Special Report: Scandal On The Fifth Floor

SPECIAL REPORT
Scandal
ON THE 5TH FLOOR
SUNDAY July 26, 2009

Scandal
ON THE FIFTH FLOOR
A special report by The Sun,
Inland Valley Daily Bulletin
and Redlands Daily Facts
Fred Hamilton
Publisher & CEO
Frank Pine
Executive Editor
Peggy del Toro
General Manager,
Dan Walker
Vice President Advertising
The Sun/Redlands Daily Facts
Gene Pearlman
Vice President Advertising
Kathy Michalak
Vice President Circulation
Kathy Johnson
Vice President Finance
John Wartinger
Vice President Operations
Shawna Federoff
Marketing Director
PROJECT EDITOR
Frank Pine
WRITERS
Joe Nelson
Will Bigham
Josh Dulaney
James Koren
Wendy Leung
DESIGN
Gina Dvorak
CONTRIBUTING EDITORS
Mike Brossart
Kimberly Guimarin
Jessica Keating
Joe Smilor
John Weeks
HOW TO REACH US
Send news tips or feedback to
citydesk@inlandnewspapers.com or
call us at (909) 386-3877 (The Sun),
(909) 483-9370 (Daily Bulletin) or
(909) 793-3221 (Daily Facts).
Share your views for our opinion
pages by writing to us at
letters@inlandnewspapers.com.
Dear reader,
A bit of
background
This special report on the
various scandals and
investigations into
corruption and
allegations of misconduct
by San Bernardino
Countys elected leaders
and top appointed
officials is founded on
more than a decade of
diligent reporting by the
staffs of The Sun and the
Daily Bulletin.
Since 1998, reporters
have interviewed
countless sources and
pored through thousands
upon thousands of pages
of court documents,
campaign finance
disclosure forms, expense
reports, memos and
audits.
Over the years, the
newspapers have
published hundreds of
stories chronicling
criminal investigations,
civil lawsuits and other
allegations of wrongdoing
often hurled back and
forth between political
rivals.
This report would not
have been possible
without sustained,
aggressive reporting on
county government by
former staffers such as
Frank Geary, Bob Page,
Will Matthews, Jeff
Horwitz, George Watson
and many others who
assiduously documented
these events and
established a historical
record not just of what
happened, but of what
was said and what
promised.
Two of those reporters,
Page and Watson, now
serve as chiefs of staff for
county supervisors Josie
Gonzales and Neil Derry.
In recent months,
reporters Joe Nelson, Will
Bigham, Josh Dulaney,
James Koren and Wendy
Leung have themselves
sifted through thousands
of pages of documents
and conducted scores of
interviews. They have also
relied on the work of their
predecessors to fill in the
gaps and flesh out the
story. For that, credit is
due.
The announcement gave the public its first
real glimpse into an ongoing criminal investiga-
tion that over the next few years would ensnare
a sitting county supervisor and several officials
from the city of Colton as well as a handful of
other businessmen. It set the stage for a lengthy
legal battle in which the county sought restitu-
tion from those implicated in various plots and
schemes. It also presaged a near-complete turn-
over of the Board of Supervisors and promises
of reform and restored credibility from newly
elected leaders eager to put the scandal behind
them and get on with the business of governing.
In the years since, however, scandal has been
a staple in the ebb and flow of county politics,
and many of those who howled over the injus-
tices committed in the 1990s have themselves
been muddied, and in some cases felled, by new
scandals.
It should be made clear at the outset that the
acts described hereafter are those of a few.
The vast majority of the countys nearly
20,000 employees are hard-working public ser-
vants who are likely as outraged as any taxpayer
at the unsavory antics that have taken place at
the commanding heights of the county.
Todays investigations appear to center on
fallen Supervisor-turned-Assessor Bill Postmus,
who was elected to the Board of Supervisors in
2000 on promises to rebuild the integrity of the
county and regain the publics trust. Reporters
have hounded Postmus since 2005 over such
diverse issues as the settlement negotiations
between the county and a major developer, the
acquisition of an Adelanto jail facility, his
whereabouts during major wildfires in the sum-
mer of 2006 and his management of the Asses-
sors Office, which he won later that year.
Current members of the Board of Supervisors
have said the investigations into Postmus and
charges filed against him and four of his top
lieutenants are clear evidence that the govern-
ment is doing its job the system is working.
Postmus now faces criminal charges and a law-
suit filed by the county in an effort to get
restitution for taxpayers.
The implication is that this is nothing like the
scandals of the past. Things are different now.
The allegations now pending against Post-
mus, however, have an all too familiar feel to
them.
The scandals of the late 1990s and early
2000s were attributed to a culture of cronyism
and corruption. The same adjectives could eas-
ily be used to describe what was apparently
going on in the Assessors Office since Postmus
was elected.
Even more disconcerting, however, is the
reluctance of the majority of todays supervisors
to recognize the need for thorough and compre-
hensive investigations by an outside agency,
such as the state Attorney Generals Office or
the U.S. Attorneys Office, into all allegations of
impropriety especially those that involve the
supervisors themselves.
Many of todays board members were elected
on promises to restore integrity to county gov-
ernment so that the corruption of the 1990s
would never again be visited on San Bernardino
County.
Postmus was one of them.
Incredibly, his colleagues on the board claim
they had no idea before August 2007 that Post-
mus was up to no good.
Apparently, they dont read newspapers.
But you do.
And for that, were grateful.
We hope youll find the story were about to
tell enlightening.
And we hope that this report will jolt the
countys leaders to bold and decisive action to
once and for all put corruption where it belongs
in the past.
And we urge you, dear reader, to remember
this on Election Day.
Frank Pine is executive editor of The Sun and the Inland Valley
Daily Bulletin. Reach him at (909) 483-9350 or via e-mail at
frank.pine@inlandnewspapers.com.
I
t will be 10 years this fall since U.S. Attorney
Alejandro Mayorkas announced that four top
San Bernardino County officials and three business-
men had engaged in wide-ranging bribery and kick-
back schemes.
ABOUT THIS REPORT
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The fact of the matter is that San Bernardino County has a very
bad reputation and is known for its multitude of corruption
scandals and reports of unethical behavior on the part of its
elected and high-ranking public officials. More importantly, most
people do not think that enough is being done to clean up the
corruption in our county. 3rd District Supervisor NEIL DERRY
Two former county administrative officers
have been convicted on federal bribery
charges in schemes that tainted hundreds of
millions of dollars of county contracts, a
county supervisor was forced from office for
violating state conflict of interest laws, and
more recently, the county assessor resigned
amid investigations into fraud and miscon-
duct in his office.
Theres been a wild, wild West atmo-
sphere in our county for a long time, said
76-year-old Burrel Woodring, a county resi-
dent of 35 years and foreman of the countys
civil grand jury over the past year. We have
people taking the money, and the voters
keep bringing back the people who take the
money. I think the voters have to be responsi-
ble.
Despite reforms implemented by the
county in response to various scandals,
including the online posting of campaign
finance forms and statements of economic
interest, some, such as Woodring, argue that
county government should do a better job of
ensuring ethical behavior and preventing
corruption.
The grand jury, for the first time ever,
included a special section on governmental
reform in this years annual report. It recom-
mended, among other things, that the Board
of Supervisors impose limits on campaign
contributions for elected officials and estab-
lish a well-funded ethics commission similar
to those in other counties.
County supervisors, however, have criti-
Political
wild West
Scandals plague county leaders
By Joe Nelson Staff Writer
F
or more than a decade, San Bernardino County has
suffered scandal after scandal emanating from the
highest echelons of county government.
INTRODUCTION
A decade
of scandal
1998-2005
The Hlawek investigations
In 1998, County Administrative
Officer James Hlawek resigned
moments before the Board of
Supervisors announced he was
under investigation by the FBI.
A year later, Assistant U.S.
Attorney Alejandro Mayorkas
announced that Hlawek and six
others, including three other former
high-level county officials, had
agreed to plead guilty to federal
bribery charges. Hlawek agreed to
cooperate with investigators and
admitted participating in a number
of bribery and kickback schemes,
the largest of which involved a
conspiracy to give all of the
countys landfill contracts to a
single vendor, Norcal Waste
Systems.
Hlawek admitted receiving bribes
from his predecessor, Harry Mays,
who had gone to work for Norcal as
a consultant, and from a vice
president of Norcal. Hlawek also
admitted his role in other schemes
implicating other county leaders,
including then-Supervisor Jerry
Eaves.
The county commissioned its own
investigation and eventually sued
Hlawek and more than 20 others,
seeking restitution for taxpayers.
2000-2004
The Eaves prosecutions
Supervisor Jerry Eaves became a
focal point of corruption
investigations beginning in 2000,
when the county filed the first of its
corruption lawsuits, naming Eaves
and accusing him of accepting gifts
from county contractors and then
voting to approve their contracts.
District Attorney Dennis Stout
unsuccessfully attempted to force
Eaves from office, and in 2001, a
joint task force of local, state and
federal investigators indicted Eaves
and others on suspicion of bribery
and other crimes.
Eaves denied wrongdoing and
vowed to fight the charges, which
eventually were dismissed by a
federal judge. His case was passed
on to state prosecutors, and he
agreed to plead guilty to violating
state conflict-of-interest laws. He
was ordered to pay a $10,000 fine
and forced to resign.
The joint task force also filed
charges against elected officials
from the cities of Colton and San
Bernardino.
Continued on Page 4
INTRODUCTION G4
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cized the recommendations, arguing that caps on
campaign contributions will force the funding under-
ground and will result in less transparency rather
than more. Some have balked at the cost and need for
an ethics commission and questioned its potential
value, with only one member of the board, 3rd District
Supervisor Neil Derry, voicing unequivocating sup-
port for the idea.
Prior to the release of this years grand jury report,
5th District Supervisor Josie Gonzales made her senti-
ments about an ethics commission known at the June
26 meeting of the Democratic Luncheon Club of San
Bernardino.
We need an ethics commission like we need a hole
in our head, Gonzales said. An ethics commission
creates more bureaucracy, more red tape, (costs) more
money and its baby-sitting in disguise.
Grown adults should know the difference between
right and wrong, and others should not have to tell
them the proper way to behave, she said.
Do each one of you need an ethics commission
right now to tell you what the right thing to do is?
Gonzales asked her audience. You either know what
the right thing to do is and you have the willpower and
the foresight to do it, or you dont.
Following the release of the grand jury report July 1,
Gonzales said she supports an ethics commission, but
only if it delivers a hard-wielding consequence for
negative political behavior.
In a June statement on behalf of the entire Board of
Supervisors, board Chairman Gary Ovitt and Gonzales
contended the county is effectively managing itself
and that there is no immediate need for further
reform.
Alluding to measures implemented in recent years,
Ovitt and Gonzales pointed out that much of what the
county has done in the last decade far exceeds what is
required by law and what other local government
agencies do.
The county has nonetheless suffered instances of
official wrongdoing the supervisors wrote. However,
following the infamous scandals of the 1990s, which
led to many of the countys reforms, virtually all
wrongdoing has been discovered by the county and
dealt with by the county. This proves that the system
is working. The recent events surrounding former
Assessor Bill Postmus and the people with whom he
surrounded himself are evidence of this.
Postmus couldnt disagree more with that assess-
ment. He served on the Board of Supervisors from
2001 through 2006, his last two years as board chair-
man, before he took over the Assessors Office in 2007.
He resigned from his position as assessor in February
amid allegations of methamphetamine abuse and cor-
ruption in his office.
Chairman Ovitts and Supervisor Gonzaless state-
ment is laughable, Postmus said. For anyone to
believe that there arent dozens of scandals just wait-
ing to be exposed at the Board of Supervisors, you
would have to be crazy.
Last week, Postmus was charged with grand theft,
misappropriation of public funds, perjury and drug
possession.
The county is suing Postmus, three of his former top
staffers and a political consultant in connection with
the Assessors Office scandal in an attempt to recoup
hundreds of thousands of dollars of taxpayer money
misspent due to alleged timecard fraud.
A decade of scandal
Continued from Page 3
2002-PRESENT
Land deals stir controversy
As a new batch of county
leaders promised better days
ahead, a new controversy
erupted over flood-control
improvements on a major
retail-residential development
in Upland.
The developer, Rancho Cucamonga-based Colonies Partners
LP, sued the county when supervisors refused to pay for
improvements necessitated by the extension of the 210
Freeway. Supervisor Jon Mikels said at the time that the
developers demand for $25 million for improvements was
unreasonable, proposing $2.5 million instead.
The developer sued and a lengthy legal battle followed.
In 2005, the countys independent attorneys complained that
supervisors Bill Postmus and Paul Biane had secretly agreed
to a tentative $77 million settlement with the developer.
When the allegations in the memo were leaked to local
reporters, board members fell to feuding and further
allegations of impropriety were made over unrelated land
deals in Redlands and the High Desert.
Additional investigations commissioned by the county found
that a lobbyist had worked both sides of the countys
$31 million acquisition of an Adelanto jail facility and failed
to disclose his conflict of interest and that a county
supervisors chief of staff was improperly involved in the
sale of a piece of county property in Redlands.
Eighteen months after attorneys complained about the secret
Colonies agreement, the Board of Supervisors approved a
landmark $102 million settlement with the developer.
2005-PRESENT
Postmus political machine
The flap over the Colonies
negotiations was just the
beginning of Supervisor Bill
Postmus troubles. Attorneys
also complained that he
meddled in another lawsuit
filed against the county to
benefit a political ally.
In 2006, he disappeared during major wildfires that
scorched 80,000 acres and destroyed nearly 100 homes. At
the end of that year, he was elected assessor.
Recent investigations, beginning in 2007, have found
Postmus used the Assessors Office to create a
taxpayer-funded political operation. Postmus and four of his
top lieutenants have been arrested and charged with crimes
ranging from destruction of public property, providing false
evidence and perjury to grand theft and misappropriation of
public money.
Postmus resigned in February after he was arrested on
suspicion of methamphetamine possession. In addition to the
criminal charges filed last week, the county is suing him and
other former Assessors Office officials, seeking restitution
for taxpayer money improperly paid out to staffers who did
little or no work related to the office.
The investigations have also increased scrutiny on the
relationship between county leaders and the Colonies
developers.
1. From left, Special Agent Ronald Iden; John Gordon, U.S. attorney;
Edward Moreton, assistant U.S. attorney; and then-San Bernardino
County Sheriff Gary Penrod during a news conference Aug. 23, 2001,
at the San Bernardino County Sheriffs Department to announce
developments in the San Bernardino County Corruption Investigation.
2. San Bernardino County Special Council John C. Hueston speaks to
the media May 12 after releasing his findings to the San Bernardino
County Board of Supervisors. 3. Investigators from the San
Bernardino District Attorneys Office confiscate a computer from the
county Assessors Office on Jan. 15, 2009. 4. San Bernardino County
Supervisor Jerry Eaves listens to his attorneys during his arraignment
on felony charges in San Bernardino Superior Court in December
2000. Eaves pleaded not guilty. 5. William Shep McCook, Allan
Stewards lawyer, Allan Steward and Jerry Eaves leave the Federal
Building in Los Angeles after being arraigned Sept 17, 2001.
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INTRODUCTION
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I look forward in the very near future to being able
to serve subpoenas and depo(se) members of the
board and their staffs so we can start exposing all
these scandals at the board, Postmus said.
Jack Pitney, professor of governmental studies at
Claremont McKenna College, said corruption is not
uncommon in fast-growing areas, and the boom in
construction and population over the last 20 years is
likely a factor in the countys ongoing ethical entangle-
ments.
Population growth attracts corruption the way a
picnic attracts ants, Pitney said. Because youve got a
lot of construction, a lot of interaction between the
government and the new businesses that are spring-
ing up and taking part in the construction, in that
sense its not surprising that youve seen problems in
San Bernardino County.
Developers and special interests have been key
factors in just about every ethical quagmire the county
has found itself caught in over the past decade.
In 1999, then County Administrative Officer James
Hlawek admitted taking bribes from his predecessor,
Harry Mays, for his help in steering hundreds of
millions of dollars in county contracts to Norcal Waste
Systems.
In 2001, 5th District Supervisor Jerry Eaves was
indicted by federal prosecutors and accused of accept-
ing bribes from Orange County billboard magnate
William Shep McCook. His case was eventually
handed off to the state Attorney Generals Office, and
he pleaded guilty to violating state conflict of interest
laws.
He resigned from office, was fined $10,000 and
sentenced to three years probation.
A federal judge dismissed the case against McCook,
and a San Bernardino County superior court judge
ruled he couldnt be tried again in state court on the
same allegations.
Recent investigations into Postmus activities in the
Assessors Office have uncovered evidence of wide-
spread timecard fraud and other misconduct and
stoked concerns about the relationship between
county leaders and a Rancho Cucamonga developer
who won a $102 million settlement to a land-use
lawsuit his company filed against the county.
Postmus, Ovitt and Supervisor Paul Biane approved
the settlement in 2006, and in the months afterward,
developer Jeff Burum, a supporter of the campaigns of
all three, made generous contributions to political
action committees with ties to all three supervisors.
While Burum has not been accused of any crimes,
one of Postmus former top aides, Jim Erwin, has been
charged with perjury for failing to properly report
gifts he received from Burumfor his work as a consult-
ant on the Colonies settlement.
While expert observers such as Pitney are not sur-
prised at the type of problems the county has encoun-
tered, residents such as Woodring believe more could
be done.
Money is the mothers milk of politics, and theres
no control of the political donations in San Bernar-
dino County, Woodring said.
Of all five board members, only Derry has enthusias-
tically taken up the grand jurys recommendation that
an ethics commission be formed. He has also pro-
posed a Sunshine Ordinance that would require
county leaders to be more open to the public.
We must do everything in our power to right these
wrongs and demonstrate beyond a shadow of a doubt
that we are genuinely committed to tackling the cor-
ruption and ethical issues plaguing our county, he
wrote in a recent statement.
County leaders pass reforms
As investigators continued their investigations into Hlawek
and others, county leaders implemented a number of
measures intended to prevent abuses in the future.
Among them:
BACKGROUND CHECKS: Applicants for top positions in the
county are subjected to full criminal, personal, and financial
checks. The county hired two background investigation firms to
assist the county in hiring.
PURCHASING REFORMS: In 1999, the county administrative
officer established a working group led by the auditor-controller
to examine the countys procurement policies. The review
resulted in the boards adoption in April 2000 of a
procurement code of ethics and several other policies aimed at
ensuring proper public review of purchases and safeguards
against unregulated spending.
LEASING REFORMS: The county administrative officer
established a real estate working group to review closely the
methods by which the county leases building space. This effort
led to a group of proposals designed to guarantee that proper
procedures are followed to the letter and that safeguards exist
to ensure that the taxpayers are getting the best deals for their
money.
NEW LEADERSHIP TEAM: In the wake of the Hlawek and
Eaves scandals, the county had a nearly 100 percent turnover in
all county leadership positions, giving the voters, the board and
the county administrative officer an opportunity to completely
rebuild county government on a foundation of new ideas,
responsibility and accountability.
CODE OF ETHICS: In 1999 the county adopted the ICMA
Code of Ethics, which commits the county to the highest ideals
of honor and integrity. It also reminds county employees that
they exist to serve the public and to keep the citizens informed.
ETHICS AND COMPLIANCE: In April 2006 the county
established the Office of Compliance and Ethics to develop,
implement and monitor an effective compliance and ethics
program for the county organization, as well as promoting
awareness and understanding of positive ethical and moral
principles consistent with the county's mission and values. The
office has established and maintained countywide ethics
training programs and developed and updated numerous
polices. The county also set up an ethics hot line.
PARTICIPATION IN AUCTIONS: In March 2001 the county
administrative officer proposed and the Board of Supervisors
adopted a policy barring county officials from participating in
county auctions and requiring other county employees to
disclose their affiliation with the county before participating in
county auctions.
FORMER COUNTY EMPLOYEES: The county now requires
anyone doing business with the county to disclose whether they
employ any former county employees.
FRAUD HOT LINE: The auditor-controller created and
operates a waste, fraud and abuse hot line anyone can use to
report illegal, unethical or suspicious activities related to county
business.
PUBLIC DELIBERATIONS: Since 1999 the Board has increased
its attention to detail and more thoroughly questions county
staff on items submitted for the boards approval. There has
also been a dramatic increase the number of agenda items
discussed in detail during board meetings and a reduction in
the number of items passed without discussion.
Source: San Bernardino County
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Web of
corruption
Countys top
manager exposes
THE HLAWEK ERA
I clearly violated the trust of the people of San Bernardino (County) by accepting
kickbacks, totaling approximately $200,000 over a three-year period of time.
I regret that very much. Former San Bernardino County Administrative Officer JAMES HLAWEK
T
he countys most extensively docu-
mented scandal, and the one that
many consider to be one of the most
egregious abuses of power in the countys
history, began in the 1990s and became pub-
lic in 1998, when County Administrative
Officer James Hlawek resigned and the
Board of Supervisors announced the FBI was
investigating him. HLAWEK G7
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Indicted
for bribery
In 1999, three former San
Bernardino County officials
and three businessmen
agreed to plead guilty to
federal bribery charges
along with former County
Administrative Officer
James Hlawek.
JAMES HLAWEK
The county administrative
officer resigned in 1998 and
later pleaded guilty to
conspiracy to commit
bribery. He acknowledged
receiving more than
$270,000 from his
predecessor Harry Mays,
Norcal Waste Systems Vice
President Kenneth J. Walsh
and others. After cooperating
with investigators for nearly
seven years, he was
sentenced in 2005 to 300
hours of community service,
three years probation and
ordered to share in payment
of $277,000 in restitution to
the county.
HARRY MAYS
The former county
administrative officer was
sentenced in December
2000 for paying bribes to
Hlawek in return for
Hlaweks influence in gaining
nearly $20 million annually
in county contracts for
Norcal Waste Systems Inc.
He was ordered to spend
two years in prison and
share in the payment of
$277,000 in restitution to
the county with fellow
defendants Hlawek and
former Norcal Vice President
Kenneth J. Walsh.
THOMAS
ODONNELL
The former county
treasurer/tax collector was
sentenced in September
2000 for accepting bribes
from North Carolina
consultant Richard Tisdale
and steering more than
$400,000 in county
contracts to Tisdales
company, Business
Consultants Inc. He received
366 days in federal prison, a
$5,000 fine and was ordered
to pay $7,158 in restitution
to the county.
Continued on Page 8
Former San Bernardino
County Administrative Officer
Harry Mays, left, talks with
business partner Scott Beard,
center, and his attorney,
Julian Bailey, outside the U.S.
District Court building after
Mays was sentenced to
two years in prison for bribery
Dec. 18, 2000.
Staff file photo
HLAWEK
From G6
Gary Ovitt, current chairman of the Board of
Supervisors, said the Hlawek scandal was a
watershed event for the county in that it
served as the impetus for a complete overhaul
of the countys leadership team and the cre-
ation of a long list of reforms. It also prompted
the county to greatly increase its transparency
to the public.
The scandal also branded the county as a
place with deep-seated ethical problems, and
every misstep that has occurred since has been
viewed by the news media and the public
through the prism of the Hlawek scandal,
Ovitt said. Newspaper editorials habitually
refer to the county as a place with a history of
scandal, based largely on the legacy of the
Hlawek scandal. This has served to make the
county all the more vigilant to prevent ethical
lapses and corruption whenever possible and
quickly address issues as they arise.
The scope of the federal investigation
announced in 1998 did not become clear, until
a year later, when federal prosecutors
announced that Hlawek, his predecessor
Harry Mays, county Treasurer-Tax Collector
Thomas ODonnell, County Investment Officer
Sol Levin and three businessmen had agreed
to plead guilty to federal bribery charges.
From 1998 into the early 2000s, Hlawek
cooperated extensively with local and federal
investigators, exposing a culture of corruption
in which he was a key figure.
According to court documents, Hlawek and
Mays conspired with Kenneth James Walsh,
then a vice president for Norcal Waste Sys-
tems, to steer all of the countys landfill con-
tracts to Norcal.
Norcal paid Mays more than $4 million for
his work as a consultant, and Hlawek admitted
receiving $277,000 in bribes for helping to get
the contracts approved by county supervisors.
Hlawek, Mays and Walsh all pleaded guilty
to conspiracy to commit bribery. Walsh was
sentenced in September 2000 to 18 months in
federal prison.
Mays was sentenced three months later to
two years in federal prison.
Hlawek was not sentenced until 2005, when
he was ordered to perform 300 hours of com-
munity service and placed on probation for
three years.
All three were ordered to pay a combined
$277,000 in restitution to the county.
Hlawek also revealed a number of other
smaller bribery and kickback schemes in
which other officials, including ODonnell and
Levin, were implicated.
The Board of Supervisors, in response to the
federal indictments, hired the Arthur Ander-
sen financial consulting firm to conduct an
independent investigation and ultimately sued
Hlawek, Mays and more than 20 other individ-
uals and organizations.
To date, the county has won more than
$35 million in restitution, settlements, judg-
ments and credits.
County leaders also passed reforms to make
county government more transparent and to
ensure against future corruption. Those mea-
sures included heightened spending oversight,
background checks, better leasing and purchas-
ing rules and a mandate for more information
to be posted on the county Web site.
Culture of corruption
As the countys lawsuits, handled by
Los Angeles-based attorney Leonard Gumport,
wound their way through the courts and the
federal investigation proceeded, county lead-
ers past and present decried a culture of cor-
ruption, noting that beginning in the 1980s,
politics played an increasingly important role,
and ethics and fiscal controls were given short
shrift.
The county actually learned of the federal
investigation into Hlawek in 1997, when Audi-
tor-Controller Errol Mackzum began looking
into Hlaweks expense reports, concerned that
Hlawek and others might have been submit-
ting fraudulent expense reports to the county.
I discovered that Hlawek inadvertently sub-
mitted a travel claim to me that was also
headed to the state of Califoria. He was dou-
ble-dipping, said Mackzum, who retired in
1998. We started investigating and found out
from others that the FBI had been contacted,
so I went and met with the FBI and inter-
viewed with them.
Mackzum said he told agents that Hlawek
had been submitting duplicate travel claims to
the state of California and to the county. At the
time, Hlawek was serving on a state commis-
sion, Mackzum said.
And from there, they found he was doing
HLAWEK G8
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I would like to make a statement about
what I did, how I got involved, how and why
I responded to the situation and what Im
trying to do here today.
First, what did I do? I clearly violated the
trust of the people of San Bernardino
(County) by accepting kickbacks, totaling
approximately $200,000 over a three-year
period of time.
I regret that very much.
Im trying to make up for that as best I
can, including by being here today and coop-
erating with the county in its investigation in
recovery efforts.
Second, how and why did I get involved?
There is a longstanding, wide-ranging culture
of corruption in San Bernardino County
involving conflicts of interest, sweetheart
deals and payoffs. I did not invent and I did
not start it.
The full extent of it is not known to me. I
know that people like Harry Mays have
much more knowledge about it than they
have admitted and are covering up for them-
selves and others.
I know that elected officials are involved,
either in getting direct payoffs or contribu-
tions or both. I know, in hindsight, that I was
groomed and put in place to be used by
those people. They received much more
money than I knew at the time, millions of
dollars, and got me into this for what was an
insignificant expense to them.
Third, how and why have I responded? I
have done my best to correct the problem
that I was a part of. From the first time I
met with the FBI more than two years ago in
July of 1998, they asked me about my
involvement in corruption.
I admitted it was a culture in San Bernar-
dino County. Because I believe it was in the
best interest of my family, myself, and ulti-
mately the community, I decided early to
cooperate in their investigation. I have coop-
erated fully with the FBI and the federal
prosecutors.
I did so even though my life and my family
were threatened before I decided to cooper-
ate, and have been threatened since. I met
with the FBI and sheriffs investigators more
than 50 times. I wore a recording device and
secretly recorded others at meetings. I trav-
eled across country to meet with people at
the request of the FBI.
I also met with the San Bernardino County
district attorney and testified before the
county grand jury. The information I have
provided has been corroborated by recorded
statements by Mr. Mays, Mr. Walsh, and
others, and has led to all of the indictments
and convictions obtained thus far.
My cooperation included reporting this
illegal income and paying taxes on it. I have
virtually nothing left except our home and
my retirement. I have been vilified in the
press, incorrectly made the center and scape-
goat of what has gone on for many years,
involved many others and involved much
more than I know. Im ostracized, and cannot
obtain any employment, probably will not be
able to obtain employment in the future.
Meanwhile, others have made millions,
have said to me that they have money off-
shore, have not responded similarly, are
covering up their own illegal conduct and
illegal conduct of others.
The supervisors have unwittingly discour-
aged me and people like me who have infor-
mation from coming forward by attacking me
and punishing me civilly, when they know
there is nothing that I have that is worth
recovering.
If they truly want to root out corruption,
they should not attempt to destroy those
who come forward.
Finally, what Im trying to do today. Im
trying to tell truthfully, to the best of my
ability. I do not have and havent reviewed
any records except those Mr. Gumport has
made available to me. I appreciate having
been able to review those. I have not met
with Mr. Gumport, Mr. Romanski or any
other lawyer for the county.
I do not know the questions you will ask
me; have not rehearsed the answers. I have
no agreement with the county regarding this
interview. These events occurred as much as
five years or more ago, but I have a very
good recollection of many of the events. I
know that Im telling the truth to the best of
my ability; will continue to do so.
Corroboration of my truth-telling is a
result so far of the FBI investigation, others
in secret recordings, in their own interviews,
and pleas of guilt that have confirmed what I
have told the FBI from the first date.
I know now that the FBI investigation was
under way for at least a year before they
contacted me. I know now that I was sur-
veilled in my day-to-day activities.
Im confident that eventually, despite the
efforts of some to avoid it, the truth will
come out so the courts and public can put
all of this in perspective, so I can fully settle
my responsibilities to the county to try to
get on with my life.
Thank you.
other things as well, Mackzum said. It was
fairly stressful to continue to work with
(Hlawek) when the FBI spent 10 months inves-
tigating him.
At the time of the brewing scandal, Mack-
zum asserted the system actually caught on to
Hlawek reasonably quickly within three
years of his being promoted to county adminis-
trative officer.
Dennis Stout, who at the time was the coun-
tys district attorney, said the misconduct
started small, and unchecked, grew enormous.
There was a culture here that developed
over a long period of time, Stout said at the
time. It starts with small things people
padding expense reports which then esca-
lates to what you see here, which is
out-and-out bribery.
Supervisor Dennis Hansberger, in a separate
interview, expressed a similar sentiment.
All it takes for evil to succeed is for good
people to do nothing, Hansberger said in a
2001 interview. There were a lot of people
who were good people who, had they asserted
themselves, could have interrupted the pro-
cess.
Hlawek, who could not be reached for com-
ment for this story, appeared to be at the
center of the schemes uncovered by investiga-
tors, and he was criticized stiffly and roundly
by county leaders for his role in the scandal.
In a statement he gave to county investiga-
tors in 2000, he claimed he had repented and
done his best to assist investigators.
Im trying to make up for that as best I can,
including by being here today and cooperating
with the county in its investigation in recovery
efforts, he said.
He also chided the Board of Supervisors for
attacking his character and suing him despite
his cooperation.
The supervisors have unwittingly discour-
aged me and people like me who have informa-
tion from coming forward by attacking me and
punishing me civilly, when they know there is
nothing that I have that is worth recovering,
he said.
Hlaweks attorney, John D. Vandevelde,
maintained that his client did not invent cor-
ruption in San Bernardino County.
It is absolutely clear that a thieving old
boys network existed in San Bernardino
County many years before Jim arrived, Vande-
velde said in June 2005, a few months before
Hlawek was finally sentenced. Jim is the only
person who had the guts to do the right thing,
exposing cancerous corruption by cooperating
with federal, county and state prosecutors, as
well as the countys civil lawyers, at great risk
to himself and his family.
Vandevelde went on to say that Hlaweks
cooperation led to the successful prosecution
and conviction of numerous corrupt county
and city officials, and people doing business
with the county.
In addition to providing information to fed-
eral authorities, Hlawek cooperated with the
countys investigators.
Based in part on information that he pro-
vided, the countys legal team sued not only
those tied to the federal indictments issued in
1999, but many others as well, including bond
underwriting firm Miller & Schroeder Finan-
cial Inc. and individual representatives of the
firm who gave gifts to Hlawek and other
county officials.
Among those implicated was county Supervi-
sor Jerry Eaves, who quickly became a key
figure in the next chapter of the countys ongo-
ing battle with scandal and corruption.
joe.nelson@inlandnewspapers.com, (909) 386-3874
HLAWEK
From G7
HLAWEKS OWNWORDS
INDICTED
FOR BRIBERY
KENNETH J. WALSH
The former vice president of
Norcal Waste Systems was
sentenced in August 2001
for his participation in bribes
and kickbacks to county
officials. He was given 18
months in federal prison and
three years probation and
ordered to share the
payment of $277,000 in
restitution to the county with
fellow defendants Hlawek
and Mays.
SOL LEVIN
The former county
investment officer, a
Redlands resident, admitted
he was rewarded by North
Carolina consultant Richard
Tisdale for steering more
than $400,000 in county
contracts to his company,
Business Consultants Inc.
Levin pleaded guilty to
conspiracy to commit bribery
and received one year and a
day in prison, a $5,000 fine
and was ordered to make
restitution of $7,158, which is
the value of the bribes he
received from late 1996 to
1998, including a free trip to
London. He also was ordered
to serve two years probation
upon his release from prison.
RICHARD TISDALE
The North Carolina financial
consultant was sentenced in
March 2001 for conspiring to
pay bribes to three former
San Bernardino County
officials to obtain county
contracts. He received a year
and a day in prison and was
ordered to pay $7,158 in
restitution to San Bernardino
County.
RONALD CANHAM
The owner of Canham &
Associates was sentenced in
April 2001 for paying bribes
to Hlawek in return for
Hlaweks influence in
securing a personnel training
services contract worth more
than $90,000. Canham was
given three months in prison
and three years probation,
including three months in a
halfway house, a $4,000 fine
and ordered to pay
restitution of $10,000, the
amount he paid Hlawek
between March and June
1988.
SOURCE: U.S. Attorneys Office
On Sept. 21, 2000, former San Bernardino County Administrative Officer
James Hlawek began a series of interviews with attorneys investigating county
corruption. At the beginning of the first interview, Hlawek made the following
statement:
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I
t didnt take long for investi-
gators to set their sights on
Supervisor Jerry Eaves.
Tripped up
Corruption probe topples
county supervisor
EAVES G10
Initially implicated by former County Administrative Officer
James Hlawek, Eaves was sued along with Hlawek and others in
June 2000 by county attorneys who contended he received gifts
from county contractors and then voted to approve their con-
tracts.
Eaves settled with the county for $7,200, but just a few months
later, in December 2000, he was indicted by a special criminal
grand jury, which also issued a 38-count accusation of willful
misconduct seeking to remove him from office.
The charges against Supervisor Eaves are very serious and
are of great concern to me, Supervisor Bill Postmus, elected
just a few weeks prior, said at the time. Although Supervisor
Eaves is presumed innocent unless or until proven guilty, the
citizens and San Bernardino County expect and deserve an
expeditious and fair legal resolution to this matter.
Eaves claimed that if he was guilty of anything, it
was sloppy bookkeeping, and that efforts to
oust him from office were politically
motivated.
A few months later, he set-
tled the case by pleading
Billboard investigation
ensnares many
A federal probe into San
Bernardino County corruption led to
an August 2001 indictment that
ensnared five current or former
elected officials and three
businessmen.
The indictment threw light on
three schemes involving land deals
in Colton, and quickly resulted in
the convictions of former Colton
mayors Abe Beltran and Karl
Gaytan, former City Councilman
James Grimsby, and then-sitting
Councilman Donald Sanders for
accepting bribes from businessmen
William Shep McCook, Allan
Steward and Michael Berg.
Under plea agreements with
prosecutors, Beltran and Grimsby
were each sentenced to 15 months
in prison, Gaytan was ordered to
serve 15 months in a federal
medical facility, and Sanders was
handed a 17-day jail term. A judge
ordered each to pay fines and
restitution of varying amounts.
Berg, then general manager of
Suncrest Homes, agreed to plead
guilty to conspiring to pay $15,500
in bribes to Beltran and Sanders for
their support of his companys
contract to sell mobile homes in the
city-owned Rancho Mediterrania
Mobile Home Estates. He served six
months house detention, paid a
$4,000 fine and $15,500 in
restitution to the city.
Steward, who originally pleaded
guilty to federal charges that he
bribed Gaytan and Grimsby to
garner their support for a
three-restaurant deal in Colton,
later tried to withdraw his plea.
Steward was sentenced to three
years probation.
Federal prosecution of Eaves and
McCook, meanwhile, traveled a
winding path that eventually landed
them in a legal battle of wills with
the U.S. Attorney Generals Office.
Eaves ultimately pleaded guilty to
state bribery charges and agreed to
resign from the Board of
Supervisors in 2004, a year before
his term ended. He was given
probation and ordered to pay a
$10,000 fine for his conviction on a
single felony count of conspiracy to
violate conflict-of-interest laws for
failing to report a free 1996 trip to
Las Vegas he accepted from
McCook.
McCook, originally charged with
18 federal crimes in 2001, was
acquitted in federal court. He
refused to make a deal with state
prosecutors, and a San Bernardino
Superior Court judge tossed that
case in 2006.
THE PROSECUTIONS OF JERRY EAVES
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no contest to seven state charges of failing
to report gifts and influencing decisions in
which he had a financial interest.
For the last 14 months, my personal and
professional life have been consumed by
difficult and politically driven accusations,
he said in a June 2001 statement. After long
discussions with my attorneys, my family,
and very close friends, I have decided that
todays settlement is the best thing to do, for
all.
In August, federal prosecutors indicted
Eaves again, alleging he was bribed by an
Orange County businessman for his support
of a plan to build and sell billboards on
county flood-control land at the junction of
the 10 and 215 freeways in Colton.
Prosecutors also indicted billboard mag-
nate William Shep McCook, a local devel-
oper and a number of Colton City Council
members who also were implicated.
McCook was accused of bribing Eaves
with free trips to Las Vegas and paying cash
bribes to Hlawek.
Eaves claimed the trips were gifts that he
had simply failed to report.
His attorney blasted the indictment.
Todays action by the U.S. Attorney is sim-
ply the latest chapter in a political witch
hunt. The charges have no merit and I am
convinced Supervisor Eaves will be acquit-
ted on all counts, attorney Don Jordan
wrote in an Aug. 23, 2001, statement.
(Eaves) is being persecuted by a legal pro-
cess that has run amok. To suggest that any
of his votes would have or could have been
influenced by a trip to the Stardust Hotel in
Las Vegas for two nights is absurd.
Eaves, who took as many as 10 free trips
to Las Vegas for himself, friends and family
members, voted in favor of McCooks bill-
board project six times between November
1994 and June 1997. He also wrote a letter to
a Colton City Council member advocating
for the billboard project and offering a
break for the city on county taxes.
Once the project was approved and the
billboards built, McCook sold five of them
for close to $5 million.
Hlawek told investigators that McCook
paid him $15,000 in bribes for his support of
the project and treated Eaves to free trips in
return for the supervisors influence.
In an October 2001 interview, Eaves color-
fully challenged Hlaweks testimony.
Hes a (expletive) liar, Eaves said of
Hlawek. As I said before, his statements are
made up with exaggerations, half-truths and
out-and-out (expletive) lies.
Hlawek also told investigators that Eaves
positioned himself as the gatekeeper of
lucrative county contracts to gain perks
from businessmen including free alcohol,
rounds of golf, fishing trips, lodging in
Hawaii, North Carolina and Las Vegas, and
the use of an airplane.
Eaves could not be reached for comment
for this story, but in an interview at the
time, he denied any wrongdoing.
Eaves said that in the corporate world its
common practice for someone seeking your
business to offer to take you golfing or for a
meal.
Its just what is done in the private sec-
tor, Eaves said. There is nothing wrong
with it in the public sector. Its just the
impression of it.
Other supervisors urged Eaves to step
down from the board and stripped him of
appointments to various panels on which he
represented the county.
The federal charges against Eaves and
McCook ultimately were dismissed by a fed-
eral judge who blasted prosecutors for bring-
ing the case in federal court and said that, if
there was a case, it was a local matter.
U.S. District Judge Manuel Real not only
acquitted McCook but also admonished law-
yers from the U.S. Attorneys Office in Los
Angeles for making their key witness a man
who was testifying in exchange for leniency
in his own sentence.
Mr. Hlaweks testimony is not worth very
much, Real told federal prosecutors. You
bought something from him and you gave
him something. That might be bribery.
The federal judge was so unimpressed
with the prosecutors case that instead of
simply dismissing the federal wire-fraud
charges against McCook, he issued an opin-
ion stating there was no evidence McCook
had violated California bribery laws, either.
The case was then passed on to the state
Attorney Generals Office.
Eaves pleaded guilty in 2004 to violating
state conflict of interest laws by failing to
appropriately disclose gifts. He subse-
quently resigned from the Board of Supervi-
sors, on which he had served since 1992. His
plea also capped a political career spanning
more than 40 years.
A San Bernardino County Superior Court
judge rejected attempts to try McCook in
state court, finding that such a trial would
constitute double jeopardy.
McCooks attorney, Richard Beswick, died
in 2006, but in an interview at the time, he
said McCooks case would have been better
suited to state court in the first place,
though McCook would likely have been
acquitted. For a bribery charge to stick, he
said, the state would have had to demon-
strate that McCook gave money to Hlawek
in exchange for favors.
That never happened, Beswick said. His
client only gave Hlawek money after Hlawek
had acted in his favor, which doesnt qualify
as bribery.
McCook didnt pay anyone a nickel until
after Hlaweks approval had taken place,
Beswick said. You can call it a tip or what-
ever.
The plea bargain Eaves struck with
county prosecutors spared him any jail time
and settled both the state and federal brib-
ery cases against him.
The former steel mill worker, Rialto
mayor and state assemblyman remained
adamant about not taking any bribes, main-
taining that he was guilty only of mistakenly
forgetting to report campaign contributions.
I just got to the point where I ran out of
resources," Eaves said in a later interview.
At some point, they just wear you down. I
spent around $300,000 in legal fees.
(McCook) probably spent four times that. I
never felt that I did anything wrong except
lousy bookkeeping.
EAVES
From G9
LEFT: San Bernardino County Supervisor
Jerry Eaves has his thumbprint taken for
identification purposes by sheriffs
Deputy Scott Geronimo in San
Bernardino Superior Court in December
2000. Eaves pleaded not guilty at his
arraignment on felony charges.
Staff file photo
The ongoing corruption scandal from which these charges resulted is a dark
chapter in the countys history. The current Board of Supervisors, including myself,
are committed to making sure those who broke the law are punished so we can get
this scandal behind us. BILL POSTMUS on the grand jury indictment of Jerry Eaves, Dec. 13, 2000
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W
hile local and federal authorities were
investigating Supervisor Jerry Eaves
in 2000, the District Attorneys Office came
under fire for top officials interactions with a
political opponent of the embattled county
supervisor.
San Bernardino County District Attorney
Dennis Stout and two of his top lieutenants
discussed their investigation into Eaves with
Rialto City Councilman Ed Scott, who ran
unsuccessfully against Eaves in that years
supervisorial election.
Scott told other members of the corrup-
tion task force that he was concerned he was
receiving confidential investigative informa-
tion and agreed to wear a wire.
Scott recorded phone conversations
between himself and Stout, Chief District
Attorney Investigator Barry Bruins and Assis-
tant District Attorney Dan Lough in which
the investigation was discussed.
Transcripts of the conversations were later
made public, and while no charges were ever
filed against Stout or his aides, Stout apolo-
gized and demoted Lough and Bruins.
Still, Stout professes his office never
breached the confidentiality of their investi-
gation.
We never gave Ed Scott any type of confi-
dential information, ever, Stout said in a
recent interview.
Stout maintains that Scott made more
than 50 telephone calls to him, Lough and
Bruins throughout 2000. He said that nei-
ther he, Lough nor Bruins ever called Scott
regarding their investigation into Eaves.
Ed Scott was the motivating factor in all
of the communications. He initiated every
single telephone call to our office, said
Stout. Never once was he contacted by me
or anyone in my office.
Scott called Stouts assertion absolutely
untrue.
His office brought the information for-
ward to me. Im amazed that he would try
and re-create a different story now, Scott
said, adding that Lough and Bruins gave him
a box of documents, which he said he imme-
diately turned over to investigators.
I was never shown what was in the box or
told what was in the box, said Scott. I was
just told by the FBI and the sheriffs investiga-
tors that what Dennis Stout turned over to
me should not have been given to me.
Stout contends the documents he gave to
Scott were public documents and that his
teamwas talking to Scott to develop informa-
tion for their investigation into Eaves but not
attempting to influence the election.
I admit freely that it was a mistake to
have any contact with Ed Scott prior to an
election because of appearances, said Stout.
But I vehemently deny that we in any way
intended in any way to win that election.
In November 2001, Stout faced more nega-
tive publicity when one of his former top
administrators, Theresa Bushey, filed a law-
suit alleging wrongful termination and sex-
ual harassment.
Bushey alleged in her lawsuit she was fired
after complaining to Stout about his alleged
harassment.
Stout adamantly denies the allegations.
Busheys lawsuit came at the same time
Stout was running against then-Deputy Dis-
trict Attorney Michael A. Ramos in the
March 2002 primary election.
Stout fell behind Ramos in the primary
and withdrew from the race, giving up his
effort to win a third term as district attorney.
Bushey subsequently dropped her sexual
harassment allegations.
I think the timing of that is significant,
and she did that before her deposition,
Stout said.
Bushey could not be reached for comment.
More than a year after Bushey dropped the
sexual harassment allegations against Stout,
the county settled the wrongful termination
allegations out of court with her for
$150,000.
Stout said at the time of the settlement the
county decided it was cheaper to settle the
case out of court than embark on a lengthy
and expensive trial.
Bad bookkeeping
Over the course of his career,
Jerry Eaves was taken to task
repeatedly over failing to
properly follow guidelines for
reporting gifts and other
income.
1989The Fair Political
Practices Commission fined
Eaves $1,500 for failing to
disclose 1986 income paid from
his campaign fund to a
consulting business he
co-owned. Eaves had amended
his disclosure form after learning
the FPPC was investigating him.
1991FPPC officials
accused Eaves of improperly
reporting $60,000 in loans he
received from one of his staff
members. Eaves disputed the
allegation and received a
warning to be more careful
about his record keeping.
1999The FPPC fined
Eaves $12,500 for voting as an
appointed member of the Inland
Valley Development Agency
board in 1994 and 1995 to
amend contracts with businesses
that had contributed money to
his supervisorial campaign.
2000County lawyers
sued Eaves, alleging he accepted
gifts of travel and lodging from
businessmen seeking lucrative
county contracts and wrongly
voted on the deals. Eaves paid
the county $7,200 to settle.
2001In a plea agreement
with the state Attorney
Generals Office, Eaves pleaded
no contest to seven
misdemeanor counts of failing to
report gifts and influencing
decisions in which he had a
financial interest. Eaves agreed
to pay a $20,000 fine and
complete three years of
probation in exchange for the
indictment and accusation being
dismissed. His conviction
prohibited him from running for
political office or working as a
paid lobbyist for four years.
2004Eaves pleaded
guilty to violating state conflict
of interest laws and stepped
down from the Board of
Supervisors. He was fined
$10,000 and sentenced to three
years unsupervised probation.
Eaves case backfires
on top prosecutor
THE PROSECUTIONS OF JERRY EAVES Political ramifications
I admit freely that it was a mistake to have any contact with Ed
Scott prior to an election because of appearances. But I vehemently
deny that we in any way intended in any way to win that election.
Then-San Bernardino County District Attorney DENNIS STOUT
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Divisive land dispute
Supervisors feud before approving landmark settlement
E
ven as investigators and county attorneys wrote
the final chapters of the scandals of the 1990s,
San Bernardino Countys next wave of controversy
was blooming in a once-barren flood-control basin in
north Upland.
It was there that Rancho Cucamonga-based
Colonies Partners LP was building a sprawling
residential and commercial development on
the last major undeveloped property in
Upland.
A bitter dispute erupted between the
developer and the county over who
would pay for flood-control improve-
ments necessitated by the 210 Free-
way extension.
It would ultimately end in the
largest municipal settlement in
the countys history.
The Colonies developers
demanded $25 million from
the county to cover the
cost of basin upgrades.
County officials
refused, arguing that
necessary flood-con-
trol facilities could
be built for far
less, possibly as
little as $2.5
million, and
that the Col-
onies request covered unnecessary aesthetic
improvements that the developer should pay for
itself.
The Colonies developers threatened to sue the
county for as much as $200 million a figure that
eventually climbed to more than $300 million.
Then-county Supervisor Jon Mikels thumbed his
nose at the threats and refused to support Colonies
demands.
In March 2002, the Colonies developers sued the
county, seeking to have the Flood Control Districts
70-year-old easements on the Colonies property inval-
idated, precipitating a complex and tangled storm of
litigation that continues today.
As the dispute between the county and Colonies
worsened, the developers poured hundreds of thou-
sands of dollars into local elections.
They contributed more than $75,000 to the cam-
paign of then-Rancho Cucamonga City Councilman
Paul Biane, who was running against Mikels for his
seat on the Board of Supervisors.
As a Rancho councilman, Biane was one of four
who voted that same year in favor of allowing Upland
to annex two acres of city-owned land for the Colo-
nies project. Biane said the land, zoned for flood
control, was worthless. Former Rancho Cucamonga
Mayor Bill Alexander, the only dissenting vote,
argued that because the land would be used for
commercial development, it could be quite valuable.
The Colonies developers also gave $255,000 to the
San Bernardino County Safety Employees Benefit
Association, which in turn contributed more than
$144,000 to the campaigns of Biane, who won elec-
tion in 2002, and then-Ontario Mayor Gary Ovitt and
incumbent Supervisor Bill Postmus, who were
elected in 2004 along with Supervisor Josie Gonza-
les, a former Fontana city councilwoman.
After unseating Mikels in the 2002 election,
Biane promised the county is in the process of
turning the corner on corruption.
By the time 2005 rolled around, four of
the five supervisors who sat on the board
when former County Administrative Officer James
Hlawek was indicted were gone. Only Dennis Hans-
berger remained.
The revamped Board of Supervisors assured their
constituents that the countys dark days of corrup-
tion were put to rest and touted more government
transparency and accountability.
Scandal, however, was just around the corner as
negotiations with the Colonies heated up.
In March 2005, Biane and Postmus met with
Colonies co-managing partners Jeff Burum and Dan
Richards and lawyers from both sides to discuss a
potential settlement. Also at the meeting was Jim
Brulte, a former state senator who had done consult-
ing work for both sides.
During the meeting, Biane and Postmus asked the
attorneys to leave the room for more than an hour.
When they were allowed back in, Biane and Post-
mus had news: A tentative settlement had been
agreed upon.
The county would pay $77.5 million for 37 acres of
the flood-control basin, and part of the settlement
could include a swap of surplus county land just
below Deer Canyon in Rancho Cucamonga.
The countys lawyers were not happy, and they
made that clear in a confidential memo to the Board
of Supervisors. The attorneys felt the negotiating
methods, the timing of the settlement and the terms
of it were ill advised. They pointed out that the land
in dispute on the Colonies property was necessary
for flood control and therefore worth only about
$1 million.
And then they quit.
When the memo was made public a few weeks
later, the Board of Supervisors demanded an investi-
gation to determine who leaked it to local media.
Some board members suspected Hansberger as he
had consistently opposed settling with Colonies, but
Hansberger denied releasing the report.
Biane challenged his fellow supervisors to take a
polygraph test.
The District Attorneys Office conducted a brief
investigation but was unable to determine who
leaked the memo.
The tentative deal reached without attorneys fell
apart.
County leaders at odds
Bad blood over the negotiations and the release of
the memo precipitated a new round of allegations of
wrongdoing among supervisors, and the board voted
to hire Leonard Gumport, the Los Angeles attorney
handling the Hlawek litigation, to conduct investiga-
tions.
Gumport looked into county land transactions,
with a special emphasis on the countys acquisition
of an Adelanto jail facility and a transaction in which
Hansbergers chief of staff, Jim Foster, was alleged to
have improperly benefited.
When Gumport turned in the first of his two
reports, this one on the sale of county land in
Redlands in which Foster was involved, Foster
resigned.
He gave a second report to the county in Decem-
ber. Postmus and County Administrative Officer
Mark Uffer prepared a summary of the report, in
which they disclosed that a lobbyist, former state
Assemblyman Brett Granlund, had worked both
sides of the jail deal and failed to disclosed his
conflict of interest.
The report found no criminal wrongdoing, they
said, and they stressed that the countys acquisition
of the facility saved taxpayers money.
Meanwhile, negotiations with the Colonies
dragged on.
Finally, in November 2006, after nearly four years
of legal battle with the developer, the Board of
Supervisors approved a landmark $102 million settle-
ment with the Colonies.
It included $22 million from the Flood Control
Districts reserve fund and $80 million in bond
proceeds.
Supervisors Biane, Postmus and Ovitt voted in
favor of the settlement, with Gonzales and Hans-
berger dissenting.
Postmus hailed the settlement as a win for county
taxpayers and said the district could have been
responsible for triple the amount of the settlement.
Biane touted the settlement as a responsible
action by the Board of Supervisors to stop spending
money on what likely could have been a losing
effort.
It might well have ended there.
Recent investigations focusing on the activities of
Postmus, however, have raised new concerns about
the negotiations.
Post-settlement blues
Approving the Colonies settlement was one of
Postmus last major acts as a county supervisor. He
had won election to the Assessors Office weeks prior
to the vote, and two months later, after assuming his
new duties, he hired former public safety union
administrator Jim Erwin as assistant assessor.
District attorneys investigators determined that
Erwin, a friend of Postmus, worked as a consultant
for the Colonies when he was director of the Safety
Employees Benefit Association.
According to court documents, Burum rewarded
Erwin and another consultant, Patrick OReilly, with
a luxurious trip to New York City on a private jet.
COLONIES G14
THE COLONIES CONNECTION
Contributions by the Colonies
TO THE BOARD OF SUPERVISORS
Colonies Partners LP led by Jeff Burum and Dan Richards
along with dozens of investors in the Upland
development have contributed hundreds of thousands of
dollars to the San Bernardino County Board of Supervisors
and other local elected officials. The Colonies developers
also contributed heavily to political action committees and
the Safety Employees Benefit Association to help fund
political campaigns.
SEBA was headed by Jim Erwin, who served as a major
negotiator in the $102 million Colonies settlement with the
county. Erwin later served as assistant assessor under Bill
Postmus and as Supervisor Neil Derrys chief of staff until he
was arrested and charged with failing to properly report gifts
from Burum.
Then-Supervisor Postmus along with Supervisors Paul Biane
and Gary Ovitt voted for the Colonies settlement in 2006;
Supervisors Josie Gonzales and Dennis Hansberger voted no.
Supervisor Brad Mitzelfelt and Derry were not in office at the
time of the vote.
Since 2001, the year prior to Bianes election, the 2nd
District supervisor has received at least $118,598 in
campaign contributions from Colonies and Colonies investors.
Biane also received at least $23,274.42 in monetary and
in-kind contributions from various political action committees
and $112,000 from SEBA and the SEBA political action
committee.
Derry, who was elected in 2008, has received $406,887.13
in monetary and in-kind contributions from SEBA and the
SEBA political action committee since 2007. Derry also
received at least $45,250 from various political action
committees in monetary and in-kind contributions and
another $21,000 from the Colonies and their investors.
Since 2007, when Mitzelfelt was appointed to the Board of
Supervisors, he has received at least $102,142 from political
action committees in monetary and in-kind contributions,
$70,927.20 in monetary and in-kind contributions from SEBA
and the SEBA political action committee and $15,000 from
the Colonies.
Since 2004, Ovitt has received $175,765 from SEBA and
the SEBA political action committee, $39,285 from Colonies
and their investors and $10,000 from the Alliance for Ethical
Government political action committee.
Gonzales, elected in 2004, has received $57,900 from
SEBA and the SEBA political action committee since 2003
and $1,000 from the Inland Empire political action
committee. She has not received contributions from the
Colonies.
TO THE RANCHO CUCAMONGA CITY COUNCIL
The Colonies Partners have also made significant
contributions to the Rancho Cucamonga City Council.
Since 2003, Mayor Don Kurth received at least $49,150
from the Colonies and their investors and $61,546.50 from
SEBA in monetary and in-kind contributions.
Since 2008, Councilman Sam Spagnolo has received at
least $10,200 in monetary and in-kind contributions from the
Colonies and their investors and $7,500 from SEBA.
Since 2004, Councilman Dennis Michael has received at
least $20,700 in monetary and in-kind donations from the
Since 2002, Councilman Rex Gutierrez has received at least
$41,511.47 in monetary and in-kind contributions from the
Since 2000, Councilwoman Diane Williams has received at
least $16,600 from the Colonies and their investors and
$26,750 from SEBA.
wendy.leung@inlandnewspapers.com
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A confidential informant told
investigators Burum bought Erwin
and OReilly pricey watches valued
at more than $30,000 from the
Tourneau watch shop in New York
city, then treated them to a lineup
of high-end call girls at a posh
condominium.
Erwin and OReilly both denied
ever having any liaisons with call
girls during the trip.
The informant also told investi-
gators that Colonies Partners prom-
ised both Erwin and consultant
Jim Brulte 1 percent of the $102
million settlement ($1.02 million)
with the county as compensation
for helping shepherd the settle-
ment.
Erwin and Brulte both denied
that allegation.
Its simply fabrication a fan-
tasy, basically, said Erwin. I wish
I had a million dollars, but unfortu-
nately I dont.
Erwin said he doesnt know why
the allegation was made, and main-
tains the Colonies settlement was
completely above board.
I was merely trying to help
resolve a dispute between friends
on both sides, Erwin said.
Brulte called the claim bla-
tantly false.
We had a contract with the Col-
onies for four months. At the end
of that contract, which expired
March 31 of 2005, the compensa-
tion ended, said Brulte in a recent
telephone interview.
Burum, like Brulte, called the
allegation blatantly false in a
written statement.
It is ridiculous, the stuff people
are making up, Burum said in his
brief statement.
Erwin was arrested in March
and charged with 10 felony counts
of perjury for failing to report
Burums gifts, which equated to
about $15,000, with the county
once he became a public employee.
He says the charges are trumped
up and a case of selective prosecu-
tion.
Others also benefited from Colo-
nies largesse.
Within a year of the Colonies
settlement with the county, Colo-
nies Partners Burumand Dan Rich-
ards contributed a total of
$400,000 to political action com-
mittees whose operators or mem-
bers worked for or closely with
supervisors Biane, Ovitt and Post-
mus, the three who voted in favor
of the settlement.
The county is also suing the city
of Upland, San Bernardino Associ-
ated Governments and Caltrans in
an effort to recover a portion of
settlement costs.
In a cross complaint filed earlier
this year, attorneys for Upland and
Sanbag claim their clients should
be held harmless from the settle-
ment, which they argue was not
reasonable and may have been
tainted by fraud.
Colonies attorney George Speir
responded in June that the settle-
ment between the county and Colo-
nies was fair and equitable.
If anything, Colonies took less
than they were entitled to, and less
than they would have received if
their damages claims had been
tried, he said. Any suggestion
that the final settlement might
have been improperly influenced
by fraud or collusion is inaccu-
rate and irresponsible.
San Bernardino County officials
also defended the settlement, not-
ing in a prepared statement that
the overwhelming evidence is
that the actual damages to Colo-
nies far exceeded the amount of
the settlement. Colonies damages
include the value of the land taken,
cost of the basin constructed and
lost development opportunities.
Indeed, the payment by the County
to Colonies reflected only a portion
of Colonies true losses. For these
reasons, the County is undeterred,
and it is vigorously pursuing this
case for the benefit of its taxpay-
ers.
COLONIES
From G13
Land deals scrutinized
Leaked memo prompts further inquiries
County supervisors fell to feud-
ing over who leaked the memo,
and allegations were slung at Den-
nis Hansbergers then chief of
staff, Jim Foster, over a question-
able land deal, and counter allega-
tions were made over the countys
acquisition of the Maranatha cor-
rectional facility in Adelanto.
It prompted the county to call
upon attorney Leonard Gumport
to investigate the allegations and
present his findings to the board,
which would ultimately lead to Fos-
ters resignation.
Gumport concluded in his
report that Foster violated state
conflict of interest laws and the
countys ethics policy over the pur-
chase of surplus county land at
Wabash Avenue and Sunset Drive
in Redlands.
Foster, who resigned in Septem-
ber 2005, maintains his innocence
to this day.
I did nothing illegal, I resigned
because of the pressure and the
heat and the cantankerous actions
of certain people over there
involved in politics, Foster said in
a recent telephone interview.
They made it so I could no longer
be effective.
Foster, who couldnt purchase
the land himself because he was a
county employee, was suspected of
pointing the four-acre property out
to Brett Granlund, his former busi-
ness partner, in 2001. Granlund is
also a former GOP Assemblyman
from Yucaipa and a state lobbyist.
Granlund allegedly acted as a
straw buyer for Foster, and later
sold his interest in the property to
Foster for what he paid for it.
Granlund denies ever acting as a
straw buyer for Foster.
I acted in good faith and I told
the truth and I didnt allege any
wrongdoing, Granlund said in a
recent telephone interview.
He said he never claimed Foster
was a silent partner, but an
overt partner in numerous land
and other business deals.
We owned billboards together,
we owned real estate together. It
was not unusual, Granlund said.
He said he and his wife
divorced, and he deeded the Red-
lands property over to his wife.
Foster subsequently bought the
land from Granlunds wife for
what the Granlunds paid for it
$10,000.
Foster, however, said it was
Granlund who approached him
and offered to deed the property
over to him if he would cut a check
to his wife for $10,000.
I signed the check to her at his
request, Foster said.
Gumport also detailed
Granlunds role in the countys
lease and purchase of the
Maranatha Correctional Facility in
Adelanto. He concluded that
Granlund tried to influence the
countys purchase of the jail with-
out disclosing he worked for a lob-
bying firm that represented the
jails owner.
THE COLONIES CONNECTIONThe Gumport report
Gumports report
Los Angeles attorney
Leonard Gumport
investigated the countys
acquisition of an Adelanto
jail. Among his findings:
Granlund and his employer,
the Sacramento lobbying firm
Platinum Advisors, violated
Platinums contract with the
county by failing to give the
county prior written notice of
Platinums clients and conflicts
of interest. The clients
included Maranatha and its
owner Terry Moreland, and
conflicts of interest included
Platinums role, through
Granlund, in soliciting the
county to enter into a
$43 million lease and option
to purchase Maranatha for
$28 million.
Granlund likely influenced
the countys decision to
approve the $43 million lease
and to exercise the $28
million purchase option in
spite of a mold condition at
the jail, and even though an
as is appraisal reflecting the
actual current value of the jail
had not been completed.
On Jan. 11, 2005, when the
Board of Supervisors voted to
approve the lease and option
to purchase, the board had
not been informed that
Granlund and Platinum had
advised and represented
Maranatha in marketing the
jail to county representatives,
including County
Administrative Officer Mark
Uffer.
I did nothing illegal, I resigned because of the pressure and the heat
and the cantankerous actions of certain people over there involved in
politics. They made it so I could no longer be effective.
JIM FOSTER, Dennis Hansbergers then-chief of staff
A
confidential memo leaked to the news media in
2005 regarding attorneys dissatisfaction with
Supervisors Bill Postmus and Paul Bianes
closed-door settlement negotiations with Colonies
spurred more allegations of misconduct.

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By Will Bigham Staff Writer
L
ong before developers of the Colonies
in Upland received a controversial $102
million settlement payment fromthe county,
the property was used for flood control.
Burum & the Colonies
Colonies Partners LP co-managing partner Jeff
Burum has been linked to investigations into
potential misconduct by county employees and
elected leaders.
In 2006, Colonies won a landmark $102 million
settlement to a land-use dispute with San
Bernardino County. Since then, investigators have
charged former Assistant Assessor and 3rd district
Chief of Staff Jim Erwin for failing to report gifts
he received from Burum for his help in negotiating
the settlement. Erwin was a consultant for the
Colonies before he was hired in the Assessors
Office.
Court documents and an independent investigation
commissioned by county leaders allege Burum
influenced decisions by former Assessor Bill
Postmus to hire Rancho Cucamonga City
Councilman Rex Gutierrez in the Assessors Office,
and Postmus himself says Burum helped negotiate
Erwins separation agreement when he quit his job
at the Assessors Office.
Burum, who has neither been accused of nor
charged with any crimes, declined to be
interviewed for this report, but did issue a written
statement.
On the Colonies settlement:
By any measure, the Colonies settlement was a
fair compromise at a time when the County had
lost badly at trial, its third straight loss in court
over six years, and risked a huge, prohibitive
judgment. Colonies was willing to take less in
order to have closure. No less an authority than
former California Supreme Court Justice Edward A.
Panelli mediated the compromise. Colonies gave
up a lot and the County gained a lot.
Justice Panelli said it was a result of hard
bargaining on both sides, and called it a fair and
reasonable compromise based on consideration of
the risks of further litigation to all parties.
Any suggestion otherwise is the uninformed
gossip of Monday-morning quarterbacks
attempting to gain personal advantage and score
political points at the expense of the truth and the
best interests of our local community.
On political contributions:
This community is more than my place of
business its the community I love and live in. I
care deeply about its future and like other
community leaders I support political candidates
who I firmly believe will help build a brighter
future for this community. Theres nothing wrong
or unusual about that. In fact, I view it as both my
civic obligation and constitutional right.
In a May statement, Burum responded to questions
about his influence on hiring decisions made by
county leaders:
Ive been an active member of this community for
almost three decades and, like many citizens, Im
regularly called upon to volunteer time, advice and
support toward making our community a better
place. Like anyone else, when a friend asks me to
suggest qualified applicants for job vacancies or to
provide a job reference, I do so freely whether it is
for a public- or private-sector position.
I have spent my entire working life investing in this
community and adhering to the highest legal and
ethical standards. And I will continue to do so.
Bitter basin battle
And at the heart of the dispute
between San Bernardino County and
the developers of Colonies Partners LP
was the question of who bears responsi-
bility for the expense of flood-control
improvements on the property.
The Colonies property sits directly
downhill from Cucamonga Canyon on
the eastern edge of Upland.
Prior to construction of homes and a
commercial center there, the Colonies
property was vacant, partially as a
buffer against floodwaters that would
rush down the canyon from the San
Gabriel Mountains after rainstorms.
When the Cucamonga Creek Dam
was completed in 1980, the Colonies
property was no longer needed for
flood control.
A series of efforts to develop the
property stalled and ultimately failed,
and in 1997 a land liquidation trust
established by the San Antonio Water
Co. sold the 400-plus-acre property to
Colonies Partners LP, led by developers
Jeff Burum and Dan Richards.
But the extension of the 210 Freeway
through the Colonies property necessi-
tated construction of new flood-control
infrastructure specifically, a large
storm drain to reroute water beneath
the below-grade freeway.
The pipe was built to deposit water
into a dormant rock quarry in the cen-
ter of the Colonies property. Colonies
developers protested the move, claim-
ing that the drain emptied far more
water into the basin than Colonies
developers were originally told would
be necessary.
The increase in water runoff meant
the basin needed to be enlarged a
move that the Colonies argued was
essentially inverse condemnation of its
land by the county flood-control district.
The Colonies demanded $25 million
from the county to fund the changes
necessary for the basin. The county
balked at the figure, and countered
with an offer of $2.5 million.
Negotiations over the basin between
the Colonies and the county failed, and
in 2002, the Colonies sued the county
for damages.
In the next year, the developers
donated heavily to candidates for the
Board of Supervisors and to political
action committees friendly to the candi-
dates who later supported the coun-
tys controversial $102 million settle-
ment with the Colonies. The effort
helped to unseat a supervisor who had
been a Colonies adversary.
All along, the Colonies developers
and their attorneys argued that the
county was negligent and reckless in its
handling of flood control on the prop-
erty, asserting that the county had
essentially abdicated its responsibility
for flood control, forcing the developer
to build the improvements.
Meanwhile, court rulings embold-
ened Colonies negotiators.
A San Bernardino County superior
court judge supported the Colonies
position that the county had aban-
doned easements allowing them to use
the Colonies flood-control basin.
Though the countys position was
strengthened on appeal, Superior
Court Judge Christopher J. Warner
found in 2006 that the county had
failed to live up to its legal responsibili-
ties in using the Colonies land for flood
control and had acted in bad faith on
numerous occasions.
Colonies co-managing partner Jeff
Burum blasted county leaders: The
Board of Supervisors has recklessly
spent taxpayer dollars, trampled pri-
vate property rights and endangered
public safety by refusing to provide
flood protection, he said in 2006.
By the end of the year, a new settle-
ment agreement was reached. The
county would give the Colonies $102
million in cash, including an initial
payment of $22 million that tapped out
the county flood-control districts
reserve fund.
The settlement was approved by the
Board of Supervisors on a 3-2 vote.
Attorneys from the County Counsels
Office refused to sign off on the settle-
ment the first time in county history
that had happened, Supervisor Dennis
Hansberger said at the time.
The county now has a lawsuit pend-
ing against the city of Upland, San
Bernardino Associated Governments
and Caltrans, seeking to hold them lia-
ble for a portion of the settlement.
Attorneys for those agencies have
filed cross complaints seeking to be held
harmless and alleging the settlement
may have involved fraud or collusion.
Colonies attorneys and county lead-
ers have denied those allegations, main-
taining that the settlement was not just
fair and equitable, but ultimately a
good deal for taxpayers.
will.bigham@inlandnewspapers.com
(909) 483-8553
THE COLONIES CONNECTION Jeff Burum
Jeff Burum, co-managing partner of
the Colonies development in
Upland, sits near the projects
controversial flood-control basin in
2005. Disputes over the basin
became politically charged as the
Colonies demanded $25 million
from the county to fund the changes
necessary for the basin. In 2002,
the Colonies sued the county for
damages after negotiations between
it and the county failed.
Staff file photo

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Postmus
under fire
Allegations of abuse
in Assessors Office
spur new investigations
It also marked the beginning of the end for
former supervisor-turned-assessor Bill Post-
mus.
In the wake of the grand jury report and
Alemans arrest, the District Attorneys Office
has charged Postmus and four of his former
top staffers Aleman, former Assistant Asses-
sor Jim Erwin, Rancho Cucamonga City Coun-
cilman Rex Gutierrez and former taxpayer
advocate Gregory Eyler with various crimes
ranging from destruction of public property,
preparing false evidence and perjury to misap-
propriation of public money and grand theft.
Postmus, who pleaded not guilty Thursday
to charges of grand theft, misappropriation of
public money, perjury and drug possession,
resigned from office in February, about two
weeks after he was arrested on suspicion of
possession of methamphetamine and ecstasy.
The day I went to jail, when I was booked
into custody, thats when I knew. At that point
I realized, this is it, the games over, and I have
to truly deal with my addiction, Postmus said
in a recent interview. Its destroyed me as a
human being, and it destroys your soul.
After Postmus arrest, the Board of Supervi-
sors commissioned its own investigation into
the Assessors Office, hiring former federal
prosecutor John C. Hueston, best known for
successfully prosecuting Enrons Ken Lay and
Jeffrey Skilling.
In May, Hueston released his 33-page investi-
gative report, in which he reported evidence of
widespread timecard fraud, political activity,
cronyism and drug abuse in the Assessors
Office.
On the same day, the county announced it
was suing Postmus, Aleman, Erwin, Gutierrez,
Eyler and political consultant Mike Richman
in an effort to recoup hundreds of thousands
of dollars in misspent taxpayer money due to
alleged timecard fraud.
Supervisor Paul Biane issued a statement:
The Hueston report chronicles much of the
malfeasance that occurred in the Assessors
Office under Bill Postmus. It validates the
concerns I had about the office and reported to
the District Attorney while I was serving as
chairman of the Board of Supervisors. It con-
firms what the good members of the 2007
Grand Jury concluded in their report, and it
I
n June 2008, the arrest of Assistant
County Assessor Adam Aleman and
the release of a scathing grand jury
report questioning activity at the Assessors
Office hurled the county into its next chapter
of corruption in public office.
THE POSTMUS SCANDAL

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shines a bright light on how county taxpayers
were being defrauded by a select few in the
Assessors executive staff.
Postmus, in a recent interview, blasted
Bianes comments, claiming they were a classic
case of the pot calling the kettle black.
I look forward to showing how Mr. Biane
and his staff, along with other members of the
Board of Supervisors, have also defrauded the
taxpayers of San Bernardino County, Postmus
said, adding, I look forward to the day when
Supervisor Biane and other members of the
board will have to answer to the public, and I
truly look forward to the day when the deposi-
tion process starts and Im able to put mem-
bers of the Board of Supervisors under oath.
The Hueston report
According to Huestons report, Postmus
took office as assessor in January 2007 with
the intent of running a personal political opera-
tion and brought with him an executive staff
composed of friends and political allies with
little to no experience in assessor-related work.
Hueston quoted one executive staff member
as saying the work in the Assessors Office was
peripheral to the political work they engaged
in on a daily basis, which included political
campaign work and promoting an online GOP
publication called Red County.
At the time, Postmus was already suspected
of having a serious addiction to methampheta-
mine, and office staff disclosed that to Hueston
during his investigation.
Erwin, who resigned from the Assessors
Office in November 2007, told Hueston that in
March of the same year, Postmus showed up at
a political fundraiser for Supervisor Brad Mit-
zelfelt appearing stoned and looking as
though he fell off a park bench.
Another employee told Hueston that in
mid-2008, Postmus came in to work looking
blue with white foam around his mouth. One
of his arms was not moving and he was dry
heaving and convulsing. The employee walked
Postmus into his office and had him nap on the
couch.
At one point, Postmus colleagues suspected
he was even huffing cannisters of DVDcleaner.
Postmus, who has admitted using metham-
phetamine as early as 2004, declined to com-
ment on those allegations.
County leaders said they were shocked to
learn that Postmus may have abused his office.
As a taxpayer and a public official, I find
the activities detailed in the report deeply
disturbing, Board of Supervisors Chairman
Gary Ovitt said upon the reports release.
The information in Huestons report, Ovitt
said, was compelling enough to warrant the
countys civil suit.
Misconduct in office
Last week, prosecutors charged Postmus
and Eyler with grand theft and misappropria-
tion of public money. Postmus was addition-
ally charged with drug possession.
According to court documents, Postmus and
Eyler were romantically involved, and Postmus
first sought to get Eyler a job in the office of
2nd District Supervisor Biane, who took Eyler
on as a part-time field representative, but even-
tually fired him.
Once Postmus was elected Assessor, he
hired Eyler to be a taxpayer advocate. While
Eyler was paid as a full-time employee, he did
very little work in the Assessors Office, accord-
ing to witnesses. Part of his job duties were to
wash Postmus car, clean his house and run his
errands.
The charges against Eyler are based upon
the fact that he was paid for work he did not
do. Postmus is also charged for paying Eyler
for work unrelated to the county.
Additional charges against Postmus stem
from expenses he submitted to the county for a
2006 vacation to Aspen, Colo., on which he
charged the county for gas, and for plane
tickets to a political event in Austin, Texas.
Postmus is also accused of spending taxpayer
money on an Internet air card for a laptop
computer while he was on medical leave last
year. According to court documents, Postmus
used the card to access the Internet and down-
load pornography.
Postmus is also charged with perjury for
failing to disclose a $12,000 cashiers check
found in his car. The check, however, has not
been cashed and remains valid, according to
court documents.
The drug charges were filed in connection
with his arrest in January, when investigators
serving a search warrant discovered metham-
phetamine and ecstacy in his home.
A witness also turned over drug parapherna-
lia given to him by Postmus in the summer of
2006, shortly before he went into a drug-treat-
ment program.
Aleman pleaded no contest June 30 to
destroying a laptop computer sought by the
grand jury and presenting falsified meeting
ASSESSOR G18
Who is
John C. Hueston?
John C. Hueston, the
attorney commissioned by
San Bernardino County in
January to investigate former
Assessor Bill Postmus and
alleged misconduct at the
Assessors Office, led the
team that prosecuted former
Enron executives Kenneth
Lay and Jeff Skilling.
He has been commended by
the National Federal Law
Enforcement Officers
Association, the FBI, the IRS
and U.S. Customs for his
work as the lead trial
attorney in fraud, tax and
public corruption trials.
California Lawyer magazine
named Hueston a 2007
"California Attorney of the
Year."
Hueston report
highlights
A 33-page report on
attorney John C. Huestons
investigation into alleged
misconduct in the
Assessors Office concludes
that former Assessor Bill
Postmus abused his office
to benefit friends and
political allies. Among the
findings:
Postmus formed an
executive team that had little
to no involvement or
responsibility for daily
operations of the office.
Members of the executive
team were not qualified for
the positions they held.
Fraudulent timecards were
routinely submitted, and
executive officers were paid
for hours they did not work.
Team members engaged in
personal or political business
on county time.
Questionable contracts
were awarded to friends of
Postmus, including a
$49,200 consulting contract
to a former political ally and
more than $1,400 paid to a
longtime friend for hanging
14 framed photographs.
Members of the executive
team received tuition
reimbursements for course
work unrelated to their jobs.

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The countys 2007-2008 grand jury issued a
scathing report on the county Assessors Office,
questioning the activities of the executive sup-
port staff of then-Assessor Bill Postmus. Since
then, a county-commissioned investigation has
uncovered evidence of widespread fraud and
abuse, Postmus has resigned and investigators
have arrested and charged three of his former
top lieutenants.
If the grand jury hadnt taken the Assessors
Office to heart, nothing would be happening
today, said 3rd District Supervisor Neil Derry.
They were the catalyst.
The 2007-08 grand jury began its investiga-
tion into the Assessors Office on little more
than a hunch that something was fishy about
the November 2007 resignation of former Assis-
tant Assessor Jim Erwin, said Gwenn Perez,
forewoman of the 2007-2008 grand jury.
It wasnt clear-cut why he resigned, Perez
said. That made us look very carefully at (the
assessors) operation.
The District Attorneys Office also investi-
gated the Assessors Office, but Perez said the
grand jury was not aware of that probe when it
began its own inquiry.
While the grand jury can investigate just
about anything the jurors want to look into, the
body does have a significant limitation: time.
The grand jury starts each year with a new set
of jurors, which makes it difficult to carry on a
more lengthy investigation, said Burrel Woo-
dring, foreman of the countys 2008-2009 grand
jury.
When you come in in July, it takes you about
four months to really realize what your duties
are, he said. Then by March, you have to start
on your final report.
He said the grand jury on which he served,
which finished its duties as of July 1, had investi-
gations it could not complete in time.
Some counties, Woodring said, allow at least
a few jurors to stick around fromone year to the
next, allowing for some investigations to either
continue or at least not have to begin from
scratch.
The big fault in our county is that we cannot
have holdovers, Woodring said. If were inves-
tigating an issue this year, the new grand jurors
would have to start at the beginning.
The countys superior court judges, who
select potential grand jurors fromapplicants for
the jury, could allow holdovers, Woodring said.
In some counties, they do, he said. In the
courts wisdom, they have never had any hold-
overs in San Bernardino County.
Speaking to a local Democratic club on June
26, county Supervisor Josie Gonzales said more
time would help the grand jury wrap up
long-term probes.
The one year they serve is too short not
enough time to do all of the investigation and
put together a summary report, she said, espe-
cially when you have overlapping, overflowing,
ongoing situations that have not yet come to an
end.
But Charlie Umeda, the grand jurys legal
adviser, said state law mandates a one-year
term for grand jurors and allows holdovers only
under special circumstances.
We checked with different counties, and
there are no counties that ... allow holdover
grand jurors in the regular course of practice,
Umeda said.
james.koren@inlandnewspapers.com, (909) 386-3826
By James Rufus Koren Staff Writer
E
very year, a group of 19 county residents is
selected to serve as grand jurors. In that capac-
ity, they investigate the internal workings of the
county and, after a year, report their findings and
make recommendations.
Following
a hunch
Light shed on Assessors Office
almost by chance
THE POSTMUS SCANDAL Grand Jury investigation
minutes and other information to
the grand jury.
Aleman, 26, of Rancho Cuca-
monga has agreed to testify against
his former colleagues and to cooper-
ate with law enforcement in their
investigation as part of a plea bar-
gain with county prosecutors.
Erwin was arrested in March and
charged with 10 felony counts of per-
jury for failing to report about
$15,000 in gifts he received in Janu-
ary 2007 from Rancho Cucamonga
developer Jeff Burum.
The gifts, including a nearly
$13,000 Rolex Daytona watch and a
luxurious trip to New York City, were
compensation for Erwin helping
Burum win a $102 million settle-
ment with the county over flood-con-
trol improvements at Burums Colo-
nies development in Upland.
On May 27, Gutierrez, former inter-
governmental relations officer at the
Assessors Office, was arrested and
charged with felony counts of misap-
propriation of public funds and
grand theft in connection with
alleged timecard fraud.
Authorities claim Gutierrez spent
most of his daytime work hours
engaged in business related to his
activities as a city councilman, but
was being paid for full-time work at
the Assessors Office.
Both Hueston and the grand jury
noted in their reports a $49,200 pur-
chase order contract granted to Rich-
man for public relations work in the
Assessors Office.
Richman, according to the grand
jury, was not required to provide
detailed invoices to show work that
was done, nor did he submit
biweekly reports as he was required
to do under the terms of the con-
tract.
Jim Lindley, the countys former
purchasing director, told Hueston
that the Assessors Office did not go
through the request-for-proposal pro-
cess and did not hire a media consult-
ant from the county approved list.
Because Richmans contract was
for $49,200 below the $50,000
limit it did not require approval
from the Board of Supervisors.
County officials maintain they did
everything in their power to ensure
the Richman contract was on the up
and up, and resisted approving the
contract until it complied with all of
the countys procurement guidelines.
Postmus said Richman more than
met the terms of his contract.
Mike Richman and his MPR Strat-
egies did an outstanding job of help-
ing me fulfill my goal of a modern-
ized and accessible office, Postmus
said. Richman was responsible for
assuring completion of a number of
goals to better connect the office of
the Assessor with the taxpayers the
department serves.
He further stated that the full
scope of Richmans tremendous
work will be proven as part of the
Board of Supervisors vindictive and
ridiculous lawsuit against me and
those associated with my office.
What they knew
Though Supervisor Neil Derry has
criticized his colleagues on the board
for waiting too long more than a
year to commission an administra-
tive investigation into the Assessors
Office, his colleagues maintain it was
they who uncovered the scandal.
Through existing checks and bal-
ances, it was the county not the
news media or law enforcement
that uncovered evidence of suspi-
cious behavior in the Assessors
Office within weeks of Postmus tak-
ing office, according to a statement
prepared by board chairman Gary
Ovitt and Supervisor Josie Gonzales.
Huestons investigation, however,
also included allegations that other
members of the Board of Supervisors
were involved with or aided by Post-
mus political efforts on county time.
Hueston found that Postmus staff
helped with Supervisor Brad Mit-
zelfelts campaign and also initially
with Derrys campaign.
Hueston also noted that Biane
interceded on behalf of Gutierrez
when Gutierrezs position in the
Assessors Office was eliminated. At
Bianes request, Gutierrez was
allowed to stay on the payroll for an
additional six months.
Biane also acknowledged in a
recent interview that he knew Post-
mus was in a drug treatment pro-
gram in 2006, when Postmus, then
chairman of the Board of Supervi-
sors, could not be found during
major wildfires that scorched 80,000
acres of county land and destroyed
scores of homes.
At the time, county leaders gave
conflicting accounts of the wher-
abouts of Postmus, who was running
for assessor that year.
County leaders also rebuffed
efforts to obtain Postmus calendars
and records of communications
between him and other county offi-
cials during the fires, hiring outside
lawyers to defend the county against
a lawsuit filed jointly by this newspa-
per and the California First Amend-
ment Coalition.
Of the entire Board of Supervisors,
only Biane and Postmus refused to
release their calendars. When a
judge ultimately ordered redacted
versions of the calendars released,
they gave no indication of where
Postmus was during the fires.
Biane said last week that Postmus
came to his home before the fires
broke out and told him he was going
into a drug-treatment facility.
He attributes Postmus fall to
drugs.
I think if you look at the Asses-
sors Office, Bill was obviously
impaired and had poor judgement,
based on his drug addiction, Biane
said. He didnt run a tight ship, and
he didnt demand that people work
and perform their job duties as pro-
posed.
ASSESSOR
From G17

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No one had to tell the county these things
were happening. The county found out on its
own through existing checks and balances,
according to a statement released by Supervi-
sors Gary Ovitt and Josie Gonzales on behalf of
the entire Board of Supervisors.
Supervisor Neil Derry, however, has a prob-
lem with his colleagues on the Board of Super-
visors glossing over the fact it took more than a
year for them to take any action. By the time
they did, the grand jury had already released
its findings and two arrests had been made.
Clearly, the fact that the complaint was
filed in 2007, and it took over a year and a half
for any conclusive action on behalf of the
county, shows at the very least it was exception-
ally slow, Derry said. With all the allegations
that had been made well through December, I
think the county should have moved sooner.
Since the release of the 2008-2009 grand
jury report July 1, Derry has laid out his plan
for a five-person ethics commission with three
paid staff, which will cost about $500,000 a
year to operate.
The grand jury recommended, among other
things, that the county establish a credible
selection process for members of the commis-
sion that is untainted by political influences
and biases. Derry has proposed some kind of
lottery process similar to the way grand jury
members are selected.
The county likely will amend its budget to
free up the funds necessary to run the commis-
sion, Derry said.
Burrel Woodring, last years grand jury fore-
CHANGE G20
Time
for change
County leaders to consider ethics
commission, contribution limits
This county just cant learn to behave, and it comes down to that
Board of Supervisors. I believe when you get the developers out of
choosing who the next county supervisor is going to be, the taxpayers
of this county will be much better off. Rialto City Councilman ED SCOTT
T
he county maintains it has a firm grip on corruption,
and its probe of the Assessors Office is proof it can
detect scandal, investigate it and take the appropriate
action as deemed necessary.
THE NEXT STEP
County measures
target misconduct
As scandal after scandal
unwinds among San
Bernardino County leaders,
top county officials have
commissioned numerous
investgiations and lawsuits
to hold wrongdoers
responsible.
A statement from the
county highlights some of
the steps taken:
Investigations
The county has
commissioned internal
investigations to determine
the extent of wrongdoing
and whether the county can
recoup damages. This
practice allows the county to
get to the bottom of
allegations, initiate litigation
to recover money owed to
the public, and put officials
on notice that the county
will hold them accountable.
Investigations were done in
2000 to address the Hlawek
Scandal, in 2005 to address
a surplus land sale and
allegations concerning the
purchase of a jail in
Adelanto, and in 2009 to
address the Postmus
Scandal.
Civil lawsuits
The county has employed
top attorneys to aggressively
pursue damages following
internal investigations.
Lawsuits filed in connection
with the Hlawek Scandal
secured $35.5 million in
awards for the county.
The county is currently suing
six defendants in connection
with the Postmus Scandal.
Such lawsuits are the best
way for the county to
recover losses suffered by
taxpayers and to hold
wrongdoers accountable.
Surplus land sales
In 2005 the Board of
Supervisors barred all county
employees from purchasing
surplus county land, and
made it a misdemeanor for
county administrative
officials to purchase surplus
county land either directly or
through an intermediary.
Continued on Page 20

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man, says the millions of dollars the county has
spent on attorneys in the last decade to investi-
gate or sue corrupt county officials could have
been used to set up an ethics commission,
which may have been able to stave off much of
the corruption in the first place.
They hire attorneys I think thats the only
solution they know of, Woodring said. Conse-
quently, you need some type of mechanism
where some kind of outside independent group
can investigate.
Prior to the July 1 release of a Grand Jury
report recommending the county raise up an
ethics commission, Gonzales on June 26 told a
Democratic club that such a commission
would bring red tape, cost too much and
amount to babysitting in disguise.
At the July 14 Board of Supervisors meeting,
Gonzales recommended scheduling two work-
shops in August to discuss the formation of the
commission, as well as other reforms recom-
mended by the grand jury including limits on
campaign contributions, a measure some say is
long overdue in San Bernardino County.
Rialto City Councilman Ed Scott, a longtime
critic of county government and the man who
ran against embattled Supervisor Jerry Eaves
in 2000, believes the county should implement
every one of the grand jurys recommenda-
tions.
But hes especially supportive of placing caps
on campaign contributions, which he believes
is the driving force behind all corruption.
This county just cant learn to behave, and
it comes down to that Board of Supervisors,
said Scott. I believe when you get the develop-
ers out of choosing who the next county super-
visor is going to be, the taxpayers of this county
will be much better off.
Woodring says the county has good ethics
rules for their employees, but the crux of the
corruption problem hinges on the elected offi-
cials.
Its the primary reason he feels limiting
campaign contributions is such a necessity.
If you can control the money, maybe you
can control the corruption a little bit, he said.
Board of Supervisors Chairman Gary Ovitt,
however, doesnt see any one magic weapon to
fend off scandal.
These things are going to happen, and the
best thing we can do, though we certainly cant
change human nature, is to investigate any
improprieties and then act with authority to
make change, Ovitt said.
He said the county is always striving to do
more, and that of Californias 58 counties, San
Bernardino County is the only county that has
a charter in place that gives the Board of
Supervisors the right to remove another
elected official from office.
The board began taking such steps to
remove former Assessor Bill Postmus from
office before his abrupt resignation in Febru-
ary.
Last week, when Postmus was charged with
grand theft, misappropriation of public funds,
perjury and drug possession, Ovitt issued a
brief statement:
The charges announced today against Bill
Postmus and Greg Eyler are an undeserved
embarrassment to the county, our dedicated
employees, and our fine residents. The charges
do, however, validate the countys early efforts
to hold Bill Postmus accountable and seek his
removal from office. The county of course
offers its complete cooperation to the District
Attorney's Office, and the county looks forward
to seeing justice prevail.
Jack Pitney, professor of governmental stud-
ies at Claremont McKenna College, is rather
more matter of fact about the scandals that
have plagued the county over the past decade.
As the county continues to grow and present
opportunity for developers and businesses, cor-
ruption will likely continue, he said.
Corruption is as old as American history.
People have been on the take as long as theres
been anything worth taking, Pitney said.
Temptations for corruption are especially
great in places that are fast growing, such as
San Bernardino County.
While felony charges filed against Postmus
last week mark the conclusion of the initial
phase of the countys criminal investigation,
District Attorney Michael Ramos said the
probe remains open and ongoing.
Our investigation has disclosed additional
areas that require further inquiry, Ramos
said.
Staff writers Josh Dulaney and James Rufus Koren
contributed to this report.
CHANGE
From G19
Measures target
misconduct
Accountabilty
The county has established a
track record of publicly
calling out and sanctioning
officials who have
embarrassed the county.
In 2001, the Chairman of the
Board of Supervisors sent a
public letter to then-District
Attorney Dennis Stout
demanding that he explain
allegations that his office
provided assistance to a
political candidate.
Also in 2001 the Board of
Supervisors removed
then-Supervisor Jerry Eaves
as the countys
representative to more than
seven organizations after he
had plead not guilty to
federal charges.
And in 2008, the Board of
Supervisors publicly censured
then-Assessor Bill Postmus
for failing to address criminal
allegations within his office
and allegations of drug
abuse.
Access to
information
On Oct. 4, 2005, the Board
of Supervisors launched an
initiative to use the latest
technology to improve the
publics access to county
information, including
providing the public with
online access to California
forms 460 (campaign
finance disclosure) and 700
(statements of economic
interest) for county elected
and appointed officials,
providing the public with
online access to Board of
Supervisors agendas and fair
statements with a searchable
database, and providing the
public with online access to
county contractor and
vendor information.
Term limits
In 2008, the Board of
Supervisors placed before
voters, and the voters
approved, a County Charter
amendment that limits
supervisors to three
consecutive four-year terms.
Source: San Bernardino County
Gabriel Luis Acosta Staff Photographer
Former Assessor Bill Postmus, left, speaks with his attorney, James Knox, on Thursday during a court appearance in San Bernardino
Superior Court. Postmus pleaded not guilty to charges of grand theft, misappropriation of public money, perjury and drug possession.

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JOHN C. HUESTON
The Newport
Beach-based attorney
is a former federal
prosecutor recognized
for his role as lead
prosecutor with the
Enron Task Force. Named by
California Lawyer magazine as a
2007 California Attorney of the
Year, Hueston in May issued a
33-page report on timecard fraud and
cronyism in the San Bernardino
County Assessors Office that has led
to a county lawsuit against former
Assessor Bill Postmus and top
staffers, alleging breach of fiduciary
duty, fraud, improper expenditure of
public funds and unjust enrichment.
MICHAEL RAMOS
The district attorney
whose Public Integrity
Unit is leading
investigations into
Postmus and former
top staffers in the
wake of allegations that they ran a
political operation from the
Assessors Office. Prosecutors
charged Postmus last week with
grand theft, misappropriation of
public money, perjury and drug
possession. Postmus and others have
claimed the investigation is politically
motivated.
LEONARD L. GUMPORT
A Los Angeles-based
attorney who has
represented the
county for the last
decade in a lawsuit
stemming from the
biggest corruption scandal in county
history. Gumport won roughly $20
million in judgments stemming from
a 2000 lawsuit involving more than
20 defendants, including former top
county officials and contractors
convicted of bribery and other
charges.
DENNIS STOUT
Elected to the District
Attorneys Office in
1994, Stout
prosecuted former
Supervisor Jerry
Eaves in connection
with bribery scandals in the 1990s
before the case was handed over to
the state Attorney Generals Office
after it was discovered that Stout and
two of his top aides discussed
information about the investigation
into Eaves with one of his political
foes. Stout dropped out of the 2002
race for the office, which Ramos
went on to win. Eaves pleaded guilty
in 2004 to violating state conflict of
interest laws.
Truth & consequences
Investigators findings not always popular
THE INVESTIGATORS
Some have been criticized by the same
leaders who hired them. For others, the
stakes have been even higher.
Former District Attorney Dennis Stout,
61, says his political career was upended in
large part because he lost support from
power brokers when he went after corrupt
county officials.
He sees a distinct pattern of county offi-
cials bashing the people they commission to
clean up corruption.
Its not just the way these investigators
are attacked, its the politics of this county,
Stout said. Its a bloody knife fight.
Stout prosecuted former Supervisor Jerry
Eaves on bribery charges before the case
was handed over to the state Attorney Gener-
als Office when it was discovered that Stout
and two of his top aides discussed their
investigation into Eaves with one of his
political foes.
The District Attorneys Office was cleared
of acting illegally, but Stout bowed out of a
2002 re-election bid when he fell behind his
opponent, then-Deputy District Attorney
Michael Ramos.
The scandal surrounding the Eaves inves-
tigation and a wrongful termination lawsuit
filed against Stout were big contributors to
his downfall, he said.
Other investigators have also been chal-
lenged by officials none too pleased with
their findings.
Los Angeles attorney Leonard L. Gumport
a federally appointed bankruptcy exam-
iner in 1987 who helped recover roughly $30
million in assets from Adnan Khashoggi, a
Saudi Arabian oil billionaire, international
arms dealer and prominent figure in the
Iran-Contra scandal was hired by the
county in mid-2000 to investigate former
top county officials who took bribes and
kickbacks from contractors in exchange for
lucrative billboard and trash-hauling con-
tracts.
Since 2000, the county has authorized
approximately $3.9 million for Gumport to
investigate allegations of corruption and
pursue litigation against those suspected of
defrauding the public. He has so far won
roughly $20 million in judgments nearly
$11 million of which is still owed to the
county from former county officials and
contractors convicted of bribery and other
charges.
In 2005, the county commissioned Gum-
port to conduct additional investigations
regarding allegations of impropriety related
to county land deals.
Gumport found that Jim Foster who
would later resign as chief of staff for former
Supervisor Dennis Hansberger had
improperly purchased surplus county land
through former Assemblyman Brett
Granlund, a lobbyist and one-time friend.
Gumport also found that Granlund tried
to influence the countys purchase of a pri-
vate jail in Adelanto without indicating that
that he worked for the jails owner.
County leaders, however, denounced
much of Gumports work.
I dont stand behind the report being
accurate, 2nd District Supervisor Paul
Biane said.
Bill Postmus, then chairman of the board,
called the report sensationalistic, and full
of hyperbole, loaded wording, and in some
cases unsupported statements.
Fourth District Supervisor Gary Ovitt said
the reports conclusions were overblown.
County Administrative Officer Mark
Uffer, who directed Gumport to examine
questions regarding the countys lease and
purchase of the jail, said, It was clear that
Mr. Gumport had taken it upon himself to
explore several unrelated issues outside of
his areas of expertise and that some infor-
mation in the report was superfluous and
served to confuse the report to the point
that it lost sight of its intended purpose.
Gumport declined to comment for this
story.
More recently, at least one official is start-
ing to cut into the work of former federal
prosecutor John C. Huestons 33-page
report on cronyism and timecard fraud in
the Assessors Office.
Supervisor Brad Mitzelfelt last month
called into question portions of Huestons
report alleging that his office conducted
campaign work on county time and that
Postmus exerted his influence to intimidate
challengers to Mitzelfelt, who in June 2008
won re-election to the seat he was appointed
to in 2007 and which was once held by
Postmus.
Mitzelfelt said he is unaware of any cam-
paign activity on his behalf occurring on
county time and the facts of the case would
surface during the litigation process.
The report gives the impression that
there was a lot more political activity going
on on my campaign than there really was,
Mitzelfelt said.
While Mitzelfelt lauded Huestons work
in bringing forth the information needed for
the county to take legal action against Post-
mus and his former staffers, he also said
much of the report was filled with a collec-
tion of opinions, and often conflicting ones.
Mitzelfelts remarks followed a unani-
mous decision by the board to double the
countys contract with Hueston so the attor-
ney can lead a lawsuit against Postmus.
The board increased the countys contract
with Huestons firm, Irell & Manella LLP,
from $250,000 to $500,000.
Those who follow corruption investiga-
tions say they arent surprised when the
investigators themselves are attacked.
They want surgery where you remove the
cancer without touching the other tissue,
said Larry K. Gaines, chair of the criminal
justice department at Cal State San Bernar-
dino. One of the things you have to under-
stand is youre looking at a host of political
elites up there that have a host of political
agendas going on. By having outside investi-
gators, it allows them the distance ... so they
can maintain the status quo.
Hueston has not returned phone calls
seeking comment, but one expert on govern-
ment ethics issues says while everyone likes
to be praised for their work, lawyers expect
their findings sometimes will be met with
harsh and public criticism from those who
brought them in.
Still, the often hard-shelled investigators
growfrustrated when their work is used as a
springboard for politicking, said Jessica
Levinson, director of political reform at the
Center for Governmental Studies based in
Los Angeles.
No kind of attorney going in wants his
work to be used as a public opinion ploy,
Levinson said. Their goal is bringing light
to ethics issues.
In the end, Levinson said, it wearies the
public and is a waste of taxpayer resources
when officials do not take investigations
seriously.
Certainly it is a problem, Levinson said.
Its not unusual to have an expert look at
(scandals) and get the publics support that
you are doing something, then say the rec-
ommendations are not workable.
josh.dulaney@inlandnewspapers.com, (909) 386-3885
By Josh Dulaney Staff Writer
I
nvestigators bold enough to take on cor-
ruption in San Bernardino County have
themselves seldom escaped controversy.

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First of all, the question makes the implica-
tion that county government is structurally
unethical. It is important to note that while
we occasionally face unfortunate situations
in which an individual has abused the pub-
lics trust, the County of San Bernardino is
an ethically sound organization that con-
stantly strives to be open with the public
and institute meaningful checks and bal-
ances to quickly detect and effectively
address wrongdoing.
Meaningful reform requires first a commit-
ment to make county government honest
and open and then corresponding systemic
and structural procedures guidelines,
policies and oversight functions to consis-
tently monitor and enforce that commitment.
The County of San Bernardino has made
tremendous strides in this area during the
past decade, and we are always looking to do
more. The county has instituted dozens of
reforms and procedures to make sure impor-
tant decisions are properly and publicly
reviewed, and that any transgressions are
quickly detected.
We have made a commitment to openness
that includes the online posting of campaign
finance forms, statements of economic inter-
est, archived Board of Supervisors agendas,
videos of board meetings, public information
request forms, and more (www.sbcounty.
gov/main/OpenGovernment.asp).
Much of what we have done far exceeds
what is required by law and far exceeds
what other local government agencies do.
The county has nonetheless suffered
instances of official wrongdoing. However,
following the infamous scandals of the 1990s,
which led to many of the countys reforms,
virtually all wrongdoing has been discovered
by the county and dealt with by the county.
This proves that the system is working. The
recent events surrounding former Assessor
Bill Postmus and the people with whom he
surrounded himself are evidence of this.
Through existing checks and balances, it
was the county not the news media or law
enforcement that uncovered evidence of
suspicious behavior in the Assessors office
within weeks of Postmus taking office. The
county went on to turn that information
over to the authorities, conduct our own
internal investigation that was made public,
and pursue litigation against the responsible
parties.
When e-mails indicated that political activ-
ity was occurring on county time, the county
gathered the e-mails and turned them over
to the District Attorney, sparking the current
investigation.
When Postmus office tried to award a
contract to a particular consultant, the
county resisted until the proposed agreement
complied with all of the countys procure-
ment guidelines. When it was discovered
through the countys investigation that the
guidelines were not followed, the county
investigated and included all involved parties
in the lawsuit.
When the county suspected that work
records may have been falsified, the county
conducted an investigation and included all
involved parties in the lawsuit.
When the county learned that some of the
problems stemmed from top employees in
the Assessors office not being held to mini-
mum job standards, the county sought and
won approval from the voters for a charter
amendment that requires elected department
heads to create Board of Supervi-
sors-approved job standards for top assis-
tants.
No one had to tell the county these things
were happening. The county found out on its
own through existing checks and balances,
the county publicly exposed them, and the
county took corrective action.
There is only so much any organization
can do to prevent deviant human behavior.
In many cases, the best it can do is provide
proper safeguards to detect and address that
behavior. Therefore, the true test of whether
an organization has a handle on wrongdoing
is how quickly it is detected and how deci-
sively it is acted upon. In terms of the Post-
mus issue, the county has again shown it can
detect wrongdoing long before an outside
source brings it to our attention, that we will
not tolerate it, and that we will take appro-
priate action.
Board: System
is working
... following the infamous scandals of the 1990s, which led to many of the countys
reforms, virtually all wrongdoing has been discovered by the county and dealt with by
the county. This proves that the system is working. The recent events surrounding former
Assessor Bill Postmus and the people with whom he surrounded himself are evidence of
this. Excerpt from a joint statement issued by the BOARD OF SUPERVISORS
I
n June, we asked each of the San Bernardino County
supervisors to give his or her thoughts on what the
county should do to bring real reform and clean up
county government. Board of Supervisors Chairman Gary
Ovitt and Vice Chairwoman Josie Gonzales responded on
behalf of the board. Heres what they said:
JOSIE GONZALES
Vice chair & 5th District supervisor
SupervisorGonzales@sbcounty.gov
(909) 387-4565
THEIR VIEW
GARY OVITT
Chairman & 4th District supervisor
govitt@sbcounty.gov
(909) 387-4866
PAUL BIANE
2nd District supervisor
pbiane@sbcounty.gov
(909) 387-4833
NEIL DERRY
3rd District supervisor
nderry@sbcounty.gov
(909) 387-4855
BRAD MITZELFELT
1st District supervisor
bmitzelfelt@sbcounty.gov
(909) 387-4830

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OUR VIEW
Supervisors
need to step up
Supervisor Paul Biane claims he alerted
authorities to potential misconduct in
Postmus office in August 2007, but it was
only after Postmus was arrested on suspi-
cion of drug possession earlier this year
that the Board of Supervisors moved defin-
itively to remove him from office.
Prior to that, the board practically
ignored the warning signs, many of which
were splashed across the front pages of
local newspapers. Indeed, it could be
argued that in defending his efforts to
keep his calendars and e-mails secret in
2006, when he disappeared during wild-
fires that chewed up tens of thousands of
acres and destroyed nearly 100 structures,
they not only allowed him to evade public
scrutiny, they enabled it.
Now the public knows that Postmus
was in a drug treatment facility during
the fires, but at the time when Postmus
was running for the Assessors Office
not one of them was willing to even pub-
licly ask where he was. Instead, they spent
taxpayer money to hire outside lawyers to
keep his calendars from the public, and of
course, they declined to comment.
In 2005, when lawyers the county hired
to represent taxpayers in fighting a law-
suit by Colonies Partners LP complained
that Postmus and Biane had asked them
to leave the room while they hammered
out a tentative agreement with the devel-
oper, county supervisors were more con-
cerned with who leaked the memo to
reporters than they were with the lawyers
contention that $77 million was way too
much to pay.
Eighteen months later, right before
Postmus left the Board of Supervisors,
Postmus, Biane and Supervisor Gary Ovitt
approved a $102 million settlement with
the developer.
And now we learn that Jim Erwin, then
a top official with the countys public
safety union, was a go-between in the
negotiations. His reward: a trip to New
York, possibly the services of a prostitute,
a Rolex watch and felony perjury charges
for failing to properly report the gifts once
he was hired by Postmus in the Assessors
Office.
Did they not know that Erwin was
involved in the settlement negotiations
when he was hired at the Assessors
Office? How about when he was hired as
Supervisor Neil Derrys chief of staff?
The countys own independent counsel
has raised questions about the involve-
ment of other supervisors in Postmus
political activities on county time, but
unsurprisingly, the board does not seem
all that eager to pursue them.
Supervisor Brad Mitzelfelt said former
federal prosecutor John C. Hueston did an
exemplary job of gathering enough infor-
mation for the county to pursue legal
action against Postmus, who was Mit-
zelfelts boss when he was on the Board of
Supervisors, but Mitzelfelt also claimed
that much of the information in Huestons
report was a collection of opinions, and
often conflicting ones.
That must have been the stuff about
how Postmus leaned on potential challeng-
ers for Mitzelfelts seat on the board.
Huestons report also accuses Biane of
interceding on behalf of Rancho Cuca-
monga City Councilman Rex Gutierrez
when Gutierrezs position in the Assessors
Office was eliminated. Biane apparently
asked that Gutierrez, who was recently
charged with grand theft because he
apparently did no work at the Assessors
Office, be kept on while he searched for a
new job. Gutierrez found that job in the
countys Economic Development Agency,
though he was fired after he was arrested.
As if that isnt enough, the city of
Upland and San Bernardino Associated
Governments have filed cross complaints
to a lawsuit the county filed against them
to get part of that Colonies settlement
money back. Upland and SANBAG claim
the Colonies settlement was tainted by
fraud and collusion, perhaps based on
Erwins troubles and campaign contribu-
tions made by the Colonies to political
action committees with ties to the supervi-
sors who approved the settlement.
Nothing to see there, though.
When this years grand jury urged
reforms, including caps on campaign
spending and the formation of an ethics
commission, the county issued a state-
ment promising to consider the recommen-
dations but suggesting that contribution
caps were probably not a good idea. The
idea of an ethics commission has also
been maligned. Supervisor Josie Gonzales,
in a speech to a local political club, lik-
ened such a panel to a baby sitter for
politicians.
Ironically, that may be exactly what this
crowd needs.
Just about every member of the board
has, at one time or another, touted his or
her own ethics and promised to get the
county past the drama of the day, but
they have failed to effectively do so.
Today, only Derry seems eager to
reform. He wants an ethics commission,
and he also wants a sunshine ordinance
that makes it harder for elected officials
to hide things, such as their calendars and
expense reports.
We like those proposals, and we wish
other board members were as eager to
effect change. Instead, they seem commit-
ted to downplaying the latest embarrass-
ments in a long line of low moments,
arguing that investigations and arrests are
proof that theyre on top of it.
What they need to do is accept responsi-
bility for it and take definitive action to
ensure it doesnt happen again.
We urge the Board of Supervisors to
take a hard look at who they are and
what they stand for, but most of all, we
urge them to take a stand.
Those who cant or wont should walk
away.
Just about every member of the board has, at one time or another,
touted his or her own ethics and promised to get the county past
the drama of the day, but they have failed to effectively do so.
T
he system is not working.
County supervisors have been quick to claim credit
for investigations into misconduct and fraud in the
Assessors Office under former Assessor Bill Postmus, but theyre
conveniently ignoring what should have been obvious to them
long before the 2007-2008 grand jury rubbed their noses in it.
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SPECIAL REPORT
Scandal
ON THE 5TH FLOOR
SUNDAY July 26, 2009
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YOUR VIEW
Following are excerpts from letters The Sun and Daily
Bulletin have printed dealing with alleged county
government corruption.
Too hot to ignore
Re: System is working, June 14.
Perhaps the opposite is true.
The Perspectives page gives insight into the ongoing
attempts by certain Board of Supervisors members to
create a perception about themselves which simply is
not true.
It was the outside sources of the press and the public
who raised attention to the massive problems within
county government, not the checks and balances to
which Mr. Ovitt gives credit.
The heat simply became too hot to ignore any longer.
AL VOGLER
Hesperia, June 2009
Pay to play
Along with his hiring of the (now) indicted Jim
Erwin and the recent addition to his paid staff of the
immigrant-bashing activist Joseph Turner, Neil Derry is
infamous for being one of three poster children for
what appears to be a county culture of Illinois-like Pay
to Play.
Along with Supervisors Ovitt and Biane, and a host of
local GOP operatives and PACs, Derry paved the way
for Uplands Colonies Partners to both game the taxpay-
ers of this county for $102 million, and to fund the
latest Republican-led version of our countys perennial
culture of corruption to the tune of $400,000.
LARRY HERNANDEZ
Upland, May 2009
Time to clear air
The stench from the Taj Majal is overpowering.
While the entire Board of Supervisors was harrumph-
ing over San Bernardino County Assessor Bill Postmus
pathetic addiction to greed and drugs and revelations of
Jim Erwins prostitute-enhanced jewelry-buying trip to
the East Coast aboard Jeff Burums jet, at least two,
Paul Biane and Gary Ovitt, were hiding, or at least not
admitting at this opportune time, that they had four
somewhat recent flights aboard the very same plane
between them.
Its amazing what $102 million will do. Problem is, it
was our $102 million.
TERRY B. THOMPSON
Rialto, April 2009
Education valued
Mark Uffer, county administrative officer, appointed
Jim Lindley as the chief of the countys Public Health
Department. Much to his credit, Mr. Lindley, who has
extensive experience as a manager in the welding indus-
try, said he intends to pursue a degree in public health.
His appointment brings to mind the appointment of
Adam Aleman as assistant to the countys property
appraiser, even though he did not have an iota of
appraising experience or a degree, which the job
requirements specified. To his credit, Assessor Bill Post-
mus gave Mr. Aleman county money to complete his
degree.
It is heartwarming to see our leaders so interested in
helping department heads and assistants become quali-
fied to manage their departments.
DAVID DURON
Yucaipa, September 2008
Enough talking
Re: Ethics elusive in government, March 22.
Apparently working on the theory that the best
defense is a good offense, Jim Erwin cites Supervisor
Neil Derrys campaign to reduce or eliminate certain
job perks as the catalyst for his arrest.
No stranger to controversy and shady political prac-
tices, Jim Erwin has the audacity to claim that his
arrest stems from political revenge! What a joke!
The problem with county politics in general is the
notion that one needs to grease the wheels.
SALLY KAPP
Ontario, April 2009
Clean slate needed
After the San Bernardino County Board of Supervi-
sors meeting on Jan. 22 to deal with the drug-addicted
Assessor Bill Postmus, I think its time to clean the
slate.
Lets recall at the same time the three supervisors
who are financially and personally connected with Bill
Postmus Paul Biane, Gary Ovitt and Brad Mitzelfelt.
BILL TUCK Jr.
Phelan, January 2009
Tangled web
Many thanks to Joe Nelson and Debbie Pfeiffer-
Trunnel for their article Colonies give PACs $400k,
April 6.
As we are blaming an apparent drug addict for much
that went wrong, we also must scrutinize the enabling,
co-dependent behavior of the entire Board of Supervi-
sors.
The 2007-08 county grand jury report on the Asses-
sors Office clearly points to the participation of the
entire board.
Only this kind of reporting, along with a citizenry
concerned with democracy for the good of the whole,
allows the larger Inland Empire civil society to pay
attention and reshape our dirty public realm.
CHRIS ROCCO
Crestline, April 2009
Nothing will change
Re: Jim Erwin as incoming supervisor Neil Derrys
chief of staff. It first startled me, then surprised me,
then chagrined me and now I am mad, so I just had to
respond.
The supervisors have been pontificating for months
on how they were going to bring back ethics to county
government. Then they do the exact opposite and show
us citizens that they dont care what we think!
To approve this contract with Jim Erwin is an insult
to our intelligence.
PAUL NEIFERT
Victorville, September 2008
See no evil
I am forced to question between Assessor Bill
Postmus stating his office received a clean bill of
health in the grand jurys very critical report and
Board of Supervisors Chairman Paul Bianes see no evil
and speak no evil statement that he was surprised and
disappointed to read the grand jurys report which
gentlemans nose has grown the longest over the past
several weeks?
EUGENE HINDS
Redlands, August 2008
Insult to employees
As a county employee, I am embarrassed by the
actions of Adam Aleman.
However, what is more disturbing is the fact that a
25-year-old without a college degree or significant real
estate experience was able to obtain a $120,000-a-year
job with the county Assessors Office. This is an insult
to all county employees, like me, who are working full
time and attending college only to improve their
careers.
BRUCE COLE
Running Springs, July 2008
Biane couldnt see it
Why is it only The Sun sees and questions the illegal
things that San Bernardino County Assessor Bill Post-
mus has done over the last few years?
County workers have admitted knowing about Post-
mus dirty work, but they did nothing about it.
Paul Biane, chairman of the Board of Supervisors,
expresses surprise and disappointment about Postmus
illegal activities. Bull!
OLIVE MAUPIN
Adelanto, July 2008
System broken
So, Bill Postmus and Paul Biane want to use taxpay-
ers money to defend their position that the Brown Act
doesnt pertain to them (re: Your $50,000 hush fund,
by Frank Pine, senior managing editor, Freedom Friday,
Feb. 2)? The system is broken, folks! It needs a change.
The two are public employees and need to be held
accountable to the public.
CRAIG BREWER
Blue Jay, February 2007
Leave Postmus alone
What is the deal with The Suns incessant criticism of
Supervisor Bill Postmus?
The stalker-like behavior of the editorial board and
its news coverage is over the top.
I havent seen anything like it since Glenn Close was
boiling Michael Douglas rabbit in Fatal Attraction.
Postmus campaign for assessor was centered on
improving customer service and improving efficiency
through modernization. The voters clearly responded to
this message.
JOSEPH TURNER
San Bernardino, December 2006
Shame on board
How aboveboard is Supervisors Chairman Bill Post-
mus, who led an action to increase the lobbying firms
monthly payment from $9,000 to $16,000 and two
months later received gifts from the lobbying firm
involved in jail negotiations? How aboveboard is Super-
visor Paul Biane, who had a $25,000 campaign loan
co-guaranteed by Brett Granlund and six months later
voted to award a lobbying contract to Platinum Advi-
sors, Granlunds employer?
I have been a resident of the county for more than 45
years and a county employee for a good many years. I
can honestly say that I have never seen a board behave
as badly as the current board does. I am sure that
former Supervisor Jerry Eaves must be sitting back with
a big smile on his face. Shame on you, board members.
M.K. DEAL
San Bernardino, April 2006
How ironic
I find it ironic that our esteemed county Supervi-
sors Paul Biane and Bill Postmus take issue with their
back-room, self-serving behavior being made public.
How dare these two individuals, who have been
entrusted with being leaders, take issue with leaked
information.
The taxpayers are their employers, and we are the
ones who need to be outraged.
DARRELL DAY
Mentone, July 2005

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