A Los Angeles-area cannabis entrepreneur won a $1.9M verdict over Baldwin Park’s corrupt licensing process. Officials were held personally liable for $1.6M, while the city owes $290K. The case follows federal bribery convictions tied to marijuana licensing.
The case was brought by business owner David Ju, who claimed he paid more than $900,000—mostly in cash—for a license originally obtained for just $4,000. Ju alleged he was encouraged to pursue the license by Compton councilmember Isaac Galvan, who later acted as an intermediary in the deal. According to the lawsuit, Galvan’s involvement connected Ju to former Baldwin Park city attorney Robert Tafoya, council member Manny Lozano, and former council member Ricardo Pacheco, all of whom were accused of manipulating the licensing process.
Jurors found the defendants responsible for roughly $1.6 million of the damages, with Baldwin Park itself ordered to pay $290,000 for “negligence.” The city has said it respects the judicial process but noted that the court has not yet entered a final judgment. Officials said they are reviewing legal options moving forward.
Attorney David Gabriel Torres-Siegrist, who represented Ju, said the ruling demonstrates that local leaders can be held accountable. “These strangers from the community came forward and said no, you’re not going to get away with this,” he told SFGate.
The lawsuit outlined how Tafoya allegedly assured Ju the transfer would be successful despite city policy prohibiting license transfers, and a city clerk notarized documents that said Ju was present even though he was out of town. The city attempted to countersue Ju for more than $2 million in fees, but jurors rejected the claim.
Both Tafoya and Pacheco have already pleaded guilty to federal bribery charges connected to cannabis licensing in the region. Federal agents seized over $80,000 from Pacheco, including nearly $63,000 he admitted to burying in his yard. Galvan, meanwhile, failed to appear in the case and was hit with a default judgment, though he has previously denied wrongdoing.
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