The homes and offices of Ontario Councilman and mayoral candidate Alan Wapner and Fourth District San Bernardino County Supervisor Curt Hagman were the targets of raids by the FBI, the Sentinel has learned.
Both politicians have long been the focus of investigations into pay-to-play politics within the Inland Empire community where they serve as elected officials, as well as their efforts on behalf of foreign governments, corporations and business interests, including the secreting of what was alleged to be bribe money into the country.
The raids relating to Wapner and Hagman took place inside and outside San Bernardino County, where the duo are both career politicians based in the Fourth Supervisorial District, the most geographically compact and densely populated of the county’s five subjurisdictions. San Bernardino County’s Fourth District includes the entirety of the cities of Chino Hills, Chino, Montclair and Ontario, the southern portion of Upland and the unincorporated communities of as well as the Carbon Canyon, Velano, Yorba, West End, Prado, Narod, Ballou, Racimo and Guasti. Hagman’s career as a politician began with his election to the city council and later ascension to mayor, followed by his election the California Assembly, his acceding to the position of chairman of the San Bernardino County Republican Central Committee, and his election as Fourth District San Bernardino County Supervisor and reelection to that post three time. Wapner, who was employed as a police officer, detective and later a sergeant with the Ontario Police Department, began his political career as a member of the Ontario-Montclair School District Board and was first elected to the Ontario City Council in 1994, having been reelected to that post seven times. He is currently vying for Ontario mayor.
In carrying out the raids, FBI agents were seeking evidence and documentation pertaining to quid pro quos – bribes or kickbacks – provided to Wapner and Hagman by individuals, business entities, business owners and principals in businesses which had applications for project approval with the city or the county, which were competing for contracts with the city or county or which were seeking franchises granted by the city or county that ultimately were subject to approval by the Ontario City Council or the San Bernardino County Board of Supervisors.
In addition, federal agents were seeking instruments or documents relating to Wapner’s and Hagman’s overseas banking activity, most particularly involving financial institutions in the People’s Republic of China, and their ability to access those accounts or transfer money, as well as account codes, pr platform access and management tools for cryptocurrency exchanges.
Wapner and Hagman have been on the FBI’s radar for over a decade, as dozens of their constituents have noted irregularities and improprieties in their operations, and reports of one or the other purchasing the silence of other officials have abounded for years and those who have gone to both state and federal authorities with information or complaints have expressed dismay and frustration at the glacial pace of law enforcement’s and political regulatory agencies’ investigations into that alleged wrongdoing.
Relatively early on, federal investigators took note of how Hagman moved, shortly after he assumed the position of county supervisor, to hire Wapner as a member of his staff. This reflected a similar pattern evinced by Wapner in which he has used the authority vested in him as an elected official to hire individuals known or believed to be in possession of information that is potentially damaging to Wapner on either a personal, legal or political level, as part of what appears to be an effort to keep Wapner in power.
Over the years, federal investigators accumulated what well-placed sources have told the Sentinel was sufficient information to justify arresting and charging both Wapner and Hagman with criminal acts relating to the misuse of their official governmental positions. The U.S. Attorney’s Office held off on that action, it was said, as investigators were attempting to widen the investigative net and cinch up information relating to a number of others involved with them in the activity under investigation. According to those sources, because the activity Wapner and Hagman were engaged in was ongoing, delaying the filing of charges against either of them had no statute of limitations implication.
There are a number of parallels in the political careers of Alan Wapner and Curt Hagman. Hagman, a UCLA graduate, is ten years Wapner’s junior. Wapner, a USC alumnus, was first elected to the Ontario City Council in 1994. Ten years later, in 2004, Hagman was first elected to the Chino Hills City Council. In 2008, Hagman was elevated by his council colleagues to the appointed position of mayor. It was in the capacity of Chino Hills mayor that Hagman campaigned for and won a position in the California Assembly. He was subsequently reelected to the Assembly in 2010 and 2012.
In 2011, Wapner had embarked on an effort to wrest Ontario Airport from the grip of the City of Los Angeles. In 1967, when the annual number of passengers passing through the airport’s gates stood at 200,000, the cities of Ontario and Los Angeles had entered into a joint powers agreement, whereby the larger metropolis was to use its ownership and operation of Los Angeles International Airport to run Ontario Airport, in so doing using its relationship with scores of national and international airlines improve the airport and induce more than just the handful of airlines then willing to fly into and out of Ontario to establish operations there. In 1985, after Los Angeles had succeeded in meeting all of the criteria laid out in the joint powers agreement, Ontario deeded the airport to Los Angeles, which continued with defraying operational costs at the airport and financed or arranged financing on continued modernization of the facility, including constructing what was the largest civilian runway in California, a state-of-the-art concourse and two ultra-modern terminals.
Ridership at Ontario Airport had peaked in 2007 at 7.2 million, but declined steeply as a consequence of the economic downturn that hit the nation, state and local economy that was precipitated by the subprime mortgage crisis, resulting in what was referred to as “the Great Recession.” Utilizing the drop-off in the number of passengers experienced by the airline industry in general as a pretext while arguing that Los Angeles officials were purposely mismanaging Ontario Airport to increase ridership at Los Angeles International, Wapner aggressively demanded that Los Angeles return Ontario Airport to Ontario. His tactics including a highly personal attack on Gina Marie Lindsey, the executive director at Los Angeles World Airports, the corporate entity that Los Angeles used to oversee Los Angeles International Airport, Ontario Airport and Van Nuys Airport. While accusing Lindsey of running Ontario Airport into the ground, Wapner in 2012 convinced Ontario Mayor Paul Leon and his other council colleagues to create the Ontario International Airport Authority, which was intended to step into the role of operating and managing the airport once Los Angeles and Los Angeles World Airports were out of the picture. Wapner succeeded in being designated as the president/chairman of the board of directors for the Ontario international Airport Authority, which had as two of its five other board members Wapner’s council colleague and political ally, James Bowman, as well as the county’s then-Fourth District supervisor, Gary Ovitt, who had previously been Ontario mayor. Wapner pushed the city toward filing suit against Los Angeles in an effort to recover the airport, and the city retained the law firm of Sheppard, Richter, Mullen, and Hampton to do so.
In pursuing that end, Wapner took a scorched-earth approach in which there appeared to be no regard for the impact the hostile approach would have in the long run, and what bridges were being burned with elected and other officials in Los Angeles, at least some of whom would move into powerful positions in state and federal government. Moreover, Wapner did not take into consideration that Los Angeles, which had control over gate position at Los Angeles International Airport and had strong ties and influence with the more than 90 airlines that fly into and out of that facility, was in a position to, on the positive side, offer airline executives with airlines who had no presence in Ontario inducements or incentives to schedule landings into or flights from there or, from a negative perspective, influence airlines already established in Ontario to discontinue their operations there. A consensus was growing among local, county and regional officials that Wapner was being too aggressive and gratuitously offensive and that his bull in a China shop approach was wreaking more harm than the city or nearby communities stood to gain by returning the airport to local control. Wapner’s determination to have Ontario, which simply lacked the gravitas and leverage of the megalopolis 37 miles to the west, intimidate Los Angeles into capitulation would not only not work, most thought, but create an institutional enmity where none had existed before and which would have no salutary outcome.
To Hagman, as the highest-ranking local elected state official with ties to the Inland Empire’s business community and financial institutions, fell the assignment of attempting to serve as a moderating influence on Wapner, He was designated to approach the councilman and seek to convince him that at the very least he should tone down his vituperative rhetoric with regard to Los Angeles officials and dispense with the strategy of outright seizing the airport in favor of more amicable tack that would be less likely to antagonize some or all of those who yet had say not only in how the airport was being run at that point but were in a position to determine how spiritedly Los Angeles should fight in maintaining its hold on Ontario Airport and the terms by which it was to be relinquished to the municipal jurisdiction in which it is located. A small circle of those involved in government knew that Leon, Ontario’s Mayor, had, as a child, lived in the same East Los Angeles neighborhood as then-Los Angeles Mayor Antonio Villaraigosa. They openly mused, among themselves, as to whether Leon would be able to work out a better deal by applying honey with his childhood chum than Wapner was trying achieve by dousing the situation with vinegar.
At least some federal investigators have come to recognize that it was the contact Hagman was making with Wapner in the 2012 and 2013 timeframe with the intent of getting the councilman to cool his jets and dispense with his solipsistic, indeed delusional, stance as David seeking to slay Goliath in favor of a more reasonable avenue of negotiation and compromise with Los Angeles that gave rise to the collusion between Wapner and Hagman that is at the heart of matter being investigated and which is the focus of the search warrants served today.
Indeed, if it was Hagman’s intention to reason with Wapner and convince him that he was being overzealous in his demands that Los Angeles surrender control of the airport to Ontario and San Bernardino County, the outcome was virtually the opposite. Rather than Hagman convincing Wapner that he should alter his course, it was Wapner that persuaded Hagman to deviate from the path he was on and join him, and that Ontario sizing control of the airport was in their mutual benefit.
Under the term limits then in place for members of the California Legislature, Hagman was required to leave the assembly at the end of his third term, which was to come to a close in December of 2014, a month after the November 2014 election. Logic dictated that Hagman, by that point a committed career politician, next move to California State Senate. That was complicated by the consideration that the Senate District in which Chino Hills, where he then resided, Senate District 29, was occupied by Bob Huff, like Hagman a Republican. Huff had first been elected to the California State Senate in 2008, the same year Hagmna had been elected to the Assembly. California state senators are elected to four-year terms, and under the term limit rules then in effect, state senators were restricted to two terms. Thus, Huff, who was reelected in 2012, was set to remain as the senator representing District 29 until December 2016. This meant that Hagman, as the heir apparent to Huff, would need to wait for two years after leaving the Assembly before stepping back into political office, this time as the state senator representing Chino Hills along with Diamond Bar, Walnut, Yorba Linda, Brea, La Habra, Placencia, Fullerton, Anaheim and Cypress. He was ready to so, as the district was a safe one for a Republican, his experience in the Assembly prepared him to make a transition into California’s upper legislative house, he had represented a large swath of the 29th Senate District as the assemblyman representing Assembly District 55 and he was positioned as an incumbent assemblyman in the 2012-to-2014 timeframe to raise a substantial amount of money for his future political endeavors and he could likely count on Huff’s endorsement.
After meeting with Wapner several times, however, ostensibly as part of the effort to broker a reasonable resolution to the dispute between Ontario and Los Angeles over Ontario Airport, Hagman came away with the idea that Ontario should charge forward with obtaining the airport, the sooner the better, and that he should himself get in on the action. Rather than progress up the political evolutionary chain to state senator in 2016, Hagman concluded, he should take a step backwards to county supervisor in 2014.
Such a move was to take some maneuvering and gyrating. A major factor was that the incumbent Fourth District supervisor was Gary Ovitt, the former Ontario mayor. Ovitt was not only a Republican, but was eligible, under the county’s term limit rule which had been enacted in 2006 and was applicable thereafter, to seek reelection in 2014 and again in 2018 before being termed out in 2022. To run in 2014, Hagman would have to displace a member of his own party, a move not readily accepted within Republican circles.
A decade previously, the county’s Republican leadership, which was later discredited and removed from authority over the party, had consented to the party siding with one Republican over another or set of Republicans over another set of Republicans during primaries. That practice had come to a halt, however, when Robert Rego had been chosen as the chairman of the San Bernardino County Republican Central Committee. Rego’s first priority was promoting the Republican Party, which meant electing Republicans and keeping them in office. Not only had Rego, a certified public accountant extremely conscious of the importance of funding and fundraising in a political context, emphasized the importance of the local party building up a substantial amount of money to carry out campaigns promoting Republican candidates and initiatives embraced by the GOP, he had insisted on discontinuing the immediate past practice of allowing county Republican Central Committee money being used against Republican candidates in primary elections. Generally speaking, the strategy under Rego was that incumbent Republicans, who had by definition demonstrated their electability, were to be supported by the party apparatus. In primary elections where there was no Republican incumbent involved, the party was to steer of taking sides. The San Bernardino County Republican Party’s official policy while Rego was at the helm was that in the primary elections held in March in presidential election years and June in gubernatorial election years, Republican candidates would vie against one another without the party becoming involved with endorsements or monetary contributions of any sort, such that, hopefully at least, the best Republican candidate would rise on his or her own merits to the top. The basic understanding was that where an incumbent with a demonstrated track record of winning was seeking reelection, loyal Republicans would stand down, not challenge the incumbent and for the good of the party jump in to help the incumbent perpetuate his or her incumbency. At that point, after the primary was concluded, going forward toward the November general election, the party money and endorsements would be brought to bear in favor of the Republican candidate vying for whatever position was at state, be it for the school district board, water district board, city council, mayor, county supervisor, Assembly member or California state senator.
For Hagman, his path forward was clear. The first order of business was that Rego would need to be deposed. Rego would not countenance a non-incumbent Republican running against a proven incumbent Republican. That meant, Hagman knew, the party would not get behind him challenging Ovitt.
In 2013, while he was yet in the Assembly and functioning largely from Sacramento, Hagman, assisted by his chief of staff, Mike Spence, targeted Rego for removal as the chairman of the San Bernardino County Republican Central Committee. Hagman and Spence acted ruthlessly in dethroning Rego, who had done a masterful job during his tenure as chairman of transforming the central committee into an efficient fundraising machine that would be dedicated to the GOP cause. Hagman and Spence used both the carrot and the stick. The stick consisted of threats to Rego himself and his supporters that they would be transformed into party irrelevancies if they supported keeping Rego in the chairman’s post, intimating that Hagman’s ascendancy to the chairmanship was supported by the state party and therefore inevitable. When that eventuality occurred, they said, Hagman would purge the committee’s executive committee of Rego loyalists. This was matched with carrots, consisting of promises that if the committee members went along, those committee members who were part of the Rego Administration’s executive committee would keep their vaunted positions under Hagman. Rego himself was offered the position of treasurer if he gracefully acceded to being replaced as chairman by Hagman.
Ultimately, Rego deferred to Hagman and before 2013 was concluded, Hagman was central committee chairman.
Heading into 2014, Ovitt could feel the ground shifting below his feet. Gloria Negrete McLeod of Chino, a member of the Chaffey College Board of Trustees who successfully vied for the California Assembly in 2000, then ran, again successfully, for California State Senate in 2006 when she was termed out of the Assembly and then leapt into the U.S. Congress when then-New York Mayor Mike Bloomberg, then a Republican, endowed her, a Democrat, with more than $3 million to challenge and defeat incumbent “Blue Dog” Democrat Congressman Joe Baca in 2012, opted to leave Congress after a single term and herself step backwards down the political evolutionary chain by running for Fourth District supervisor. While Ovitt confidently asserted he would be able to hold off Negrete McLeod’s challenge, he simultaneously found himself undercut by the reality that Hagman had commandeered control of the San Bernardino County Republican Central Committee. As central committee chairman, Hagman was in a position to cut off a significant portion of the funding that would have otherwise been available to Ovitt and to deny Ovitt the endorsement of the Republican Party as well, while claiming that for himself. Running for reelection as supervisor was suddenly a way more dicey situation than it had been six months previously, Ovitt realized. He pulled out of the race.
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