Palm Springs corruption; How prosecutors say money was funneled
Two developers have been accused of offering bribes and a former mayor stands accused of accepting them. Developers John Wessman and Richard Meaney, and former mayor of Palm Springs Stephen Pougnet face years behind bars if convicted.
The prosecution said it has evidence to support the allegations that the men were working together to facilitate government approval of development projects.
2012
In the months leading up to the approval of a financing agreement for the Desert Fashion Plaza, a number of checks were exchanged between Stephen Mitchell’s company, Mitchell Design Group, Meaney’s shell company, Union Abbey, Wessman Development and Pougnet.
Prosecutors say on Dec. 19th, Wessman Development paid Union Abbey $23,520. Meaney paid Nancy Mitchell $24,210. That night, Pougnet voted to approve financing along with other council members for the project. but doesn’t recuse himself, prosecutors say.
The next day, Dec. 20th, Mitchell Group Design paid Pougnet about $25,000. The connection of payments ultimately ending up in Pougnet’s pocket is what the prosecution is alleging is a bribe.
2013
Pougnet claims receiving more than $100,000 from Union Abbey. Prosecutors said bank records and emails show more than $150,000 were funneled from Wessman through Union Abbey, Meaney’s shell company to Pougnet.
Months before the city council had the decision to approve the hotel redesign for Palm Springs Promenade LLC, one of Wessman’s companies, a check was written from Wessman to Union Abbey for $100,000. Then, from Union Abbey, two checks were written to Pougnet totaling the same amount.
Then, a little more than a month after the decision was approved by the City Council and Pougnet, who again did not recuse himself, a $50,000 check from Union Abbey was sent to Pougnet. Two days later, that same amount was sent from Wessman to Union Abbey.
Prosecutors said there were numerous projects involving Meaney and Wessman on the table at that time. Some of those decisions were the approval of modifications to Meaney’s Vivante project, returning land that was disposed of, the Prairie Schooner parking lot land, back to the city which would later be sold to Meaney in 2014. Also, council approved the Dakota Housing Project with Meaney and Wessman as the developers.
2014
Pougnet stated he received more than $100,000 in income from Union Abbey. Again, prosecutors said bank records show that money originally came from Wessman.
From January to March, Wessman writes three checks, totaling about $63,000, that were deposited in the Union Abbey account. The next day, Union Abbey writes a check to Pougnet for $60,000. At April 2’s council meeting, Pougnet recuses himself before the council awards a $250,000 grant to develop Meaney’s restaurant, Hacienda Cantina and Beach Club. Prosecutors said this is one of a few times the former mayor recused himself from decisions that involved Meaney and Wessman. Some emails showed Pougnet was involved. One email from Meaney stated, “I have Pougnet working on the ARC board.”
The prosecution states these types of secret payments connected to council decisions are what has the two developers facing up to 12 years in prison and Pougnet facing up to 19 years, if convicted.
The district attorney’s office filed felony counts against the men, accusing them of bribery and conspiracy. Pougnet also is charged with a count of perjury.
