Thursday, August 20, 2015

[Riverside County] Grand jury won’t probe Pougnet’s ties to local developer


A Riverside County grand jury will not investigate Palm Springs Mayor Steve Pougnet’s business ties to a local developer because other agencies are already probing the matter, according to a letter obtained Tuesday by The Desert Sun.
Former City Council candidate and longtime Pougnet foe Eloise Mohsin asked the grand jury to probe the mayor’s ties to Richard Meaney, a local developer. Pougnet joined other city leaders in voting to sell land to Meaney in December despite earning more than $200,000 consulting for a company Meaney founded.
Pougnet has since said he made a mistake when voting to sell the land to Meaney and investor Yokang Zhou. The sale was part of the City Council’s “consent agenda,” a lengthy list of items officials typically approve in one motion with little or no discussion.
The mayor recused himself when his colleagues rescinded that sale in May.
The state Fair Political Practices Commission is investigating whether Pougnet violated California’s political ethics law by taking part in that vote.
The grand jury “does not take action on matters pending before other investigative agencies,” according to the letter to Mohsin dated Aug. 10. “Therefore, no action will be taken.”
Pougnet could not be reached for comment Tuesday.
Palm Springs Mayor Steve Pougnet responds to critics of his ties with Nexus developer Richard Meaney at council meeting. (May 20, 2015) Jay Calderon/The Desert Sun
The mayor has declined to specify what sort of consulting work he did for Meaney’s firm Union Abbey, other than to say it involved telling Meaney about economic development efforts in Palm Springs. Pougnet began working for the firm in 2013. In April, the mayor announced he had ended his business relationship with Meaney.
The state Franchise Tax Board suspended Union Abbey in 2009, and the company owed nearly $50,000 in unpaid taxes as recently as June.
The mayor is not seeking a third term in office — a decision he said he made before The Desert Sun raised questions about his business ties to Meaney.
In June, Riverside County District Attorney Mike Hestrin declined to say whether his office had received complaints about Pougnet’s potential conflict of interest, emphasizing discretion while acknowledging the mayor’s ties to Meaney “brought up a lot of questions.”
August 19, 2015
The Desert Sun
By Kia Farhang

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