SAN FRANCISCO—On Thursday, July 8 the San Francisco District Attorney’s Office announced that Gerald “Jerry” Sanguinetti, a former Bureau Manager for San Francisco Public Works was arrested on five felony charges for perjury in violation of Penal Code section 118(2), and two misdemeanor charges for Failure to File Financial Disclosure Statements in violation of San Francisco Campaign and Governmental Conduct Code section 3.1-102(a).

According to a news release from the SFDA’s Office, the felony charges stem from Sanguinetti’s alleged failure to disclose over a quarter of a million dollars in outside income on required financial disclosure statements. The misdemeanor charges are a result of his alleged failure to file these statements altogether for 2018 and 2019.

“Public employees must serve the public, not use their position for their own financial gain,” said District Attorney Boudin. “Failing to disclose financial conflicts of interests while profiting at the city’s expense violates public trust. When public employees break the law, my administration will hold them accountable. No one in San Francisco is above the law.”

Designated public employees are mandated to disclose their outside sources of income, business investments, and spouse’s income each year on a Form 700 Statement of Economic Interest, which they must attest to under penalty of perjury. From 2013 to 2019, the defendant is alleged to have failed to disclose his interest in or income from “SDL Merchandising,” a company which did business with Public Works and was nominally owned by his wife, Gina.

Financial and business records obtained over the course of a nine-month investigation by the San Francisco District Attorney’s office indicate that SDL Merchandising received $262,946.73 in payments from sub-accounts of the non-profit organization San Francisco Parks Alliance. Public Works employees made payments from the sub-accounts of San Francisco Parks Alliance for the purchase of custom-made shirts, caps, and other items.

According to witnesses, the Public Works purchases from SDL Merchandising were “no-bid,” and cost more than other vendors’ quotes. Public Works employees were allegedly told to rely on SDL Merchandising for purchasing t-shirts and other merchandise, and one employee’s attempt at obtaining comparison quotes from other vendors, revealed that SDL Merchandising charged twice the price other vendors quoted. When that employee sought to replace SDL Merchandising with a new vendor, a supervisor allegedly indicated that “the Director wouldn’t like that,” referring to former Public Works Director Mohammed Nuru.

Bank and business records confirmed $262,946.73 in payments invoiced by Gina Sanguinetti to Public Works for merchandise. The payments were approved by Public Works employees including former Public Works Director Mohammed Nuru, issued by checks from the Parks Alliance, and deposited into four different bank accounts controlled solely by Gerald and Gina Sanguinetti.

With over a quarter million dollars into his and his spouse’s bank accounts between 2013 and 2019, Sanguinetti is alleged to have repeatedly stated, under penalty of perjury, on his annual financial disclosures that he had “no reportable interests” and failed to disclose this income. He is alleged to have failed to file two required financial disclosure statements for 2018 and 2019.

He was arrested by District Attorney Investigators (“DAI”), with help from San Mateo Police Department Officers. The San Francisco District Attorney’s Office’s Public Integrity Task Force investigated this case and it. It is being prosecuted by the San Francisco District Attorney’s Office’s Special Prosecutions Unit. He is expected for arraignment on August 9 at 1:30 p.m.