Local sports fans and businesses celebrated Tuesday’s announcement that the San Francisco 49ers will host Super Bowl 2016 at their new stadium in Santa Clara. But not everyone has always been a supporter of the club.

A public agency created the Santa Clara Family Health Foundation more than a decade ago to fund the county’s groundbreaking children’s health care initiative, one that would guarantee that every child who needed a doctor’s attention would be seen. For the past three years, however, low income kids’ health insurance premiums have taken a backseat to personal ambition as Health Foundation officers ran for office, funded their $200k annual compensation packages and diverted money to pay for political consultants, mailings, public opinion polls, phone banks and ballot initiatives. All this transpired behind a shroud of secrecy that was lifted last week by Judge Carol Overton, who rejected SCFHF’s hard-fought legal battle to keep its activities out of the public’s view. Documents obtained as a result of last Friday’s superior court ruling show clearly that the Health Foundation repeatedly broke state laws by using a public agency’s funds and property to operate political campaigns in close coordination with local labor leaders.

Metro and San Jose Inside scored a legal victory Friday with Judge Carol Overton’s ruling that the County of Santa Clara must release documents on the political activities of the nonprofit Santa Clara Family Health Foundation. The documents, handed over to Metro on Friday, shed new light on how a recent ballot initiative was passed, and how the South Bay Labor Council interacts with local nonprofits to advance its agenda.

UPDATE: A ruling is expected by 5pm Friday. Check back for a breakdown of Thursday’s court proceedings and the judge’s decision.—Editor

The Santa Clara Family Health Foundation has sued the County of Santa Clara to stop it from releasing documents about its financial transactions. The documents were requested by Metro Newspapers 30 days ago under the California Public Records Act. The foundation’s request for a temporary restraining order goes to court this morning.

San Jose’s top casino cop has had enough. In his first interview since Casino M8trix filed lawsuits in February against the city of San Jose, Richard Teng, the San Jose Police Department’s gaming administrator, called accusations against him “a political nightmare.” There is history in this dispute.

After a lengthy delay in opening last year, owners of Casino M8trix sued the city of San Jose, citing “a long history of unlawful, harassing and malicious conduct” by city gaming administrator Richard Teng. Teng rejected any conflict-of-interest claims in sworn testimony last December. Now, newly filed documents obtained by San Jose Inside show that the city of San Jose’s top casino watchdog repeatedly filed false statements over the course of a decade, while under penalty of perjury.

Based on numerous interviews and an extensive review of documents, Metro/San Jose Inside has learned that Vinod Sharma, county CFO and director of finance, and his second-in-command, Controller-Treasurer Irene Lui, repeatedly made false statements regarding how George Shirakawa Jr. avoided detection of his misuse of county funds. Sharma and Lui decided on their own to direct resources away from reviewing charge card expenses to focus on larger-scale audits in hopes of pleasing their superiors. And by blaming their subordinates and making confusing—if not cunningly calculated—statements at public hearings, Sharma and Lui seem to be more politically astute than some of the elected and appointed officials who listen to their explanations. The following is an excerpt from the full report, which can be found at Metroactive.com. —Editor

On March 24, Metro/San Jose Inside reported that Santa Clara Family Health Foundation (SCFHF) executive board member and officer Cindy Chavez participated in a board decision to provide $250,000 in funding to the Yes on A committee, on which she and Kathleen King—CEO of SCFHF—constituted a majority of the three-member committee. The committee subsequently turned over a large portion of the funds to the South Bay Labor Council Issues PAC and Democratic Central Committee’s PAC. Because of Chavez’s obvious conflicts of interest—she headed up the SBLC at the time—and the importance of a countywide sales tax increase, which will be paid by all residents, Metro/San Jose Inside felt this was a matter of public interest.

On Friday, nine nonprofit executives wrote a letter to express their thoughts on recent articles. They worry that investigative reporting could make nonprofits “the target of unfounded accusations and public reproach.” Because we feel this is a useful debate to have, and because we want to give differing points of view the proper attention they deserve, we are running below the letter in full, in addition to its appearance in the comments section where it was submitted. —Editor

While on its executive committee, prospective county supervisor candidate Cindy Chavez helped move hundreds of thousands of dollars out of a local health nonprofit, according to copies of board minutes obtained by San Jose Inside. At a pivotal meeting last June, Chavez voted to approve a budget that included a line item in which one of her employers, Working Partnerships USA, had a financial interest—and to fund a political campaign that was largely run by her other employer, the South Bay Labor Council. The two transactions totaled $400,000, more than a quarter of the Santa Clara Family Health Foundation’s budget.

Funds from two local non-profit health care foundations made their way to phone banks and mail campaigns of the South Bay Labor Council in 2012 after routing the money through a Measure A’s campaign committee. Both the VMC Foundation and the Santa Clara Family Health Foundation gave more than a quarter-million dollars each—a total of $539,000—to support an 1/8th cent county sales tax measure, Measure A. At least $90,000 of those monies were transferred to the South Bay Labor Council. An incestuous tangle of organizations, directors and consultants characterized the transactions, with common decision-makers on both the giving and receiving ends. None of the organization are willing to discuss how the funds were used and how decisions were made. Former San Jose vice mayor and South Bay Labor Council CEO Cindy Chavez currently heads up the nonprofit SBLC-linked Working Partnerships USA (WPUSA) and sits on the board for the Health Trust and Santa Clara Family Health Foundation.

It’s always a shame to let facts interfere with a good story, but county Supervisor George Shirakawa Jr.‘s downfall didn’t start with a hushed voice from a trench coat in the dark corners of a parking garage. Here’s how Metro/San Jose Inside uncovered some of the disgraced politician’s illegal activity.

Last November, a few hundred people donned their best suits and gowns and converged on San Jose’s historic Hayes Mansion to toast some of the East Side’s most accomplished alumni. The stars that night, honored in the East Side Union High School District Education Foundation’s Hall of Fame fundraiser, consisted of a 10-person class led by Khaled Hosseini, a 1984 graduate of Independence High School and author of The Kite Runner. But on Nov. 15, 2011, the IRS revoked the foundation’s nonprofit status. And yet almost no one outside of its board—including donors—knew about its lost certification when it threw a fundraiser a year later.

Working Partnerships USA, the labor-aligned nonprofit headed by former San Jose vice mayor Cindy Chavez, yesterday released its most recent Internal Revenue Service Form 990, after eight days of refusing requests to view the document. A review of the organization’s filings over the years found spending increases during key elections despite IRS restrictions on political activities by charities. In total, the nonprofit has raised and spent more than $25 million since 1998.

If you’re interested in making a non-tax deductible contribution to a man who misused thousands of taxpayer dollars, in addition to hiding campaign disclosure forms for years, George Shirakawa would like to speak with you.

Since 2009, the San Jose Fire Department has responded to emergency calls slower than previously reported. The question is by how much. In a memo sent out Friday by the city manager’s office, Fire Chief William McDonald explains that “data used in the calculation of the response-time measure were excluded in error.”

While many Santa Clara County homeowners sweated to pay their semiannual property tax payments in the recession that followed 2008’s economic collapse, and businesses cut back on expenses, Santa Clara County Board of Supervisors president George Shirakawa Jr. spent $36,830 of their money on plane tickets, hotels, rental cars, dining and other items—like a television and a $627 glass door mini-fridge that he claims were related to county business—since January 2009. The county’s top elected official broke the $30 dinner spending limit with steaks that cost as much as $102 each (including tax and tip), violated the ban on alcohol purchases and claimed that his meetings with lobbyists, political consultants and friends were official county business. A regular at taquerias, Chinese restaurants, Italian bistros and rib joints, the board’s runaway frequent diner avoided detection by filing a “missing receipt” declaration more than 180 times. Amazingly, Shirakawa never lost the top copy of the receipt—the one with the tip and total—only the slip that details the number of guests and the items consumed.