{"id":3764,"date":"2024-12-22T07:16:19","date_gmt":"2024-12-22T15:16:19","guid":{"rendered":"https:\/\/citystuff.com\/los-angeles\/?p=3764"},"modified":"2024-12-22T07:16:19","modified_gmt":"2024-12-22T15:16:19","slug":"ousted-commerce-city-managers-kickback-scheme-cheated-city-out-of-millions","status":"publish","type":"post","link":"https:\/\/citystuff.com\/los-angeles\/ousted-commerce-city-managers-kickback-scheme-cheated-city-out-of-millions\/","title":{"rendered":"Ousted Commerce city manager&#8217;s kickback scheme cheated city out of millions."},"content":{"rendered":"<h2>Former Commerce City Manager Accused of Embezzlement and Bribery<\/h2>\n<p>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.<\/p>\n<h3>A Secret Plea Deal<\/h3>\n<p>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.<\/p>\n<h3>Origin of the Parking Scheme<\/h3>\n<p>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.<\/p>\n<h3>Cheap Rents Discovered in 2022<\/h3>\n<p>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.<\/p>\n<h3>Two Men with a History<\/h3>\n<p>Fenix Entrepreneur&#8217;s owner, Martin Fierro, has a history of doing business with Cisneros dating back to 2015, when Fierro&#8217;s company was awarded a lease to host a swap meet at a shuttered school site in Commerce. Cisneros also helped Fierro&#8217;s cannabis company secure a permit to operate in Commerce in 2018, despite missing key deadlines.<\/p>\n<h3>Parking Lots Galore<\/h3>\n<p>Fenix Entrepreneur&#8217;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.<\/p>\n<h3>Current Leases Tied to Fierro<\/h3>\n<p>Two entities still leasing property from City Hall have connections to Fierro. One entity, Amitim Group LLC, is registered to Azael &#8220;Sal&#8221; Martinez Sonoqui, who works for Fierro. The other entity, Abee Trucking Logistics, is owned by Sonoqui&#8217;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.<\/p>\n<h3>The Liquor Wholesaler<\/h3>\n<p>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.<\/p>\n<h3>Conclusion<\/h3>\n<p>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&#8217;s properties and plans to bring his findings to the City Council in the future.<\/p>\n<h2>FAQs<\/h2>\n<h3>Q: What is the extent of the alleged kickback scheme?<\/h3>\n<p>A: Cisneros allegedly collected up to $120,000 in kickbacks from Fenix Entrepreneur for renting out city-owned properties at below-market rates.<\/p>\n<h3>Q: How did Cisneros get away with the scheme for so long?<\/h3>\n<p>A: Cisneros&#8217; ability to approve leases without City Council involvement and his close relationship with Fierro allowed him to operate with relative impunity.<\/p>\n<h3>Q: What is the current status of the investigation?<\/h3>\n<p>A: Cisneros has pleaded guilty to a federal bribery charge and is required to cooperate with the FBI&#8217;s ongoing investigation into a cannabis bribery scheme.<\/p>\n<h3>Q: What is the city doing to address the issue?<\/h3>\n<p>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&#8217;s properties and plans to bring his findings to the City Council in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":3765,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-3764","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-crime-reports"},"jetpack_featured_media_url":"https:\/\/i2.wp.com\/www.dailynews.com\/wp-content\/uploads\/2024\/12\/SGT-L-TRUCKPARKING-1225-JG-02.jpg?w=1024&h=767&w=1024&resize=1024,766&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts\/3764"}],"collection":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/comments?post=3764"}],"version-history":[{"count":1,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts\/3764\/revisions"}],"predecessor-version":[{"id":3766,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts\/3764\/revisions\/3766"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/media\/3765"}],"wp:attachment":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/media?parent=3764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/categories?post=3764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/tags?post=3764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}