Harlan Kelly Trial: Verdict, Sentence, and Ninth Circuit Appeal

The Harlan Kelly trial ended in 2023 with a federal jury convicting the former General Manager of the San Francisco Public Utilities Commission on six of eight felony counts, covering both a years-long bribery scheme and a separate bank fraud conspiracy. Chief U.S. District Judge Richard Seeborg sentenced Kelly to four years in federal prison on March 18, 2024, and the Ninth Circuit Court of Appeals affirmed the conviction on August 15, 2025.¹²

The Two Schemes Kelly Was Tried For

A federal grand jury returned a superseding indictment on May 31, 2022, charging Kelly with eight felony counts across two distinct criminal schemes.³

The first was a bribery scheme. Prosecutors alleged that over more than six years, Kelly took bribes from contractor Walter Wong in exchange for helping Wong’s businesses in the city’s public bidding process, including handing over confidential internal documents with proprietary pricing data and bid evaluations for multimillion-dollar SFPUC contracts.⁴ Four counts of honest services wire fraud, including one conspiracy count, arose from that conduct.

The second was a bank fraud conspiracy involving real estate investor Victor Makras. According to the indictment, Kelly and Makras inflated the balance on an existing loan so Kelly could borrow more at a lower rate on a $1.3 million Quicken Loans refinance, and they hid Kelly’s other debts from the lender, including thousands owed to Wong for home construction and a $70,000 personal loan from Makras. Loan proceeds were then used to repay those hidden debts.⁵ The remaining four counts, bank fraud, conspiracy to commit bank fraud, making false statements to a bank, and conspiracy to make false statements, all came from that scheme.

Evidence and Testimony at Trial

The trial ran 12 days before Judge Seeborg. The government leaned heavily on Wong, who had already pleaded guilty to conspiracy and was cooperating, along with documents Wong turned over and electronic communications between the two men.⁶¹

Wong testified that he supplied Kelly with a stream of personal financial benefits and expected city contracts in return. The most vivid example was a March 2016 family vacation to Hong Kong and China, where Wong covered hotel expenses, meals, and jewelry purchases. Kelly’s airfare was initially paid by credit card to create a paper trail, then reimbursed by Wong in cash deposited to Kelly’s bank account. Afterward, Kelly messaged Wong on an encrypted app: “Thank you for the best family vacation ever! A little something for everyone!”⁴

Wong also did extensive construction on Kelly’s home at a steep discount, including a wine cellar, and the criminal complaint says Kelly never fully paid for thousands of dollars of that work.⁷ In return, prosecutors showed Kelly hand-delivering confidential bid materials to Wong during an extended procurement for a smart LED streetlight conversion contract worth millions. Those materials included internal scoring sheets from each evaluation panelist and a memo analyzing the gap between actual and anticipated pricing.

Defense attorney Brian Getz argued Kelly lacked criminal intent, casting Wong’s gifts as personal favors between longtime acquaintances rather than bribes. The defense also noted that Wong never actually won the streetlight contract; his company climbed the bid rankings and reached a runoff review, then withdrew after the city changed the requirements several times.⁷

The Jury’s Split Verdict

The jury deliberated a little over one day and returned a mixed result: guilty on six counts, not guilty on two.³

On the bribery side, the jury convicted Kelly of one count of conspiracy to commit honest services wire fraud and one substantive count of honest services wire fraud, while acquitting him on the other two honest services counts. On the bank fraud side, the jury convicted on all four counts: bank fraud, conspiracy to commit bank fraud, making false statements to a bank, and conspiracy to make false statements. The split suggests jurors accepted some of the defense’s arguments where the link between a specific bribe and a specific official act was thinner, but treated the bank fraud proof as straightforward.

The Sentence

On March 18, 2024, Judge Seeborg sentenced Kelly to four years in federal prison, plus a $10,000 fine and three years of supervised release to follow. Kelly was ordered to surrender to the Bureau of Prisons on June 19, 2024.¹

First Assistant U.S. Attorney Patrick Robbins said the sentence “sends a clear message that public officials who violate their oath of office and betray their duty as public stewards will be held accountable,” and described Kelly’s conduct as “abusing his position and violating his duty of trust” in service to “personal greed.”¹ The DOJ’s sentencing announcement did not mention any restitution order or asset forfeiture beyond the fine.

What Happened to Co-Defendant Victor Makras

Makras was tried alongside Kelly on the bank fraud counts and convicted of bank fraud and making false statements to a bank.¹ His sentence was much lighter: three years of supervised release and a $15,000 fine.⁸ Makras had no role in the bribery scheme and played a secondary part in the fraud.

The Ninth Circuit Appeal

After post-trial motions for acquittal or a new trial were denied, Kelly appealed to the Ninth Circuit (Case No. 24-1825). His appeal challenged two rulings: the denial of his motion to dismiss the superseding indictment, and the trial court’s rejection of certain jury instructions the defense had proposed.²

On August 15, 2025, the Ninth Circuit affirmed the district court in full, leaving the conviction and sentence in place.² The remaining federal options are a petition for rehearing and a long-shot petition to the U.S. Supreme Court.

Pension Consequences

Kelly’s conviction also put a city pension worth roughly $22,500 to $23,000 per month at risk. Under the San Francisco charter, city employees convicted and sentenced for crimes of moral turpitude committed on the job can lose the city-funded portion of their retirement benefits. Former Public Works Director Mohammed Nuru lost his pension under the same provision after his federal sentencing, and Kelly’s felony bribery convictions while serving as SFPUC General Manager fell within the rule. Kelly remains entitled to a refund of his own contributions or a reduced annuity based on what he paid in, but the taxpayer-funded portion of his retirement was expected to be discontinued by the San Francisco Employees’ Retirement System board following his sentencing.

1
United States Department of Justice. Former San Francisco PUC Chief Sentenced To Four Years In Prison
2
Justia. USA v. Kelly, No. 24-1825
3
United States Department of Justice. Jury Convicts Former San Francisco Public Utilities Commission General Manager of Felony Bribery and Bank Fraud Charges
4
United States Department of Justice. General Manager Of San Francisco Public Utilities Commission Charged With Honest Services Wire Fraud For Taking Bribes In Public Bidding Process
5
U.S. Department of Justice. Federal Charges Against Former San Francisco PUC General Manager Expanded To Include Bank Fraud Conspiracy
6
United States Department of Justice. Former San Francisco Public Works Director Admits To String Of Briberies And Corruption
7
Department of Justice. Criminal Complaint – United States v. Harlan Kelly
8
California Department of Real Estate. In the Matter of the Accusation Against Victor George Makras – H-12755 SF