A former councilman from California, Ricardo Pacheco, was sentenced to 18 months in federal prison after admitting to burying nearly $63,000 in cash at his home. This sentence was handed down due to his involvement in taking bribes related to a police union contract and commercial marijuana permits, as stated by prosecutors.
Pacheco, aged 63, served over 20 years on the Baldwin Park City Council before resigning in 2020 as part of a plea agreement. Prosecutors indicated that he exploited his position to obtain cash and funnel payments through his church and political groups.
The Department of Justice revealed that Pacheco, alongside former Compton City Councilman Isaac Jacob Galvan, engaged in corrupt practices while in office, which included accepting and making bribes for political backing and city permits.
Pacheco has also been fined $10,000 and required to forfeit $219,755. The FBI previously seized $83,145 in cash from him, including the $62,900 he admitted to having buried in his backyard. A restitution hearing is still pending.
Galvan, who is 39, received the same prison sentence and has been ordered to pay restitution of $323,557.
The corrupt activities began with a police-union contract. Between January and October 2018, Pacheco solicited and received $37,900 from a Baldwin Park police officer in return for supporting the Baldwin Park Police Association’s contract worth at least $4.4 million over three years.
The officer who provided the bribe was cooperating with the FBI as part of a broader investigation into corruption. In October 2018, he secretly handed Pacheco a $20,000 cash bribe at a coffee shop in Baldwin Park. Additionally, Pacheco directed approximately $17,900 in checks to his church and political action committees that, although registered under others’ names, were effectively controlled by him.
Pacheco voted in favor of the police association contract in March 2018 and later became an informant for the FBI after being caught on video during the bribery investigation, according to reports. He wore a wire for the investigation, which ultimately led to six indictments concerning over 20 individuals linked to local government and the marijuana industry.
The wider probe implicated various officials, including Galvan, a previous Baldwin Park city attorney, a city manager from Commerce, a planning commissioner from San Bernardino County, and a marijuana distributor. It also revealed an alleged pay-to-play scheme surrounding marijuana permits in Baldwin Park.
The city began allowing marijuana cultivation and distribution in 2017, shortly after which Pacheco started soliciting funds from businesses applying for development agreements. Galvan, while on the Compton City Council, offered consulting services to a business seeking a marijuana permit in Baldwin Park and facilitated $70,000 in bribes from its owner, Yichang Bai, to Pacheco in exchange for votes and political support.
Pacheco voted in favor of the relevant permits in mid-2018, while the payments were concealed through checks from third parties. In one instance, when seeking additional funds for a legal defense fund, Galvan informed Bai that Pacheco wanted $25,000; Bai agreed to provide $20,000 through multiple checks from unrelated bank accounts, per the DOJ.
Galvan later acknowledged underreporting approximately $560,525 in income to the IRS from 2017 to 2020, resulting in a tax loss of $115,816. Bai had previously pled guilty to conspiracy to commit bribery and received a sentence of 20 months in federal prison in July, along with a $3,000 fine.
