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The post Contractors convicted in federal bid-rigging trial tied to ‘Shrimp Boy’ case | San Francisco Information appeared first on Los Gatos News And Events.

While many Silicon Valley companies are taking tough measures to return their employees to the office, the U.S. Department of Health is urging workers in San Francisco to stay home indefinitely.

The San Francisco Chronicle reports that the stay-at-home recommendation was issued on August 4 because of concerns about the safety of workers at the Nancy Pelosi Federal Building downtown, an area that has become a popular hangout for drug dealers and users.

“Given the conditions at [federal building]we recommend that employees … maximize the use of telework to the extent possible for the foreseeable future,” Cheryl R. Campbell, HHS deputy secretary for administration, wrote in a memo.

It's unclear whether other federal departments in the building have given their employees similar instructions. The memo was issued the same day the White House called for more employees to return to their desks in the coming weeks.

Around the same time the memo was sent, Rep. Nancy Pelosi herself met with the U.S. Attorney for the Northern District of California to express her concerns about the safety of workers in the building. (Pelosi's staff has not been advised to work from home, the Chronicle reported.)

The federal building is guarded by the Federal Protective Service, which works with the San Francisco Police Department. Still, the area is teeming with dealers, and drug users congregate on the concrete benches lining the property (and consume the product they buy).

San Francisco's downtown/central business district is more depressed than almost any other post-pandemic area — and some economists fear it's at the beginning of a “vicious spiral” in which empty office buildings and crime lead to more absenteeism and higher crime rates. Uniqlo, Nordstrom Rack and Anthropologie have all closed their branches, and many local stores have shuttered. And crime is up. Shampoo, toothpaste and other toiletries are locked away at downtown pharmacies. And armed robbers recently raided a Gucci store in broad daylight.

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The post San Francisco federal employees instructed to work remotely appeared first on Los Gatos News And Events.

Citing a misguided legal maneuver by city lawyers, a federal judge late Monday rejected a request by the city of San Francisco to stay a preliminary injunction blocking the city from sweeping up tent encampments in the city amid a shortage of emergency shelters. In denying the request for a stay while the injunction was appealed, U.S. Magistrate Judge Donna Ryu pointed to a legal move by the city's lawyers, who, in their haste to file an appeal, ignored their previous advice about the proper procedure for had ignored the filing of their challenge to the interim injunction.

Storm damage prompts SF officials to re-inspect newer high-rise buildings

Ryu used the city's legal strategy to support her conclusion that the city had little chance of success in its appeal of the injunction. She also found that the city had not demonstrated that it would suffer “irreparable harm” if the injunction remained in effect.

The decision, and particularly its focus on the city's legal maneuvers, are likely to complicate the city's chances of overturning the cleaning ban in the near future. The controversy comes in a high-profile case brought against the city by the advocacy group Coalition on Homelessness and a number of individual plaintiffs, including some unsheltered people living on the city's streets.

The plaintiffs argued that the Eighth Amendment's ban on cruel and unusual punishment means the city cannot punish a person for sleeping on city streets while there is a lack of available shelter beds.

Ryu agreed and on December 23, 2022, preliminarily ordered the city to enforce or threaten to enforce a series of laws and ordinances that would “prohibit involuntarily homeless persons from sitting, lying or sleeping on public property.”

The order effectively prohibited the city from breaking up or sweeping tent camps. The judge based her decision on the fact that the city's homeless system, with more than 4,000 beds, was inadequate to house the entire unsheltered portion of the city's homeless population.

Without beds in shelters, she argued, the homeless would have no place to sleep except on city streets. This meant that clearing out encampments was essentially punishing people for their involuntary status of homelessness.

When the injunction was issued, the city responded quickly and sharply.

San Francisco Mayor London Breed said: “Mayors cannot govern cities this way. We already have too few tools to deal with the mental illnesses we see on our streets. Now we are being told not to use any other tool that will help get people indoors and keep our neighborhoods safe and clean for our residents.”

On January 3, San Francisco District Attorney David Chiu issued an unusual press release saying, “The court’s order puts San Francisco in an impossible situation, both practically and legally.”

The city's overreaction stemmed from their concern about the possible scope of Ryu's command. Tent encampments are illegal in San Francisco under city law and can be broken up, but only if the city gives advance notice and provides people with shelter.

The city feared that the order would be interpreted to prevent encampments until sufficient housing was available for every unsheltered person in the city. The city believed that it should only provide a shelter bed for people displaced during the evacuation of a camp. The difference between these interpretations was enormous.

According to the city's reading, on any given day only a few dozen empty shelter beds had to be found to accommodate the people in whatever camp was being swept. Under the other reading, thousands of beds would need to be built or purchased—enough for all the homeless—a process that would likely take years and cost hundreds of millions of dollars. Apparently seeking a quick resolution to this issue, the city's attorneys filed a so-called “administrative motion” on Jan. 3 to “clarify” the meaning of Ryu's order.

Ryu wasn't happy.

Despite the urgency of the city's request, Ryu found at a Jan. 12 hearing that the city's attorneys had improperly raised the issue and attempted to use a process to raise minor administrative matters – such as permission to increase page limits to ask for a short version – to address a clearly substantive question. At the hearing, Ryu admonished the city's lawyers (as well as the plaintiffs' lawyers who had used the same procedure in one of their motions).

She told lawyers for both sides: “You know better” and warned them “not to get off on the wrong foot.”

She further clarified that if the city wanted to raise the issue, it should follow the proper process for substantive motions. The city did not accept their offer. Instead, she appealed her injunction on January 23.

A week later, on February 2, it asked Ryu to stay her injunction while the appeal was pending. In the briefing in support of the stay, the city's attorneys made the same legal argument about the scope of the injunction that they had unsuccessfully attempted to make in their Jan. 3 motion for clarification.

This approach obviously bothered Ryu. In her decision Monday denying the suspension, she emphasized that the city had refused to do so, even though she had asked the city to adequately address the matter. In their view, this approach deprived the court of the opportunity to examine the city's argument in the context of a proper assessment of the facts.

She also found that the city had failed to meet its burden of proving that it would suffer irreparable harm if the injunction remained in effect. For example, she pointed out that the ordinance allows the city to require the relocation of an encampment for the time it takes the city to clean the area. She also said the city can continue to provide social services and housing options to encampment residents.

The finding that the city's attorneys did not follow proper procedures puts the city in a difficult position. While the city can ask the U.S. Court of Appeals for the Ninth Circuit to stay the injunction, the appeals court would not only have to take the relatively unusual step of intervening before the merits of the appeal, but also do so where necessary It is justifiable that the City did not take the appropriate steps to bring the matter before the court that issued the contested injunction.

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Unless the appeals court intervenes, the injunction will likely remain in effect pending a full trial in the case before Ryu. This trial is currently scheduled for April 3, 2024. Jen Kwart, a spokeswoman for City Attorney David Chiu, said: “We continue to believe that Judge Ryu's order places the city in an untenable situation, goes beyond legal precedent and exacerbates our homelessness crisis.”

We look forward to presenting our case to the Ninth Circuit on appeal.”

Hadley Rood, one of the plaintiffs' attorneys, said, “The injunction is narrow and only prevents the city from brutally punishing homeless people simply because they are homeless.”

Problems surrounding the city's handling of homelessness have escalated in recent months. The city's Board of Supervisors held a hearing March 21 to consider a plan drawn up by the city's Department of Homelessness and Supportive Housing to outline how to house all homeless people in the city.

The ministry rejected this, concluding that even with $1.45 billion and three years for implementation, it could not achieve the desired result due to difficulties in acquiring land in the city and building adequate capacity . The department's stated inability to provide enough housing, combined with the city attorney's difficulty obtaining a stay, appear to be the problems the mayor and board face in leading the city's recovery from the pandemic is likely to become even more severe.

Copyright © 2023 Bay City News, Inc.

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Nancy Pelosi's namesake building is not safe for federal workers. Ever Countess – Getty Images for TIME

While many Silicon Valley companies are working hard to bring workers back to the office, the U.S. Department of Health and Human Services is urging San Francisco workers to stay home indefinitely.

The San Francisco Chronicle reports that the stay-at-home advisory was issued on August 4 due to safety concerns for workers at the Nancy Pelosi Federal Building downtown. The area is now regularly visited by drug dealers and users.

“Given the conditions on [federal building]“We recommend that our employees maximize their use of telework for the foreseeable future,” HHS Assistant Secretary for Administration Cheryl R. Campbell wrote in a memo.

It is unclear whether other federal departments in the building have issued similar guidance to their employees. The memo was issued the same day the White House called for more staff to return to their desks in the coming weeks.

Around the same time the memo was sent, Rep. Nancy Pelosi herself met with the U.S. Attorney for the Northern District of California to express her concerns about the safety of workers in the building. (Pelosi's employees were not advised to work remotely, the Chronicle reported.)

The federal building is protected by the Federal Protective Service, which coordinates with the San Francisco Police Department. Still, the area is littered with dealers, and drug users congregate (and consume the product they buy) on the concrete benches along the property.

San Francisco's downtown/central business district is more depressed than almost any other in the wake of the pandemic – and some economists fear it is at the beginning of a “doom loop” in which empty office buildings and crime lead to further absenteeism and higher levels of crime. Uniqlo, Nordstrom Rack and Anthropologie have all closed their locations and many local businesses have closed. And crime is increasing. Shampoo, toothpaste and other toiletries are locked in downtown pharmacies. And armed robbers recently held up a Gucci store in broad daylight.

The post San Francisco federal employees informed to work remotely appeared first on Los Gatos News And Events.

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.

The number of winter heating aid applications received so far has jumped 130 percent from the same time last year, according to Orange County Department of Social Services Commissioner Darcie Miller.

The Home Energy Assistance Program, or HEAP, is a federal aid program that helps eligible residents heat and cool their homes.

In November—the opening month of the winter season—1,429 people applied, compared to 615 last year.

“This is a significant increase in our first month of activity,” Miller told The Epoch Times on Dec. 9. “People are trying to pay for higher priced groceries, fuel, higher rents, and there are a lot of concerns about the costs for home heating fuel.”

“This is a difficult time for our community, and people are looking for help,” Miller said.

For residents already on government aid programs such as Supplemental Nutrition Assistance and Temporary Assistance, they will get automatic pre-applications to HEAP based on eligibility—and that number has increased too, according to Miller.

Combining both, the total HEAP applications reach above 4,000.

Miller adds that the opening month typically sees the greatest number of applications and that it is still too early to predict the rest of the season.

In a typical year, the department receives between 11,000 and 12,000 HEAP applications; the federal payout, including benefits to residents and payments to the county for administering the program, stands between seven and eight million, she said.

Kerosene is sold for $8.49 a gallon at a gas station in Cuddebackville, NY, on Dec. 11, 2022. (Cara Ding/The Epoch Times)

As the interest in aid programs rises, the volume of inquiry calls also increases. One of the primary hotlines managed by the department averages 1,400 calls a day, compared to around 800 in the past seasons, Miller said.

Aside from regular benefit inquiries, she also noticed an increase in emergency calls from people who need immediate help to prevent a shutoff.

Currently, the department relies on staff reassignment and overtime to process the increased workload.

“Our community is looking for help, and we are just doing what we can to manage the influx of applications and be as supportive as we can,” Miller said. “The challenge, though, is that not everyone will be eligible.”

HEAP money is granted based on several factors, including income, household size, the primary heating source, and whether there is a household member who is under age 6, over age 60, or disabled.

A wood stove on display at Chimney Sweep Energy showroom in NY on Nov. 5, 2022. (Cara Ding/The Epoch Times)

Qualified heating sources include electricity, gas, oil, coal, propane, wood or wood pellets, kerosene, and corn.

Applicants may take a pre-application survey on the website www.mybenefits.ny.gov to determine eligibility.

County Fuel Fund

Those who do not qualify for HEAP can turn to the Orange County Fuel Fund, which has a lower income threshold than the federal program.

For example, for a family of four, the maximum monthly income is $5,485 for HEAP but $6,582 for the county program.

On Dec 1, the county legislature approved an additional $60,000 for the fuel fund, bringing the total up to $100,000.

Miller said of the legislative move, “It is their acknowledgment that people that are just a bit over eligibility are still going to have a significant need.”

Cara is an Orange County, New York-based Epoch Times reporter. You can be reached at cara.ding@epochtimes.com

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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 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.

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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.

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SAN FRANCISCO (CBS SF) — The city of San Francisco announced Thursday that it’s suing the federal government over its decision to cut off funding to Laguna Honda Hospital and the order forcing the nursing home to transfer all patients out of the facility by Sept. 13.

The lawsuit was filed Wednesday against the US Department of Health and Human Services (HHS) and Secretary Xavier Becerra. It alleges that the Centers for Medicare & Medicaid Services (CMS), which operates under HHS, forced the City to implement an unworkable closure and patient transfer plan that put them at risk and denies the City due process.

In April, CMS terminated Laguna Honda’s participation in its Medicare/Medicaid programs after the hospital was found out of compliance on multiple safety inspections, including finding contraband like drug paraphernalia on site, and failure to adhere to hand hygiene, documentation and infection prevention protocols.

Laguna Honda Hospital

CBS

As a result of being decertified, the hospital lost federal funding that financed more than two-thirds of its services for nearly 700 patients with complex medical needs and low incomes.

The federal government also directed the facility to wind down its patient population, and the hospital transferred several dozen patients over 10 weeks. At least four patients were reportedly dead within a few days after their relocation, including three that were sent to homeless shelters. A total of nine patients died within days or weeks after transfer or discharge, according to City Attorney David Chiu.

Last week, Laguna Honda maintained transfers for its remaining 600 patients following the deaths.

The complaint alleges the CMS imposed an arbitrary Sept. 13 deadline for patient transfers and required it to close before the city’s appeals could be decided, which might make the transfers unnecessary.

In a press release, Chiu said a second-class-action lawsuit against both the State of California and the federal government filed by former City Attorney Louise Renne alleges the closure and transfer process violates the Americans with Disabilities Act and denies patients and their families due process .

“The federal government has put Laguna Honda and our City in an impossible situation,” said Chiu in a prepared statement. “As the final safety net for many of our most vulnerable San Franciscans, Laguna Honda serves too critical a need to be closed due to an arbitrary, bureaucratic decision. The City has been forced into an unworkable closure and transfer plan that has done far more harm than good.”

The lawsuit seeks declaratory and injunctive relief to eliminate the Sept. 13 deadline and extend federal funding to Laguna Honda at least until the appeals can be decided and all patients can be safely transferred or discharged.

“We are working hard to address issues that have been raised at Laguna Honda, and that important work will continue,” said Mayor London Breed in a prepared statement. “But closing this facility and forcing residents and families to go through the trauma of transfers should not be part of that process. This facility provides care and support for some of the most vulnerable people in our city, and that support must continue to keep them healthy and safe.”

“For over 150 years, San Franciscans have relied on Laguna Honda to provide critical care to our most vulnerable,” Renne said in a prepared statement. “We simply cannot allow Laguna Honda to close. The actions of CMS and the California Department of Health are illegal, unnecessary, and cruel.

Theresa Rutherford, the President-Elect of the SEIU 1021 and a longtime certified nursing assistant at Laguna Honda Hospital, released the following statement in response to the announcement of the lawsuits:

“Laguna Honda Hospital is more than just a hospital, it is a long-term home for many. Keeping patients at Laguna Honda, where they are provided some of the most unique and comprehensive care available in this country, must be a priority for our community and for elected officials at all levels.We support patients and families who are advocating to help stop the closure because we know it will save lives.

We understand how stressful and scary the last few months have been for workers and patients alike. Transfer trauma is a real danger for the people we care for, which is why our union is doing everything we can to get Laguna Honda Hospital recertified. We encourage community members to join us by contacting their elected leaders at all levels and asking them to stand with us.”

In May, Sen. Dianne Feinstein wrote a letter to Becerra asking to reverse the CMS decision to terminate Laguna Honda’s participation in its programs and force the relocation of its vulnerable patients.

“If CMS does not reverse its decision, these patients would again be put at risk as they’re transferred to other facilities,” Feinstein said in a statement last month. “This is particularly concerning after some patients were reportedly sent to homeless shelters ill-equipped to provide the necessary medical services.”

The hospital remains open and licensed as it continues to work on rejoining the federal programs.

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