SAN FRANCISCO—San Francisco’s former general manager of the San Francisco Public Utilities Commission Chief Harlan Kelly was found guilty on six out of eight federal fraud charges on Friday, July 14. The investigation was part of a lengthy public corruption probe where several city employees have been charged.
The jury determined that Kelly was involved in two schemes.
In one of the schemes Kelly accepted benefits from Walter Wong, a businessman and expediter, who was seeking contracts from this department. The second scheme involved Kelly misrepresenting debts to a loan company in an application filed with the help of Victor Makras, a known real estate mogul, in order to acquire a $1.3 million loan.
As the verdict was being read in the courthouse on Friday, Kelly could be seen looking down with his hands clasped in front of him. His wife Naomi Kelly, who is the City Administrator, was located in the front row.
During the hearings, Wong told the jury that he helped pay for a trip to China for Kelly’s family because he wanted SFPUC contracts. He managed to get the Kelly family visas, arranged free hotel stays and a personalized safari tour, paid for a gondola ride and covered the cost of medical expenses.
Kelly’s legal representatives argued that the gifts were not evidence of corruption but were a result of a long-term friendship Wong and Kelly had.
Brian Getz, Kelly’s attorney, stated that he is seeking to dismiss the convictions or appeal the verdicts. Getz explained to reporters from The San Francisco Standard that the trial was a heavy burden on Kelly, “he feels crushed.”
A sentencing date has not been set.
This verdict is the latest win for federal prosecutors in a corruption investigation that started back in January 2020 with charges against Mohammed Nuru who was the former director of San Francisco’s public works department.
Nuru is serving a seven year sentence for steering public contracts and accepting expensive gifts.
