Olivares Pleads Guilty in Santa Ana Election Scheme

Former Santa Ana City Council candidate Hector Olivares pleaded guilty Monday to two counts of mail fraud in connection with an alleged scheme to conceal the source of illegal cash contributions to his 1996 campaign and to funnel illegal cash contributions to another candidate’s campaign.

According to documents filed Monday in federal court, Olivares “concealed the nature and source of these contributions” in part by “recruiting a third party” to write a personal check to his campaign in exchange for cash. Using a similar procedure, the documents say, Olivares funneled illegal cash contributions to the campaign of Roman Palacios, another council candidate whom he supported.

Olivares’ pleas came in response to a 27-count indictment, revised earlier this year, accusing him, along with Santa Ana Councilman Ted R. Moreno and former Santa Ana Councilman Tony Espinoza, of conspiring to illegally fund a slate of candidates to take over the City Council and then lying about it to federal investigators.

“They defrauded the citizens of Santa Ana,” Assistant U.S. Atty. John Hueston, who is prosecuting the case, said at the time.

Charges are pending against Espinoza and Moreno, who has announced his intention to resign from the council this summer before his second term ends. He has said he plans to run for the council again in November.