In the Felony Complaint issued against Bill Postmus and Jim Erwin, it seems that the DA has ignored the guys who actually dreamed the conspiracy up, put the plot into action and collected the $102 million of tax dollars. Postmus was actually blackmailed into his role by these John Does and Erwin while a participant, was not on the same level as the big fish who are still uncharged and unnamed. From the complaint we get the details as to the probable cause, but not any clue as to why 5 of the 7 were not arrested and charged.
III. OBJECTS OF THE CONSPIRACY
The object of the conspiracy was to illegally obtain $102,000,000 from the County, for personal gain, and for certain public officials to share in those gains by forsaking their solemn duties and responsibilities to the County and the citizens they served, in violation of their oaths of office and the laws of the State of California.
IV. MEANS BY WHICH THE OBJECTS OF THE CONSPIRACY WERE TO BE ACCOMPLISHED
In 1997 Colonies bought a 434-acre parcel of land in Upland for $16 million from the San Antonio Water Company’s liquidation trust for the purpose of residential and commercial development. The parcel contained a 67-acre flood control basin over which the County asserted it had easement rights. As the development project proceeded, Colonies asserted they spent $23.5 million on flood control improvements to maximize the amount of land they could develop for commercial and residential sales. Colonies requested that the County cover the costs it spent for flood control. The County declined to pay the entire amount that Colonies spent on flood control, claiming that the 67-acre basin itself was sufficient for flood control without improvements.
In March 2002 Colonies sued the County, challenging the County’s easements to the basin and claiming that it had been deprived of the ability to develop the 67-acre flood control basin. The litigation proceeded with various rulings as to the validity and size of the easements. The California Court of Appeal ruled in favor of the County in July of 2005 determining that a 1933 easement to 30 of the acres was clear. They also acknowledged a 1939 easement, in favor of the County, but found there were factual issues still to be determined as to applicability and extent.
At an unknown time after the lawsuit was filed, John Doe #1 and John Doe #2 concocted a scheme to obtain a monetary settlement from the County through corrupt means. On or between January 1, 2005, and November 29, 2006, John Doe #1 and John Doe #2 attempted to corruptly influence members of the Board of Supervisors through a combination of threats, extortion, inducements, and bribery in order to secure their vote in favor of a settlement.
Defendant ERWIN and John Doe #3 joined the conspiracy and both conveyed various threats and/or inducements from John Doe #1 and John Doe #2 to Defendant POSTMUS, John Doe #4 and John Doe #5. John Doe #4 agreed to accept a bribe to deliver the vote of Ovitt. Defendant POSTMUS and John Doe #5 joined the conspiracy by agreeing to accept a bribe to vote to approve the Colonies settlement.
On November 28, 2006, Defendant POSTMUS and John Doe #5, along with Ovitt, voted, as members of the Board of Supervisors, to approve a $102 million settlement with Colonies to be paid by the County. No member of the County Counsel’s staff, nor any private attorney retained by the County, endorsed the settlement amount. Defendant POSTMUS and John Doe #5 voted knowing that they had a financial interest in the outcome.
After Colonies received substantial sums of money from the settlement with the County, John Doe #1 and John Doe #2 distributed from Colonies the agreed upon bribes and payments to Defendant POSTMUS, Defendant ERWIN, John Doe #4, and John Doe #5.
Defendant POSTMUS engaged the assistance of Aleman, Richman, and DeFazio to create two Political Action Committees (PACs) that he secretly controlled for the express purpose of concealing the receipt of the bribe of $100,000 from Colonies.
Defendant ERWIN created a PAC to accept $100,000 from Colonies for his part in committing Extortion and Bribery.
John Doe #4 created a PAC into which he accepted a bribe of $100,000 from Colonies for delivering the vote of Ovitt.
John Doe #5 already had a PAC that he secretly controlled into which he accepted a $100,000 bribe from Colonies.
Defendant POSTMUS, Defendant ERWIN, John Doe #4, and John Doe #5, through different means, distributed varying amounts of the monies, received from Colonies into the PACs each controlled, directly to themselves.
V. OVERT ACTS
In the County of San Bernardino, State of California, pursuant to the above conspiracy and in furtherance of the objects thereof, the following overt acts were committed:
OVERT ACT 1
On or between September 8, 2005, and September 20, 2005, John Doe # 1 attended a Discovery Tour and Trade Mission to China with Defendant POSTMUS and provided meals, entertainment, and the services of a prostitute to Defendant POSTMUS and promised to take care of Defendant POSTMUS for the rest of his political career if he would support a settlement of the Colonies lawsuit.
OVERT ACT 2
On or about September 20, 2005, upon return from the Mission, Defendant POSTMUS immediately went to County Administrative Officer Mark Uffer and stated, “We’ve got to settle this Colonies thing.”
OVERT ACT 3
On or between January 1, 2005, and November 28, 2006, John Doe #1 offered to give John Doe #4 $100,000 if John Doe #4 would obtain Ovitt’s vote for a settlement amount dictated by John Doe #1 in the Colonies lawsuit against the County.
OVERT ACT 4
On or between January 1, 2005, and November 28, 2006, John Doe #1 offered to give $100,000 to Defendant ERWIN if Defendant ERWIN would assist him in obtaining a settlement amount dictated by John Doe #1 in the Colonies lawsuit against the County.
OVERT ACT 5
In 2006 County voters were presented with Measure P whose passage would raise the salaries of Board of Supervisors members from $99,000 to $152,000. John Doe #1 and John Doe #2 conducted a campaign against Measure P as a means to obtain influence over John Doe #5 in order to obtain a settlement in the Colonies lawsuit against the County.
OVERT ACT 6
On or between January 1, 2006, and November 28, 2006, John Doe #1 hired private investigators to go through Defendant POSTMUS’ trash to find incriminating information that could be used to pressure Defendant POSTMUS to vote in favor of a settlement in the Colonies lawsuit against the County.
OVERT ACT 7
On or between January 1, 2006, and November 7, 2006, at the request of John Doe #1, Defendant ERWIN created political mailers for the Assessor’s race depicting Defendant POSTMUS’ addiction to drugs and his homosexuality to be used to influence Defendant POSTMUS to vote in favor of a settlement in the Colonies lawsuit against the County.
OVERT ACT 8
On or between January 1, 2006, and November 7, 2006, Defendant ERWIN advised Aleman that if there were a settlement of the lawsuit that John Doe #1 found favorable, the mailers depicting Defendant POSTMUS’ addiction to drugs and his homosexuality would not go out.
OVERT ACT 9
On or between January 1, 2006, and November 7, 2006, Defendant ERWIN created political mailers in opposition to Measure P that asserted that John Doe #5 had excessive indebtedness and was unable to pay his bills. The mailers were to be used to influence John Doe #5 to vote in favor of a settlement in the Colonies lawsuit against County.
OVERT ACT 10
On or between January 1, 2006, and November 28, 2006, John Doe #1 communicated to John Doe #5 that John Doe #5 would receive $100,000 if John Doe #5 voted for a settlement in the Colonies lawsuit against the County.
OVERT ACT 11
On or between January 1, 2006, and November 1, 2006, John Doe #1 advised Defendant POSTMUS that if there were a favorable settlement of the Colonies lawsuit, as dictated by John Doe # 1, that John Doe #1 would give Defendant POSTMUS $100,000.
OVERT ACT 12
On or between October 1, 2006, and November 28, 2006, Defendant POSTMUS and John Doe #1 engaged in negotiations concerning the settlement amount for the Colonies lawsuit at the Doubletree Hotel in Ontario with Defendant ERWIN and John Doe #3 acting as intermediaries.
OVERT ACT 13
On or between October 1, 2006, and November 28, 2006, during the negotiations concerning the settlement amount for the Colonies lawsuit at the Doubletree Hotel, Defendant ERWIN conveyed to Defendant POSTMUS various threats from John Doe #1 to Defendant POSTMUS’ that would be carried out if the terms dictated by John Doe #1 for the settlement of the Colonies lawsuit were not accepted.
OVERT ACT 14
On or between October 1, 2006, and November 28, 2006, Defendant POSTMUS agreed to vote to approve a $102 million settlement of the Colonies lawsuit as dictated by John Doe #1 in exchange for $100,000 to be given to Defendant POSTMUS.
OVERT ACT 15
On or between December 7, 2004, and November 28, 2006, John Doe #4 agreed to obtain Ovitt’s vote for a settlement of the Colonies lawsuit as dictated by John Doe #1 in exchange for $100,000 to be given to John Doe #4.
OVERT ACT 16
On or between October 1, 2006, and November 28, 2006, John Doe #5 agreed to vote to approve the $102 million settlement of the Colonies lawsuit as dictated by John Doe #1 in exchange for $100,000 to be given to John Doe #5.
OVERT ACT 17
On or between October 1, 2006, and November 28, 2006, John Doe #4 successfully urged Ovitt to vote to approve the $102 million settlement of the Colonies lawsuit without the concurrence and against the recommendations of County staff, County Counsel, and private attorneys retained by the County.
OVERT ACT 18
On or about November 28, 2006, John Doe #5 voted to approve a $102 million settlement of the Colonies lawsuit without the concurrence and against the recommendations of County staff, County Counsel, and private attorneys retained by the County.
OVERT ACT 19
On or about November 28, 2006, Defendant POSTMUS voted to approve a $102 million settlement of the Colonies lawsuit without the concurrence and against the recommendations of County staff, County Counsel, and private attorneys retained by the County.
OVERT ACT 20
On or about November 28, 2006, pursuant to the settlement agreement, Defendant POSTMUS directed that the Auditor-Controller-Recorder, Larry Walker, transfer $22 million by November 29, 2006, from the San Bernardino County Flood Control District to Colonies as the initial payment toward the settlement.
OVERT ACT 21
On or between January 29, 2007, and January 31, 2007, John Doe #1 hosted Defendant ERWIN and John Doe #3 on a private jet trip to New York and Washington, D.C., where he provided meals, refreshments, lodging, watches, entertainment, spending money, and prostitutes as gifts for their assistance in obtaining the Colonies settlement from the County.
OVERT ACT 22
On or between October 1, 2006, and February 14, 2007, Defendant POSTMUS told Aleman that he was going to receive $100,000 from John Doe #1 for voting to approve the Colonies settlement. Defendant POSTMUS requested Aleman’s assistance in creating a PAC that Defendant POSTMUS would secretly control to conceal the $100,000 he received from John Doe #1.
OVERT ACT 23
On or between October 1, 2006, and February 14, 2007, Defendant POSTMUS advised Richman that he was going to be receiving a sum of money and asked Richman’s assistance in creating a PAC using the names of his friends but that Defendant POSTMUS would secretly control.
OVERT ACT 24
On or about February 14, 2007, Defendant POSTMUS, Aleman, and Richman agreed to the creation of the Inland Empire PAC secretly controlled by Defendant POSTMUS but publicly listing Dino DeFazio as Chairman, Mike Gallagher-Vice-Chair, Jeff Bentow-Community Outreach Director, and Mike Richman as Executive Director.
OVERT ACT 25
On or about February 20, 2007, Defendant POSTMUS directed that Aleman create an e-mail account using DeFazio’s name and asked Aleman to use the e-mail account to direct the creation of the Inland Empire PAC with DeFazio as the named Chairman and to further direct expenditures through the e-mail account as if Aleman were DeFazio.
OVERT ACT 26
On or between June 1, 2007, to July 12, 2007, Defendant POSTMUS, Aleman, and Richman agreed to the creation of the “Conservatives for a Republican Majority” PAC secretly controlled by Defendant POSTMUS but naming “Mike Richman” as the sole member of the Board of Directors and Executive Director.
OVERT ACT 27
On or about June 29, 2007, John Doe #1 signed check #4615 for $50,000 from Colonies to the Inland Empire PAC secretly controlled by Defendant POSTMUS.
OVERT ACT 28
On or about June 29, 2007, John Doe #1 signed check # 4616 for $50,000 from Colonies to the “Republicans for a Conservative Majority” PAC.
OVERT ACT 29
On or about July 5, 2007, Defendant POSTMUS arranged that check #4615 for $50,000 be deposited into the Inland Empire PAC secretly controlled by Defendant POSTMUS.
OVERT ACT 30
On or about July 12, 2007, Defendant POSTMUS arranged the deposit of check #4616 for $50,000 from Colonies to “Republicans for a Conservative Majority” into the “Conservatives for a Republican Majority” PAC secretly controlled by Defendant POSTMUS.
OVERT ACT 31
On or between July 5, 2007, and October 30, 2008, Defendant POSTMUS directed Aleman and Richman to disperse approximately $50,000 from the Inland Empire PAC to Defendant POSTMUS’ campaign account without any consultation with the Board of Directors of the PAC.
OVERT ACT 32
On or between March 1, 2007, and October 30, 2008, Defendant POSTMUS used funds in his campaign account for personal meals and personal entertainment.
OVERT ACT 33
On or about March 18, 2007, John Doe #4 contacted a campaign accountant about establishing a PAC named the Alliance for Ethical Government.
OVERT ACT 34
On or about May 16, 2007, John Doe #1 wrote check #4533 for $100,000 from Colonies to the Alliance for Ethical Government PAC.
OVERT ACT 35
On or about May 25, 2007, John Doe #4 directed his campaign accountant to complete the establishment of the Alliance for Ethical Government PAC that he secretly controlled.
OVERT ACT 36
On or about May 29, 2007, John Doe #4 arranged that check #4533 for $100,000 be deposited into the Alliance for Ethical Government PAC that he secretly controlled.
OVERT ACT 37
On or about October 31, 2007, John Doe #4 submitted a campaign consulting contract valued at $10,000 to the Alliance for Ethical Government PAC that he secretly controlled; payment was made to John Doe #4 on November 7, 2007.
OVERT ACT 38
On or about April 16, 2008, John Doe #4 submitted a campaign consulting contract valued at $10,000 to the Alliance for Ethical Government PAC that he secretly controlled; payment was made to John Doe #4 on April 23, 2008.
OVERT ACT 39
On or between April 30, 2008, and May 16, 2008, the Alliance for Ethical Government PAC made non-monetary contributions in the amount of $6,336.19 to John Doe #4’s campaign for election to the Republican Central Committee.
OVERT ACT 40
On or about June 15, 2007, John Doe #1 and John Doe #2 signed check #4579 for $100,000 from Colonies to the San Bernardino County Young Republicans PAC secretly controlled by John Doe #5.
OVERT ACT 41
On or between June 15, 2007, and September 15, 2008, John Doe #5 directed that the San Bernardino County Young Republicans PAC pay campaign expenses for John Doe #5 and fund the campaign account of John Doe #5.
OVERT ACT 42
On or about March 20, 2007, John Doe #1 wrote check #4417 for $100,000 from Colonies to the Committee for Effective Government PAC, to be controlled by Defendant ERWIN, to compensate Defendant ERWIN for his role in obtaining the votes needed to approve the settlement of the Colonies lawsuit.
OVERT ACT 43
On or about March 23, 2007, the Committee for Effective Government PAC was created by Defendant ERWIN with Defendant ERWIN as Chairman, Clyde Boyd-Vice-Chairman, Elizabeth Sanchez-Secretary, Betty Presley-Treasurer, Gloria Affatati-Boyd-Director, and Steven Hauer-Director.
OVERT ACT 44
On or about March 28, 2007, Defendant ERWIN arranged the deposit of check #4417 for $100,000 into the Committee for Effective Government PAC controlled by Defendant ERWIN.
OVERT ACT 45
On or about September 15, 2008, Defendant ERWIN forged the signature of Director Steven Hauer on a payment authorization from the Committee for Effective Government PAC that directed the payment of $5,000 to Defendant ERWIN; payment was made to Defendant ERWIN on the same date. .