A Los Angeles-area a business owner won a rare $1.9 million verdict this month in a civil lawsuit over the licensing process for legal cannabis businesses, a ruling requiring local officials named to personally pay much of the damages.
The suit is notable not only because it names a host of officials in the city of Baldwin Park tied to alleged corruption around the process, but also because the defendants are on the hook for about $1.6 million of the verdict, while the city owes $290,000 for its “negligence.”
The complaint came from David Ju, owner of a Los Angeles-area cannabis company, who alleged former city attorney Robert Tafoya, council member Manny Lozano, former council member Ricardo Pacheco and Compton councilman Isaac Galvan were tied to the questionable licensing process.
“These strangers from the community came forward and said no, you’re not going to get away with this,” attorney David Gabriel Torres-Siegrist, who represented Ju, told SFGate. “They held this city and these people accountable.”
Ju alleged his company spent more than $900,000, mostly in cash payments, to buy a legal cannabis license that its original holder purchased for $4,000 dollars.
The business owner said he purchased the license at the encouragement of Galvan, and that the original holder of the license was later hired by Tafoya to serve as a contracted city assistant attorney.
Tafoya later allegedly assured Ju the process would be successful, even though the city’s original licensing policy didn’t allow transfers of development agreements.
The lawsuit also alleges a city clerk notarized a document tied to the deal that said Ju was present, even though he said he was out of town.
“The city of Baldwin Park respects the judicial process and acknowledges the jury’s verdict in the case,” a spokesperson for the city told the San Gabriel Valley Tribune. “The court has not issued a final judgment yet in the matter. The city is examining its options and will provide additional information as the legal process moves forward.”
The claims prompted the city to countersue Ju, alleging he owed more than $2 million in fees, though the jury rejected the city’s claims.
Tafoya and Pacheco have previously pleaded guilty to federal bribery charges related to investigations into the cannabis licensing process in the area.
The FBI seized over $80,000 from Pacheco, including $62,900 Pacheco said he buried in his yard.
The Independent has contacted a lawyer for Tafoya, Lozano, and Pacheco for comment.
Galvan, who allegedly served as an intermediary in the sale of the license to Ju, failed to appear and was hit with a default judgement, according to court records. He has previously denied wrongdoing.
