A panel of state appellate-court judges has thrown out a civil lawsuit brought by two groups demanding that San Bernardino County return to taxpayers a $102 million settlement in a long-running corruption case.googleoff: all
In a ruling filed Monday, Aug. 17, the 4th District Court of Appeal in Riverside rejected arguments from two taxpayer organizations, The Inland Oversight Committee and Citizens for Responsible Equitable Environmental Development.googleoff: all
The groups challenged a $102 million settlement paid by San Bernardino County to Colonies Partners in November 2006 after the company sued over flood-control issues on property it was developing in Upland.googleoff: all
The groups argued that the money should be given back to taxpayers because it was the result of bribes.googleoff: all
Because former San Bernardino County Supervisor Bill Postmus pleaded guilty to bribery-related charges in November 2011, the groups alleged he violated a section of the California Government Code that forbids public officials from having a financial interest in any contract made in their official capacity.googleoff: all
The appellate court ruled that the groups are not parties to the settlement between the county and Colonies and have no right to sue.googleoff: all
An attorney for the groups said they are weighing their legal options.googleoff: all
“The taxpayers deserve to be paid back every penny that the Colonies got by bribing public officials,” attorney Cory Briggs wrote in an email. “My clients are disappointed by the rulings and are evaluating whether they will seek review in the (state) Supreme Court.”googleoff: all
County spokesman David Wert said “the county is pleased with the ruling because it’s what we asked for.” He declined to elaborate.googleoff: all
In a news release, Stephen Larson, attorney for Colonies co-managing partner Jeff Burum, said the appellate court’s ruling affirms the settlement is “entirely valid and lawful.”googleoff: all
Prosecutors allege that Burum paid $400,000 in bribes to sham political action committees to win three supervisorial votes in favor of the settlement.googleoff: all
He and three others have pleaded not guilty to multiple felony charges. The criminal case is tentatively set to go to trial Feb. 1.