Santa Clara County Fairgrounds director accused of extortion

( KRON ) — A marketing director for the Santa Clara County Fairgrounds took thousands of dollars in kickbacks from a security company each month to recommend its services to her employer, according to the Santa Clara County District Attorney's Office.

Obdulia Banuelos-Esparza, 41, of San Jose, faces felony charges of bribery and extortion, the DA's office announced Thursday.

In September 2023, the DA's office received a citizen's complaint from the county's whistleblower program that alleged wrongdoing, including the kickback scheme. Investigators learned that Banuelos-Esparza, who worked as a director of events and marketing, asked the owner of 4 Diamond Security for "a percentage of the money the company would be receiving under its contract" with her employer, the Santa Clara County Fairgrounds Management Corporation (FMC), the DA's office said.

The owner of the security company refused at first, according to the DA's office, but Banuelos-Esparza then accused the company’s security guards of sleeping on the job. When the company's contract with FMC was in jeopardy due to the accusation, she "offered to intervene on the company's behalf in exchange for the payments," the DA's office said.

Citing economic insecurities due to the COVID pandemic, 4 Diamond Security's owner gave in, the DA's office said. Payments to Banuelos-Esparza allegedly started out at $2,500 per month before escalating to nearly $4,000 per month.

Banuelos-Esparza is expected to self-surrender on a warrant for felony charges of bribery and extortion. She faces a maximum sentence of four years in jail if convicted.

Anyone with information about the case is asked to contact Deputy District Attorney John Chase at jchase@dao.sccgov.org.

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