Mohammed Nuru

Former director, SF Department of Public Works

Role: The Fixer

During his decades as a senior city official, Nuru leveraged his control over public coffers to get bribes and kickbacks from businesses vying for city contracts, the U.S. Justice Department alleged.

In 2008, Nuru struck up a corrupt relationship with contractor Walter Wong, who gave him envelopes of cash stuffed with up to $5,000 at a time. Even more valuable: the $260,000 in labor and materials prosecutors say Wong gifted to build Nuru’s vacation ranch in Colusa County. In exchange, the Public Works boss helped Wong secure lucrative city contracts by feeding insider information and structuring bids to give the developer an edge over competitors.

But Nuru’s corruption allegedly didn’t stop there. Employees from Recology, which has a monopoly on collecting San Francisco’s waste, bribed Nuru for years so he’d support its rate hikes, the feds said. The Public Works director also admitted to taking bribes from other people and offering city jobs and insider information about lucrative city contracts.

Even Mayor London Breed was caught up in Nuru’s whirlwind. After it came to light that Nuru paid for more than $5,500 in car repairs and a rental car for Breed, the Ethics Commission fined her over $8,000. Breed said she briefly dated Nuru over two decades ago. She was not criminally charged.

Where are they now?

Nuru ultimately pleaded guilty to a federal fraud charge. In August 2022, he was sentenced to seven years in prison and is currently incarcerated at a federal prison in Santa Barbara County with a release date set for December 2028.

Wing Lok “Walter” Wong

Owner of Wong Construction Co. and Other Companies

Role: The Expediter

Prosecutors say Wong, the owner of a construction company among other lines of business, coordinated corruption across multiple city departments, on top of bribing Nuru, as detailed above. In total, the businessman cheated the city’s competitive bid processes to obtain $1.45 million in 10 different contracts from Public Works, the SF Public Utilities Commission and the City Administrator’s Office, according to court records. Those arrangements included conspiring with then-Department of Building Inspection Director Tom Hui to influence the work on a now-infamous development at 555 Fulton St., according to the city attorney.

Hui essentially empowered Wong to run portions of his department by hiring Wong’s allies into key city jobs, Mission Local reported. Hui stepped down but has not faced criminal charges.

Where are they now?

Wong pleaded guilty to federal fraud and money laundering charges, agreeing to cooperate with prosecutors. He also agreed to pay San Francisco $1.7 million in a settlement over his numerous corrupt contracts.

He has not yet been sentenced for his convictions, but he and his companies were suspended as city vendors, and he no longer does business with the city as a permit expediter.

Nick Bovis

Owner of Lefty O'Doul's 

Role: The Crooked Restaurateur

Prosecutors say restaurateur Bovis wanted to make sure he won a bid to lease restaurant space in San Francisco International Airport in 2018, so he enlisted the help of Nuru. Over the years, court records show Bovis had bribed Nuru with free meals and entertainment, plus thousands in appliances for the Public Works chief’s ranch, in exchange for assistance obtaining contracts from the city. Nuru expected that if Bovis won the airport contract, he’d send kickbacks his way as thanks for securing the profitable location, prosecutors said.

The pair decided that their best shot at winning the bid was to bribe an influential Airport Commission member. In a recorded call with a confidential government source, Bovis explained that Nuru instructed him to give $5,000 to the commissioner, according to court records. During the call, Bovis said that Nuru told him, “If you give me like $5,000 bucks cash for her […] I'll get it taken care of.”

Bovis ultimately failed in his attempts to bribe commissioner Linda Crayton, who was later named as the target of the scheme by the Controller’s Office. She resigned and did not face criminal charges.

London Breed, when she was still a supervisor in 2015, improperly asked Bovis to pay $1,250 toward the cost of her Pride Parade float, according to the SF Ethics Commission. That payment violated campaign finance rules, and Breed failed to report it, the commission found. It fined Breed $12,000 over the breach.

Where are they now?

In May 2020, Bovis pleaded guilty to federal fraud charges for attempting to bribe city officials. As part of his agreement, the restaurateur promised to cooperate with federal officials, delaying his sentencing until his work with prosecutors ends.

He has not been sentenced.

Recology

San Francisco’s waste collection conglomerate

Role: The Garbage Monopoly

Waste-hauler Recology has had a monopoly on San Francisco’s garbage collection for decades. But local law requires the company to get city approval to raise the rates paid by residential customers.

As a result, a small handful of city officials have immense control over the profits that the garbage giant can earn from its SF routes. John Porter, the company’s then-vice president running its San Francisco operations, recognized that.

“Mohammed is the Director of the [Department of Public Works,] who ultimately signs off on our rates. Needless to say, keeping him happy is important,” Porter wrote about Nuru in an email, according to court filings.

To keep Nuru happy, from 2014 to 2020, Recology directed over $1 million to what prosecutors described as a “slush fund.” According to city reports, the deposits totaled approximately $150,000 annually and were funneled into accounts at the San Francisco Parks Alliance, which has not been charged with a crime.

Paul Giusti, Recology’s government relations manager at the time, was in charge of many of those payments, and Porter, his boss, signed off on at least some of them, prosecutors alleged.

Giusti went so far as to allegedly get Nuru’s then-teenage son a job at a local nonprofit.

Recology also gave $60,000 each year from 2016 to 2019 to the Lefty O'Doul's Foundation for Kids, a baseball charity. But instead of the cash going to support underprivileged children, it paid for Nuru's annual Department of Public Works holiday parties. The faulty foundation was headed by none other than Bovis, the restaurateur.

The company also bought Nuru expensive steak dinners, paid for a New York hotel room and delivered free soil to his private ranch property, according to Nuru’s plea agreement. In return, the Public Works chief used his official position to help Recology’s business as opportunities arose, according to the filing.

A city investigation later found that Recology got away with overcharging San Franciscans by nearly $100 million during Nuru’s tenure.

Where are they now?

The U.S. attorney charged three Recology subsidiaries with conspiracy to commit fraud. In exchange for deferring the prosecution, the company admitted its long-running bribery schemes and agreed to pay $36 million in criminal penalties. It also agreed in March 2021 to repay San Francisco customers roughly $100 million, and later agreed to pay the city another $25 million to resolve further issues.

Porter pleaded guilty in April 2023 to conspiracy to commit fraud shortly before his trial was set to kick off. He has yet to be sentenced.

Giusti pleaded guilty to bribery charges and agreed to cooperate with investigators. He hasn’t been sentenced. 

Recology is still the San Francisco’s sole garbage-collection company. It raised its rates at the beginning of 2023.

The Asphalt Plant

Role: The Waterfront Project

A group of San Francisco businessmen wanted to win a Department of Public Works contract to operate an asphalt plant on land owned by the Port of San Francisco. So prosecutors say the trio began bribing the man who could help get the project greenlighted: Nuru.

Balmore Hernandez was a longtime Public Works employee before he left to form his own company called Azul Works, which received numerous contracts from San Francisco. His cronies were Alan Varela and William Gilmartin III, who together ran ProVen Management, a construction and engineering firm, according to court filings.

Prosecutors say Gilmartin, Nuru and Hernandez discussed the asphalt plant contract process over lavish dinners in the lead-up to the bid. Gilmartin footed the bills, which eventually added up to $20,000. In turn, Nuru allegedly forwarded the group internal city conversations about the project.

In 2015, the port decided to enter into exclusive negotiations with Varela and Gilmartin’s company. But those conversations dragged on for years. During that time, the trio allegedly continued showering benefits upon Nuru in hopes he’d help sway the negotiations in their favor.

Much of the scheme centered on improvements to Nuru’s vacation ranch home. Hernandez sent crews and materials out to work on the property, to the tune of over $250,000 in benefits. Nuru didn’t pay a dime for the work, prosecutors alleged.

Varela and Gilmartin also gave Nuru a John Deere tractor—for his ranch, of course—worth $40,000.

In 2017, while Azul Works had a crew working at Nuru’s ranch, Hernandez texted the Public Works boss, “Bring me some blessings. I need some jobs,” according to the criminal complaint.

The group’s effort to operate an asphalt plant on the public land was ongoing when Nuru was eventually arrested in January 2020. It was never built.

Where are they now?

Alan Varela pleaded guilty in May 2021 to conspiring to commit fraud. He was sentenced to 24 months in prison and fined $127,000. Varela was released from federal prison in March 2023, according to the Board of Prisons.

Where are they now?

Gilmartin and Hernandez both pleaded guilty to conspiring to commit fraud and cooperated with federal investigators. Hernandez’s sentencing hearing is scheduled for mid-September.

In June 2023, San Francisco banned Varela and Gilmartin and their associated companies from receiving city contracts until 2026. The city submitted a request to ban Hernandez and his company as well, though that proposal is pending the conclusion of his criminal case.

Florence Kong

Owner of SFR Recovery and Kwan Wo Ironworks

Role: The Lavish Gifter

Kong was grateful to Nuru for helping her land a contract with San Francisco for disposing of construction debris at her recycling plant. The former member of the SF Immigrant Rights Commission was so grateful, apparently, that she gave the Public Works chief a $37,000 Rolex watch—just one of the many gifts the millionaire showered upon Nuru as bribes for his work on her behalf, prosecutors alleged.

When FBI agents came knocking to ask about the bribes, prosecutors say Kong repeatedly lied about her improper payments.

Where are they now?

Kong eventually pleaded guilty to bribery and making false statements to federal agents. She was sentenced to one year of incarceration and fined $95,000. She has since been released from prison. 

Her two companies were suspended as city vendors.

Zhang Li

Owner of multiple property companies

Role: The International Billionaire

Zhang is a famous real estate magnate and the co-founder and owner of China-based R&F Properties. He is personally worth about $1.5 billion while his company’s assets top $53 billion, according to Forbes. He also repeatedly bribed Nuru to personally usher along the construction of a high-profile construction project in the city, prosecutors allege.

Walter Wong, whom Zhang had hired as a permit expediter, took Nuru on a trip to China in 2018, prosecutors allege. Once there, the pair met up with the real estate mogul, who promptly assigned Nuru a security entourage that whisked the public official away to Zhang’s luxury hot spring resort.  

The FBI recorded Nuru telling his girlfriend over the phone that on that same trip he attended a dinner party at Zhang’s home where he got to meet the vice president of a foreign country and sip on a $10,000 bottle of Maotai, a Chinese liquor.

Once he got back stateside, Zhang began messaging Nuru about permit issues he was having at one of his developments in San Francisco: 555 Fulton St.

“I will make sure we get this issue resolved this week,” Nuru told Zhang on an encrypted messaging app.

“Thank you very much Bro!” Zhang allegedly replied.

Where are they now?

Zhang was arrested in London at the request of the U.S. Justice Department. After initially fighting extradition, Zhang agreed to face charges in the U.S. in July 2023. 

He cut a deal with prosecutors in which he accepted responsibility for his conduct and paid a $50,000 fine. In exchange, the Justice Department agreed to drop the charges against Zhang in three years. Zhang flew back to China hours after appearing in a San Francisco courtroom.

Separately, his American company Z&L Properties will plead guilty to federal fraud and conspiracy charges and pay a $1 million fine.

Sandra Zuniga

Former director, SF Mayor’s Office of Neighborhood Services

Role: The Girlfriend

Zuniga started dating Nuru in 2009, a year after she began working for the city. As Nuru’s girlfriend, prosecutors said she spent years laundering his bribes. She was the one who originally bought the couple's vacation ranch that was the center of so much alleged malfeasance, court records show.

Zuniga would deposit ill-gotten checks from Nuru’s associates, then use the cash to pay for the mortgage on the ranch and various construction bills. Permit expediter Walter Wong also once paid for the couple to travel to Santiago, Chile, and put them up at the Ritz-Carlton, according to court filings.

Where are they now?

She pleaded guilty to conspiring to commit money laundering and is cooperating with federal investigators under a plea agreement.

Ken Hong Wong

Former supervising parole agent, San Francisco Parole Office

Role: The Singing Job Seeker

A politically connected parole agent wanted to get someone a city engineering job. So he paid Nuru $20,000 to make the hire, prosecutors said. 

But Ken Hong Wong isn’t any old bureaucrat: He’s a well-known singer in the Chinese-speaking community whose performances have entertained local politicos in San Francisco’s Chinatown and abroad on a Canadian tour. Online videos show the now-retired parole agent performing at a charity event featuring Fiona Ma—currently a candidate for lieutenant governor—as the “special guest.” 

His stage name, 金城大少,  translates to “San Francisco's Big Brother/Master.”

Where are they now?

Wong was charged in June 2023, and his case is ongoing. 

His defense attorney told The Standard that he plans to plead guilty and admit that the payments he gave Nuru amounted to bribery. Wong made the payments after one of his friends asked him to use his relationship with Nuru to help get a third, unnamed person the Public Works job, his attorney said.

An investigation by The Standard revealed that the job recipient was a 25-year-old recent college graduate who held the role for just two weeks. It’s unclear whether she knew about the payments made on her behalf.

Gerald "Jerry" Sanguinetti

Former bureau manager, SF Public Works Department

Role: The Rip Off

San Francisco’s Public Works Department had a go-to company to buy merchandise like shirts and caps—SDL Merchandising. The trouble is, that company was owned by the wife of one of the department’s bureau managers—Sanguinetti.

One city employee realized that SDL was charging twice the rates of its competitors and tried to replace it with a new vendor, prosecutors said. But their supervisor stopped them, saying that the top boss, Nuru, “wouldn’t like that.” Meanwhile, payments for the overpriced gear came out of the slush fund at the Parks Alliance that had been filled by Recology and other companies.

Where are they now?

The San Francisco District Attorney’s Office accused Sanguinetti of failing to disclose over a quarter million dollars in outside income on his financial disclosure statements filed with the city.

He was convicted for failing to file financial disclosure forms and sentenced to one day in county jail, one year of probation and a $10,000 fine, according to the office.

Bernard Curran

Former senior inspector, SF Department of Building Inspection

Role: The Inspector for Sale

Bernard Curran was a senior building inspector who admitted to receiving illegal payments from one local real estate developer, unnamed in court filings, as a reward for inspecting his projects.

In 2017, the developer gave Curran a $260,000 loan so the inspector could pay down his mortgage and refinance at a better rate. Curran paid most of the cash back, but the developer forgave $30,000 of the loan. The official later admitted that he understood the debt forgiveness was an improper reward for the inspections he’d done, and would continue to do, for the developer, according to prosecutors.

Though Curran’s case has not been linked to Nuru’s, it shows that corruption was part of a larger culture within the city, extending beyond the Public Works boss’s circle.

Where are they now?

Curran pleaded guilty to accepting gratuity payments and was sentenced to one year in prison in July 2023.

“I believe that you are a good man,” Senior District Judge Susan Illston told Curran during his sentencing. “But I also believe that this kind of conduct is very, very detrimental to the city.”

Rodrigo Santos

Owner of Santos & Urrutia Associates

Role: The Check Casher

Rodrigo Santos was another permit expediter who allegedly improperly influenced Curran. Santos, who years before was appointed to the city’s Building Inspection Commission by then-Mayor Willie Brown and later rose to commission president, ran a company that helped builders obtain permits. Prosecutors say Santos had 13 clients give donations to a nonprofit athletic organization that Curran supported, knowing that would curry favor with the inspector. In some cases, Santos gave the donation checks directly to Curran, ensuring he knew exactly which client was giving to his favorite charity, officials alleged.

Separately, Santos regularly stole checks his clients wrote out to the city, instead depositing them in his personal bank account. 

In one example, prosecutors say a Santos client gave him a check written out for “DBI,” which is what insiders call the city’s Department of Building Inspection. Santos then took advantage of his own name’s spelling and wrote “Ro” before “DBI” and “GO” after so the check now appeared to be intended for “RoDBIGO Santos.” He allegedly deposited it in his own account.

Over seven years, about 445 checks worth more than $775,000 wound up in his pocket instead of city coffers, according to prosecutors.

Where are they now?

Santos pleaded guilty in January 2023 to multiple fraud charges, evading taxes and falsifying records in a federal investigation. He agreed to pay more than $1 million in restitution to his victims, and his sentencing hearing is scheduled for late August.

Harlan Kelly, Jr. 

Former general manager, SF Public Utilities Commission

Role: The Sewer Steward

Harlan Kelly was a powerful man in San Francisco. During his career working for the city, Kelly was responsible for spending billions of taxpayer dollars to improve the city’s water, sewer and power systems. That’s not to mention the fact that his wife, Naomi Kelly, was the city administrator, the highest non-elected position in the city.

Walter Wong, the permit expediter and construction executive, wanted Kelly to help his business ventures, including by awarding him a multimillion dollar contract from the city to convert streetlights to LED technology, prosecutors alleged. The permit expediter helped pay for the power family to take a vacation in China because he wanted city contracts, Wong testified during Kelly’s trial. Those perks included Wong pulling strings to get the family visas, arranging free hotel stays and a personalized safari tour, according to the testimony.

Shortly after the bidding ended, Wong completed extensive repairs on Kelly’s home at a substantial discount, according to court filings. That included accepting $11,500 for what should have been $23,000 worth of work, Wong testified.

In return for these benefits, Kelly hand-delivered confidential city documents related to the LED project to Wong, prosecutors said. When Wong was running behind submitting his bid for the LED job, Kelly allegedly used his official position to delay the submission deadline.

Where are they now?

Kelly went to trial, where he argued that the gifts from Wong were simply part of a reciprocal relationship he had with a longtime friend. But the jury didn’t buy it. Kelly was found guilty of six criminal counts in July 2023, including fraud and making false financial statements. He has not yet been sentenced.

Kelly’s wife, Naomi, resigned her position but has not been charged with a crime.

Victor Makras

Owner of Makras Real Estate

Role: The Real Estate Mogul

Makras is a local real estate broker with close ties to some of San Francisco’s most influential politicians. Over the years, he also served on a slew of city commissions, including the Port Commission, Police Commission, Public Utilities Commission and Retirement Board.

Prosecutors say Harlan Kelly teamed up with Makras to commit bank fraud. 

The public utilities manager had previously taken out a $715,000 loan from an investment company Makras managed to pay for his home and two other properties. 

Later, prosecutors allege, Makras submitted inaccurate financial documents making it look like Kelly owed more than he really did. Using Markas’ misleading documentation, Kelly was able to obtain a $1.3 million refinance loan from Quicken Loans at a lower interest rate than he would have been able to receive without the fraudulent figures, according to the criminal complaint.

Where are they now?

Makras was tried and convicted of making false statements to a bank and bank fraud. He was sentenced to three years probation and fined $15,200. He also paid $14,500 in penalties to the city’s Ethics Commission over allegations of violating conflicts-of-interest rules.

During sentencing, former mayors Willie Brown and Art Agnos both wrote letters to the judge asking for leniency on Makras’ behalf.