U.S. Attorney’s Office March
18, 2014 Southern District of
California (619) 557-5610
SAN DIEGO, CA—Former San Diego
Police Detective Ernesto Encinas pled guilty today to charges that he conspired
to commit campaign finance crimes in connection with a series of elections at
the local and federal level. At the same hearing, Encinas also pled guilty to
charges that he made false statements to the Internal Revenue Service when
filing tax returns on behalf of his private security business, Coastline
Protection and Investigations Inc.
As part of his plea agreement,
Encinas admitted to a range of allegations first brought to light on January
21, 2014, when prosecutors unsealed a complaint against him. Speaking under
oath before U.S. Magistrate Judge William V. Gallo, Encinas admitted that he
and his co-conspirators agreed to make illegal contributions on behalf of Jose
Susumo Azano Matsura, a foreign national who was arrested by FBI agents on
related campaign finance charges in February. Foreign nationals cannot lawfully
contribute to any campaign at the federal, state, or local level. Also as part
of the plea, Encinas confirmed that he and others, including Azano, Ravneet
Singh, and Marco Polo Cortes, agreed to make conduit contributions in
connection with a federal election, as well as falsify records with the intent
to impede a federal investigation—both of which are felonies regardless of
whether the source is a citizen or foreign national. (Azano, Singh, and Cortes,
who were charged earlier this year, have pleaded not guilty to the charges
filed against them.)
Encinas’s plea agreement
detailed other aspects of the scheme not previously disclosed in public
filings. For example, Encinas admitted to FBI agents that Azano induced a
series of individuals to donate directly to Candidate 1, described as a candidate
for the office of mayor of San Diego during the 2012 primary election cycle.
Encinas stated that Azano provided cash, which the straw donors each used to
make the maximum possible donation to Candidate 1.
In addition, as part of his
plea agreement, Encinas admitted that during tax years 2011 and 2012, Azano
paid Encinas approximately $10,000 in cash “off the books.” Encinas failed to
report approximately $147,300 of such cash payments in tax year 2011 and
approximately $74,900 in cash payments in tax year 2012, for a total of
approximately $222,200 in unreported cash income. This resulted in a tax loss
of $69,394.36 over two years, which Encinas agreed to pay back as restitution.
First Assistant United States
Attorney Cindy M. Cipriani said, “To secretly inject foreign money into our
elections is an affront to the transparency and integrity of our electoral
system. In obtaining this guilty plea, we demonstrate our continuing efforts to
investigate and prosecute campaign finance crimes in San Diego and beyond.”
FBI Special Agent in Charge
Daphne Hearn said, “Illegal campaign contributions from foreign sources
undermines our electoral process and ultimately our democracy. The FBI is
committed to working with our law enforcement partners to identify and root out
public corruption wherever it may be happening.”
Special Agent in Charge of
Internal Revenue Service Criminal Investigation (IRS CI) Erick Martinez
commented, “Retired San Diego Police Detective Ernesto Encinas intentionally
failed to report over $222,000 in cash received by keeping this money ‘off the
books.’ Today’s guilty plea should serve as a reminder—all of us have an
obligation to file an accurate and truthful tax return. Failure to do so could
result in criminal prosecution.”
Encinas’s sentencing hearing
has been set for June 9, 2014, at 9 a.m. before United States District Judge
Michael M. Anello.
Defendant in Case Number:
14CR0344-MMA
Ernesto Encinas
Age: 57
San Diego, California
Summary of Charges and Maximum
Penalties
Count one: conspiracy to commit
offenses against the United States—18 U.S.C. § 371
Maximum penalties: five years
in prison, three years of supervised release, $250,000 fine, and a $100 special
assessment
Count two: false tax return—26
U.S.C. § 7206(1): three years in prison, one year of supervised release,
$250,000 fine, and a $100 special assessment
Investigating Agencies
Federal Bureau of Investigation
Internal Revenue Service,
Criminal Investigation
San Diego Police Department