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Fmr. SF Public Utilities Commission GM Harlan Kelly Charged With Bank Fraud In Bribery, Corruption Scandal

SAN FRANCISCO (CBS SF) -- Former San Francisco Public Utilities Commission (SFPUC) General Manager Harlan Kelly is now facing additional charges of bank fraud in the bribery and corruption scandal that forced him to resign his post, last November.

A federal indictment, filed Tuesday, alleges Kelly, 59, was engaged in a bribery scheme with an individual identified as "Contractor #1," providing insider information and "competitive advantages" in exchange for lavish gifts including luxury hotels, meals, jewelry and construction work at his residence.

The allegations of bank fraud and conspiracy center around his involvement with San Francisco real estate broker, Victor Makras. The pair allegedly conspired to defraud Quicken Loans on an application for a $1.3 million loan which allowed Kelly to qualify for a higher loan at a lower interest rate.

Last November, FBI agents raided Kelly's home after he was charged in a federal criminal complaint that centered around Kelly's relationship with consultant Water Wong. It alleges that Wong gave Kelly bribes in exchange for official favors to benefit Wong's business ventures. Wong has pleaded guilty in a corruption scandal involving nine others, including former Department of Public Works head Mohammed Neru.

Following the complaint, Kelly resigned and disputed the charges in a statement:

In a statement, Kelly disputed the charges against him.

"I am not guilty of these charges," said Kelly. "I have devoted my entire career to public service. As many of my colleagues at the San Francisco Public Utilities Commission are aware, I had intended to retire in the next 18 months. Unfortunately, I need to leave my position now in order to defend myself, my legacy and my family."

Kelly is not in custody. He is scheduled to appear in San Francisco federal court October 20.


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