Former San Francisco PUC Chief Gets 4 Years in Prison for Fraud
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Bribes included payments for lavish vacations to Hong Kong. Above, tourists on the waterfront in front of Victoria Harbour in Hong Kong on June 28, 2023. (Tyrone Siu/Reuters)
By California Insider Staff
3/19/2024Updated: 3/19/2024

Former San Francisco Public Utilities Commission chief Harlan Kelly Jr. was sentenced March 18 to four years in prison and ordered to pay a $10,000 fine for fraud, the U.S. Attorney’s Office said in a statement.

Kelly, 61, was sentenced by the judge after a 12-day jury trial. He had been convicted in July 2023 of participating in a bribery conspiracy and a separate bank fraud scheme and conspiracy, according to the statement.

“The citizens of San Francisco deserve honesty and integrity from their public officials,” said FBI Special Agent in Charge Robert Tripp. “Kelly, however, put his own personal gain above the people he served, for which he will now spend years in prison.”

The evidence showed how over six years, Kelly received a stream of bribes from a contractor seeking to be awarded millions of dollars in contracts while he was general manager of the SFPUC.

The jury found that some of the bribes included payments for lavish vacations to Hong Kong and China and construction work on Kelly’s house, the statement said. Evidence also showed that Kelly had given confidential documents from the SFPUC to a contractor as a means of providing aid.

Kelly was also convicted of a separate crime in which he and Victor Makras, 65, of San Francisco, defrauded Quicken Loads on a $1.3 million mortgage application. They were both convicted of bank fraud and false statements.

A judge also ordered Kelly to serve a supervised release of three years after finishing his prison sentence, which was ordered to start June 19, 2024.

This was the latest sentence in a six-year investigation into public corruption in San Francisco, according to the U.S. Attorney’s Office. More than a dozen individuals and two corporations have pleaded guilty or admitted involvement in the schemes.

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