s not frequent for candidates to obtain massive contributions from donors exterior the county, Pelissero stated. The affidavit offers no proof of the on line casino connection.
As of this week, a search of the FPPC’s on-line databases returned no complaints or open or closed instances towards any of the 4 college board members.
Total, Galli questioned the timeframe of the Sheriff’s Workplace’s search of Flores’ digital communications, with the warrant going again to 2018.
“I think it’s too broad a net, quite frankly. You really haven’t established probable cause for everything that you want,” he stated.
Certainly, whereas the affidavit’s conclusion — searching for permission to go looking — refers back to the measurement of Flores’ marketing campaign contributions, it doesn’t declare any possible trigger to consider the alleged fraud or cash laundering occurred.
Closing expenses: Embezzlement
The search warrant affidavit, signed by sheriff’s Detective Rocky Bulen, was submitted in November 2023 and the warrant was authorized by Choose Richard Mallett.
In the end, Flores was arrested in April 2024, and has been indicted on counts of embezzlement and making false insurance coverage claims. The embezzlement cost doesn’t specify a greenback quantity; an earlier model of her expenses included one for theft exceeding $950.
Nobody else named within the affidavit’s central claims has been charged with against the law in San Joaquin County since Flores’ arrest, a web based courtroom case search exhibits.
The District Lawyer’s bulletins, the unique expenses, and an up to date indictment filed early this 12 months, provide little in the way in which of particulars in regards to the precise public theft alleged within the case.
Roughly 4 pages of the 55-page search warrant did focus on allegations of improper expenses on the district bank card issued to Flores.
“It is also alleged that (S) Flores’ use of the district credit card was for purchases that are deemed non chargeable due to the type of item purchased and/or reasoning,” the sheriff’s deputy advised the choose.
The affidavit already posted a “sample of some of the unreconciled credit card transactions” taken from Wells Fargo bank card statements, which it says had improper justification or lack of documentation.
Amongst them: $58.88 at an Arco fuel station, varied Uber journeys and a March 2023 order from a donut store.
Flores’ lawyer has stated she was singled out over the bank card receipts due to her efforts to lift the alarm about monetary improprieties within the college district. Years after a particular state audit discovered proof unlawful monetary practices together with fraud and misappropriation might have occurred — together with in a $7.3 million contract handed below a earlier board — questions on these issues stay. The DA pledged to root out “any and all wrongdoing” at Stockton Unified; two years later, no expenses have been filed towards any board member however Flores.
“The execution of this search warrant violates my client’s Fourth Amendment rights,” Flores’ lawyer, former DA Tori Verber Salazar, advised Stocktonia. “AngelAnn Flores has a history of standing up for justice — fighting for Stockton Unified students.”
Constitutional rights below the Fourth Modification — safety towards illegal search and seizure — are on the coronary heart of any query about an excessively broad search warrant, Galli stated.
“Part of the reason the Fourth Amendment was drafted,” Galli stated, was to cease what he known as “a general rummaging warrant.”
Scott Linesburgh and Cassie Dickman of Stocktonia contributed reporting to this story. Right here’s how Stocktonia is masking the story of college board member’s arrest, search warrant.
This story initially appeared in Stocktonia.
