San Francisco Chronicle - (Sunday)
Feds seek to unravel more City Hall corruption cases
The federal investigation into corruption at San Francisco City Hall appears to be widening, and the U.S. attorney looking into the malfeasance is upping his game by adding investigators and teaming up with other other agencies to beef up the hunt.
“What we are finding in our City Hall corruption investigation is that one case leads to another,” U.S. Attorney David Anderson said in a recent interview.
In addition to the more than six prosecutors and one auditor already assigned to the case, Anderson is teaming up with more than a dozen special agents from both the FBI and IRS.
“Because the investigation demands it,” he said.
At the center of the web is former Public Works Director Mohammed Nuru, who stands accused of doing favors for contractors and developers in return for hundreds of thousands of dollars in gifts, favors and lavish trips.
The Nuru investigation is being handled by the same team that led the Raymond “Shrimp Boy” Chow organized crime investigation in 2014 that ensnared former state Sen. Leland Yee on money laundering, public corruption, gun trafficking and bribery charges.
James Lassart, the attorney who represented Yee on the corruption charges, said Anderson is using the same, classic organized crime tactics — wiretaps and undercover informants — that were used in the Chow investigation. As with the Chow case, the FBI is the lead investigative agency, but this time the IRS adds real power when trying to follow the money.
The difference, Lassart said, was that Yee’s involvement in the Shrimp Boy case came as a surprise to the FBI. This time City Hall is the clear target — a potentially much bigger one, as well.
“For years federal prosecutors have used informants, wiretaps, and bank and phone records to dismantle organized crime,” Anderson said. “All we are doing is directing the same tactics against whitecollar crime.”
One of those tactics is issuing highly publicized criminal complaints that present selective and detailed evidence in the case to the public. In addition to making a big splash, the publicity allows unnamed coparticipants or coconspirators to read the writing on the wall. “He works his way through the witnesses, getting them to cooperate and then to roll over,” Lassart said of Anderson.
The tactic appears to be working.
Since Nuru’s arrest in January, criminal complaints involving several people with close ties to City Hall officials have been filed, including a complaint against Nuru’s longtime girlfriend Sandra Zuniga, who until recently headed the city’s Fixit Team. On Wednesday the feds charged longtime private building permit consultant and political insider Walter Wong with conspiracy to commit fraud and conspiracy to commit money laundering. Wong, whose ties to City Hall go back decades and who was close to the late Chinatown power broker Rose Pak, has agreed to plead guilty and cooperate with the FBI.
Others under the microscope include former Department of Building Inspections Director Tom Hui, who resigned after a separate investigation begun by the city attorney.
In announcing Wong’s arrest, Anderson told reporters that there are still “others who are not named at this time, including other public officials” who could be getting a visit from investigators.
When asked whether he agreed that the investigation proves the longstanding belief that a culture of cronyism and inside dealing pervades City Hall, Anderson said it is too early to tell.
“The cases we have charged to date do not in fairness establish a culture of corruption at City Hall,” he said. “I will leave it to others to say what it means if the cases keep piling up.”
While some speculate that the investigation in a heavily Democratic City Hall by a Republican administration smacks of politics, it’s no secret that the allegations of corruption date back decades.
“For years there has been an interest in trying to investigate the activities in San Francisco, and they haven’t been that successful,” Lassart said. “San Francisco corruption is always looked at as being multigenerational. You got a favor from my grandfather. You do a favor for the grandson.”
As more charges are filed and more witnesses called in, speculation is increasing over who may be next in line.
“We are all guessing,” Lassart said. “They are pulling the thread to see what unravels.”
San Francisco Chronicle columnist Phil Matier appears Sundays and Wednesdays. Matier can be seen on the KGOTV morning and evening news and can also be heard on KCBS radio Monday through Friday at 7:50 a.m. and 5:50 p.m. Got a tip? Call 4157778815, or email pmatier@sfchronicle.com. Twitter: @philmatier