A Coronado resident has lodged conflict-of-interest allegations against Mayor John Duncan, claiming he improperly used his public office to benefit his wife’s political and business interests.
In a June 30 letter to City Attorney Johanna Canlas, Mali Hinesley claimed that there have been “unmistakable conflicts of interest” and “deeply troubling appearances of nepotism and cronyism” in Duncan’s exercise of official duties.
The document cites two main issues: Duncan’s failure to recuse himself when his wife, Margaret ‘Peggy’ Duncan, petitioned the City Council for funding on behalf of a nonprofit organization, and his alleged promotion of her school board campaign in a weekly column that appears in the Coronado Eagle and Journal.
The issue shed light on similar concerns surrounding the rest of the dais, with Duncan drawing attention to Council member Amy Steward’s involvement with Emerald Keepers and Council member Carrie Anne Downey’s ties to Safe Harbor. Both council members voted in favor of awarding city grants to the organizations.
The mayor told The Coronado News that Hinesley “doesn’t know what she’s talking about in regards to the law or the rules,” and that her complaint against him has no merit.
Just because I’m mayor doesn’t mean I can’t support people running for office.
Coronado Mayor John Duncan
He also stated that he had no recollection of promoting his wife in his articles. “Just because I’m mayor doesn’t mean I can’t support people running for office,” Duncan added.
The mayor claimed he has had no interactions with Hinesley other than possible occasional responses on social media.
Hinesley gave no comment to The Coronado News. Her LinkedIn account says she is a senior administrative assistant at San Diego Zoo, and in 2023-24 she was listed as the communications person with the Democratic Women’s Club of Coronado. She also appeared to volunteer with PAWS of Coronado as of 2026.
Canlas, the city attorney, declined to comment.
Duncan staying on the dais
In June 2025, Peggy Duncan asked the city for $15,000 on behalf of her nonprofit organization, Friends of Children United Society (FOCUS), during its community grant allocations.
Mayor Duncan remained on the dais and did not recuse himself, and FOCUS did not receive the money it requested due to a lack of support from the council. The organization didn’t request grant funding this year.
FOCUS is an all-volunteer charity that raises funds for at-risk children within San Diego County. Peggy Duncan is currently president of the nonprofit.
Hinesley stated that the mayor also directed questions to his wife from the dais that were “accommodating, unchallenging ‘softball’ inquiries designed to advance rather than scrutinize her request – thereby using his position of authority to provide her with a material advantage before the Council.”
Peggy Duncan didn’t answer on deadline.
According to the City Clerk’s Office, the controversy falls outside local jurisdiction and is governed by the Fair Political Practices Commission (FPPC), the state regulatory body that enforces conflict-of-interest guidelines.
Sherry Yang, the communications director for the FPPC, said she couldn’t speak to this specific scenario but pointed to the FPPC guidelines.
Hinesley’s letter also points to the FPPC, citing California Government Code Section 1090 as the law Duncan allegedly violated.
Government Code Section 1090
Under the code, it seems it wouldn’t apply to Duncan.
The purpose of Section 1090 is to enforce “absolute loyalty and undivided allegiance to the best interests of the [public entity concerned],” and to strike at “actual,” impropriety as well as the “appearance” of a conflict.
Section 1090 establishes that there would be a conflict of interest if the official has a financial interest where they might profit in any way.
“A member of the governing body always has a financial interest in his or her spouse’s source of income,” the code states. Although the document doesn’t specifically define what “financial interest” means, the FPPC stated that it includes direct as well as indirect financial interests.
According to tax forms for FOCUS, neither Peggy Duncan nor any other volunteer receives any sort of income.
Even if FOCUS were to have received a grant from the city, no money from the fund would have financially benefitted the Duncans.
Thus it would appear that the mayor’s failure to recuse himself would not be a violation under FPPC rules.
However, the mayor’s conduct may fall into a gray area under California common law bias doctrines.
Common law bias
Common law bias is a situation where an official’s personal or private interests may be perceived as influencing the official on a matter, according to a definition from lawinsider.com, an AI-generated legal information and guidance site.
In a research article on bias in local government committees, it said that common law bias prohibitions ensure proceedings are conducted fairly and establishes that “other things being equal, a member who had a prejudicial interest was more likely to be biased.”
The standard for this particular reasoning isn’t whether Duncan was in violation of government code, but rather whether an objective member of the public would look at the situation and reasonably suspect favoritism or bias.
A case from 1996, Clark v. City of Hermosa Beach, has served as a landmark case for common law bias.
In this case, a council member voted on a building permit that would impact his neighbor’s ocean view. There was no exchange of money or any statutory law violated.
However, the California Court of Appeal threw out the council’s vote on the basis that a public hearing must not only be fair, it must appear fair.
In Duncan’s case, he could have potentially violated common law duty to provide an impartial and unbiased hearing by participating in an action that might have given his wife’s nonprofit money.
In general, it is a very good idea to avoid the appearance of impropriety … The hearing occurred and I participated, and I don’t believe I have any conflict.
Coronado Mayor John Duncan
“In general, it is a very good idea to avoid the appearance of impropriety,” Duncan said. “The hearing occurred and I participated, and I don’t believe I have any conflict.”
Council member Mark Fleming told The Coronado News that even if a council member feels that they can be fair and unbiased, they should be going to great lengths to avoid the appearance of impropriety.
“This should also apply to any council member that sits on the board of an organization requesting grant money or has a close relative that works for an organization that is requesting grant money,” Fleming said.
Hinesley also claimed that the mayor has “exploited his elected office, his public platform and the city’s taxpayer-funded resources to benefit his wife’s candidacy,” and referenced the Mayor’s Corner, a regular opinion column in the Eagle.
Peggy Duncan is currently running for a seat on the board of the Coronado Unified School District which will be on the ballot in the Nov. 3 general election.
Duncan mentioned his wife in opinion articles referenced in the complaint, but didn’t seem to promote her run for school board.
In the April 16 edition, the mayor wrote that he and his wife were excited to sponsor a concert with the Rotary Club of Coronado, and in the June 18 column, Duncan thanked FOCUS, alongside the Coronado Community Foundation, as a sponsor of Concerts in the Park – a show that happens once a week at Spreckels Park during the summer.
The Mayor’s Corner is not financed by the city or taxpayers dollars.
Hinesley’s complaint letter also said that Duncan “conferred upon his wife the credibility, gravitas and public visibility of his official mayoral endorsement – an endorsement paid for, in effect, by the constituents of Coronado.”
The mayor said he doesn’t think he’s officially endorsed his wife’s campaign anywhere, but “I will officially endorse it now.”
“I’m not going to divorce her so she can run for school board,” Duncan said.
Other gray areas
However, Duncan brought up other instances within the Coronado City Council where there might be ethical gray areas — specifically during a June 16 City Council meeting where the council appropriated over a million dollars to nonprofit organizations through its community grant fund.
“If you take Council member Carrie Downey, she votes for grants to Safe Harbor. Her daughter actually works there, and she doesn’t seem to believe that’s a conflict, so that’s her choice,” Duncan explained.
Downey did not respond on deadline, but made a disclaimer at the meeting that her daughter is 27 and supports herself financially.
“Under my reading of the rules, I don’t have a conflict of interest,” Downey said at the meeting.
Duncan also brought up that during the meeting, Fleming called out Steward for voting on Emerald Keepers because she created the nonprofit, even though she is not a part of the organization anymore.
Fleming told The Coronado News that he firmly believed Steward should have recused herself. He explained that one thing all council members are taught upon being elected to their seat is to avoid “even the appearance of impropriety.”
Downey clarified at the meeting that a conflict of the interest issue would be if there were financial gain in the vote the member is taking.
“Ms. Steward is not on the board, she is not a member of the policy group, she left,” Downey explained on June 16.
In my mind, Council member Steward’s relationship with Emerald Keepers is a textbook example of the appearance of impropriety.
Council member Mark Fleming
“Council member Steward was the founding member of Emerald Keepers and regularly praises and mentions Emerald Keepers, including at the dais,” Fleming said. “In my mind, Council member Steward’s relationship with Emerald Keepers is a textbook example of the appearance of impropriety.”
Steward told The Coronado News that she stepped down from the organization over 19 months ago and actually recused herself from voting on the nonprofit’s grant funding last year.
“After nearly two years of separation, and having no financial interest in the organization, I concluded it was appropriate to participate in this year’s funding decision in accordance with my responsibilities as a council member,” Steward told The Coronado News.
Fleming voted to not support Emerald Keepers at the meeting.
Hinesley’s letter requested a referral to the special counsel for a “full and independent investigation.” Offices of the San Diego County district attorney and the California attorney general were both copied on the letter.
