Former Chula Vista City Councilwoman Andrea Cardenas, who pleaded guilty to fraudulently obtaining pandemic relief funds and unemployment benefits, was sentenced Wednesday to two years of probation and credit for time served for one day spent in custody.
Cardenas, 32, and her brother, Jesus Cardenas, admitted to fraudulently obtaining a $176,227 Paycheck Protection Program loan in early 2021 intended for their political consulting firm, Grassroots Resources. The money was meant to support payroll for 34 employees who actually worked for a marijuana dispensary that was a Grassroots client.
The pair then used the funds on personal expenses, including a $33,500 check to Andrea Cardenas’ City Council campaign account and $21,000 that Jesus Cardenas owed American Express, prosecutors said.
Additional charges were added later for taking funds from the state Employment Development Department while both were employed.
Both siblings will likely seek to have their felony convictions reduced to misdemeanors at some point, but that cannot happen until they pay full restitution. Cardenas was ordered Wednesday to pay over $176,000 to the Small Business Administration and over $28,000 to the Employment Development Department, which will be paid by both her and her brother.
Another restitution amount to the Franchise Tax Board related to failing to file tax returns will be determined in the future. Her sentence also includes a requirement to complete 100 hours of volunteer work with any nonprofit.
Cardenas’ sentencing came about five months after her brother was sentenced to two years probation and 180 days in custody, with the custodial time spent in the work furlough program and home detention. As part of their pleas, six other felony counts of conspiracy, money laundering and failing to file tax returns were dismissed.
In a statement delivered in court, Andrea Cardenas said, “There’s no justification, no excuse for the mistakes I have made and the constituents that have placed their trust in me, I failed them. For this, I am very sorry. I can only say I’m human and I will always regret these actions.”
Prosecutors sought a six-month jail term at Wednesday’s sentencing hearing, while defense attorney Pedro Bernal said that would be an inordinate sentence for this type of crime. He noted that Cardenas pleaded guilty early, has no prior criminal record, and both sides said Jesus Cardenas played a leading role in the offenses.
“Losing your job, a significant fall from grace, and the end of a political career is punishment in itself,” Bernal argued.
Deputy District Attorney Chandelle Boyce said that while Jesus Cardenas was “the dominant actor” in the case and wielded influence as her older brother and the head of Grassroots Resources, Cardenas was well aware of the implications of the fraud.
The prosecutor said Cardenas submitted payroll documentation in order to support the PPP loan request and knew that some of the funds they received were used to pay off her campaign’s debt.
Andrea Cardenas resigned from the City Council shortly before pleading guilty. About a year prior to the guilty pleas, Jesus Cardenas resigned his post as chief of staff to San Diego Councilman Stephen Whitburn as questions swirled over Grassroots’ PPP loan and whether Cardenas’ dual role with Grassroots and the city presented a conflict of interest.