Anaheim’s scandal-ridden Chamber of Commerce pulls a surprise U-turn

The Anaheim Chamber of Commerce has pulled a U-turn — it isn’t going anywhere.

The backstory

The chamber had been embroiled in a corruption-and-fraud scandal that resulted in former Anaheim Mayor Harry Sidhu being sentenced to two months in prison. And the chamber’s former chief executive, Todd Ament, is awaiting sentencing.

It appeared that the business group might not survive: Earlier this month, the chamber’s president and chief executive emailed staff with the news he was resigning immediately and the organization would shutter by the end of April, a development first reported by the Orange County Register.

What happened next?

But the chamber issued a statement this week saying that the board of directors voted unanimously to stand their ground and take “a new approach and a new direction for the Chamber.”

Who will be in charge?

“For the first time, millennials are now leading the chamber,” according to the press statement.

Local business owner Dara Maleki will take over as president and CEO, while Michael Johnson was installed as head of the Board of Directors. Johnson serves on some boards in the city, including Anaheim Family YMCA.

"Let me be absolutely clear: The Anaheim Chamber of Commerce is not closing. Instead, we are forging ahead to be a leading Chamber of the 21st century," Maleki said in the statement. "We are entering a period of renewal — rebuilding trust, listening to our community, and creating a Chamber that works for all of Anaheim."

Added Johnson: "The Board now takes a new approach and a new direction for the Chamber ... and to bring in a new generation of leadership."

What's on the agenda?

The Chamber of Commerce is looking to “right-size its operations, address outstanding obligations and refocus its programs on the needs of Anaheim’s diverse business community,” according to the news release. (You can see some of their plans for business and community events here.)

City spokesperson Mike Lyster told LAist the city welcomes the “new incarnation” of the business group.

While Lyster said the city is “encouraged” and “optimistic” about the chamber’s future, there is “no immediate plans for funding or formal agreements or anything like that.”

The Chamber of Commerce announced a series of upcoming events, including the Anaheim Chamber Luncheon at Angel Stadium in early June. Lyster said it is likely and typical for the full council to be present at that event.

LAist has reached out to the Anaheim Chamber of Commerce, Maleki, and Johnson for further comment.

How we got here

In 2020, the Anaheim City Council approved selling Angel Stadium to the owners of the baseball team for $320 million.

But the sale fell apart after a federal investigation revealed then-mayor Sidhu was sharing “city-specific information” with the Angels’ owners to use against the city in negotiations. The investigation also revealed an overly friendly relationship between Sidhu and Ament, the former CEO of the Anaheim Chamber of Commerce.

According to prosecutors, Ament was the ringleader of a “cabal” of leaders including politicians and business leaders. He worked behind the scenes to exert influence over the city, according to prosecutors. Ament also pleaded guilty to laundering money meant for the chamber to defraud mortgage lenders to buy a home. He is awaiting sentencing and could face 30 years or more in prison.

Following the federal investigation revelations, a scathing state audit also found the chamber of commerce could not account for how taxpayer dollars it received from the city for promoting local businesses were spent.

The audit also found that millions were used by the chamber to support “resort-friendly candidates through its political action committee” and to campaign for laws favorable to hotels near Disneyland, in violation of the law.

The new Chamber of Commerce leadership said it will cut ties with the Anaheim Chamber of Commerce Political Action Committee, and ask the PAC to remove the chamber’s name from branding.

The chamber promised in this week’s news statement that new leadership would guide the groups through “a transparent transformation process focused on accountability.”