A high ranking former San Francisco official, who used his influence and position in exchange for construction services and materials to develop his Colusa County property, pleaded guilty in federal court on Jan. 14 to honest services wire fraud, in connection to a bribery and corruption scheme that involved Recology, Inc., and other contractors that did business with the city.
The plea deal was reached exactly two years after a 79-page federal complaint was filed against San Francisco Department of Public Works Director Mohammed Nuru, 59, who admitted to the long-running scheme in which he used his position to help the businesses of Recology, Inc., Walter Wong Construction, and several others in exchange for cash, trips, valuables, and construction work to develop his 10-acre ranch in Stonyford into a vacation retreat.
Nuru admitted he accepted numerous valuable items from Recology and used his official position to help Recology’s business by influencing rates and tipping fees. In return, Recology paid for soil to be delivered to Nuru’s Stonyford ranch, expensive food, trips, parties, provided a job for Nuru’s son, and paid more than $750,000 over several years to a non-profit organization, for which Nuru had access to the funds.
“Mohammed Nuru admits to a staggering amount of public corruption in his plea agreement,” said Acting United States Attorney Stephanie M. Hinds, in a news release. “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.”
Among his many admissions, Nuru admitted to receiving a string of bribes from Walter Wong Construction, whom Nuru provided with confidential insider City information on competitors’ bids or specifications. Nuru admitted to helping Wong structure bids to ensure Wong would be the most-qualified bidder, including for a multi-million, multi-use development project for a Chinese billionaire, whom Wong worked as a contractor. In exchange for Nuru’s help, Wong provided free or nearly free construction services at Nuru’s Stonyford ranch and his home in San Francisco, along with giving him large amounts of cash, Hinds said. Wong also paid for expensive trips for Nuru and his girlfriend, and provided nearly $260,000 in construction materials, Nuru admitted.
Wong was charged with conspiracy to defraud the public of its right to honest services and conspiracy to engage in money laundering, both involving Nuru and Nuru’s girlfriend, who funneled cash to pay for the mortgage on the Stonyford property.
Wong entered a guilty plea and agreed to cooperate with the government’s San Francisco City Hall corruption investigation.
Recology, a waste management company headquartered in San Francisco, agreed to pay $36 million in fines and agreed to implement enhanced corporate compliance programs to prevent corruption, per the terms of their deferred prosecution agreement with the government. Two former Recology executives were charged in connection to the corruption scheme.
To date, 12 individuals and three corporations have been charged, including three other property developers from whom Nuro, as a result of corruptive practices, received free meals, jewelry, entertainment, $250,000 in free labor and materials for the Stonyford ranch, and portions of the proceeds from anticipated city contracts awarded to them as a result of Nuro’s acts or influence, Hinds said.
This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco.
Most of those involved in the scheme have pleaded guilty to charges and have cooperated with the FBI’s investigation in exchange for light or no prison sentences.
Nuru is facing up to 20 years in federal prison for public corruption, but could receive the recommended sentence of nine years, per his plea deal, when he is sentenced later this year. ■