Fairgrounds Official Charged With Extortion: DA

SAN JOSE, CA — An official at the Santa Clara County fairgrounds faces felony charges after prosecutors allege she extorted thousands of dollars from a security firm in exchange for keeping them under contract.

The district attorney's office alleges Obdulia Banuelos-Esparza, the fairgrounds' director of events and marketing, demanded hundreds to thousands of dollars each month from the owner of 4 Diamond Security to ensure her recommendation to retain their services.

The DA's office launched an investigation last September after the county's whistleblower program forwarded a citizen complaint alleging wrongdoing, including a kickback scheme. According to prosecutors, the investigation revealed Banuelos-Esparza asked the company for a percentage of the money they would be paid under contract.

When the company initially refused, the DA's office alleges she accused their employees of sleeping on the job and threatened to terminate the contract. Due to economic uncertainty during the early pandemic, prosecutors said the owner relented and began paying up to $4,000 each month.

After paying the bribes for more than a year, the DA's office said the security firm stopped cooperating and their contract was not renewed.

Banuelos-Esparza was expected to surrender on a warrant related to the case and will be arraigned on felony bribery and extortion charges at the Hall of Justice. If convicted, she could face up to four years in county jail.

"The fairgrounds are where our community goes for fairs, festivals and fun," said District Attorney Jeff Rosen. "Not felonies."

The DA's office asks anyone with information relevant to the case or similar incidents related to the fairgrounds to reach out to prosecutors via e-mail.