The FBI is investigating a biodiesel project in Oakland that got state funding with the help of Attorney General Rob Bonta back when he was an assemblymember. (GV Wire Composite/Paul Marshall)
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When Attorney General Rob Bonta was an assemblymember, his support of a green energy project in Oakland landed the developer a $3.4 million state grant, the San Francisco Chronicle reports.
But now, after 10 years, the company behind a biodiesel plant in the heart of the Bay Area city has gone defunct with the land still vacant and $700,000 spent that Bonta helped secure.
The California Energy Commission in 2014 originally denied Viridis and its co-founder Mario Juarez an application for a state grant to help build the green energy project.
The commission told Juarez he needed to raise $50 million to build the plant and have it running for two years in order to qualify.
It took a letter from then-Assemblymember Bonta later that year to get the commission to approve the project, the Chronicle reported.
Bonta told the Chronicle the project would create jobs and environmental gains.
Grant Recipient Had History of Defaults
Even before applying, Juarez, a major contributor to Bonta’s political campaigns, had defaulted on multiple payments to creditors.
The $3.4 million amounted at the time to the largest behested payment reported by a California assemblymember going back to 2010.
Juarez and members of Oakland’s Duong family are now at the center of a federal corruption investigation.
Investors say they were defrauded and were not repaid.
In June, the FBI raided the homes of Oakland Mayor Sheng Thao and two homes and a office linked to the Duong family.
Photos on social media of Bonta and Andy Duong, son of Cal Waste Solutions’ CEO, show the attorney general appearing in limos and at Golden State Warriors games.
Read More at the San Francisco Chronicle.