Questions surrounding campaign treasurer
Questions surrounding campaign treasurer
Several FPPC complaints have been filed against local candidates and their treasurer; business practices also questioned as the company was operating after being suspended by the FTB
NORTH COUNTY — Questions are being raised concerning a treasurer for several North County Democrat candidates and alleged campaign violations since 2020.
Stephanie Sanchez is a well-known treasurer in political circles and represents dozens of candidates and incumbents each election cycle. However, at least two alleged campaign violations against Carlsbad City Council candidates Teresa Acosta, an incumbent in District 4, and Kevin Shin, a neophyte in D2, have emerged.
Also, records from the California Secretary of State show Sanchez’s business, Politica Campaign Treasury, was suspended by the Franchise Tax Board in 2019 and remained so through the 2020 election. The business paperwork was originally filed by Gil Cabrera, a San Diego political operative, on Nov. 28, 2017.
On May 1, 2019, Politica was suspended and could not conduct business under the law, but no complaints were ever filed. The company filed a revivor on Sept. 26, 2019, to get back into good standing. The company filed a Statement of Information on Jan. 26, 2022, but was placed in good standing in October 2022.
In 2022, Sanchez was fined $6,200 by the city of San Diego’s Ethics Commission for not reporting donors to Councilwoman Marni von Wilpert’s Legal Defense Fund, according to media reports. There were about 20 donors not listed including James Silverwood, owner of Affirmed Housing, which operates the beleaguered Windsor Pointe low-barrier housing project in Carlsbad.
The missing donations were discovered through Silverwood’s lobbying disclosures.
In addition, a Fair Political Practices Commission complaint was filed against Sanchez and New San Diego, a Political Action Committee run by Cabrera, in 2022 and a warning letter was issued in April 2023, according to FPPC records. The case was initiated by OB Rag reporter Geoff Page.
There was another case filed against New San Diego in 2023, according to records. Page’s case was for not reporting campaign disclosures and the second case was over advertising.
In total, at least six FPPC complaints have been filed against Sanchez, two of which were rejected. The latest complaint was against San Diego County Chairwoman Nora Vargas and was initiated by the FTB on July 7, 2023. Violations were discovered regarding a “campaign non-reporter,” a warning letter was issued and the case was closed on Oct. 16.
Also, there are concerns regarding Politica accruing debt for its candidates, the same as Jesus and Andrea Cardenas were doing with their company Grassroots Resources Inc. to other candidates and elected officials in San Diego, according to financial records. The Cardenas siblings accrued tens of thousands of dollars of debt for several elected officials spanning more than 12 months, according to a story in La Prensa.
The two were found guilty of federal fraud charges regarding Paycheck Protection Program loans and sentenced to probation. Andrea Cardenas also resigned her seat on the Chula Vista City Council.
Acosta’s two most recent Form 460’s show payments (Schedule E) to Amplify Campaigns, a political consulting firm based in San Diego and owned by Dan Rottenstreich. Former Carlsbad Planning Commissioner Kevin Sabellico, who was appointed by Acosta in 2021, is vice president.
The disclosure from July through September shows a $2,062.39 payment for campaign signs, photography and an event. Another $2,870 for campaign literature was reported for a total of $4,932.39.
On Acosta’s Schedule G, the total equals $4,163.10, and appears to be overpaying Amplify Campaigns. The accounting is off by $769.29.
There is also an accrued bill of $1,338.75 for expenses from the July reporting timeframe. However, in the September-October reporting period, Acosta disclosed a payment of $1,338.75 as a carryover for a payment made for the accrued bill and did not amend the previous disclosure, according to the campaign disclosures.
As for Acosta and Shin, one of the FPPC complaints against Acosta was dismissed while Shin said his complaint was due to Facebook ads. Shin said Meta, the parent company of Facebook, changed their policies three to four times over the course of several months.
When contacted by the FPPC, Shin admitted to the mistake (he didn’t list his FPPC number as he believed Meta would automate the number to the ads) and took immediate action to remedy the violation. No investigation was opened by the FPPC as they were satisfied with Shin’s response and corrective actions.
However, there is one $2,000 donation from October 2023 from Hi Shin, Kevin Shin’s father. The donation exceeds individual campaign contributions for Carlsbad; however, Kevin Shin said the donation was from his mother and father.
An FPPC complaint was filed in September against Shin for “campaign non-reporter.” It is not clear if the case is regarding the $2,000 donation.
Shin said he’s not sure why the donation didn’t list both donors as required. Sanchez, meanwhile, did not respond to requests for comments on her business history and Shin and Acosta’s campaign accounting.
“Our dialogue is about monies in and out,” Shin said. “There’s no consultation. I’m new at this. No strategy with my treasurer because it’s accounting. Our interaction is straight business and has been very accountable with me.”
Acosta and Councilwoman Priya Bhat-Patel, who began using Politica’s services in 2020, two years after her first election, also did not respond to requests for comment.
Shin, though, said he doesn’t have much contact with Sanchez and said ultimately the candidate is responsible for their ensuring their campaign is in compliance. Shin and Sanchez can amend his Form 460 regarding the $2,000 donation.
However, questions to Acosta about her business, Acosta + Partners, were not returned. The business is a consulting firm specializing in government and community relations for its business and non-profit clients, according to the company’s LinkedIn page.
Several years ago, the business was a sole proprietorship but had no doing business as (dba) filed with San Diego County, according to county records. A sole proprietorship, though, does not have to register through the SOS.
She has since changed the business structure to a stock corporation, filed incorporation papers in 2022 and is in good standing.
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