A state oversight board has opened an investigation into Rancho Mirage Councilman Steve Downs after an anonymous complaint alleged he had failed to report continuing work with a real estate company now run by his son.
The California Fair Political Practices Commission, which began its investigation in April, has not made any determinations of wrongdoing by Downs. But it did choose to open a case, signaling it found the allegations worthy of investigation. In recent years, the agency dismissed half or more of the complaints and referrals it received without even opening a case.
The commission received an anonymous complaint questioning whether Downs is still active in real estate, despite saying he’s retired, and alleging he didn’t report all of his financial ties to his son’s company.
Downs, who’s served on the city council since late 2021, says the complaint’s allegations are baseless and that he’s been retired from real estate since the end of 2022. He believes the issue is likely tied to his son’s real estate business, known as The Downs Team, having ongoing permission to use Downs’ name, image and likeness on its website.
“As far as I know, I have completed my Form 700s (economic interest statements) correctly,” Downs told The Desert Sun. “I believe that this is simply a situation where I need to clear up some potential confusion.”
An FPPC official told Downs in April that it launched its investigation into “potential violations of the economic interests disclosure provisions of the Political Reform Act,” according to the complaint and related documents the commission provided to The Desert Sun.
The state commission annually receives more than 2,000 complaints and referrals, opening investigations in response to about half of those submitted in 2024 and 2025, according to FPPC statistics. In 2025, the commission closed 1,268 cases, most of which (741) resulted in warning letters, while a smaller portion (97) resulted in financial penalties. The rest ended with no penalty.
Complaint questions Downs’ real estate ties
Most of the complaint filed with the FPPC focuses on whether Downs remains active in real estate. His biography on the city’s website states he’s “now retired from his real estate business,” which he ran for two decades with his wife Geri, who’s also a real estate agent.
The complaint cites economic interest statements filed by Downs in 2023 and 2024, which each list the “Steve & Geri Corp” — a company formed by Downs and his wife — as an investment that generated between $10,000 and $100,000 in gross income.
The Steve & Geri Corp was dissolved in 2024, per filings with the California Secretary of State’s office. But the complaint notes Downs and his wife are still listed as team members on The Downs Team’s website, which also includes quotes from clients praising Steve and Geri as real estate agents.
Downs says he and his wife are promoted on the website through a sales agreement with his son, Sean Downs — one of two main agents for The Downs Team — for some of their company’s assets. As part of that sale finalized in 2023, Steve Downs agreed for his name, image, and likeness to be used in “all marketing activities” for The Downs Team, according to a copy of the agreement Downs provided to The Desert Sun.
“If he feels my photo in his marketing helps him, that’s fine with me,” Downs said.
As a result of that sale, Downs said, his son paid for the assets over time. The payments were made to the Steve & Geri Corp., which is why they were listed as generating income in 2023 and 2024, according to Downs.
After dissolving his real estate company, Downs received direct payments from his son as part of the sale proceeds in 2025, according to a copy of his most recent economic interest form obtained by The Desert Sun.
The complaint also includes screenshots of a Coldwell Banker Realty website that shows Downs as an active Realtor, though the listing agent for the properties included is “The Downs Team.” Downs is no longer listed on Coldwell Banker Realty’s database, and he said his name was only included to fulfill the marketing obligations to his son.
Downs said he plans to allow his real estate license to expire in October when it’s up for renewal, and his wife plans to do the same when her license is slated to expire in November.
It’s unclear how long the FPPC’s investigation could last. Some cases are closed within a few weeks or months of being opened, while others have remained open for over a year before a ruling was issued.
Tom Coulter covers local government and politics for The Desert Sun. Reach him at thomas.coulter@desertsun.com.
This article originally appeared on Palm Springs Desert Sun: Rancho Mirage council member faces state investigation of finances
Reporting by Tom Coulter, Palm Springs Desert Sun / Palm Springs Desert Sun
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By Tom Coulter, Palm Springs Desert Sun | USA TODAY Network
