San Francisco City Supervisor Charged with Mail Fraud

Ed Jew, a San Francisco supervisor who has been accused of attempting to extort $80,000 from a group of fast-food business owners has pleaded not guilty and was released on $1 million bail.^[1]

Jew was charged Thursday with one federal count of mail fraud after an accustations stemming from an FBI sting where it is asserted that operators of a group of tapioca drink shops gave Jew $40,000 in cash and said they would pay him another $40,000 later.^[2]

Jew has acknowledged taking the money, but asserts that he did so at the businessmen's insistence and on behalf of a consultant he recommended they hire to help with their permit problem.^[3]

Jew was already facing felony charges of perjury and election code violations for allegedly lying about where he lived so he could run for office in San Francisco; he has pleaded not guilty to those charges as well. Jew's federal criminal defense attorney, Steven Gruel, called the mail fraud count a "throwaway charge because you can't get something else…[what kind of influence could Jew possibly have had over the issuing of city permits]….He doesn't control the planning commission, and he certainly doesn't control what types of permits are necessary for retailers."^[4]

Jew's trial on the perjury and election code allegations is to begin late next month.^[5] Gruel questioned the timing of the "media-friendly" federal charge, claiming that the surrounding publicity will taint the jury pool in the other case.^[6] "I have grave concerns whether or not the supervisor can get a fair trial in San Francisco on those state charges," Gruel asserted.^[7]

Mail Fraud
Mail fraud is a crime under 18 U.S.C. § 1341. Under this section, it is illegal to devise a scheme to defraud and then use the mail to carry out the scheme. The punishment for committing mail fraud is a fine, imprisonment for up to 20 years, or both.If convicted, money laundering carries a maximum 20-year prison sentence and a $500,000 fine, and mail fraud carries a maximum 20-year sentence and a $250,000 fine.

Federal criminal attorney Douglas McNabb has also previously discussed mail fraud in his blog, here; and the federal crime of perjury has been discussed here.

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^[1] Marcus Wohlsen, SF Supervisor Pleads Not Guilty to Fraud, Associated Press Newswire, September 21, 2007, available at LEXIS, News Library, Wire News
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.