LOS BANOS (August 2, 2025) — Two property-secured loans from Sacramento-based developer Ethan Conrad to District 1 City Council candidate Kalid Sanchez are raising new questions about financial transparency, disclosure requirements, and potential conflicts of interest as the special election approaches.
The loans were confirmed in a July 31 email to the Enterprise from Mona Escudero, marketing manager for Ethan Conrad Properties. In reference to a previous article, Escudero wrote: “The loans mentioned are simply amortized loans that correspond to their lease terms.” However, county records show the loans are secured by deeds of trust against Sanchez’s private residence and do not cite a lease or commercial tenancy. The trust documents refer to the loans as securing “evidence of indebtedness” and name “Ethan Conrad, an unmarried man” as the sole beneficiary.
The Enterprise has requested clarification from Conrad’s office, as Sanchez no longer occupies the commercial space she previously leased from the developer. It remains unclear whether the loans are related to prior lease obligations or represent other forms of debt. As of publication, no further explanation has been provided.
Public records show Sanchez and her husband received a $19,189 loan recorded on July 18, 2023, and a $36,000 loan recorded on September 13, 2024, both secured by their home in District 1. Despite state law requiring candidates to disclose personal indebtedness over $500 on their Form 700 Statement of Economic Interests, neither loan appears on Sanchez’s most recent filing.
The California Political Reform Act mandates that candidates report financial interests that could create actual or perceived conflicts of interest, including personal loans. Disclosure must include the lender’s name, terms of the loan, and whether the loan is secured. The Fair Political Practices Commission (FPPC), which enforces the law, does not comment on specific enforcement actions as a matter of policy, but its public guidance makes clear that failure to disclose reportable financial interests can result in administrative and criminal penalties.
There is no indication that the loans were used for campaign purposes, and both were signed prior to Sanchez filing nomination papers for the District 1 seat. However, if elected, Sanchez would likely be required to recuse herself from City Council decisions involving Ethan Conrad or his affiliated businesses under California Government Code Section 87100, which prohibits public officials from participating in matters where they have a financial interest.
Such recusals could be consequential. Conrad owns at least seven commercial properties in Los Banos, including high-visibility retail holdings along Pacheco Boulevard and the shopping center housing Hobby Lobby and Harbor Freight Tools. Decisions related to development, zoning, or permitting for these properties could come before the council—leaving District 1 potentially without a vote on major commercial issues.
In addition to the undisclosed loans, Sanchez’s campaign finance practices have drawn scrutiny. Her public Facebook campaign page lists personal payment platforms—Zelle, Venmo, PayPal, Cash App, and Apple Pay—as channels for accepting donations. Each is tied to her personal contact information, not a registered campaign account.
Under California law, candidates must maintain a separate campaign bank account and file a Form 410 Statement of Organization to establish a campaign committee. Contributions must be deposited into the campaign account and cannot be commingled with personal funds. As of August 2, no committee or Form 410 filing under Sanchez’s name appears in state or local databases.
Sanchez has not responded to multiple requests for comment from the Enterprise regarding the loans, her campaign finance practices, or the absence of a registered committee.
The Enterprise also reached out to Candidate Mitzy Perez regarding the controversy. Perez stated that she preferred to read the full article and research it on her own before commenting.
The District 1 special election is scheduled for August 26, 2025. The Enterprise will continue to follow developments and report updates as they become available.
