Vice Mayor Jason Lee did not improperly influence a decision by Stockton’s economic development department to recoup TV show Wild ’N Out for slow ticket sales for a spring live event, ethics investigators have found.
What’s more, neither Lee nor any other councilmember “had a prohibited financial interest in any contract associated with the event,” investigators found.
Six months after former interim City Manager Steve Colangelo first raised suspicion about Lee’s alleged role in the Wild ’N Out payment — and five months after the City Council narrowly voted to authorize an investigation into Colangelo’s claims — the council is scheduled on Tuesday to discuss the findings of that inquiry, which found that Lee didn’t break state or local law, according to a summary of the investigation linked to the council’s agenda.
“I welcomed transparency and an independent review because I knew the facts mattered,” Lee said in a statement Friday.
He also called the investigation “politically motivated and unsupported by evidence.”
As of Jan. 2, the inquiry had cost the city $50,230, according to a city email attached to Tuesday’s agenda.
The event at the heart of the investigation happened on May 24, when about 7,700 people attended a show by Wild ’N Out’s live tour at the Adventist Health Arena. A regular cast member on Wild ’N Out in 2018 and 2019, Lee performed in the show, and Councilmember Michele Padilla also attended, she confirmed at a Dec. 9 council meeting.
Amid low ticket sales in the run-up to the event, Stockton’s Economic Development Director Tina McCarty approved the use of $50,000 from a city risk fund to offset Wild ’N Out’s losses, encouraging the act not to cancel.
Two months later, Colangelo announced he’d been unaware of the transaction and was investigating whether any city policies or procedures were bypassed.
Colangelo’s announcement pointed to “reports of a sitting Councilmember actively engaged between city staff and event promoters,” without giving specifics.
Alongside councilmembers Mariela Ponce, Michele Padilla and Brando Villapudua, Mayor Christina Fugazi voted to open the investigation into Lee. Both the vice mayor and the Wild ’N Out event’s promoter maintained that Lee hadn’t profited from the show.
In December, the same four councilmembers voted to expand the inquiry to include the question of whether Lee should have recused himself from votes authorizing it.
In a statement Friday, Mayor Christina Fugazi said, “I applaud the diligence we took as a council to protect our City and our residents.”
In addition, Fugazi’s statement highlighted investigators’ findings that while Lee didn’t break any laws, he should have recused himself to avoid even the appearance of a conflict of interest.
No such facts
The investigation focused on whether Lee or other councilmember broke any of three laws in relation to the city’s Wild ’N Out payment. The first law is a California code barring government officials from making public contracts in which they have a financial interest.
The second is a section of Stockton’s city charter saying officials can’t receive commissions, profit or any direct or indirect advantage from dealings with the city, other than lawful compensation.
The third is the Political Reform Act, California’s sweeping government ethics law covering campaign spending, conflicts of interest, lobbying and more. While the City Council didn’t originally ask if the law was violated, investigators included it to be thorough, the investigation summary stated.
According to the summary, neither Lee nor any other councilmember “had a prohibited financial interest in any contract associated with the Event.”
Investigators also found that neither Lee nor any other councilmember violated the city charter section dealing with official compensation, the summary stated.
“At most, Section 1000 prohibits kickbacks or gratuities resulting from or associated with City service; our investigation did not reveal any such facts,” investigators said.
Finally, investigators found that neither Lee nor any other councilmember violated the Political Reform Act by participating in a decision about Wild ’N Out in which they held a financial stake. That includes the Aug. 26 and Dec. 9 votes authorizing the investigation itself, according to the summary.
“No explicit statutory legal requirement compelled any Councilmember, in particular Vice Mayor Lee, to recuse themselves from the decision to investigate this matter,” investigators said. However, “we suggest that to ensure compliance with the Political Reform Act, the subject of an investigation should recuse himself from the decision to authorize an investigation into his own conduct.”
The summary ended with investigators chiding Lee for participating in the votes, as it could’ve led to the appearance of a conflict, if not an actual one.
“We think that any public official that is the subject of an investigation should recuse themselves from discussions and decisions regarding that investigation in order to avoid even the appearance of a conflict of interest and in order to uphold the highest ethical standards,” investigators said.
“We do not think that Vice Mayor Lee met that high standard.”
Council conflict
In a statement Friday, Lee repeated prior claims that the investigation amounted to political retaliation against him for investigating possible misconduct by Colangelo, including in Lee’s role as leader of the City Council’s audit committee.
“Investigations should be tools of accountability, not political weapons,” Lee said. “Using taxpayer dollars to pursue a predetermined narrative is an abuse of authority and a failure of fiscal stewardship.”
Indeed, Colangelo’s announcement of his suspicions, and the later council votes to investigate Lee, happened as conflict between Lee and Fugazi over alleged misconduct by Colangelo escalated in the second half of 2025.
Here’s how the escalation unfolded:
Aug. 5: Colangelo announces he’s investigating Wild ’N Out. In a city press release, the former interim city manager said the inquiry would focus on “how these funds were authorized, who was involved, and whether any City policies or procedures were bypassed.”
Aug. 6: Lee and Councilmember Mario Enriquez call for state investigation of Colangelo over city budget concerns. In a press conference, Lee said Colangelo’s disbanding of the city’s Office of Performance and Data Analytics — and creation of the new Office of Public Transparency, Information and Communication in its place — without spelling it out in the city’s proposed yearly budget was a misrepresentation. The Wild ’N Out investigation was a form of retaliation against Lee for digging into the issue, he said.
Aug. 22: Lee demands $25,000 and public apology over city’s Wild ’N Out claims. In a legal letter posted on Lee’s Facebook page, lawyers for the vice mayor said he wanted a retraction of, and apology for, claims of wrongdoing — and $25,000 in damages — or he’d sue the city. Lee’s lawyers further claimed that as a Black gay man, the blowback Lee was facing for his alleged wrongdoing was more serious than what Colangelo faced for worse alleged misconduct.
Aug. 26: City Council passes Fugazi proposal to hire outside lawyers to investigate Wild ’N out. Mayor Christina Fugazi and Councilmembers Mariela Ponce, Michele Padilla and Brando Villapudua vote in favor of hiring lawyers to investigate “concerns regarding the potential misuse of City funds and the possible involvement of elected official(s) in a manner inconsistent with City or State law.” Lee and Councilmembers Michael Blower and Mario Enriquez voted against hiring investigators.
Dec. 10: City Council expands Wild ’N Out investigation. In a 4-3 decision along the same lines as the Aug. 26 vote, the council broadened the inquiry to include the question of whether Lee should have recused, or withdrawn, himself from the August decision. The rest of the investigation had already been completed, according to a report included in the council meeting agenda.
Tuesday’s discussion of the investigation’s findings is scheduled to happen at the City Council’s 5:30 p.m. meeting at City Hall.
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