San Francisco Chronicle - (Sunday)
Developer, nephew plead guilty to fraud
A multimillionaire developer and his nephew accused of bribing building inspectors and plan-checkers with cash, meals and interest-free loans pleaded guilty Friday morning to fraud charges, part of an ongoing federal corruption probe that has brought down a widening ring of prominent businesspeople, developers and city bureaucrats.
Siavash “Sia” Tahbazof, 73, was charged Nov. 9 with one count of conspiracy to commit wire fraud, as were his business partner, Reza Khoshnevisan and his 39-year-old nephew, Bahman Ghassemzadeh. All three men had previously denied the allegations.
Tahbazof and Ghassemzadeh are accused of bribing former senior building inspector Bernie Curran and former plan-checkers Rudy Pada and Cyril Yu to hasten building permits and obtain favorable building inspections.
Before the proceedings, Tahbazof sat with his wife, Samaneh “Sami” Tahbazof, and Ghassemzadeh in a mostly empty courtroom.
Assistant U.S. Attorney David Ward said in court that prosecutors would have been able to prove that Ghassemzadeh bribed Pada and Yu with more than $15,000 in cash, meals and drinks.
Ghassemzadeh entered his plea first, acknowledging to Judge Susan Illston that he was giving up many of his rights regarding the charge against him.
“Everything in here is true,” he said, under questioning whether his plea agreement was accurate.
Tahbazof appeared immediately afterward, answering the
same questions, as his wife and nephew looked on.
Ward said Tahbazof ’s bribery scheme began as far back as 2003 — at the instigation of Pada — in return for Pada signing off on his plans. Ward said Tahbazof also directed his former business partner to make similar payments to Pada, and arranged for him to receive an interestfree
loan which he later repaid. Ward also said prosecutors would prove Tahbazof directed his nephew to pay bribes to Yu and that he paid bribes to Curran and loaned him $260,000.
Yu and Pada face their own federal fraud charges. Neither still work for the city. Pada, 68, pleaded guilty in December, and Curran has already been sentenced to a year in federal prison. Khoshnevisan’s next court date is set for Jan. 12.
Tahbazof and Ghassemzadeh are targets in a multiyear federal corruption probe that has resulted in a growing number of criminal convictions. Prosecutors have charged Mohammed Nuru, former chief of San Francisco Public Works. He was sentenced to seven years in prison for fraud. Also convicted earlier this year was Harlan Kelly, former general manager of the San Francisco Public Utilities Commission.
Tahbazof and his co-defendants face up to 20 years imprisonment and fines of up to $250,000, but because of sentencing guidelines are likely to face far lower sentences. In court, Tahbazof’s attorney said prosecutors and defense counsel had agreed on a suggested sentence of three years probation, six months home confinement and a $50,000 fine, but Illston warned him that such a sentence was only a suggestion.
“I may agree with the government, or not,” she said. “You understand that?”
He said that he understood, then entered his plea moments later. He and his nephew are set to return to court for sentencing on April 19.