Politically related San Francisco actual property mogul Victor Makras was discovered responsible Friday of financial institution fraud and making false statements to a financial institution, the newest conviction within the tangled internet of San Francisco’s Metropolis Corridor corruption scandal that has ensnared a bevy of metropolis leaders and enterprise officers.
Federal prosecutors satisfied the jury that Makras defrauded mortgage lender Quicken Loans in a $1.3 million actual property mortgage to former Public Utilities Fee head Harlan Kelly, who has but to be tried on a lot of prices, together with for his personal function on this scheme.
With a view to get extra money at a decrease rate of interest, prosecutors argued, Makras falsely inflated the quantity of debt that Kelly owed to Makras’ actual property funding agency by $200,000.
On the similar time, Makras hid different money owed Kelly owed, together with a $70,000 private mortgage from Makras.
Makras’ actual property agency’s $715,000 mortgage in addition to his private mortgage to Kelly have been paid off with the Quicken Loans cash, prosecutors stated.
Jurors didn’t attain a consensus on whether or not Makras conspired with Kelly to defraud Quicken Loans and make false statements to a financial institution.
Makras, who served on not less than 5 metropolis commissions for a few years, may face a long time in jail.
Along with the Port Fee, Makras was a member of the town’s Police Fee, Hearth Fee, Staff’ Retirement System board and Public Utilities Fee.
He was additionally a prolific political donor, having contributed many 1000’s of {dollars} to candidates and causes spanning San Francisco’s ideological spectrum.
Makras’ conviction comes only a day after Mohammed Nuru was sentenced to seven years in jail after pleading responsible to a federal fraud cost. Nuru admitted to bribery and kickbacks, utilizing his authority as a metropolis official to acquire cash and presents in alternate for offering insider info and choice to metropolis contractors in a lot of wide-reaching schemes.
Federal investigators stated Thursday that their probe into the scandal — which has eroded public belief in metropolis authorities — is ongoing.
Danielle Echeverria is a San Francisco Chronicle workers author. E mail: [email protected] Twitter: @DanielleEchev