DHS mayor says he made error on financial disclosure form; employer confirms story

We’re learning new information about a controversy surrounding Desert Hot Springs Mayor Adam Sanchez. He’s being accused of a potential conflict of interest after an annual financial disclosure form revealed he’s now working for a medical marijuana dispensary, which he voted to allow to do business in the city.

The information was brought to light after a resident came forward questioning Sanchez’s annual financial disclosure.

It’s a serious allegation. If what’s listed on this original financial disclosure form is correct, any vote Mayor Adam Sanchez made giving ANCLEE a highly sought-after medical marijuana dispensary permit would be not only a conflict of interest but against the law.

Sanchez did not return our calls for comment, so News Channel 3 and CBS Local 2 News followed the paper trail.

“The point of the disclosure form is to allow the public to know whether or not the elected officials have a financial interest in any decision that is pending before their boards or city councils,” explained Desert Hot Springs City Attorney Steven Quintanilla.

The first 700 form Sanchez filed reveals in 2014 he worked and received a salary as the manager of marketing for ANCLEE Development. It is the parent company of Sun Grow Medical Marijuana Dispensary, the first of three approved dispensaries in the city. ANCLEE confirmed Sanchez does work for them but only as of this year.

“I believe the second or third of March of this year,” said ANCLEE spokesperson Anthony Lee.

Quintanilla told us he spoke with Sanchez about his employment Wednesday.

“He told me he started employment with them this last month. I then asked him why he reported that on his 700 form, and he said he had thought he had to report it, so I took a look at the 700 form and I realized the reporting period was for the last calendar year not for this calendar,” said Quintanilla.

Sanchez did file an amendment. News Channel 3 and CBS Local obtained a copy; it no longer lists ANCLEE as his employer for 2014 but rather The Valley Partnership.

“It was a clerical error on his part,” said Quintanilla.

Councilmen Scott Matas, who will run against Sanchez this November, said mistake or not, he wants an investigation.

“We all own businesses or have jobs in our communities if you go around the Coachella Valley and look at public officials, but there is not very many public officials that make votes then receive employment. It just doesn’t seem right,” said Matas.

It also can be illegal. The Political Reform Act states you can’t make any decisions based on promised income, but it has to be proven that was the intent.

Going forward Sanchez will not be allowed to make any decision that has to do with medical marijuana. Quintanilla said Sanchez indicated to him he will recuse himself if that situation arises in the future.

The Fair Political Practice Commission, the state agency that overseas any conflict of interest allegations, reports as of Thursday afternoon no official complaints have been filed against Sanchez.

Matas has asked for an emergency council meeting to discuss whether Sanchez’ vote to approve Sun Grow could be a conflict of interest. A meeting has not yet been scheduled.