By CHRISTIAN MONTERROSA | Reporter
Palisadian Stephanie Smith has filed a lawsuit against the city of San Bernardino after her El Medio Bluffs home was raided by San Bernardino police in full tactical gear for the second time since 2017 on Wednesday, February 20.
Smith, a commercial cannabis landlord who was recently denied permits for legitimate cannabis operations by the city of San Bernardino, believes the raid was an attempt of intimidation by city officials who she has been investigating for corruption and unfair business practices.
Law enforcement officials reportedly found a large stash of pharmaceutical opiates and about $200,000 in cash during the raid and arrested Smith, who later made bail.
Smith said the prescription drugs seized were legally purchased from a medical supply company by her husband who was licensed by the State of California as a physician and surgeon at the time. “The seized medications have been expired for nearly a decade and were buried in the back of our garage in a dusty box,” said Smith.
“Given the well-known corruption of the San Bernardino City government, I launched a private investigation to collect evidence of corruption at all levels and I have been successful,” Smith said in a statement to the Palisadian-Post.
Smith said her private investigation led to the discovery of text messages that uncover a “pay for play” scheme for the city’s cannabis permits between city officials and cannabis business owners.
“City Manager Andrea Miller, former Mayor [of San Bernardino] Carey Davis, former Carey campaign manager Scott Beard and others in the administration are implicated in a scheme to take off the books marijuana money and illegally give cannabis licenses to unqualified applicants in direct violation of the city’s own cannabis ordinance,” said Smith, who included copies of the text messages in her lawsuit that appear to show the parties involved discussing campaign donations.
Her lawsuit alleges “both intentional city corruption and potential city incompetence,” claiming that the city has violated California Governmental Anti-Waste Statutes, the Brown Act, and other state and municipal laws.
In response, Mark Estermyer, owner of a cannabis company, refuted Smith’s allegations and claimed the texts were taken out of context.
“I’m really sad these people feel they need to drag me into the equation,” Estermyer told the San Bernardino Sun newspaper on Monday after the lawsuit was filed. “I really am. It bums me out. There’s a lot more to this than just a couple text messages. … [The money referenced in the texts] had nothing to do with the mayor’s campaign.”
Beard called the lawsuit “laughable,” according to the SB Sun, and pointed back to Smith as being the one in legal trouble in light of her multiple arrests.
But Smith remains steadfast that the raid was an “attempt to collect the evidence gathered,” learn her sources and stop the whistleblowing.
“I am certain that the corruption extends much further than what is already documented in my suit, and I am scheduled to turn over additional evidence of corruption to the FBI,” Smith said in her statement. “I am confident the evidence will result in criminal convictions of corrupt officials and proof that these baseless charges are nothing more than an attempt to hide their own criminal actions.”
Smith is scheduled to appear in court on March 4 for a settlement conference.
*This is an updated version of a story that ran in the print version of the Palisadian-Post.
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