Ex-Anaheim Official Latest Accused in Corruption Probe

Broadening a public corruption probe that began last year with the indictments of two Santa Ana council members, the U.S. Justice Department on Thursday charged a former Anaheim city official with extorting $10,000 from a local businessman.

Majid Ahmadi, who until last April served as an associate city planner, is expected to plead guilty to extortion and two tax evasion charges when he is arraigned in the near future, said Assistant U.S. Atty. John Hueston.

“This is an ongoing effort to expose extortion in Orange County,” said Hueston, adding that his office is continuing its investigation and that more charges could be filed.

Authorities allege that Ahmadi accepted the bribe from the owner of a gas station who wanted city approval to build a mini-mart on the property. Officials declined to release the name of the business owner because he is a “confidential witness.”

Sources at Anaheim City Hall identified him as the same gas station owner who is a key witness in the bribery and money laundering case against Santa Ana Councilman Ted R. Moreno and former Councilman Tony Espinoza.

Moreno and Espinoza, along with former council candidate Hector Olivares, were charged with a total of 27 counts of extortion, money laundering and lying to federal authorities in October. The charges stemmed from an alleged scheme orchestrated by Moreno to illegally fund a slate of candidates in the 1996 elections and take control of Santa Ana City Council.

A fourth defendant, former council candidate Roman Palacios, pleaded guilty in August after the initial grand jury indictments were filed.

Authorities allege that Moreno, 31, and his allies shook down two local businessmen for money in exchange for favorable consideration of their proposal before the city.

One case involved a gas station owner who was seeking a conditional use permit to sell beer and wine at the mini-mart in his Santa Ana service station. Authorities accuse Moreno and the others of conspiring to extort $31,000 from the businessman.

Moreno, who is free on $100,000 bond, said Thursday he was not aware of the charge against Ahmadi and did not know the former planner. He declined further comment, adding: “I’ve always stated I’ve never extorted anybody. It is not my style.”

Hueston said Ahmadi originally sought $13,000 from the Anaheim service station owner, who was seeking city approval to build a mini-mart.

Ahmadi, whose duties included making recommendations to the city’s Planning Commission, promised the businessman that he could get the permit approved, according to prosecutors. Ahmadi eventually received $10,000 from the businessman, they allege.

Ahmadi also faces tax evasion charges for failing to report the bribe in his federal income tax forms. Ahmadi’s attorney, David Weichert, did not return calls seeking comment.

On Thursday, Anaheim city officials sought to downplay the incident.

“We have no indication that this is anything other than an isolated incident,” Anaheim Mayor Tom Daly said. “This certainly should not be a reflection on the excellent job the other city employees are doing.”