A paper trail suggests that money from Bay 101, the San Jose card club, made its way to the campaign of City Council candidate Xavier Campos. Public records show that following the card club’s $50,000 contribution in support of a ballot measure, funds were transferred to Campos-aligned organizations that subsequently funded Campos’ bitter battle for a District 5 council seat, in apparent violation of city campaign laws.
Mayor Chuck Reed, incoming District Attorney Jeff Rosen and other local elected officials say the series of so-called “independent expenditures,” including a $3,994 contribution from the South Bay Labor Council to the Campos campaign, looks suspicious and may point to political corruption.
The money in question changed hands several times. Records at the city, county and state show that in late April, Bay 101 contributed $557,905 to the Committee to Help Preserve San Jose City Services, the group behind Measure K. That ballot measure, which passed on June 8, allowed San Jose card clubs to expand in exchange for increased taxes earmarked for city services.
The half-million-dollar contribution and others from Bay 101 essentially funded the entire campaign.
On May 5, the Measure K committee gave $50,000 to the South Bay AFL-CIO Labor Council’s Committee on Political Education.
Throughout April and May, that committee made numerous donations to candidates for city council and the state assembly. These included $3,994.15 to Xavier Campos, who is running to replace his sister, Nora Campos, on the San Jose City Council. The SBLC committee also spent $11,082.47 in independent expenditures against Xavier Campos’ opponent, Magdalena Carrasco.
If the money from the card room in fact was diverted into the Campos campaign, that would violate a San Jose ordinance designed to keep money from the city’s gaming establishments out of local elections. Ordinance 12.06.260 states that a card room “may not make any contribution to candidates or candidate-controlled committees.”
Read rest of article at SanJose.com.