Harlan Kelly, head of the SFPUC and husband to City Administrator Naomi Kelly (right), faces a fraud charge for allegedly trading inside information on a city contract in return for a paid family vacation. (Courtesy photo)

Harlan Kelly, head of the SFPUC and husband to City Administrator Naomi Kelly (right), faces a fraud charge for allegedly trading inside information on a city contract in return for a paid family vacation. (Courtesy photo)

Former SFPUC head Harlan Kelly makes first appearance on fraud charge

Feds found alleged cocaine during search of his home, prosecutors reveal

The former head of the San Francisco Public Utilities Commission, Harlan Kelly, made his first appearance in federal court Tuesday morning after being charged with fraud as part of the FBI investigation into corruption at City Hall.

Kelly appeared virtually alongside his attorney, Brian Getz, but did not enter a plea to the fraud charge for allegedly trading insider information about a government contract for a paid family vacation to China.

Prosecutors revealed during the hearing that federal authorities found a substance that tested positive for cocaine while searching Kelly’s home. The FBI searched his residence in the Inner Sunset last Monday.

“During the search of Mr. Kelly’s home we found a substance that tested presumptively positive for cocaine,” Assistant U.S. Attorney Robin Harris told U.S. Magistrate Judge Laurel Beeler.

The allegation emerged when Beeler questioned whether Kelly needed to comply with drug testing as a condition of his continued release from custody pending trial.

Kelly has not been charged with a drug crime. His attorney told the San Francisco Examiner that authorities found a small amount of the substance that was left by a “visitor from earlier this year.”

“He is not being charged with that,” Getz said. “It was residue left behind by another person.”

Getz previously said the FBI found “nothing in his house that supports their case.”

Kelly’s father, Harlan Kelly Sr., appeared at the hearing Tuesday to support his son. He put up a $200,000 bond secured by his Fresno barber shop for his son to remain out of custody.

Harlan Kelly Jr. resigned last Monday after the U.S. Attorney’s Office charged him.

He is married to City Administrator Naomi Kelly, who took a leave of absence after prosecutors filed the complaint against her husband. She has not been charged with a crime.

The case is due back in court Feb. 2.

mbarba@sfexaminer.com

Bay Area Newssan francisco news

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

A view of Science Hall at the City College of San Francisco Ocean campus on Thursday, Jan. 14, 2021. (Kevin N. Hume/S.F. Examiner)
CCSF begins search for next chancellor amid new challenges

‘It’s arguably the biggest single responsibility the board has,’ trustee says

Some people are concerned that University of California, San Francisco’s expansion at its Parnassus campus could cause an undesirable increase in the number of riders on Muni’s N-Judah line.<ins></ins>
Will UCSF’s $20 million pledge to SFMTA offset traffic woes?

An even more crowded N-Judah plus increased congestion ahead cause concern

(Robert Greene/Tribune News Service)
As tensions grow over vaccinations and politics, California lawmakers face threats from public

Anti-vaccine speakers hint at gun violence during routine budget hearing at state Capitol

Dr. Martin Luther King in Sam Pollard’s ‘MLK/FBI’. (Courtesy of IFC Films/TNS)
The superb documentary ‘MLK/FBI’ clearly connects the past to our troubling present

Justin Chang Los Angeles Times Among the many archival materials excerpted in… Continue reading

Toni Isabella, a counselor at Ohlhoff Recovery Programs, finds helpful assistance from service dog Barker Posey.<ins> (Kevin N. Hume/S.F. Examiner)</ins>
Toni Isabella: Helping people indoors and out recover from addiction’s dark side

Counselor supports holistic, progressive approach to healing

Most Read