SAN JOSE — A criminal charge stemming from a mortgage fraud lawsuit against San Jose City Council candidate Tam Truong was dismissed Friday, giving him a potential political boost less than two weeks from Election Day.
The single count of grand theft, which was initially charged Sept. 5 by the Santa Clara County District Attorney’s Office, was later transferred to the Santa Cruz County District Attorney’s Office to resolve a potential conflict. The judge presiding over Truong’s civil litigation — which is separate but provides the underpinnings of the criminal complaint — is Amber Rosen, who is married to District Attorney Jeff Rosen.
Friday afternoon, Santa Cruz County Assistant District Attorney Douglas Allen appeared via video feed before Santa Clara County Judge Hector Ramon and asked him to drop the charge.
“In a review of a very extensive investigation,” Allen said, “It is my determination that the case is lacking sufficient evidence to proceed and I request this court’s dismissal.”
Truong was in court with his attorneys, Carleen Arlidge and Albie Jachimowicz, who did not object, and Ramon dismissed the case.
In a statement Friday, Sean Webby, spokesperson for the Santa Clara County District Attorney’s Office, responded to the charge dismissal.
“Out of an abundance of caution, we sent this criminal case to the Santa Cruz DA’s office to make sure there was not a perception of a conflict. Apparently, they are not prepared to go forward with the prosecution,” Webby said. “Reasonable prosecutors sometimes differ in their assessments of whether they can prove a case to a jury beyond a reasonable doubt.”
Santa Clara County prosecutors could re-file the criminal charge at a later time. They could also still litigate the case themselves, provided the California Attorney General’s Office reviews the case and clears any conflict.
Truong, 42, who is running against District 8 incumbent Domingo Candelas, was placed on administrative leave from his duties as a sergeant with the San Jose Police Department after the charge was filed in September, for what officials said was a “personnel matter.” Sources in the department confirmed the decision was related to the criminal case.
After this news organization first reported Truong’s work leave and the criminal charge, his attorney sent out a statement on his behalf asserting the charge was “based on a misunderstanding of all the facts in this case” and that it was being settled through the “appropriate venue” of civil court.
“There is no evidence that I intended to mislead anyone. … I have an impeccable record of public service, and an unwavering commitment to justice,” the statement read. “I trust that the justice system that I have spent decades serving will work as it should and that I will be cleared of any wrongdoing. I have not committed a crime, and I plan to continue with my campaign.”
In a September 2022 lawsuit, Orange Coast Title Company of Northern California and Real Advantage Title Insurance Company accused Truong of fraud for using documents from a past bankruptcy to convince an escrow agent that he owned a San Jose property outright when he still owed hundreds of thousands of dollars to his mortgage lender.
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Truong then sold his home and pocketed nearly $540,000 that should have gone to the lender and later used the proceeds to purchase another property, the civil suit alleges. Truong would not have been able to sell his home unless he had removed all the liens on the property.
The criminal investigation largely repeated the claims made in the lawsuit.
Truong’s business practices have come under scrutiny before. In 2015, the police department suspended Truong’s outside work permit to investigate whether his management and ownership of a private security firm presented a conflict of interest that put him in competition with his employer.
He contended he had done nothing improper. In a separate instance, the firm was sued over alleged wage theft.
Staff writer Devan Patel contributed to this report.
This is a developing story. Check back for updates.
