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The marketing and events director for the Santa Clara County Fairgrounds who has worked there for nearly six years has been accused of extorting a security company that contracted with the venue, the county District Attorney’s Office said last week.
Obdulia Banuelos-Esparza, 41, is being charged for allegedly demanding thousands of dollars in kickbacks from 4 Diamond Security in exchange for an employment recommendation from her to the fairgrounds’ management company, prosecutors said.
Santa Clara County District Attorney Jeff Rosen’s office said that after allegedly paying monthly bribes for more than a year, the security company refused to keep doing so and its contract was not renewed.
Prosecutors said they learned of the alleged kickbacks through a whistleblower and opened an investigation last September.
Banuelos-Esparza is accused of requesting that the security company pay her a percentage of the money it would receive through a contract with the fairgrounds. When the company’s owner refused, Banuelos-Esparza allegedly accused the security guards of sleeping on the job and warned them that their contract was in jeopardy.
“She offered to intervene on the company’s behalf in exchange for the payments,” reads a statement released by Rosen’s office Thursday. “She threatened that the company’s contract … would be terminated if the payments were not made.”
Prosecutors said the security company faced economic pressure during the COVID-19 pandemic on their business and eventually “gave in” and started to pay Banuelos-Esparza $1 dollar per guard-hour worked. These payments allegedly started out at around $2,500 per month but ballooned up to nearly $4,000 per month.
“The fairgrounds are where our community goes for fairs, festivals, and fun. … Not felonies.”
Santa Clara County District Attorney Jeff Rosen
The District Attorney’s Office expects Banuelos-Esparza to turn herself in to face felony charges of bribery and extortion. If convicted, she is facing up to four years in jail, prosecutors said.
“The fairgrounds are where our community goes for fairs, festivals, and fun,” Rosen said. “Not felonies.”
Prosecutors are encouraging anyone with information about this case or any similar scheme at the county fairgrounds to contact Deputy District Attorney John Chase at jchase@dao.sccgov.org.
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