News

Pleasanton developer accused of illegal donations to Swalwell campaign

Second federal prosecution of James Tong in recent years

A prominent East Bay developer and Pleasanton resident was arraigned Monday on federal allegations he made illegal campaign finance donations to current U.S. Rep. Eric Swalwell's congressional campaign in 2012 and 2013.

The indictment alleges that Tong, 72, used straw donors, or "conduit contributors," in order to give more money than one person is allowed to give to a political campaign, according to U.S. Attorney Brian J. Stretch and FBI special agent in charge John F. Bennett

Authorities allege that in both 2012 and 2013, Tong made over $10,000 of these straw donations to the authorized political committee supporting the campaign of a candidate for a federal elected office. Tong pleaded not guilty to the charges Monday.

Neither the committee nor the candidate are identified in the indictment, but Swalwell released a statement through his campaign committee Wednesday acknowledging his campaign was investigated by federal authorities in connection with the Tong probe and denying any wrongdoing by himself or campaign officials.

"I'm deeply disappointed by what's alleged in the grand jury's indictment. My campaign never would have accepted a single penny of these contributions had we known how they were being made," said Swalwell, a third-term Democrat whose district includes Pleasanton.

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The congressman said his campaign "cooperated fully" with federal investigators and the Department of Justice "does not suspect any wrongdoing on the part of myself or anyone with my campaign, nor that anyone in my campaign knew of the scheme outlined in the indictment."

"I will not tolerate illicit contributions like these in my campaign or in our political process generally," added Swalwell, who said his campaign is working with authorities to tally the straw donations to in turn donate that sum to a local charity.

In the indictment, Tong is charged with one count of making contributions of more than $10,000 in the names of straw donors to the candidate in 2012. The limit set by the Federal Election Campaign Act for contributions from any one person that year was $5,000.

The second count charges Tong with making contributions exceeding $10,000 to the same candidate's campaign committee in others' names. The limit for that year was $5,200.

The donations occurred on either end of Swalwell's first election to Congress. He was a 31-year-old Dublin councilman when he successfully unseated incumbent and fellow Democrat Pete Stark in November 2012. Swalwell won re-election twice since.

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This week, after an initial appearance and arraignment in federal court in Oakland, Tong was released on his own recognizance and required to surrender his passport. His next appearance is scheduled for Sept. 29, before U.S. District Judge Jon S. Tigar for a status conference.

The Special Prosecution and National Security Unit of the U.S. Attorney's Office is prosecuting this case and is the result of a year-long FBI investigation.

Tong was also the subject of recent case involving fraud.

In December 2015, he pleaded no contest to violating the U.S. Endangered Species Act by submitting fraudulent documents to the city of Dublin that falsely stated he had paid $3.2 million in mitigation efforts for grading a Dublin development in a way that harmed the habitat of the endangered California tiger salamander.

As part of his plea deal, Tong agreed to pay about $1 million to state, county and nonprofit wildlife agencies and preserve 107 acres of land in Contra Costa County.

He also reached a separate plea deal in Alameda County Superior Court for the Dublin documentation fraud case.

Editor's note: Information from the Bay City News Service was used in this report.

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Pleasanton developer accused of illegal donations to Swalwell campaign

Second federal prosecution of James Tong in recent years

by Erika Alvero and Jeremy Walsh / Pleasanton Weekly

Uploaded: Tue, Sep 12, 2017, 4:54 pm
Updated: Wed, Sep 13, 2017, 10:03 am

A prominent East Bay developer and Pleasanton resident was arraigned Monday on federal allegations he made illegal campaign finance donations to current U.S. Rep. Eric Swalwell's congressional campaign in 2012 and 2013.

The indictment alleges that Tong, 72, used straw donors, or "conduit contributors," in order to give more money than one person is allowed to give to a political campaign, according to U.S. Attorney Brian J. Stretch and FBI special agent in charge John F. Bennett

Authorities allege that in both 2012 and 2013, Tong made over $10,000 of these straw donations to the authorized political committee supporting the campaign of a candidate for a federal elected office. Tong pleaded not guilty to the charges Monday.

Neither the committee nor the candidate are identified in the indictment, but Swalwell released a statement through his campaign committee Wednesday acknowledging his campaign was investigated by federal authorities in connection with the Tong probe and denying any wrongdoing by himself or campaign officials.

"I'm deeply disappointed by what's alleged in the grand jury's indictment. My campaign never would have accepted a single penny of these contributions had we known how they were being made," said Swalwell, a third-term Democrat whose district includes Pleasanton.

The congressman said his campaign "cooperated fully" with federal investigators and the Department of Justice "does not suspect any wrongdoing on the part of myself or anyone with my campaign, nor that anyone in my campaign knew of the scheme outlined in the indictment."

"I will not tolerate illicit contributions like these in my campaign or in our political process generally," added Swalwell, who said his campaign is working with authorities to tally the straw donations to in turn donate that sum to a local charity.

In the indictment, Tong is charged with one count of making contributions of more than $10,000 in the names of straw donors to the candidate in 2012. The limit set by the Federal Election Campaign Act for contributions from any one person that year was $5,000.

The second count charges Tong with making contributions exceeding $10,000 to the same candidate's campaign committee in others' names. The limit for that year was $5,200.

The donations occurred on either end of Swalwell's first election to Congress. He was a 31-year-old Dublin councilman when he successfully unseated incumbent and fellow Democrat Pete Stark in November 2012. Swalwell won re-election twice since.

This week, after an initial appearance and arraignment in federal court in Oakland, Tong was released on his own recognizance and required to surrender his passport. His next appearance is scheduled for Sept. 29, before U.S. District Judge Jon S. Tigar for a status conference.

The Special Prosecution and National Security Unit of the U.S. Attorney's Office is prosecuting this case and is the result of a year-long FBI investigation.

Tong was also the subject of recent case involving fraud.

In December 2015, he pleaded no contest to violating the U.S. Endangered Species Act by submitting fraudulent documents to the city of Dublin that falsely stated he had paid $3.2 million in mitigation efforts for grading a Dublin development in a way that harmed the habitat of the endangered California tiger salamander.

As part of his plea deal, Tong agreed to pay about $1 million to state, county and nonprofit wildlife agencies and preserve 107 acres of land in Contra Costa County.

He also reached a separate plea deal in Alameda County Superior Court for the Dublin documentation fraud case.

Editor's note: Information from the Bay City News Service was used in this report.

Comments

Disappointed Dublin Resident
Dublin
on Sep 13, 2017 at 11:33 am
Disappointed Dublin Resident, Dublin
on Sep 13, 2017 at 11:33 am
DKHSK
Registered user
Bridle Creek
on Sep 13, 2017 at 12:59 pm
DKHSK, Bridle Creek
Registered user
on Sep 13, 2017 at 12:59 pm

So he's already committed one crime and now is charged with a second and is considered a flight risk?

The better question is why is he still in the country if he already was convicted of a crime?


Sam
Oak Hill
on Sep 13, 2017 at 1:03 pm
Sam, Oak Hill
on Sep 13, 2017 at 1:03 pm

@DKSHK: "The better question is why is he still in the country if he already was convicted of a crime?"

What is that supposed to mean?


Court info
Another Pleasanton neighborhood
on Sep 13, 2017 at 4:30 pm
Court info, Another Pleasanton neighborhood
on Sep 13, 2017 at 4:30 pm

At the arraignment, the court filing by his lawyer tried to convince the judge to let Tong leave the country to travel to China.

The court documents say "Motion for travel to China is denied without prejudice."


dp
Danbury Park
on Sep 13, 2017 at 5:11 pm
dp, Danbury Park
on Sep 13, 2017 at 5:11 pm

@DKSHK: "...The better question is why is he still in the country if he already was convicted of a crime?"

Here's the list of politicians convicted of crimes, Web Link

Which country or countries do you suppose to ship them to?


Pleasanton Parent
Registered user
Pleasanton Meadows
on Sep 13, 2017 at 5:13 pm
Pleasanton Parent, Pleasanton Meadows
Registered user
on Sep 13, 2017 at 5:13 pm

No way sawell didn't know about this.

Career politicians are criminals.


dp
Danbury Park
on Sep 13, 2017 at 5:16 pm
dp, Danbury Park
on Sep 13, 2017 at 5:16 pm

"Career politicians are criminals."

Ship them to China. Let the Chinese feed them.


Pleasanton Parent
Registered user
Pleasanton Meadows
on Sep 13, 2017 at 5:18 pm
Pleasanton Parent, Pleasanton Meadows
Registered user
on Sep 13, 2017 at 5:18 pm

Completely agree.


Michael Austin
Registered user
Pleasanton Meadows
on Sep 13, 2017 at 5:57 pm
Michael Austin, Pleasanton Meadows
Registered user
on Sep 13, 2017 at 5:57 pm

Legal immigrants can be deported when convicted of a felony.

Illegal immigrants are protected, after conviction and release are permitted to continue their criminal activity.


Jake Waters
Registered user
Birdland
on Sep 13, 2017 at 9:05 pm
Jake Waters, Birdland
Registered user
on Sep 13, 2017 at 9:05 pm

All I can say, it couldn't happen to a worse guy: Swalwell. I really don't have anything good to say about Eric, so I will end it there. I hope Tucker Carlson has him on and feeds him his lunch, again.


Fuming in PTown
Country Fair
on Sep 14, 2017 at 10:47 am
Fuming in PTown, Country Fair
on Sep 14, 2017 at 10:47 am

One wonders if real-estate developers making illegal campaign contributions or pay-to-play contributions to politicians at all levels has become standard procedure in the Tri-Valley. This Swalwell/Tong affair should be investigated further to see what other crimes have been committed. That investigation should also include Tim Sabranti to see what involvement he may have had during his tenure as a Dublin High School teacher (of Swalwell), Dublin Mayor,and Swalwell's Congressional Aide. After all, Sabranti has claimed many times that he is Swalwell's mentor.


2018 Voter
Another Pleasanton neighborhood
on Sep 14, 2017 at 1:06 pm
2018 Voter, Another Pleasanton neighborhood
on Sep 14, 2017 at 1:06 pm

In 2013 Swalwell hired Casey Watkins to work in his office in Washington. The Watkins Family had donated a considerable amount to Swalwell's campaign including presumably $2,500 from Casey. Interesting that a 21-ish recent college grad can drop $2,500 to donate to a political campaign.

In 2014 Swalwell accepted $14,800 in donations from Tong and his family while Tong was facing charges. When everything came to a head in 2015 it was reported that Swalwell stated he was going to audit the donations and donate the funds to local charity.

Now in 2017 Swalwell is repeating the same line. If the money was already donated in 2015 why would he say the same thing this time? It would be interesting to have Congressman Swalwell provide an accounting of his donations by charity, amount and date of the donation from his 2015 comments.

There appears to be a pattern of conveniently looking the other way when it comes to campaign donations with Swalwell. Makes you wonder who he is really serving in Washington.


Dubliner For Change
Dublin
on Sep 14, 2017 at 2:43 pm
Dubliner For Change, Dublin
on Sep 14, 2017 at 2:43 pm

Eric Swalwell "sold" his votes while he was on Dublin city council and planning his run for Congress. He granted Tong (of Charter Properties) his wish, with a YES vote to rezone to housing the Promised Promenade (retail/boutique/restaurant area) while accepting thousands and thousands in campaign contributions. This is a textbook example of Pay to Play . Elected officials and others with decision-making influence who have made sweet heart deals in Dublin should be very worried right about now. The FBI is investigating years back.


here he goes again
Another Pleasanton neighborhood
on Sep 14, 2017 at 6:38 pm
here he goes again, Another Pleasanton neighborhood
on Sep 14, 2017 at 6:38 pm

Tong was also found guilty in 1993 (FPPC case 1991/0376) on laundering contributions in Fremont and was also found guilty in 2006 (case 2006/0615 - 8 counts) of not filing the major donor paperwork. I believe in the later case this involved campaign contributions to candidates in Pleasanton.

Fines are not enough for Tong. He just pays them and continues doing the same illegal things. I think time in prison is the only real punishment now.


Michael Austin
Registered user
Pleasanton Meadows
on Sep 14, 2017 at 7:10 pm
Michael Austin, Pleasanton Meadows
Registered user
on Sep 14, 2017 at 7:10 pm

Illegal campaign contributions create an unfair advantage for the incumbent. It allows the incumbent to outspend, to out advertise, his or her opponent.

With congressman Eric Swalwell accepting and spending illegal funds from a convicted felon is particularly reprehensible. It brings to light the company he keeps.

It undermines Swalwell's rhetoric when he embellishes himself as a crusader and defender of the undocumented, illegal aliens. As he demonstrated with his no vote against Kate's Law when it was initially put to a vote in congress.

This illegal contribution congressman Eric Swalwell accepted further taints, and brings attention to his deviant allegiance to Nancy Pelosi.


Greed
Birdland
on Sep 14, 2017 at 8:51 pm
Greed, Birdland
on Sep 14, 2017 at 8:51 pm

Web Link

The politicians in this scam Swalwell included all need to go to prison. Donations all arriving the same day? The politicians knew about the scam for sure. Swalwell knew about the illegal donations and took the money anyway. No ethics just pure greed.


Sam
Oak Hill
on Sep 14, 2017 at 10:06 pm
Sam, Oak Hill
on Sep 14, 2017 at 10:06 pm

To those who are accusing Swalwell of knowingly accepting funds which were illegally contributed to him: Unless you have proof that he knew, then you're engaging in slander.


Pleasanton Parent
Registered user
Pleasanton Meadows
on Sep 14, 2017 at 10:20 pm
Pleasanton Parent, Pleasanton Meadows
Registered user
on Sep 14, 2017 at 10:20 pm

Why would one contribute to a campaign without taking credit for the totality of the contributions. While it's unlikely there is a paper trail to prove Eric knew, without question, he was aware this individual was not in compliance. Sh1t, he did it before and continued to accept campaign contributions


Court info
Another Pleasanton neighborhood
on Sep 14, 2017 at 11:22 pm
Court info, Another Pleasanton neighborhood
on Sep 14, 2017 at 11:22 pm

According to the Ebcitizen, Swalwell even continued to rake in the money from James Tong in 2014 and 2015 after the Tong investigation on the $3 million securities fraud and violating environmental laws. Did Swalwell care and stop taking Tong's money?

No of course not.

Take a look at this- Web Link

Sounds like Eric Swalwell has been inundated by cash from both Tong and the Lins according to the above article.

I'm sure there are a number of electronic files and records that clearly demonstrate Swalwell knew exactly what he was doing.


DKHSK
Registered user
Bridle Creek
on Sep 15, 2017 at 8:22 am
DKHSK, Bridle Creek
Registered user
on Sep 15, 2017 at 8:22 am

Isn't it interesting that there is more evidence of illegal activity within the Swalwell campaign (and democrats in general) then there is between Trump and the Russians?

Sam the apologist makes an accusation of slander against Swalwell, but where is his defense of Trump?

That's rhetorical, Sam, we all know the answer.








Jack
Downtown
on Sep 15, 2017 at 9:17 am
Jack, Downtown
on Sep 15, 2017 at 9:17 am

This sounds like fun! Where can I pick up my torch and/or pitchfork?


Greed
Birdland
on Sep 15, 2017 at 1:16 pm
Greed, Birdland
on Sep 15, 2017 at 1:16 pm

There have been numerous Pleasanton Weekly articles and opinion pieces over the years about money from James Tong and Tong relatives flowing to public officials. And Charter Properties and Charter Investments. Of course Swalwell is an attorney and a former DA. Don't you think he had a duty to report any suspicion that a crime was being committed to the FBI? And if he denied he knew any thing about this and that he had never heard any comment or written communication about this topic to investigators, I would hope that the Feds will pursue a perjury charge against Swalwell.


McNerney redistricting now makes sense
Another Pleasanton neighborhood
on Sep 17, 2017 at 3:27 pm
McNerney redistricting now makes sense, Another Pleasanton neighborhood
on Sep 17, 2017 at 3:27 pm

It now makes sense now that the AC Dems under control of James Tong pushed for a redistricting of lines drawing the boundaries of the Congressional district to boot Congressman Jerry McNerney out of Pleasanton/Dublin/Livermore to Stockton and the Central Valley. I guess Jerry McNerney did not go along with being a puppet of Tong. McNerney is honest. What better way to get a Lin Family and Tong-controlled member of the House of Representatives than to physically move McNerney's district to the Central Valley.

Then they re-districted Assembly boundary lines where Pleasanton/Dublin had been divided into 3-4 districts to get another Tong puppet, Cheryl-Cook Kallio, to be elected to represent Dublin and Pleasanton and Livermore.

That way Tong would control all land use commissions and elected officials locally, school district local officials, as well as state and federal elected officials.


Flightops
Registered user
Downtown
on Sep 17, 2017 at 4:25 pm
Flightops, Downtown
Registered user
on Sep 17, 2017 at 4:25 pm

That little snake charmer, after originally voting against Kate's Law and then trying to forgive student loans for only certain past and present students and not all students I thought that maybe Swallwell had "peaked" and might turn over a new leaf, guess I was wrong he continually amazes me with his back-door highjinks and his ability to stay upright and keep steaming full speed ahead- that's politics, everybody wins except for the taxpayer.


Greed
Birdland
on Sep 17, 2017 at 5:18 pm
Greed, Birdland
on Sep 17, 2017 at 5:18 pm

The FBI public corruption investigation needs to be broadened to including the entire set of elected officials in the Tri-Valley and Fremont-assembly, state senate, congress, school boards, planning commissions, zoning boards, city councils, water districts including the Zone 7 water board, the county board of supervisors, as well as the Alameda County Democratic Central Committee. It sounds as if there is widespread systemic corruption as brought to light by Margarita Lacabe of San Leandro. See Web Link

I find it completely odd given the Lin-owned and developed land in all of East Dublin, that East Dublin has no empty space for a high school and Pleasanton has not started construction on any school in years. Why is that? How come almost all empty parcels have been turned over to developers for more housing?


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