County Corruption Defendants Face Charges on a Case with Deep Roots

The four defendants in a massive San Bernardino County corruption case are scheduled to appear in court Friday.

The hearing is set for 8:30 a.m. in department S12.

Jeff Burum, 48, a general partner of Colonies Partners, L.P.; Paul Biane, 47, former San Bernardino County Supervisor; Jim Erwin, 48, former chief of staff to Neil Derry; and Mark Kirk, 36, chief of staff to Supervisor Gary Ovitt, have been implicated in a $102 million bribery scheme that officials claim cost San Bernardino County taxpayers dearly.

All were indicted by a San Bernardino County Grand Jury on 29 counts of conspiracy to commit bribery, misappropriation of public funds, improper influence and conflict of interest, according to a news release issued by the California Attorney General’s office.

The court appearance was set as an arraignment and follows earlier hearings where the defendants’ bail amounts were reduced and during which they were ordered to wear GPS tracking devices as a condition of their bail.

In late May, Erwin said he and his attorney planned to file a demurrer, or a challenge, to the indictment.

The charges stem from a $102 million settlement approved by the county's Board of Supervisors in 2006 with the developer, Colonies Crossroads Inc., over flood control improvements on 434 acres of land in Upland.

The defendants and council for the State Attorney General’s office, which is pursuing the charges, are gearing up for a trial that started with a dispute over a water basin next to a shopping center.

In early 2002, curiosity was building for the Colonies Crossroads shopping center that was proposed in Upland just off the 210 Freeway. It was to be expansive project that included a Kohl’s as an anchor tenant.

But almost from the start, the retail center, which straddles the border of Upland and Rancho Cucamonga, was dogged by protests from residents in both cities about its impact on the environment.

Rancho Cucamonga ceded 2.5 acres of land to Upland needed for the project, but then a disagreement over sales tax flared up between the developer and the city officials who tried to negotiate for a percentage of taxes generated by whatever business was built on that land.

At the time the lawsuit was filed, Paul Biane was on the Rancho Cucamonga City Council. He was elected to the County Board of Supervisors in November 2002.

In March of that year, the developer filed suit against the county because of a dispute over who should pay for flood-control measures - including a 67-acre drainage basin once used as a gravel quarry, according to archived reports from 2005.

The suit launched a three-year battle between the county and the developer. The Colonies asserted the county did not have rights to the basin and had to pay to use it for flood control, according to archived news reports.

That set a back and forth in motion a string of meetings and discussions. Some with and some without attorney’s present, the Press-Enterprise reported in 2005.

By the time the 2006 settlement was reached, the retail project had amassed an impressive paper trail and had many asking questions.

The State Attorney’s records pick up the trail from there. Between January 2005 and November 2006, state officials said Burum influenced “members of the Board of Supervisors through a combination of threats, extortion, inducements and bribery, in order to secure their vote in favor of a settlement.”

According to the complaint, Erwin eventually joined the conspiracy and reportedly threatened and coerced Bill Postmus, then chairman of the Board of Supervisors, Biane and Kirk to accept the settlement.

Erwin allegedly accepted money in exchange for influencing Postmus and Biane’s vote. Kirk also took payment to influence a vote, state officials said.

Postmus and Biane agreed to accept $100,000 each to approve the settlement, state officials said.

Burum reportedly distributed the bribes/payments to Postmus, Biane, Kirk and Erwin after the settlement was delivered, officials said.

The defendants used political action committees to conceal the bribes, officials said

In March, Postmus pleaded guilty to 14 felony counts, including conspiracy to accept a bribe and conflict of interest. He has agreed to cooperate in the continuing investigation.

All defendants insist they are innocent. Last month, the drama only continued as San Bernardino County Sheriff’s, District Attorney and State Attorney General officials arrested three of the men, then issued an arrest warrant for Biane, who failed to turn himself in at an arranged time and location.

He was taken out in handcuffs from the Los Angeles/Ontario International Airport.

The event has taken its toll on the county and its board of supervisors, who suffered another blow recently when the State Attorney General’s office filed felony perjury charges against San Bernardino County Supervisor Neil Derry.

“I am determined to continue moving forward in a positive manner,” Supervisor Josie Gonzalez, board chairwoman, said ina written statement. “As the judicial system runs its own course, we are obligated to stay focused on this County’s administrative and governmental responsibilities.”

“The actions of a few cannot define who we are as a whole. Employees here at the County and the general public deserve the highest and best level of leadership we can provide. We must be steadfast in our convictions to lead reform,” she said.