Former Commerce City Manager Accused of Embezzlement and Bribery
Former Commerce City Manager Edgar Cisneros has been accused of collecting up to $120,000 in kickbacks from a company that leased two city-owned properties for use as truck parking lots during the pandemic. The company, Fenix Entrepreneur, received significantly below-market rent for the properties, with Cisneros allegedly approving the leases without City Council involvement.
A Secret Plea Deal
Cisneros pleaded guilty to a federal bribery charge in November 2023, but the news did not become public until earlier this month. He is required to cooperate with an ongoing FBI investigation into a cannabis bribery scheme and has admitted to taking bribes of up to $10,000 per month in exchange for renting out the city-owned properties.
Origin of the Parking Scheme
Cisneros met with a Los Angeles-based consultant in 2021 and asked them to find a company to lease out a city-owned property at 6007 Telegraph Road. The consultant then hired another individual to clean up the property and paid them $10,000 per month. Cisneros would receive the majority of this money, which adds up to approximately $100,000 to $120,000.
Cheap Rents Discovered in 2022
A Southern California News Group investigation in 2022 found that the city was renting out properties to Fenix Entrepreneur at a fraction of the market rate. The company paid $1,000 per month for one property and $1,700 per month for another, despite estimates suggesting the properties could generate up to $30,000 to $50,000 per month in rent.
Two Men with a History
Fenix Entrepreneur’s owner, Martin Fierro, has a history of doing business with Cisneros dating back to 2015, when Fierro’s company was awarded a lease to host a swap meet at a shuttered school site in Commerce. Cisneros also helped Fierro’s cannabis company secure a permit to operate in Commerce in 2018, despite missing key deadlines.
Parking Lots Galore
Fenix Entrepreneur’s parking empire expanded to include private properties, with the help of Commerce City Hall. The company rented out a property from a developer with an 850-unit mixed-use project, and a top Commerce official persuaded the developer to temporarily rent out the property to Fenix to deter homeless encampments.
Current Leases Tied to Fierro
Two entities still leasing property from City Hall have connections to Fierro. One entity, Amitim Group LLC, is registered to Azael “Sal” Martinez Sonoqui, who works for Fierro. The other entity, Abee Trucking Logistics, is owned by Sonoqui’s son and leased a 14.4-acre property from City Hall for $25,000 per month, with automatic increases to $50,000 in August 2023 and $100,000 in August 2024.
The Liquor Wholesaler
Amitim Group, which operates a liquor wholesaler, is still working on obtaining a business license, despite being over a year late. Fierro listed the business on his personal Facebook page and advertised store specials and products.
Conclusion
The city of Commerce is reviewing its properties and leases to ensure they align with market rates and legal standards. The city manager has been reviewing the city’s properties and plans to bring his findings to the City Council in the future.
FAQs
Q: What is the extent of the alleged kickback scheme?
A: Cisneros allegedly collected up to $120,000 in kickbacks from Fenix Entrepreneur for renting out city-owned properties at below-market rates.
Q: How did Cisneros get away with the scheme for so long?
A: Cisneros’ ability to approve leases without City Council involvement and his close relationship with Fierro allowed him to operate with relative impunity.
Q: What is the current status of the investigation?
A: Cisneros has pleaded guilty to a federal bribery charge and is required to cooperate with the FBI’s ongoing investigation into a cannabis bribery scheme.
Q: What is the city doing to address the issue?
A: The city is reviewing its properties and leases to ensure they align with market rates and legal standards. The new city manager has been reviewing the city’s properties and plans to bring his findings to the City Council in the future.
