Company to pay $100K for money laundering scheme, contributions to Mayor Lee's campaign

A case of election fraud from the 2011 campaign season was finally settled Wednesday, with managers of an airport shuttle company pleading guilty to skirting campaign contribution limits on behalf of Mayor Ed Lee.

Lee, whose campaign received $11,500 from 23 employees of the Go Lorries shuttle company in September 2011, returned the donations once it was revealed that managers collected the maximum $500 contribution from workers on the promise that they would be reimbursed.

General Manager Jason Perez and Chief Financial Officer Hanan Qutami agreed with District Attorney George Gascón’s office to pay combined fines of nearly $100,000 — including company penalties.

Tony Brass, an attorney for Go Lorries, said the laundering scheme was prompted by company founder Tony Ruiz, Perez’s grandfather, whose deathbed wish was for Perez to undertake the donation scheme as a way to draw favor from the mayor. Brass said Ruiz felt outdone by other shuttle companies and was seeking favorable new airport transportation policies to stay competitive.

“There’s no reason to think the Ed Lee campaign had anything to do with it,” Brass said.

In March, Go Lorries paid nearly $50,000 to the state’s Fair Political Practices Commission, which also investigated the matter. Brass said company managers immediately admitted wrongdoing when news of the laundering surfaced, but the long city process was due to an analysis of the company’s finances, which was designed to determine the appropriate fine.

The case represents one of three instances of alleged fraud connected to Lee’s 2011 campaign. Gascón’s office found insufficient evidence to file charges over similar allegations against a former CitiApartments manager, plus makeshift voting booths set up by an independent expenditure committee that helped senior citizens fill out ballots while stumping for Lee in Chinatown. At the time, Lee called for an immediate end to such activities and went so far as to call them “moronic.”

dschreiber@sfexaminer.com

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Mohammed Nuru, head of SF Public Works, arrested by FBI

The head of San Francisco Public Works Mohammed Nuru has been arrested… Continue reading

Preston, advocates pressure major landlord to sell buildings to city or nonprofits

San Francisco’s largest owner of rent-controlled properties is unwilling to entertain demands… Continue reading

SF police union calls for federal prosecution of man shot by police

San Francisco’s police union urged federal authorities to intervene Monday after newly… Continue reading

NBA postpones Lakers-Clippers game that was set for Tuesday

The NBA has postponed the Lakers-Clippers game that was scheduled for Tuesday.… Continue reading

Most Read