LOS ANGELES–(BUSINESS WIRE)–President and Chief Executive Officer of Cathay General Bancorp and Cathay Bank, Chang M. Liu, has been appointed by the Federal Reserve Bank of San Francisco to serve as a member on its Los Angeles Branch Board of Directors. Moreover, Mr. Liu has been elected as a California member director by the Federal Home Loan Bank of San Francisco to serve a four-year term between January 1, 2023, and December 31, 2026.

The Federal Reserve Bank of San Francisco represents the Twelfth District of the Federal Reserve System—the central bank of the United States. The Twelfth District comprises nine western states—Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington—plus the Northern Mariana Islands, American Samoa, and Guam.

The Federal Home Loan Bank of San Francisco is a cooperatively owned wholesale bank helping local lenders in Arizona, California, and Nevada build strong communities, create opportunities, and improve lives.

“I am incredibly honored and excited to take on both of these new roles. I look forward to working with the San Francisco Fed and FHLBank San Francisco to help create new opportunities in the region and build strong communities,” said Mr. Liu

In addition to serving as a board member on the Board of Directors of Cathay Bank and its holding company Cathay General Bancorp, Mr. Liu’s directorship extends to serving on the board of directors of the Western Bankers Association, the Board of Advisors for the UCLA Anderson Forecast, the American Cancer Society’s CEOs Against Cancer group, and the Foothill Family Service.

About Cathay Bank

Cathay Bank, a subsidiary of Cathay General Bancorp (Nasdaq: CATY), opened its doors in 1962 in Los Angeles to serve the growing immigrant community. Today, we operate over 60 branches across the US, with a branch in Hong Kong, and representative offices in Beijing, Shanghai, and Taipei. While much has changed over six decades, our pursuit and dedication has only grown stronger. Then, now, and always, we go above and beyond, so you can, too. Learn more at cathaybank.com. FDIC insurance coverage is limited to deposit accounts at Cathay Bank’s US domestic branch locations.

The post Chang M. Liu Appointed to the Los Angeles Department Board of Federal Reserve Financial institution of San Francisco and Elected as California Member Director of the Federal Dwelling Mortgage Financial institution of San Francisco appeared first on Los Gatos News And Events.

Ex-San Francisco DPW Director Sentenced to Seven Years in Corruption Case | Engineering News Record

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Two weeks ago, I reported on the decision of the San Francisco Election Commission to not renew the term of John Arntz, by a 4-2 vote, who is completing his fourth 5-year stint as Director of the San Francisco Department of Elections. The one and only reason given by the Commissioners for not renewing his contract was that Arntz did not meet the diversity goals set forth in Mayor London Breed’s racial equity plan, and the Commission wanted to open the process to other candidates in order to fulfill those goals . John Arntz is a straight white male.

The outcry from San Francisco and across the nation was diluvian in nature. Conservative media had a field day poking fun at the Liberal bastion that is San Francisco, as the city by the bay seemed to be plumbing new depths of Woke identity politics. More telling though was the criticism emanating from Left-leaning circles in San Francisco and beyond.

Mayor London Breed herself, whose racial equity plan was cited as rationale for not reappointing the Director said that Arntz:

“Has served San Francisco with integrity, professionalism and has stayed completely independent. He’s remained impartial and has avoided getting caught up in the web of city politics, which is what we are seeing now as a result of this unnecessary vote. Rather than working on key issues to recover and rebuild our city, this is a good example of unfair politicization of a key part of our government that is working well for the voters of this city.”

California Liberal icon State Senator Scott Weiner (D-San Francisco) tweeted:

“When John Arntz took over as Director of Elections, the Department was a mess — remember ballot box tops floating in the bay? Arntz turned it around. It’s now one of our best run departments. Why on earth is the Elections Commission moving to dump this strong elections leader?”

The position of the San Francisco Board of Supervisors—the elected body responsible for funding the San Francisco Election Commission—was also critical of the racially motivated decision to sack Mr. Arntz.

District 3 Supervisor Aaron Peskin called the move to sack Arntz “Bananas.” More pointedly, Peskin went on to proclaim, “The remarks from Commissioners are ripe for a discrimination lawsuit.”

Yet, the San Francisco Board of Supervisors did not just offer critical commentary, they took it one step further. The San Francisco Elections Commission simply does not have a set budget. Chris Jerdonek, the President of the Commission was informed that the Mayor’s office and the Board of Supervisors would just not provide the estimated $50,000 necessary for the Election Commission to hire a firm to conduct a search for a new Elections Director. The Board of Supervisors was unanimous in their decision. This maneuver in and of itself did not sit well in some circles. Several government advocacy groups confronted the Board of Supervisors with accusations that withholding funds from the Commission was tantamount to interfering in their autonomy which was set in their charter when the Commission was created in 2002.

Jerdonek wrote in an email that not providing funding for a Director’s search would be “undermining” the Commission’s oversight mandate and prevent the Commission from hiring an Elections Director—a responsibility specifically enumerated in that charter.

Election Commissioner Cynthia Dai said:

“Having to beg for the money every five years — it certainly undermines our independence.”

The last time the Commission was funded for and employed a search firm for the Director’s position was in fact twenty years ago when John Arntz was first appointed.

Commissioners said the fact they don’t have funding “highlights a weakness” in the charter. Perhaps so, but arguably the fact that the Commission would relieve a highly qualified and respected public servant of his job simply because he does not check any of the diversity boxes would highlight that the body ought not have any autonomy in the first place.

There are those who have speculated that the real motivation behind the decision to not renew Arntz was based on his apparent recalcitrance to seek out and employ an open-source voting system for San Francisco elections. Open-source voting allows any member of the public to view the code used to ultimately tabulate ballots. And even if Arntz had been slow to embrace this technology for San Francisco, this appears as nothing more than a red herring in order to refocus the public’s view away from the Commission’s blatant race-based motivations.

In a meeting of the Commission on Monday, it became apparent that a combination of the public outcry backing reappointment of Arntz, the risk of a time consuming and costly discrimination lawsuit, and a lack of funding to conduct a search for a new director, has saved John Arntz from the chopping block. The Commission passed a resolution to consider in January renewing Arntz to a new 5-year term as Elections Director, effectively backtracking on an effort to replace him. Language coming from both the Election Commission meeting on Monday and then the Supervisors’ meeting on Tuesday reflected a need and desire to work together to satisfy funding needs of the Commission when they should arise in the future.

Election Commissioner Lucy Bernholz perhaps had the most insightful and meaningful comment at their meeting when she said at Monday’s meeting:

“It is incumbent upon this commission to rectify the damage done by the previous decision as quickly as possible. Not only have we inflicted damage on the department, we’ve made ourselves an unreliable, untrustworthy body, and until we fix that, all of the work we’ve done on other issues is out the window.”

John Arntz has indicated that he will accept a new five-year term as elections director when it is officially offered to him.

In reporting the actions and motivations behind the Election Commission’s shockingly embarrassing announcement recently, I had related my love for the literary tool known as alliteration. I then ascribed to the Commission and those of their ilk the alliterative moniker Loony Left—a term reserved for the most radical of Progressives. In spite of their apparently coerced policy reversal, the San Francisco Election Commission can without a doubt still be considered loony. Yet, their recognition of a looming legal liability and lack of largesse from the Board of Supervisors, has led to a brief encounter with logic and level-headedness. Time will tell just how long that lasts.

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SAN FRANCISCO, Nov. 16, 2022 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of San Francisco today announced the results of its 2022 director elections.

FHLBank San Francisco’s members elected Gary L. Trujillo to a nonmember independent director position. Mr. Trujillo is the founder and serves as president and CEO of Southwest Harvard Group, LLC, at an investment firm and family office in Phoenix, Arizona. He is also executive chairman of the Standard Printing Company, Inc.

Mr. Trujillo has been a serial entrepreneur for over 30 years with significant experience as a CEO, financier, founder, operator, and independent corporate board member, including serving on three publicly traded company boards and multiple privately owned company boards in the technology, healthcare , auto, real estate, and financial services industries. Mr. Trujillo is also recognized nationally as a dedicated community leader, having co-founded the Be A Leader Foundation in 2002, an education-focused nonprofit serving more than 14,000 students per year.

The Bank’s California members elected Chang M. Liu as a California member director. Mr. Liu is president and CEO of Cathay Bank and its holding company Cathay General Bancorp, where he serves on both entities’ board of directors. Mr. Liu has over 31 years of experience in the financial services industry. Mr. Liu joined Cathay Bank in 2014 as senior vice president and assistant chief lending officer. He has held various leadership positions of increasing responsibilities, including executive vice president and chief lending officer in 2016 and chief operating officer in 2018.

Before being named president, Mr. Liu was responsible for managing and overseeing all commercial and real estate lending, business development, and various operations. Mr. Liu also serves as a member of the Western Bankers Association board of directors and the American Cancer Society’s CEOs Against Cancer group, on the board of advisors for the UCLA Anderson Forecast, and serves on the board of directors of Foothill Family Service.

The Bank’s Arizona members re-elected Brian M. Riley as an Arizona member director. Mr. Riley is a director for the Oxford Life Insurance Company in Phoenix, Arizona.

Each of these three positions has a four-year term beginning January 1, 2023, and ending December 31, 2026.

Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco is a member-driven cooperative helping local lenders in Arizona, California, and Nevada build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions-commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions-foster homeownership, expand access to quality housing, seed or sustain small businesses, and revitalize whole neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant, equitable, and resilient.

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/8e480285-232a-4910-b4a7-15ee401363ce

https://www.globenewswire.com/NewsRoom/AttachmentNg/b74b0418-d09e-4709-b4a4-b013aa936112

Contact: Mary Long, (415) 572-6717 longm@fhlbsf.com

Copyright 2022 GlobeNewswire, Inc.

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SAN FRANCISCO – Former San Francisco City Hall public official Mohammed Nuru agreed in a plea agreement filed today to plead guilty to honest services wire fraud, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Internal Revenue Service–Criminal Investigation Special Agent in Charge Mark H. Pearson.  

Today’s development follows the January 15, 2020, 79-page federal complaint filed against then San Francisco Department of Public Works (DPW) Director Mohammed Nuru charging him with public corruption and describing a long-running scheme involving multiple bribes and kickbacks during his tenure as DPW’s Director.  Nuru, 59, of San Francisco, served as DPW’s Director from 2011 until charges were brought against him in 2020.  Nuru was also charged in a second federal complaint filed on January 28, 2020, with lying to a federal agent in the course of the San Francisco City Hall corruption investigation.  Today, in anticipation of entering his plea agreement resolving his cases, Nuru was arraigned today on an information – a charging document – that charges him with his sweeping scheme to defraud the San Francisco public of its right to his honest services in violation of 18 U.S.C. §§ 1343 and 1346.

“Mohammed Nuru admits to a staggering amount of public corruption in his plea agreement,” said Acting United States Attorney Stephanie M. Hinds.  “For years, Nuru held a powerful and well-paid public leadership position at San Francisco City Hall, but instead of serving the public, Nuru served himself.  He took continuous bribes from the contractors, developers, and entities he regulated.  He now faces a prison sentence for enriching himself at the expense of the public as he sat in high office.  Federal authorities will investigate public corruption wherever it leads in San Francisco and throughout the district.”  

“Today’s announcement, while significant, is by no means the end of the FBI’s investigation into the corrupt conduct we have uncovered in San Francisco city government,”  said FBI Special Agent in Charge D. Fair.  “We will continue to hold accountable those who seek to personally benefit by corrupting the fair administration of public business and we will persist in our commitment to protect the integrity of the institutions that serve the people of San Francisco.”

“Our communities place great trust and responsibility in our public figures.  Mohammed Nuru ultimately betrayed this trust when he abused his power to defraud the City and County of San Francisco and its people,” said IRS Criminal Investigation Special Agent in Charge Mark H. Pearson.  “We will not tolerate public corruption and will hold perpetrators accountable for their actions.  Today’s guilty plea is a direct result of the hard work and dedication of IRS Criminal Investigation and our law enforcement partners towards obtaining justice.”

Nuru signed today’s plea agreement and the agreement has been filed with the United States District Court in preparation for Nuru’s upcoming appearance to enter his guilty plea orally.  As the plea agreement outlines, before Nuru was appointed Director of DPW in 2011 he became DPW’s Deputy Director of Operations in 2000.  The Deputy Director of Operations is DPW’s second most senior position, behind only the Director.  In 2014, Nuru was also appointed to the Board of the Transbay Joint Powers Authority (TJPA) and eventually served as its Chair.  As Deputy Director and eventually Director of DPW, and as Chair of the TJPA, Nuru exercised great influence over San Francisco (the City) business and policy, including public contracts, permits, and construction projects.  His power and influence extended beyond DPW’s jurisdiction to numerous other City departments and agencies, making him one of the most powerful public officials in the City.

Nuru admits in his plea agreement to a spectrum of public corruption involving bribery and kickbacks he received while in DPW leadership.  His admissions are summarized below:

Walter Wong:

In his plea agreement, Nuru admits he received a stream of bribes from Walter Wong.  Wong did business in the City through Walter Wong Construction, among other businesses. In exchange for Wong’s bribes, Nuru helped Wong secure City contracts.  Sometimes Nuru provided Wong with confidential insider City information on competitors’ bids or specifications.  At other times Nuru allowed Wong to structure the requirements for the City’s Request for Proposals (RFP) for projects ahead of time, to tailor their requirements to ensure that Wong’s company would be the most-qualified bidder.  Nuru also helped Wong expedite permit approvals.

Nuru admits in his plea agreement that his “corrupt relationship” with Wong began in approximately 2008 when Nuru was the Deputy Director for Operations at DPW.  Wong installed a gate for free at Nuru’s San Francisco home in exchange for future business with DPW and the City. Wong continued to perform construction services for free, or nearly free, at Nuru’s San Francisco home and later primarily at Nuru’s vacation ranch property in Colusa County. 

Nuru admits that, in exchange for Wong providing construction and other things of value, he exercised his official influence and took actions to benefit Wong.  In one example outlined in the plea agreement, Nuru used DPW’s emergency contract process, which did not require a public bidding process, to direct construction work to Walter Wong Construction on a navigation center located at 1515 South Van Ness Street and on the Jelani House (a housing shelter), resulting in City payments to Wong’s company during fiscal years 2017-2018 and 2019-2020.  In another example, Nuru used his position and official influence to direct DPW, the Market Street Association, and the San Francisco Public Utilities Commission to purchase Christmas lights from one of Wong’s businesses, regularly leading to tens of thousands of dollars’ worth of purchases.

Nuru further admits in his plea agreement that:

 o between approximately 2008 and January 2020, Wong provided in excess of $260,000 in labor and materials for work on Nuru’s San Francisco home and Colusa County ranch.
 o Wong paid for home furnishings for Nuru, including a chandelier, kitchen appliances, and furniture.
 o Wong paid for Nuru to travel to China multiple times and to South America on one occasion, which included reimbursing Nuru in cash for the cost of international flights.  Wong paid for Nuru and Sandra Zuniga, his girlfriend at the time, to accompany Nuru to South America and paid for their stay at the Ritz-Carlton in Santiago, Chile. 
 o On multiple occasions, Wong handed Nuru envelopes of cash, often as much as $5,000 at a time. 

Walter Wong was charged in June 2020 with conspiracy to defraud the public of its right to honest services and with conspiracy to engage in money laundering, both involving Nuru.  Wong entered a guilty plea and agreed to cooperate with the government’s San Francisco City Hall corruption investigation.

Multimillion-Dollar Mixed-Use Development:

Nuru admits he received free travel, gifts, and benefits, for working with Walter Wong to use Nuru’s official position to benefit a billionaire developer from China, referred to as DEVELOPER 1 in the plea agreement, who was developing a large multimillion-dollar mixed use project in San Francisco.  Wong, who worked as a consultant for DEVELOPER 1 on several of his large developments in the City, introduced Nuru to DEVELOPER 1.  Nuru met with Wong, another Department of Building Inspection official, DEVELOPER 1, and others over dinner on multiple occasions and discussed DEVELOPER 1’s projects.  Nuru never paid for the dinners.  Nuru admits that he also met with DEVELOPER 1 multiple times in China.  According to Nuru, DEVELOPER 1 owned multiple hotels in China, including five-star hotels.  Nuru received gifts from him, including free hotel stays. 

Nuru admits that, in exchange, he used his official position and influence to help DEVELOPER 1 obtain necessary approvals for his large, multimillion-dollar mixed-use project.  Nuru admits, among other things, that he told Sandra Zuniga that DEVELOPER 1 was upset because he had spent large amounts of money and had provided “a whole list of things” that Nuru said “we need to get done[.]”  Nuru admits that whenever DEVELOPER 1 or one of his employees notified him of an issue, Nuru directed one of his DPW managers to solve the problem and expedite the process.  Nuru also used his official influence with other City officials to solve problems encountered by DEVELOPER 1 that fell within the other City officials’ area of responsibility.

Recology:

Recology Inc. is a waste management company headquartered in San Francisco and the parent company of Sunset Scavenger Company, Golden Gate Disposal & Recycling Company, and Recology San Francisco (referred to as the “SF Recology Group” and, collectively with Recology Inc., as “Recology”).  Recology Inc. provided refuse collection and disposal services for residential and commercial customers in the City, as well as for the City itself, through the SF Recology Group.

As Director of DPW, Nuru presided over the process governing the rates Recology could charge in San Francisco.  Nuru recommended to the Rate Board whether to approve any rate increase for Recology.  Nuru also influenced “tipping fee” rates that Recology charged DPW when DPW dumped materials at a Recology facility, Sustainable Crushing.  Nuru could approve, deny, or affect operational changes that Recology wanted to make in San Francisco which, Nuru admits in his plea agreement, gave him the ability in his official capacity to affect Recology’s business. 

Nuru admits he accepted numerous valuable items from Recology and used his official position to help Recology’s business.  Among other things, Recology paid for soil to be delivered to Nuru’s ranch property in Colusa County, for expensive meals for Nuru, and for a two-night trip to New York on the City’s business in December 2017. 

Nuru admits that he also requested Recology to pay, and Recology did pay, hundreds of thousands of dollars to a San Francisco non-profit (Non-Profit A) in the form of donations for a cleaning program known as Giant Sweep.  Non-Profit A would then donate the payments to another non-profit that administered funds for the Giant Sweep program.  Nuru admitted he could then access the funds for a variety of other uses—including procuring goods and services for staff meals and appreciation events, volunteer programs, merchandise, community support, and events from specific vendors—in addition to their originally designated purpose for Giant Sweep.  From 2014 through the end of 2019, Recology donated approximately $150,000 per year for Giant Sweep, in $30,000 installments—for a total of approximately $750,000.

Nuru also admits he requested Recology hire his son.  Recology hired him and paid him, between 2015 and 2017, approximately $17,000.  Recology also funded a paid internship for Nuru’s son at a different non-profit organization and, between 2017 and 2018, paid approximately $23,600 to fund the paid internship.

Nuru admits he requested that Recology fund his DPW holiday parties.  Between 2016 and 2019, Recology paid approximately $60,000 for that purpose.  Recology made the payments through the Lefty O’Doul’s Foundation, a non-profit organization run by Nick Bovis. 

Two former Recology executives, Paul F. Giusti and John F. Porter, have been charged in this investigation.  Giusti was charged in November 2020, and Porter was charged in April 2021.  Both men were charged with bribery of Nuru and money laundering involving Nuru.  Giusti pleaded guilty in August 2021 to engaging in a conspiracy to bribe Nuru and is cooperating with the government’s San Francisco City Hall corruption investigation.  Porter’s charges remain pending.

The three subsidiaries of Recology, Inc. now have new leadership and have implemented enhanced corporate compliance programs to end any corrupt practices.  Recology resolved corporate charges brought against them through a deferred prosecution agreement with the government.  Pursuant to the agreement, the companies paid a $36 million fine, agreed to implement enhanced corporate compliance programs, and agreed to fully cooperate in the government’s San Francisco City Hall corruption investigation.

Nick Bovis:

Nuru admits in his plea agreement that he received multiple bribes from restaurateur Nick Bovis.  The bribes were in exchange for Nuru using his official acts and influence to assist, or to promise to assist, in public business opportunities with the City.  The bribes included free meals and entertainment for Nuru, his family, and associates at restaurants owned by Bovis and thousands of dollars in free appliances for Nuru’s ranch property.  Nuru also anticipated and expected tens of thousands of dollars in kickbacks from proceeds that Bovis would earn from the City concessions or contracts awarded due to Nuru’s official acts or influence to assist Bovis.

In one plea agreement example, Nuru admits he helped Bovis in a plan to win a bid for a restaurant lease at San Francisco International Airport (SFO).  Bovis expected to make money from the SFO concession, and Nuru expected Bovis would continue to provide bribes in exchange for Nuru’s help with the airport concession process and other public contracts.

In another example, Nuru admits he gave Bovis a price list of appliances that Nuru wanted for his ranch in or about 2018, a time when Bovis was seeking Nuru’s assistance with the SFO concession and other City business opportunities.  Bovis purchased the appliances and brought them to Nuru’s ranch.  Nuru accepted them as an exchange for his continued official acts and influence to help Bovis, and he did not pay for them.  The appliances were worth approximately $22,000.

Nick Bovis pleaded guilty in May 2020 to wire fraud and honest services wire fraud involving Nuru and agreed to cooperate in the government’s San Francisco City Hall corruption investigation. 

Florence Kong:

Nuru admits in his plea agreement that he accepted a gold Rolex watch from Bay Area businesswoman Florence Kong.  The watch was valued at approximately $36,550.  Nuru admits he used his official position to benefit Kong’s businesses and did so in exchange for the Rolex and for cash, free meals, and other items of value provided by Kong, including an iron fence that Kong installed at Nuru’s ranch.  In one example, Nuru states that he used his official position to direct business to SFR Recovery Inc., a recycling business that Kong owned. 

Florence Kong was charged and pleaded guilty to bribery of Nuru and to making false statements to FBI agents during the investigation.  She was sentenced in February 2021 to one year and one day in prison and ordered to pay a $95,000 fine.

Balmore Hernandez, William Gilmartin, & Alan Varela:

Nuru admits in his plea agreement that between 2013 and January 2020 he accepted a series of bribes and kickbacks from Balmore Hernandez, William Gilmartin, and Alan Varela in exchange for past and future official actions benefitting their City business ventures.  Nuru received free meals and entertainment, cash, and free labor and materials for his ranch – including a brand new tractor.  Nuru also expected to receive a portion of the proceeds  from anticipated City contracts awarded to them or their associates as a result of Nuru’s official acts or influence on their behalf.

In one example, Nuru admitted he helped Varela and Gilmartin’s joint venture win a DPW supply contract and a related lease with the Port of San Francisco (the “Port”) to operate an asphalt recycling plant and a concrete plant on the Port’s land.  In the early stages, Nuru helped the group prepare their proposal by providing them inside non-public information on the project.  The non-public information was delivered to Hernandez through emails or phone calls or through regular dinning meetings in San Mateo with Gilmartin and Hernandez.  Gilmartin paid approximately $20,000 for the dinners, with the parties agreeing that Nuru’s dinners were worth approximately $7,000.

Nuru admits that Gilmartin promised him $100,000 for his official assistance to pressure a large developer to select one of Gilmartin and Varela’s joint-venture partners for a large project in San Francisco.  The large developer complied with Nuru’s request because, as Nuru admits, the large developer needed DPW approvals for the project and for other large developments in the City.

Nuru admits that he received approximately $25,000 in cash from Hernandez and received approximately $250,000 in free labor and materials from Hernandez at Nuru’s ranch. 

Nuru also requested the group give him a tractor.  In February 2019, Alan Varela delivered a new tractor to the Nuru’s ranch, a benefit valued at approximately $20,000.

Balmore Hernandez was also charged in connection with this investigation.  He pleaded guilty to honest services wire fraud in October 2020 and agreed to cooperate in the government’s San Francisco City Hall corruption investigation. 

William Gilmartin was charged in connection with this investigation.  He pleaded guilty to conspiracy to commit honest services wire fraud in May 2021 and agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
Alan Varela was charged in connection with this investigation.  He pleaded guilty to conspiracy to commit honest services wire fraud and was sentenced in September 2021 to two years in prison and ordered to pay a $127,000 fine. 

Sandra Zuniga Money Laundering:

Nuru admits that in or about 2010 he bought a 10-acre lot in Colusa County and developed it into his vacation ranch with free labor and materials provided by City contractors seeking favors from him. Nuru admits he also used the proceeds of his crimes to pay the mortgage.  To conceal and launder the source of the proceeds, Nuru states he funneled the money through Sandra Zuniga who made the monthly $1,000 mortgage payments out of her checking account. Nuru admits that from 2014 through August 2017, he typically gave Zuniga approximately $1,000 per month, generally in cash, and she deposited the money into her bank account.  She then made the $1,000 payment towards the mortgage.  In this way, Zuniga paid at least $42,000 of the mortgage.

Zuniga was charged and pleaded guilty in March 2021 to engaging in a conspiracy to launder money with Nuru.  She agreed to cooperate in the government’s San Francisco City Hall corruption investigation.

Other Bribes:

Nuru admits in his plea agreement that around 2018 he accepted a bribe of $20,000 in cash from a former government employee in exchange for Nuru using his position to help a particular person obtain an engineering job with the City. Nuru received the cash in three installments of $10,000, $5,000, and $5,000.  Ultimately, the individual failed to maintain employment with the City.

Nuru also admits he accepted cash bribes from a prominent developer in San Francisco.  The cash bribes usually consisted of a few thousand dollars.  The developer would later call Nuru when he had any problems with DPW-related approvals or other matters that Nuru could help resolve. 

In his plea agreement, Nuru admits guilt and agrees to plead guilty to one count of honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346.  If convicted of the count, he faces a maximum penalty of 20 years in prison and a fine of $250,000 or not more than the greater of twice the gross gain or twice the gross loss of the crime. 

The government indicates in the plea agreement its intent to ask for up to a 108 month (9 year) sentence for Nuru.  However, any sentence imposed by the court will follow only after the court’s consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Today, in a procedural step towards orally entering his guilty plea, Nuru was arraigned and pleaded not guilty before United States Chief Magistrate Judge Joseph C. Spero to an information charging him with a count of honest services wire fraud in violation of 18 U.S.C. §§ 1343 and 1346. 

Nuru’s next appearance is currently set before United States District Judge Susan Illston on January 14, 2022, at which he is currently scheduled to formally enter his guilty plea pursuant to his plea agreement.  Nuru remains out of custody on bond.
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This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco.  To date, 12 individuals and three corporate entities have been charged, including two high-ranking San Francisco public officials, Nuru and Harlan Kelly.  Multiple city contractors and facilitators have been charged.  Allegations in the complaint filed against Harlan Kelly assert that he received thousands of dollars in airfare, meals, jewelry, and travel expenses, along with repair work on his house.   

The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office.  The case is being investigated by the FBI and IRS-Criminal Investigation. 

The post Former San Francisco Public Works Director Admits To String Of Briberies And Corruption Throughout Years In Workplace | USAO-NDCA appeared first on Los Gatos News And Events.

SAN FRANCISCO – Former San Francisco City Hall public official Mohammed Colin Nuru was sentenced today to 84 months (7 years) in federal prison for honest services wire fraud, announced United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Sean Ragan, and Internal Revenue Service—Criminal Investigation Special Agent in Charge Mark H. Pearson. The sentence was handed down by United States District Judge William H. Orrick.

Nuru, 59, was first arrested on January 17, 2020, following the filing of a 79-page federal criminal complaint against him. Nuru was then the Director of the San Francisco Department of Public Works (DPW) and had held that position since 2011, when he was elevated from the DPW Deputy Director of Operations position that he had held since 2000. The complaint charged Nuru with honest services Fraud in public office, alleging a long-running scheme of bribes and kickbacks during his DPW tenure. A second federal complaint filed January 28, 2020, charged Nuru for lying to a federal agent following his arrest.

On January 6, 2022, Nuru pleaded guilty to the charge of defrauding the public of its right to his honest services, in violation of 18 USC §§ 1343 and 1346.

“Mohammed Nuru’s prison sentence is punishment for more than a decade of public corruption,” said United States Attorney Stephanie Hinds. “As San Francisco’s Department of Public Works Deputy Director and then its Director, Nuru owed the people of San Francisco a duty of faithful, honest services. Instead, he betrayed that duty. For at least twelve years, Nuru shook down contractors eager for city business, trading his authority and influence for millions of dollars in cash, construction work, travel, meals, and gifts. His abhorrent conduct erodes the public’s trust in its government, and this case demonstrates the justice system can and will punish corrupt public officials.”

“Mohammed Nuru’s long-running scheme of bribes and kickbacks ultimately earned him seven years in prison. Today’s sentence sends a clear message that public officials who abuse their power for personal gain will be punished,” said FBI Special Agent in Charge Sean Ragan. “The FBI’s investigation into this case is not over. We will continue to unravel and disrupt corruption within the city of San Francisco.”

“Corruption happens in the shadows, often with the help of professional enablers who perpetuate fraudulent schemes and the corrupt who launder and hide their illicit wealth. The Oakland Field Office of IRS Criminal Investigation has dedicated resources to unraveling the truth behind the extensive web of corruption, which Mohammed Nuru presided over, during his tenure leading the San Francisco Department of Public Works,” said IRS Criminal Investigation Special Agent in Charge Mark H Pearson. “Today’s sentencing is a true reflection of the collaborative commitment between IRS-CI, the FBI, and the USAO-NDCA to protect public welfare, the people in our communities, and bring justice to light.”

In his plea agreement, Nuru admits to a pervasive corruption scheme involving bribery, kickbacks and fraud that spanned at least his last 12 years in office. During that time, Nuru sat not only as Deputy Director of Operations and then Director at DPW but also as a member of the Board of the Transbay Joint Powers Authority (TJPA). Appointed to the TJPA board in 2014, Nuru eventually became his Chair. From these positions, Nuru exercised substantial power and influence over San Francisco (the City) business and policy, including its public contracts, permits, and construction projects. Nuru’s authority made him a powerful public official in the city.

Nuru’s admissions detail his broad array of graft in office, and a sample of them are below:

Walter Wong: Nuru’s corrupt relationship with San Francisco-based contractor Walter Wong began in 2008. Nuru accepted envelopes of cash containing as much as $5,000 at a time from Wong, and Wong bribed Nuru with more than $260,000 in construction labor and materials provided to Nuru’s San Francisco home and his vacation ranch property located in Stonyford in Colusa County. Wong also paid for Nuru to travel to China multiple times and to South America, footing the bill for international flights and a stay at the Ritz-Carlton in Santiago, Chile, for Nuru and his then-girlfriend Sandra Zuniga, another city official. In exchange, Nuru helped Wong secure City contracts by structuring the City’s Request for Proposals (RFPs) to ensure Wong’s company secured the contract, by providing Wong with confidential information on competitors’ bids, and by helping Wong expedite permit approvals.

Recology: Recology Inc. is a waste management company headquartered in San Francisco and the parent company of Sunset Scavenger Company, Golden Gate Disposal & Recycling Company, and Recology San Francisco (collectively referred to as Recology) that provided collection and disposal services for residential and commercial customers located in the city and for the city itself. In his DPW Director’s position, Nuru presided over the process governing the rates that Recology could charge, including “tipping fee” rates that Recology charged DPW when DPW dumped materials at a Recology facility. In exchange for favorable treatment from Nuru, Nuru describes that Recology bribed him with soil delivered to his Colusa County ranch, expensive meals, and a two-night trip to New York in December 2017. At Nuru’s request, Recology also donated hundreds of thousands of Dollars to a San Francisco non-profit for a cleaning program that Nuru could access and use for other purposes, and Recology further funded DPW holiday parties with $60,000 in donations. Recology also arranged and funded the hiring of a Nuru family member.

Nick Bovis: Nuru received multiple bribes from restaurateur Nick Bovis, including free meals and entertainment for Nuru, his family, and associates at restaurants owned by Bovis and thousands of dollars in free appliances for Nuru’s ranch property. Nuru also expected tens of thousands of dollars in kickbacks from proceeds that Bovis would earn from City concessions or contracts awarded to Bovis. In exchange, Nuru used his official acts and influence to assist Bovis in obtaining public business and contracts with the City.

Florence Kong: Nuru accepted a gold Rolex watch valued at $36,550, cash, and an iron fence installed at Nuru’s ranch from businesswoman Florence Kong. In exchange, Nuru used his official position to benefit Kong’s businesses, including a recycling business owned by Kong.

Balmore Hernandez, William Gilmartin, & Alan Varela: In a series of bribes and kickbacks from Balmore Hernandez, William Gilmartin, and Alan Varela, Nuru received a brand new tractor for his vacation ranch, free meals, and cash. Nuru also expected to receive a portion of the proceeds from anticipated City contracts awarded to them. In exchange, Nuru exercised his official authority and influence to benefit their City business ventures.

These are just examples of some of the bribes Nuru admitted in his plea agreement. Multiple other individuals paid Nuru in exchange for favorable official acts from him.

In addition to the sentence of imprisonment, United States District Judge William H. Orrick ordered a three year term of supervision of Nuru upon his release from prison. He also ordered the forfeiture to the United States of Nuru’s vacation ranch property in Stonyford, California. Nuru will surrender to begin serving his sentence on January 6, 2023.

This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco. To date, twelve individuals and multiple corporate entities have been charged, including another high-ranking San Francisco public official, the former San Francisco Public Utilities Commission General Manager Harlan Kelly. Charges against Harlan Kelly remain pending. Multiple city contractors and facilitators have also been charged.

The case is being prosecuted by the Corporate and Securities Fraud Section of the US Attorney’s Office. The case was investigated by the FBI and IRS-CI.

The post Former San Francisco Public Works Director Sentenced To Seven Years In Federal Jail | USAO-NDCA appeared first on Los Gatos News And Events.

SAN FRANCISCO – Former San Francisco City Hall public official Mohammed Colin Nuru was sentenced today to 84 months (7 years) in federal prison for honest services wire fraud, announced United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Sean Ragan, and Internal Revenue Service—Criminal Investigation Special Agent in Charge Mark H. Pearson. The sentence was handed down by United States District Judge William H. Orrick.

Nuru, 59, was first arrested on January 17, 2020, following the filing of a 79-page federal criminal complaint against him. Nuru was then the Director of the San Francisco Department of Public Works (DPW) and had held that position since 2011, when he was elevated from the DPW Deputy Director of Operations position that he had held since 2000. The complaint charged Nuru with honest services Fraud in public office, alleging a long-running scheme of bribes and kickbacks during his DPW tenure. A second federal complaint filed January 28, 2020, charged Nuru for lying to a federal agent following his arrest.

On January 6, 2022, Nuru pleaded guilty to the charge of defrauding the public of its right to his honest services, in violation of 18 USC §§ 1343 and 1346.

“Mohammed Nuru’s prison sentence is punishment for more than a decade of public corruption,” said United States Attorney Stephanie Hinds. “As San Francisco’s Department of Public Works Deputy Director and then its Director, Nuru owed the people of San Francisco a duty of faithful, honest services. Instead, he betrayed that duty. For at least twelve years, Nuru shook down contractors eager for city business, trading his authority and influence for millions of dollars in cash, construction work, travel, meals, and gifts. His abhorrent conduct erodes the public’s trust in its government, and this case demonstrates the justice system can and will punish corrupt public officials.”

“Mohammed Nuru’s long-running scheme of bribes and kickbacks ultimately earned him seven years in prison. Today’s sentence sends a clear message that public officials who abuse their power for personal gain will be punished,” said FBI Special Agent in Charge Sean Ragan. “The FBI’s investigation into this case is not over. We will continue to unravel and disrupt corruption within the city of San Francisco.”

“Corruption happens in the shadows, often with the help of professional enablers who perpetuate fraudulent schemes and the corrupt who launder and hide their illicit wealth. The Oakland Field Office of IRS Criminal Investigation has dedicated resources to unraveling the truth behind the extensive web of corruption, which Mohammed Nuru presided over, during his tenure leading the San Francisco Department of Public Works,” said IRS Criminal Investigation Special Agent in Charge Mark H Pearson. “Today’s sentencing is a true reflection of the collaborative commitment between IRS-CI, the FBI, and the USAO-NDCA to protect public welfare, the people in our communities, and bring justice to light.”

In his plea agreement, Nuru admits to a pervasive corruption scheme involving bribery, kickbacks and fraud that spanned at least his last 12 years in office. During that time, Nuru sat not only as Deputy Director of Operations and then Director at DPW but also as a member of the Board of the Transbay Joint Powers Authority (TJPA). Appointed to the TJPA board in 2014, Nuru eventually became his Chair. From these positions, Nuru exercised substantial power and influence over San Francisco (the City) business and policy, including its public contracts, permits, and construction projects. Nuru’s authority made him a powerful public official in the city.

Nuru’s admissions detail his broad array of graft in office, and a sample of them are below:

Walter Wong: Nuru’s corrupt relationship with San Francisco-based contractor Walter Wong began in 2008. Nuru accepted envelopes of cash containing as much as $5,000 at a time from Wong, and Wong bribed Nuru with more than $260,000 in construction labor and materials provided to Nuru’s San Francisco home and his vacation ranch property located in Stonyford in Colusa County. Wong also paid for Nuru to travel to China multiple times and to South America, footing the bill for international flights and a stay at the Ritz-Carlton in Santiago, Chile, for Nuru and his then-girlfriend Sandra Zuniga, another city official. In exchange, Nuru helped Wong secure City contracts by structuring the City’s Request for Proposals (RFPs) to ensure Wong’s company secured the contract, by providing Wong with confidential information on competitors’ bids, and by helping Wong expedite permit approvals.

Recology: Recology Inc. is a waste management company headquartered in San Francisco and the parent company of Sunset Scavenger Company, Golden Gate Disposal & Recycling Company, and Recology San Francisco (collectively referred to as Recology) that provided collection and disposal services for residential and commercial customers located in the city and for the city itself. In his DPW Director’s position, Nuru presided over the process governing the rates that Recology could charge, including “tipping fee” rates that Recology charged DPW when DPW dumped materials at a Recology facility. In exchange for favorable treatment from Nuru, Nuru describes that Recology bribed him with soil delivered to his Colusa County ranch, expensive meals, and a two-night trip to New York in December 2017. At Nuru’s request, Recology also donated hundreds of thousands of Dollars to a San Francisco non-profit for a cleaning program that Nuru could access and use for other purposes, and Recology further funded DPW holiday parties with $60,000 in donations. Recology also arranged and funded the hiring of a Nuru family member.

Nick Bovis: Nuru received multiple bribes from restaurateur Nick Bovis, including free meals and entertainment for Nuru, his family, and associates at restaurants owned by Bovis and thousands of dollars in free appliances for Nuru’s ranch property. Nuru also expected tens of thousands of dollars in kickbacks from proceeds that Bovis would earn from City concessions or contracts awarded to Bovis. In exchange, Nuru used his official acts and influence to assist Bovis in obtaining public business and contracts with the City.

Florence Kong: Nuru accepted a gold Rolex watch valued at $36,550, cash, and an iron fence installed at Nuru’s ranch from businesswoman Florence Kong. In exchange, Nuru used his official position to benefit Kong’s businesses, including a recycling business owned by Kong.

Balmore Hernandez, William Gilmartin, & Alan Varela: In a series of bribes and kickbacks from Balmore Hernandez, William Gilmartin, and Alan Varela, Nuru received a brand new tractor for his vacation ranch, free meals, and cash. Nuru also expected to receive a portion of the proceeds from anticipated City contracts awarded to them. In exchange, Nuru exercised his official authority and influence to benefit their City business ventures.

These are just examples of some of the bribes Nuru admitted in his plea agreement. Multiple other individuals paid Nuru in exchange for favorable official acts from him.

In addition to the sentence of imprisonment, United States District Judge William H. Orrick ordered a three year term of supervision of Nuru upon his release from prison. He also ordered the forfeiture to the United States of Nuru’s vacation ranch property in Stonyford, California. Nuru will surrender to begin serving his sentence on January 6, 2023.

This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco. To date, twelve individuals and multiple corporate entities have been charged, including another high-ranking San Francisco public official, the former San Francisco Public Utilities Commission General Manager Harlan Kelly. Charges against Harlan Kelly remain pending. Multiple city contractors and facilitators have also been charged.

The case is being prosecuted by the Corporate and Securities Fraud Section of the US Attorney’s Office. The case was investigated by the FBI and IRS-CI.

The post Former San Francisco Public Works Director Sentenced To Seven Years In Federal Jail | USAO-NDCA appeared first on Los Gatos News And Events.

The North Baltimore museum’s board of trustees was notified Wednesday that Bedford’s last day will be June 3. Trustees are expected to name an interim director and will conduct a “rigorous and expansive search” for Bedford’s successor, the board’s chairwoman, Clair Zamoiski Segal, wrote in a letter to the trustees, staff members and supporters.

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In the six years that Bedford has guided Maryland’s largest museum, he has shaken it up from its basement to its eaves as he sought to transform the BMA into an institution that better reflects the majority population of the city in which it is located.

“The BMA, our city and the entire art world owe Chris Bedford a debt of gratitude for his groundbreaking work to advance diversity, equity and community engagement,” the Rev. Kobi Little, president of the Baltimore branch of the NAACP, wrote in an e-mail. “It is our hope that the BMA leadership stays the course and builds on his work by honoring his contributions and hiring a like-minded successor.”

Many of Bedford’s initiatives made national headlines.

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Some, such as the decision to buy only artworks created by female painters and sculptors during 2020, the Year of the Woman, were widely acclaimed. Others, such as an ultimately unsuccessful attempt to sell three modern masterworks to raise $55 million for diversity initiatives, caused a deep rift within Baltimore and brought an avalanche of negative publicity.

“I believe that the work that the board and staff of the Baltimore Museum of Art and I have done over the last six years has fundamentally changed the DNA of this institution,” Bedford said. “I have immense pride in what we have accomplished and a sadness that come June, I won’t be part of that anymore.”

While Bedford’s supporters viewed him as a warrior for social justice, his take-no-prisoners management style sometimes annoyed people on the opposite side of an issue.

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Laurence Eisenstein is the Washington lawyer who spearheaded the opposition to the sale of the three artworks, a process known in museum circles as “deaccessioning.” Eisenstein once publicly called for Bedford to be ousted. On Wednesday, his tone was conciliatory.

“I wish Chris well and hope he is very successful in his new position at SFMOMA,” Eisenstein said. “I look forward to the BMA finding a new director who will move the institution forward and heal the divisions that remain from the deaccessioning process.”

Bedford was born in Scotland and has lived in England and South Africa. From the beginning, he said he didn’t expect to spend the rest of his career in Baltimore. When he was appointed, Bedford promised trustees that he would give the BMA at least five years; he departs after six.

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Perhaps because Bedford knew his time in Baltimore was limited, the former Oberlin College football nose tackle pursued his plans to transform the BMA with a single-minded determination and embarked upon what in museum terms was a blistering pace of change.

Less than three months into his new job, Bedford catapulted the BMA onto an international stage when it was selected to create the American pavilion in the 2017 Venice Biennale, often described as “the art world Olympics.” It was the first time since 1960 that the BMA had been chosen for that honor.

Other high-profile programs include a satellite museum at Lexington Market that combines galleries and an art-making space, and a partnership with the Greenmount West Community Center that teaches silk-screening skills for kids living in challenging circumstances and raises money for the neighborhood organization , which is less than two miles from the BMA.

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Kisha L. Webster, the community center’s founder, said that the BMA is one of the rare institutions that didn’t cut back on its commitment once the headlines went away.

For nearly three years, she said, Segal and the international art world superstar Mark Bradford have served on Greenmount West’s board of directors. Silk-screened clothing continues to be sold in a pop-up shop inside the BMA, and the two organizations frequently collaborate.

“I have grown because of this partnership and our center has grown,” Webster said. “I hope it will continue.”

And in March, the BMA will open an exhibit that’s already generating media buzz: “Guarding the Art,” a show curated by the museum’s security guards — a project designed by trustee Amy Elias and chief BMA curator Asma Naeem. Bedford also championed local artists of color, boosting the careers of promising painters such as Jerrell Gibbs and the mixed-media artist Stephen Towns.

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“Chris brought a more diverse environment to the BMA,” said Towns, 42. “He brought Baltimore artists of color into the museum and helped launch careers. He definitely did that for me.”

After Bedford arranged for Towns to have his first museum show at the BMA in 2018, he exhibited his work in Los Angeles and obtained representation from a New York gallery. His work is in the permanent collection of the BMA and the National Museum of African American History and Culture, and has been sold to collectors in the United States and abroad.

“None of that would have happened without the BMA,” Towns said.

In San Francisco, Bedford will lead a museum with its own share of well-publicized struggles with diversity. A senior curator resigned in 2020 after his comments created a public uproar; he had stated that a museum policy of avoiding collecting artworks by White men amounts to “reverse discrimination.”

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Bedford declined to comment on what plans, if any, he has for SFMOMA. But he said his new museum “holds dear two principles that are enormously important to me: a commitment to equity and excellence in its broadest definition. SFMOMA wants to continue to be known for leading the field in those areas, and that aspiration attracted me tremendously.”

In a statement, the San Francisco museum’s search committee described Bedford as “a brave, empathic, inclusive and passionate leader,” adding, “He is at a point in his career that combines impressive achievements with an open mindset and the ability to listen, learn and evolve with and for our community.”

Segal, whose seven years as the BMA board chairwoman ended in June, praised Bedford’s “courageous and inspired leadership” in her letter to museum supporters.

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“It is through his leadership that we reinvigorated our mission in 2018 to transform the BMA into a museum that places diversity and equity alongside artistic excellence at its core and better reflects the community that it serves,” Segal wrote. She will be succeeded by James D. Thornton, who will become the BMA’s first Black board chairman.

Although many of Bedford’s boldest projects have come to fruition, others remain works in progress.

After the sale of three artworks by Andy Warhol, Clyfford Still and Brice Marden was called off two hours before they were scheduled to go under the gavel at Sotheby’s Auction House in New York in fall 2020, Bedford vowed to raise the $55 million the sale had been expected to generate and to use the money for diversity and access programs, an initiative dubbed the endowment for the future.

Bedford said fundraising for this endowment is continuing, but he declined to say how much money has been pledged. Nonetheless, he said the museum “has made substantive progress” in most categories for which those funds were to have been earmarked: The pay for security guards was bumped up from $13.50 an hour in the middle of the pandemic to $16 now. Bedford acknowledged the figure falls short of his original target of $20 an hour, but he said, “In the next five years, $20 an hour is achievable.”

The BMA will begin opening on Thursday nights in March to accommodate visitors who work during the day, and it is tentatively planning to stop charging for special exhibitions in the fall of 2026, 20 years after eliminating its general admission fee.

“It isn’t enough to just hang paintings by artists of color in our galleries,” Bedford said. “We have to create the world depicted in those paintings. We have to embody those values ​​of equity, access and inclusion inside the museum’s walls.”

Bedford said he’s not worried that a new director will have different priorities and that the plans he set in motion will be abandoned once he leaves town.

“I do not believe the pendulum is going to swing in the opposite direction,” he said. “Initially, the work the BMA was doing reflected my vision. That is emphatically no longer the case. In the past six years, the staff and board to a person have come together around a very deeply shared set of principles. The museum doesn’t need me to do that good work.”

Segal said in her letter that she doesn’t expect the BMA to change course.

Trustees remain “committed to the equity goals that we have set forth, and this commitment does not change with Christopher’s departure,” her letter says.

Bedford knows that hiring a new director is the prerogative of the BMA’s board.

“I would hope they would consult me,” he said. “I do have some candidate ideas I would like to share.”

Are candidates of color on his list? Should the BMA’s next director be Black?

“The short answer,” Bedford said, “is emphatically yes.”

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It took months of work – between the City of San Francisco, Warner Bros., and the good folks at the Castro Theater – and featured many movie stars, starting with Keanu Reeves and Carrie-Anne Moss. But the US premiere of “The Matrix Resurrections”, partly shot in San Francisco, on Saturday, December 18, was primarily a tribute to the visionary director Lana Wachowski.

Twenty-five years ago she and her sister Lilly Wachowski – then known as the Wachowski Brothers – had a Bay Area premiere of “Bound” in the historic Castro Film Palace during Frameline, the biggest LGBTQ + film festival worldwide. Lana, a transgender resident in San Francisco, who was directing this time alone, was determined to bring the latest chapter in the “Matrix” series to her favorite theater, which will be 100 years old next year.

“In high school, I struggled with my identity. I went to the movies with popcorn and sticky bottoms and it was a kung fu movie and I knew everything would be fine, ”she told the crowd. “I didn’t think I could become a Hollywood director. I didn’t think I could be a transgender woman and a director. “

Lana Wachowski comes to the premiere of “The Matrix Resurrections” at the Castro Theater. Photo: Santiago Mejia / The Chronicle

The Castro demonstration of “Bound” helped her “imagine another outcome for my life,” she continued. And now: “I would like to say ‘thank you’ to this beautiful city, in which I fell in love with my wife 20 years ago.”

Karin Wachowski, who was in attendance, is an executive producer on the film.

Undoubtedly, the premiere of “The Matrix Resurrections” was a more gigantic affair than “Bound”. Castro Street was cordoned off in front of the theater and the security precautions were strict, even SWAT team members were stationed on the roof.

“It’s like the president is coming,” said a Castro employee.

A video was projected on the front of the theater and people unable to get tickets for the special screening could wait in a “fan zone” for Reeves and his cast to wave their hands and maybe sign autographs.

The crowd in the “fan zone” watches as the actors arrive. Photo: Santiago Mejia / The Chronicle

Mayling Suazo was right at the front of the fan zone with books, magazines and a “John Wick 3” Blu-ray with Reeves. Suazo and her husband drove out of Sacramento that morning to get a seat, even though they didn’t have tickets, in hopes of getting Reeves’ attention.

“Maybe he’ll sign my album,” said Suazo.

Fans started gathering as early as 9 a.m. for the 7 p.m. event. Castro Theater owner Steve Nasser, whose grandfather built the theater, which opened in 1922, bought coffee for everyone who got there early.

“This is one of the biggest premieres we’ve ever had,” said Nasser. “It cuts right at the top with ‘Milk’ premiering,” he noted, referring to Gus Van Sant’s 2008 biopic, in which Sean Penn played San Francisco-based gay politician Harvey Milk.

Keanu Reeves arrives at the Castro Theater for “The Matrix Resurrections”. Photo: Santiago Mejia / The Chronicle

The premiere and after-party, which included Waterbar and Epic Steak along the Embarcadero with nightly fireworks in the bay, was filled with celebrities: Reeves, Moss, Wachowski, Neil Patrick Harris, Yahya Abdul Mateen II from the Bay Area, Jonathan Groff, the new star Jessica Henwick, Jada Pinkett-Smith and son Jaden Smith, Priyanka Chopra Jonas and husband Nick Jonas, the Mayor of San Francisco London Breed and even former San Francisco Giants player Hunter Pence who spent the night with his wife Alexis Cozombolidis danced in the waterbar.

Wondering what the fireworks display is all about? It’s for the #Matrix US premiere in SF pic.twitter.com/kV3We05a8T

– Mariecar Mendoza (@SFMarMendoza) December 19, 2021

Speaking at the Castro’s opening address, Breed noted that “when The Matrix was filmed in San Francisco, Lana Wachowski committed herself to that city and committed to doing more.” That meant creating jobs, even for some local kids from Opportunities for All, a youth development program in San Francisco who served as paid interns.

Wachowski responded by thanking the mayor, who makes a cameo in the film, for “turning no to yes” during filming across town.

Yahya Abdul-Mateen II at the screening of “The Matrix Resurrections” at the Castro Theater. Photo: Santiago Mejia / The Chronicle

Reeves, who was particularly shy about public appearances, also enthusiastically thanked San Francisco on stage before quickly passing the microphone over to Moss, who was delivering one of the most moving speeches of the evening. Although in constant demand since her breakthrough with the first Matrix in 1999, which starred in two Marvel series – Jessica Jones and Daredevil – and many other film and television projects, she didn’t become the breakout star some have predicted.

“The Matrix Resurrections” should dispel all doubts: at 54 she still has it. In fact, her pairing with Reeves, 57, makes the film one of the few action franchises with a middle-aged romance.

Carrie-Anne Moss arrives for the premiere of “The Matrix Resurrections” at the Castro Theater. Photo: Santiago Mejia / The Chronicle

“I didn’t know how much I needed to be Trinity again,” she said of her Matrix character. “I hope from the bottom of my heart that you love the film as much as I made it. It was such a nice experience with Lana and all the beautiful artists who made this film. “

“The Matrix Resurrections” (R) opens in theaters on Wednesday December 22nd.

The post Star-studded ‘Matrix Resurrections’ U.S. premiere in San Francisco a dream come true for director appeared first on Los Gatos News And Events.

SAN FRANCISCO – Former San Francisco City Hall public official Mohammed Nuru agreed in a plea agreement filed today to plead guilty to honest services wire fraud, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Internal Revenue Service–Criminal Investigation Special Agent in Charge Mark H. Pearson.  

Today’s development follows the January 15, 2020, 79-page federal complaint filed against then San Francisco Department of Public Works (DPW) Director Mohammed Nuru charging him with public corruption and describing a long-running scheme involving multiple bribes and kickbacks during his tenure as DPW’s Director.  Nuru, 59, of San Francisco, served as DPW’s Director from 2011 until charges were brought against him in 2020.  Nuru was also charged in a second federal complaint filed on January 28, 2020, with lying to a federal agent in the course of the San Francisco City Hall corruption investigation.  Today, in anticipation of entering his plea agreement resolving his cases, Nuru was arraigned today on an information – a charging document – that charges him with his sweeping scheme to defraud the San Francisco public of its right to his honest services in violation of 18 U.S.C. §§ 1343 and 1346.

“Mohammed Nuru admits to a staggering amount of public corruption in his plea agreement,” said Acting United States Attorney Stephanie M. Hinds.  “For years, Nuru held a powerful and well-paid public leadership position at San Francisco City Hall, but instead of serving the public, Nuru served himself.  He took continuous bribes from the contractors, developers, and entities he regulated.  He now faces a prison sentence for enriching himself at the expense of the public as he sat in high office.  Federal authorities will investigate public corruption wherever it leads in San Francisco and throughout the district.”  

“Today’s announcement, while significant, is by no means the end of the FBI’s investigation into the corrupt conduct we have uncovered in San Francisco city government,”  said FBI Special Agent in Charge D. Fair.  “We will continue to hold accountable those who seek to personally benefit by corrupting the fair administration of public business and we will persist in our commitment to protect the integrity of the institutions that serve the people of San Francisco.”

“Our communities place great trust and responsibility in our public figures.  Mohammed Nuru ultimately betrayed this trust when he abused his power to defraud the City and County of San Francisco and its people,” said IRS Criminal Investigation Special Agent in Charge Mark H. Pearson.  “We will not tolerate public corruption and will hold perpetrators accountable for their actions.  Today’s guilty plea is a direct result of the hard work and dedication of IRS Criminal Investigation and our law enforcement partners towards obtaining justice.”

Nuru signed today’s plea agreement and the agreement has been filed with the United States District Court in preparation for Nuru’s upcoming appearance to enter his guilty plea orally.  As the plea agreement outlines, before Nuru was appointed Director of DPW in 2011 he became DPW’s Deputy Director of Operations in 2000.  The Deputy Director of Operations is DPW’s second most senior position, behind only the Director.  In 2014, Nuru was also appointed to the Board of the Transbay Joint Powers Authority (TJPA) and eventually served as its Chair.  As Deputy Director and eventually Director of DPW, and as Chair of the TJPA, Nuru exercised great influence over San Francisco (the City) business and policy, including public contracts, permits, and construction projects.  His power and influence extended beyond DPW’s jurisdiction to numerous other City departments and agencies, making him one of the most powerful public officials in the City.

Nuru admits in his plea agreement to a spectrum of public corruption involving bribery and kickbacks he received while in DPW leadership.  His admissions are summarized below:

Walter Wong:

In his plea agreement, Nuru admits he received a stream of bribes from Walter Wong.  Wong did business in the City through Walter Wong Construction, among other businesses. In exchange for Wong’s bribes, Nuru helped Wong secure City contracts.  Sometimes Nuru provided Wong with confidential insider City information on competitors’ bids or specifications.  At other times Nuru allowed Wong to structure the requirements for the City’s Request for Proposals (RFP) for projects ahead of time, to tailor their requirements to ensure that Wong’s company would be the most-qualified bidder.  Nuru also helped Wong expedite permit approvals.

Nuru admits in his plea agreement that his “corrupt relationship” with Wong began in approximately 2008 when Nuru was the Deputy Director for Operations at DPW.  Wong installed a gate for free at Nuru’s San Francisco home in exchange for future business with DPW and the City. Wong continued to perform construction services for free, or nearly free, at Nuru’s San Francisco home and later primarily at Nuru’s vacation ranch property in Colusa County. 

Nuru admits that, in exchange for Wong providing construction and other things of value, he exercised his official influence and took actions to benefit Wong.  In one example outlined in the plea agreement, Nuru used DPW’s emergency contract process, which did not require a public bidding process, to direct construction work to Walter Wong Construction on a navigation center located at 1515 South Van Ness Street and on the Jelani House (a housing shelter), resulting in City payments to Wong’s company during fiscal years 2017-2018 and 2019-2020.  In another example, Nuru used his position and official influence to direct DPW, the Market Street Association, and the San Francisco Public Utilities Commission to purchase Christmas lights from one of Wong’s businesses, regularly leading to tens of thousands of dollars’ worth of purchases.

Nuru further admits in his plea agreement that:

 o between approximately 2008 and January 2020, Wong provided in excess of $260,000 in labor and materials for work on Nuru’s San Francisco home and Colusa County ranch.
 o Wong paid for home furnishings for Nuru, including a chandelier, kitchen appliances, and furniture.
 o Wong paid for Nuru to travel to China multiple times and to South America on one occasion, which included reimbursing Nuru in cash for the cost of international flights.  Wong paid for Nuru and Sandra Zuniga, his girlfriend at the time, to accompany Nuru to South America and paid for their stay at the Ritz-Carlton in Santiago, Chile. 
 o On multiple occasions, Wong handed Nuru envelopes of cash, often as much as $5,000 at a time. 

Walter Wong was charged in June 2020 with conspiracy to defraud the public of its right to honest services and with conspiracy to engage in money laundering, both involving Nuru.  Wong entered a guilty plea and agreed to cooperate with the government’s San Francisco City Hall corruption investigation.

Multimillion-Dollar Mixed-Use Development:

Nuru admits he received free travel, gifts, and benefits, for working with Walter Wong to use Nuru’s official position to benefit a billionaire developer from China, referred to as DEVELOPER 1 in the plea agreement, who was developing a large multimillion-dollar mixed use project in San Francisco.  Wong, who worked as a consultant for DEVELOPER 1 on several of his large developments in the City, introduced Nuru to DEVELOPER 1.  Nuru met with Wong, another Department of Building Inspection official, DEVELOPER 1, and others over dinner on multiple occasions and discussed DEVELOPER 1’s projects.  Nuru never paid for the dinners.  Nuru admits that he also met with DEVELOPER 1 multiple times in China.  According to Nuru, DEVELOPER 1 owned multiple hotels in China, including five-star hotels.  Nuru received gifts from him, including free hotel stays. 

Nuru admits that, in exchange, he used his official position and influence to help DEVELOPER 1 obtain necessary approvals for his large, multimillion-dollar mixed-use project.  Nuru admits, among other things, that he told Sandra Zuniga that DEVELOPER 1 was upset because he had spent large amounts of money and had provided “a whole list of things” that Nuru said “we need to get done[.]”  Nuru admits that whenever DEVELOPER 1 or one of his employees notified him of an issue, Nuru directed one of his DPW managers to solve the problem and expedite the process.  Nuru also used his official influence with other City officials to solve problems encountered by DEVELOPER 1 that fell within the other City officials’ area of responsibility.

Recology:

Recology Inc. is a waste management company headquartered in San Francisco and the parent company of Sunset Scavenger Company, Golden Gate Disposal & Recycling Company, and Recology San Francisco (referred to as the “SF Recology Group” and, collectively with Recology Inc., as “Recology”).  Recology Inc. provided refuse collection and disposal services for residential and commercial customers in the City, as well as for the City itself, through the SF Recology Group.

As Director of DPW, Nuru presided over the process governing the rates Recology could charge in San Francisco.  Nuru recommended to the Rate Board whether to approve any rate increase for Recology.  Nuru also influenced “tipping fee” rates that Recology charged DPW when DPW dumped materials at a Recology facility, Sustainable Crushing.  Nuru could approve, deny, or affect operational changes that Recology wanted to make in San Francisco which, Nuru admits in his plea agreement, gave him the ability in his official capacity to affect Recology’s business. 

Nuru admits he accepted numerous valuable items from Recology and used his official position to help Recology’s business.  Among other things, Recology paid for soil to be delivered to Nuru’s ranch property in Colusa County, for expensive meals for Nuru, and for a two-night trip to New York on the City’s business in December 2017. 

Nuru admits that he also requested Recology to pay, and Recology did pay, hundreds of thousands of dollars to a San Francisco non-profit (Non-Profit A) in the form of donations for a cleaning program known as Giant Sweep.  Non-Profit A would then donate the payments to another non-profit that administered funds for the Giant Sweep program.  Nuru admitted he could then access the funds for a variety of other uses—including procuring goods and services for staff meals and appreciation events, volunteer programs, merchandise, community support, and events from specific vendors—in addition to their originally designated purpose for Giant Sweep.  From 2014 through the end of 2019, Recology donated approximately $150,000 per year for Giant Sweep, in $30,000 installments—for a total of approximately $750,000.

Nuru also admits he requested Recology hire his son.  Recology hired him and paid him, between 2015 and 2017, approximately $17,000.  Recology also funded a paid internship for Nuru’s son at a different non-profit organization and, between 2017 and 2018, paid approximately $23,600 to fund the paid internship.

Nuru admits he requested that Recology fund his DPW holiday parties.  Between 2016 and 2019, Recology paid approximately $60,000 for that purpose.  Recology made the payments through the Lefty O’Doul’s Foundation, a non-profit organization run by Nick Bovis. 

Two former Recology executives, Paul F. Giusti and John F. Porter, have been charged in this investigation.  Giusti was charged in November 2020, and Porter was charged in April 2021.  Both men were charged with bribery of Nuru and money laundering involving Nuru.  Giusti pleaded guilty in August 2021 to engaging in a conspiracy to bribe Nuru and is cooperating with the government’s San Francisco City Hall corruption investigation.  Porter’s charges remain pending.

The three subsidiaries of Recology, Inc. now have new leadership and have implemented enhanced corporate compliance programs to end any corrupt practices.  Recology resolved corporate charges brought against them through a deferred prosecution agreement with the government.  Pursuant to the agreement, the companies paid a $36 million fine, agreed to implement enhanced corporate compliance programs, and agreed to fully cooperate in the government’s San Francisco City Hall corruption investigation.

Nick Bovis:

Nuru admits in his plea agreement that he received multiple bribes from restaurateur Nick Bovis.  The bribes were in exchange for Nuru using his official acts and influence to assist, or to promise to assist, in public business opportunities with the City.  The bribes included free meals and entertainment for Nuru, his family, and associates at restaurants owned by Bovis and thousands of dollars in free appliances for Nuru’s ranch property.  Nuru also anticipated and expected tens of thousands of dollars in kickbacks from proceeds that Bovis would earn from the City concessions or contracts awarded due to Nuru’s official acts or influence to assist Bovis.

In one plea agreement example, Nuru admits he helped Bovis in a plan to win a bid for a restaurant lease at San Francisco International Airport (SFO).  Bovis expected to make money from the SFO concession, and Nuru expected Bovis would continue to provide bribes in exchange for Nuru’s help with the airport concession process and other public contracts.

In another example, Nuru admits he gave Bovis a price list of appliances that Nuru wanted for his ranch in or about 2018, a time when Bovis was seeking Nuru’s assistance with the SFO concession and other City business opportunities.  Bovis purchased the appliances and brought them to Nuru’s ranch.  Nuru accepted them as an exchange for his continued official acts and influence to help Bovis, and he did not pay for them.  The appliances were worth approximately $22,000.

Nick Bovis pleaded guilty in May 2020 to wire fraud and honest services wire fraud involving Nuru and agreed to cooperate in the government’s San Francisco City Hall corruption investigation. 

Florence Kong:

Nuru admits in his plea agreement that he accepted a gold Rolex watch from Bay Area businesswoman Florence Kong.  The watch was valued at approximately $36,550.  Nuru admits he used his official position to benefit Kong’s businesses and did so in exchange for the Rolex and for cash, free meals, and other items of value provided by Kong, including an iron fence that Kong installed at Nuru’s ranch.  In one example, Nuru states that he used his official position to direct business to SFR Recovery Inc., a recycling business that Kong owned. 

Florence Kong was charged and pleaded guilty to bribery of Nuru and to making false statements to FBI agents during the investigation.  She was sentenced in February 2021 to one year and one day in prison and ordered to pay a $95,000 fine.

Balmore Hernandez, William Gilmartin, & Alan Varela:

Nuru admits in his plea agreement that between 2013 and January 2020 he accepted a series of bribes and kickbacks from Balmore Hernandez, William Gilmartin, and Alan Varela in exchange for past and future official actions benefitting their City business ventures.  Nuru received free meals and entertainment, cash, and free labor and materials for his ranch – including a brand new tractor.  Nuru also expected to receive a portion of the proceeds  from anticipated City contracts awarded to them or their associates as a result of Nuru’s official acts or influence on their behalf.

In one example, Nuru admitted he helped Varela and Gilmartin’s joint venture win a DPW supply contract and a related lease with the Port of San Francisco (the “Port”) to operate an asphalt recycling plant and a concrete plant on the Port’s land.  In the early stages, Nuru helped the group prepare their proposal by providing them inside non-public information on the project.  The non-public information was delivered to Hernandez through emails or phone calls or through regular dinning meetings in San Mateo with Gilmartin and Hernandez.  Gilmartin paid approximately $20,000 for the dinners, with the parties agreeing that Nuru’s dinners were worth approximately $7,000.

Nuru admits that Gilmartin promised him $100,000 for his official assistance to pressure a large developer to select one of Gilmartin and Varela’s joint-venture partners for a large project in San Francisco.  The large developer complied with Nuru’s request because, as Nuru admits, the large developer needed DPW approvals for the project and for other large developments in the City.

Nuru admits that he received approximately $25,000 in cash from Hernandez and received approximately $250,000 in free labor and materials from Hernandez at Nuru’s ranch. 

Nuru also requested the group give him a tractor.  In February 2019, Alan Varela delivered a new tractor to the Nuru’s ranch, a benefit valued at approximately $20,000.

Balmore Hernandez was also charged in connection with this investigation.  He pleaded guilty to honest services wire fraud in October 2020 and agreed to cooperate in the government’s San Francisco City Hall corruption investigation. 

William Gilmartin was charged in connection with this investigation.  He pleaded guilty to conspiracy to commit honest services wire fraud in May 2021 and agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
Alan Varela was charged in connection with this investigation.  He pleaded guilty to conspiracy to commit honest services wire fraud and was sentenced in September 2021 to two years in prison and ordered to pay a $127,000 fine. 

Sandra Zuniga Money Laundering:

Nuru admits that in or about 2010 he bought a 10-acre lot in Colusa County and developed it into his vacation ranch with free labor and materials provided by City contractors seeking favors from him. Nuru admits he also used the proceeds of his crimes to pay the mortgage.  To conceal and launder the source of the proceeds, Nuru states he funneled the money through Sandra Zuniga who made the monthly $1,000 mortgage payments out of her checking account. Nuru admits that from 2014 through August 2017, he typically gave Zuniga approximately $1,000 per month, generally in cash, and she deposited the money into her bank account.  She then made the $1,000 payment towards the mortgage.  In this way, Zuniga paid at least $42,000 of the mortgage.

Zuniga was charged and pleaded guilty in March 2021 to engaging in a conspiracy to launder money with Nuru.  She agreed to cooperate in the government’s San Francisco City Hall corruption investigation.

Other Bribes:

Nuru admits in his plea agreement that around 2018 he accepted a bribe of $20,000 in cash from a former government employee in exchange for Nuru using his position to help a particular person obtain an engineering job with the City. Nuru received the cash in three installments of $10,000, $5,000, and $5,000.  Ultimately, the individual failed to maintain employment with the City.

Nuru also admits he accepted cash bribes from a prominent developer in San Francisco.  The cash bribes usually consisted of a few thousand dollars.  The developer would later call Nuru when he had any problems with DPW-related approvals or other matters that Nuru could help resolve. 

In his plea agreement, Nuru admits guilt and agrees to plead guilty to one count of honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346.  If convicted of the count, he faces a maximum penalty of 20 years in prison and a fine of $250,000 or not more than the greater of twice the gross gain or twice the gross loss of the crime. 

The government indicates in the plea agreement its intent to ask for up to a 108 month (9 year) sentence for Nuru.  However, any sentence imposed by the court will follow only after the court’s consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Today, in a procedural step towards orally entering his guilty plea, Nuru was arraigned and pleaded not guilty before United States Chief Magistrate Judge Joseph C. Spero to an information charging him with a count of honest services wire fraud in violation of 18 U.S.C. §§ 1343 and 1346. 

Nuru’s next appearance is currently set before United States District Judge Susan Illston on January 14, 2022, at which he is currently scheduled to formally enter his guilty plea pursuant to his plea agreement.  Nuru remains out of custody on bond.
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This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco.  To date, 12 individuals and three corporate entities have been charged, including two high-ranking San Francisco public officials, Nuru and Harlan Kelly.  Multiple city contractors and facilitators have been charged.  Allegations in the complaint filed against Harlan Kelly assert that he received thousands of dollars in airfare, meals, jewelry, and travel expenses, along with repair work on his house.   

The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office.  The case is being investigated by the FBI and IRS-Criminal Investigation. 

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