Obdulia Banuelos-Esparza, the former director of events and marketing for the Santa Clara County Fairgrounds, has been convicted of a kickback scheme that effectively pilfered the coffers of a security company contracted to protect the 150-acre venue, according to a report by the Santa Clara County District Attorney’s Office. Banuelos-Esparza, 42, has been ordered to repay $40,000, money she admitted to coercing from the company over a year.
The saga unfurled following a citizen’s complaint brought forward by the County Counsel’s Whistleblower Program, which, in turn, stimulated a probe by the District Attorney's office into the allegations. The DA’s office revealed that Banuelos-Esparza threatened to sink the security company's contract if they didn't agree to her terms: a slice of their earnings, to be exact. Banuelos-Esparza's tactics were laid bare, with the disgraced director manipulating her leverage over the contract to extort monthly payments from the beleaguered security firm, 4 Diamond Security, as observed in a Hoodline report.
Santa Clara County District Attorney Jeff Rosen addressed the conviction with an assurance that fairgoers could now "Ride the Ferris wheel, see the farm animals, eat the food, and have fun knowing our county fair is safe and free of corruption." This upbeat message seemed a stark contrast against the background of Banuelos-Esparza’s underhanded dealings, which started small, around $2,500 per month, but steeply climbed to nearly $4,000.
The pressures were immense for companies operating during the tight-gripped uncertainty of the COVID-19 pandemic, especially in the summer of 2020. The owner of 4 Diamond Security started the illicit payments under duress, fearing contract termination, a detail that the DA’s Office investigation unearthed. Initially declined by the owner, the payments prompted accusations from Banuelos-Esparza of unprofessional conduct by the security guards, which allegedly included sleeping on the job, an issue she proposed resolving for a price.
The the former fair director's formal sentencing is slated for August 14. While shedding light on the investigation, District Attorney Rosen encouraged "anyone with insights into the case or similar situations" to step forward via Hoodline, extending an invitation to contact Deputy District Attorney John Chase with pertinent information.
