Corruption probe cites Ed Lee as code name ‘35’

If former San Francisco Mayor Ed Lee were alive today, he would be deep in the U.S. attorney’s investigation into corruption at City Hall.

For starters, Lee appointed the investigation’s two biggest targets so far, former Public Works Director Mohammed Nuru and former Public Utilities Commission General Manager Harlan Kelly, to their positions.

Lee was also a longtime friend of Walter Wong, who according to a criminal complaint issued last week obtained inside information from Kelly when bidding on an SFPUC contract to convert more than

18,000 streetlights to smart LED technology at the same time he was arranging and helping pay for a Kelly family trip to Hong Kong.

The complaint states that Wong communicated with Kelly via private text messages about “a number of projects.” And some of those projects were also the subject of meetings among Wong, Kelly and Lee, who the contractor and thenSFPUC chief gave the code name “35” — on a keypad, “3” represents “E” and “5” represents “L,” Lee’s initials.

The first reference to Lee came on March 4, 2014, when Wong texted Kelly, “Just finished mayor breakfast p’s call me, lots of developer (sic) complaint your department.”

Two days later, Wong texted Kelly about helping with a permit for a project at the Masonic Auditorium at 1111 California St. on Nob Hill.

When Kelly failed to respond, Wong texted again, asking “did u request help to this permit 1111 California, p/a # 201008199171. this one is in 35 radar.”

Kelly responds: “Yes have people working on ot.”

Kelly responded “Yes with 35.”

Wong replied “35 may play golf tomorrow, he said for me to meet w u first, what time tomorrow is good for u.”

And in July 2014: Wong: “35 will be at cc [Citi Center, the name of Wong’s office building] 7 pm tomorrow”

Kelly: “Still on at 7?” Wong: “yes we are at cc boss is here too.”

And, according to the criminal complaint, they used the “35” code to refer to Lee in texts as early as 2013.

Lee died of a heart attack in December 2017, but if he were still alive and the meetings occurred as the texts suggest, then the “boss” or “35” might be in need of a lawyer.

“No doubt Lee would be asked to answer some questions,” defense attorney and former federal prosecutor Tony Brass said. “There is not really enough there to lead to a case, but if I was the prosecutor I would send Lee an investigative grand jury subpoena.”

Meanwhile, back at the SFPUC: Although it lacks the fireworks of her boss Harlan Kelly’s departure, a second San Francisco Public Utilities Commission official who has come under FBI scrutiny, Juliet Ellis, assistant general manager for external affairs, has announced her exit from the agency as well.

“Her last day at SFPUC is Jan. 4. She’s transitioning to a role in the private sector,” SFPUC spokesman Tyler Gamble said in an email.

Ellis has been associated with the agency for 12 years, first as a commissioner and then in her current role.

As part of their investigation, federal officials obtained Kelly’s and Ellis’ personnel files in July, along with complete records related to any trips the pair took, including expense reports and reimbursement records, back to 2005. The U.S. attorney’s office also ordered the agency to produce any commission audits from 2010 to the present related to trips taken by Kelly and Ellis.

Ellis was not named in the Kelly criminal complaint nor was she connected with the charges announced Monday. “The SFPUC provided the requested documents over the summer. There has been no additional followup on it,” Gamble said.

Gamble said Ellis’ departure was in the works before the investigators came knocking.

“Juliet began preparing to transition at the start of the year,” Gamble said. “Once the pandemic hit, she agreed to stay on to support our response and recovery.”

In a statement, Public Utilities Commission President Sophie Maxwell said Ellis brought a “muchneeded infusion of innovation and compassion to San Francisco city government and to the utility industry.”

Ellis did not return a request for comment.

Ellis came under scrutiny in 2012, shortly after taking the SFPUC job, for an alleged ethics violation after she helped steer a $200,000, nobid contract to Green for All, an Oakland nonprofit where she served as a paid board member.

Green for All was founded by Van Jones, the author and frequent CNN commentator, to promote environmentally friendly jobs for disadvantaged minorities.

At the time, Kelly defended Ellis and said that while an internal investigation “confirmed that there were violations” of reporting requirements and “a possible violation” of state conflictofinterest laws, Ellis’ “critical” expertise overrode her alleged conflict of interest in awarding the city contract.

The contract was scuttled, but Ellis stayed on as a top deputy at the SFPUC.

Kelly resigned as the agency’s general manager Monday, after being charged by the U.S. attorney for allegedly accepting international trips, free meals and jewelry from contractor Walter Wong in exchange for insider information on a city lighting contract.

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

Liz Hafalia / The Chronicle 2017 San Francisco Mayor Ed Lee, seen months before his death in 2017, reportedly was given the code name “35” by two of the key subjects of an alleged paytoplay scheme at City Hall.