CHULA VISTA, Calif — Former Chula Vista City Councilwoman Andrea Cardenas, who was accused with her brother of fraudulently obtaining a loan for their political consulting business was in court Wednesday where they both changed their plea for some of the charges to guilty as part of a plea deal.
By pleading guilty to two felony counts of grand theft, the remaining 6 counts were dropped as part of the agreement.
They both pled guilty to two felony counts: one count of Grand Theft in violation of Penal Code section 487(a) with victim Small Business Administration and one count of Grand Theft in violation of Penal Code section 487(a) with victim Employment Development Department (EDD).
Jesus Cardenas is scheduled for sentencing on March 27. Andrea Cardenas is scheduled for sentencing on August 28. As a condition of their plea, a judge will determine the appropriate punishment at the sentencing hearings after hearing from both sides. A condition of their plea will be the requirement that they pay restitution.
Cardenas remains on the ballot for Chula Vista's District 4 council seat. Her attorney said it was too late to remove her from the ballot, but confirmed that Cardenas is not actively campaigning.
In addition to the charge of fraudulently obtaining a loan for their business, Cardenas and her brother, Jesus Cardenas, were each facing an additional charge of grand theft in connection with allegedly taking funds unlawfully from the state's Employment Development Department sometime between April and December of 2020, during the early months of the coronavirus pandemic.
Regarding the new grand theft count, Andrea Cardenas' defense attorney, Pedro Bernal, said his client is accused of applying for unemployment insurance without a valid reason.
The initial charges filed last year stem from allegations that the siblings fraudulently obtained a $176,227 Paycheck Protection Program loan in early 2021 intended for their firm, Grassroots Resources, then used the funds on personal expenses, including a $33,500 check to Andrea Cardenas' Chula Vista City Council campaign account.
On February 19, Cardenas resigned from her position with the City of Chula Vista. Cardenas defense attorney, Pedro Bernal said it was "a difficult decision" for Cardenas to resign from the city council.
"Obviously, the last several months have taken a significant toll on her mental health and she wants to be able to focus on her health and on her mental health and make that a priority," Bernal said. "She knows that her fellow former city council members are going to be able to adequately represent her former constituents and that they'll do a good job for the citizens of Chula Vista."
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