21 Mar The $65 Million Dollar Settlement
Whatâs the problem?
Prior to reaching a settlement deal with the Colonies developers, San Bernardino County supervisors received political contributions from associates involved in the settlement deal. This causes a clear conflict of interest to county taxpayers. The following sections entail the timeline of events including the contributions these supervisors received that led up to the settlement decision.
In 2018, Colonies Partners, L.P. and Coloniesâ co-managing partner Jeffrey Burum sued San Bernardino County for damages. The lawsuit included claims for losses and out-of-pocket costs incurred during a six-year lawsuit against Burum by the County of San Bernardino.
On November 24, 2020, San Bernardino County tax-payers were forced to pay the bill for the county bureaucracyâs misdeeds pertaining to the original Colonies case. In closed session, county supervisors voted 5-0 to place a $65 million payment into the pockets of Burum and Colonies. Ostensibly, this was to avoid the threat of a potential $185 million award should Burumâs claims go to a jury.
County residents should be aware of âperfectly legalâ political contributions made by Burum, his associates, and the lead attorney for the case. Between the issuance of the 2018 lawsuit and the November 2020 settlement agreement, Burum and his associates made contributions to San Bernardino County elected officialsâ political campaigns. County supervisorsâ agreed to the $65 million settlement and we believe it was a major conflict of interest. For additional details, please click the names below.
Jeffery Burum
What did he do?
- 2002: Burum sued San Bernardino County over disagreements pertaining to who was responsible to pay for flood-control improvements at the Coloniesâ development.
- 2006: After a five-year legal battle, the County approved a $102 million settlement with Burum/Colonies.
- 2009: San Bernardino District Attorneyâs Office investigated corruption related to the 2006 settlement.
- 2011: Indictment filed against Burum, former Supervisor Paul Biane, Mark Kirk (former chief of staff for Supervisor Gary Ovitt), and former assistant County Assessor Jim Erwin. Citing conspiracy, bribery, conflict of interest, misappropriation of public funds, forgery, and perjury.
- 2017: Burum, Biane, and Kirk were found not guilty on all charges.
Prior to the $65 million dollar settlement issued by the County Supervisors, Jeff Burum and his associates made the following contributions between 2018 and 2020:
- 2018 â $2,000 to Hagman for Supervisor 2022
- 2018 â $602,750 to Business Leaders for Fair and Ethical Government to Support Anderson and Oppose Ramos for D.A. 2018
- 2018 â $185,000 to Inland Empire Business Alliance
- 2018 â $2,000 to Lovingood for Supervisor 2020
- 2019 â $7,000 to Dawn Rowe for Supervisor 2020
- 2019 â $1,000 to Hagman for Supervisor 2022
- 2020 â $5,000 to Paul Cook for Supervisor 2020
- 2020 â $1,000 to Sue Ovitt for School Board 2020
- 2020 â $37,000 to San Bernardino County Business Owners PAC
- 2020 â $15,000 to Business Leaders for Ethical Government to Support Dawn Rowe for Supervisor 2020 (Formed by Erwin and Kirk)
Stephen Larson
Who is he?
- 1991- 2000: Assistant United States Attorney for Central District of California and Chief of Organized Crime Strike Force.
- 2000-2009: United States Magistrate Judge and United States District Judge for Central District of California.
- 2011-2016: Partner and Complex Litigation Practice Group Leader.
- 2016-Present: Founding Partner of Larson LLP, a white-collar practice defending companies, executives, lawyers, doctors, actors, public figures and entities, and boards and committees in criminal matters and government investigations.
- 2020: Represented Jeff Burum and Colonies LP in the lawsuit against the county that resulted in the $65 million dollar award to Burum and Colonies.
Prior to the $65 million dollar settlement issued by the County Supervisors, Stephen Larson made the following contributions between 2018 and 2020:
- 2018: $8,800 to Jason Anderson for District Attorney 2018
- 2019: $9,400 to Dawn Rowe for Supervisor
During the closed-door meeting in November 2020, the Supervisors voted to settle the matter involving Burum and the Colonies Partners for $65 million dollars. Had this case gone to trial, Stephen Larson and his constituents threatened to seek damages between $120 million and $185 million.
Since 2006, the amount of money paid by the County to Colonies Partners LP has totaled $167 million.
When one follows political contributions, this most recent $65 million settlement agreement raises serious concerns of a conflict of interest by elected members of the Board of Supervisors as they have received multiple contributions from the parties tangled in this lawsuit.
Looking at the timeline of these contributions and the eventual settlement, one can only assume that the settlement vote correlates with the contributions that the supervisors received.
Did the Board of Supervisors settle the Colonies litigation as a favor to the developers for their campaign contributions?
How does this impact you?
âBusiness as usualâ from career politicians heavily intertwined in county politics has delivered a massive, inefficient bureaucracy to county residents. Residents will continue to see higher taxes, increasing regulations, and millions wasted on settlements and lawsuits. Requiring politicians to avoid the appearance of a conflict of interest is a substantial step to reign in the influence of special interests.
What can be done?
It is time for San Bernardino County taxpayers to impose a more stringent conflict of interest policy on elected officials. The current policy, which prohibits an actual conflict of interest, should be strengthened. San Bernardino County elected officials should be required to avoid the appearance of a conflict of interest. This standard is common for professionals in the accounting profession. It should be applied to our elected officials responsible for controlling the public purse.
Sources:
Cal-Access
County of San Bernardino Public Portal for Campaign Finance Disclosure