SAN FRANCISCO (CBSSF) – The former San Francisco Public Utilities Authority (SFPUC) general manager, Harlan Kelly, is now facing additional charges related to bank fraud in the bribery and corruption scandal that forced him to resign from his position, last November.
A federal indictment, filed Tuesday, alleges that Kelly, 59, was involved in a bribery scheme with an individual known as “Contractor Number 1”, providing inside information and “competitive benefits” in exchange for lavish gifts including luxury hotels and meals. jewelry and construction work in his residence.
Allegations of bank fraud and conspiracy center around his involvement with San Francisco real estate broker, Victor Macras. The couple allegedly conspired to defraud Quicken Loans on an application for a $1.3 million loan that allowed Kelly to qualify for a higher loan at a lower interest rate.
Last November, FBI agents Raided Kelly’s house After he was charged in a federal criminal complaint centered around Kelly’s relationship with counselor Water Wong. She alleges that Wong gave Kelly bribes in exchange for official favors for Wong’s businesses. Wong pleaded guilty to a corruption scandal that implicated nine others, including former Ministry of Public Works chief Muhammad Nero.
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After the complaint, Kelly resigned and appealed the charges in a statement:
In a statement, Kelly appealed the charges.
“I’m not guilty of these charges,” Kelly said. “I have dedicated my entire career to public service. As many of my colleagues on the San Francisco Public Utilities Commission know, I intended to retire in the next 18 months. Unfortunately, I need to leave my position now to defend myself, my legacy, and my family.”
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Kelly is not in custody. He is due to appear in federal court in San Francisco on October 20.
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