SAN FRANCISCO (CN) — A former high-ranking San Francisco city official pleaded guilty to bribery Friday nearly two years after his arrest set off a sprawling public corruption scandal that led to federal corruption charges being filed against three companies and a dozen city employees and contractors.
Mohammed Nuru, who led the city’s Department of Public Works from 2011 until shortly after his arrest in January 2020, pleaded guilty to one count of honest services wire fraud, for which he faces a maximum 20 years in prison and $250,000 fine.
In his plea agreement, Nuru admitted that he received envelopes of cash, free international trips and hotel stays, a $36,000 watch, free construction labor and materials for his vacation home and other benefits in exchange for favors to city contractors and developers.
Prior to his resignation in February 2020, Nuru was earning $273,000 annually in his role as DPW director.
“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,” said Stephanie Hinds, acting U.S. Attorney for the Northern District of California, in a statement Friday. “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.”
In exchange for his guilty plea, prosecutors agreed to drop two other charges against the former city official: conspiracy to launder money and lying to government agents. The charges carried additional maximum penalties of 20-year and five-year prison sentences respectively.
Nuru admitted that he worked with Walter Wong, a permit expediter, to help a billionaire developer from China win approvals for a multimillion-dollar mixed-use development in San Francisco. The developer, who owned multiple five-star hotels, gave Nuru free travel and luxury hotel stays, high-end liquor, meals and other gifts.
In exchange, Nuru ordered subordinates to help the Chinese businessman cut through red tape and used his influence with other city officials to expedite approvals in various departments. Wong pleaded guilty to charges of conspiring to defraud the public in June 2020 and agreed to cooperate with authorities.
Nuru’s plea deal also details a scheme in which he helped a waste management company, Recology Inc., and its affiliates win approvals to increase trash collection rates for San Francisco residents. He acknowledged the company paid for soil to be delivered to his vacation home, gave him expensive meals and paid for a two-night trip to New York in 2017.
Nuru also admits he asked the company to funnel hundreds of thousands of dollars to a charity account that he controlled. At Nuru’s request, Recology gave the former DPW director’s son a job that paid $17,000 over two years and funded a paid internship at a non-profit that earned his son $23,600. Nuru further admitted that he told Recology executives to funnel $60,000 into a charity account that he used to pay for DPW holiday parties.
In September, Recology and its affiliates paid a $36 million fine to avoid federal prosecution for bribery. The companies also agreed this year to repay San Francisco residents $86.6 million in overcharges plus interest.
Beyond helping fix trash rates, Nuru also admits he took bribes from restaurateur Nick Bovis, whom he helped win a bid for a restaurant lease at San Francisco International Airport. Bovis pleaded guilty to wire fraud and bribery in May 2020.
In another section of the plea deal, Nuru fesses up to accepting a $36,000 gold Rolex watch, cash and other gifts from Florence Kong, a Chinese immigrant businesswoman who Nuru helped win city contracts for her recycling company. Kong was sentenced to one year in prison this past February after pleading guilty to bribery and lying to the FBI.
The former DPW director further acknowledged that between 2013 and 2020, he accepted bribes and kickbacks from three contractors — Balmore Hernandez, William Gilmartin, and Alan Varela. In exchange, Nuru helped the business owners win lucrative city contracts. All three pleaded guilty to bribery-related charges and have agreed to cooperate with investigators.
To hide his ill-gotten gains, Nuru concedes in his plea deal that he funneled bribe money through his romantic partner and former city employee Sandra Zuniga, who used the money to make $1,000 monthly payments toward Nuru’s mortgage for his Colusa County vacation home. Zuniga pleaded guilty to conspiring to launder money this past March.
The corruption scandal first made public with Nuru’s arrest in January 2020 has led to the resignations of four city department heads, including Nuru and former San Francisco Public Utilities Commission chief Harlan Kelly, who was charged with bribery in November 2020 and resigned from his position soon after. Harlan’s wife, Naomi Kelly, served as city administrator, the highest unelected position in city government, before resigning this past January amid speculation that she was involved in her husband's alleged corrupt dealings.
Tom Hui, former director of the Department of Building Inspection, also resigned this year after a city attorney’s office investigation accused him of abusing his power and giving preferential treatment to permit applicants. No criminal charges have been filed against Hui or Naomi Kelly.
Nuru is scheduled to enter his guilty plea at a hearing before Senior U.S. District Judge Susan Illston on Jan. 6.
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