A Foster City property developer implicated in San Francisco’s City Hall corruption scandal has been ordered to pay $1 million in fines as part of its sentencing for bribing a city official, the FBI said.
Z&L Properties, a California-based subsidiary of a Chinese development company, admitted its executives approved or paid bribes to former San Francisco Department of Public Works director Mohammed Nuru, including providing Nuru and another individual with drinks, food, lodging and transportation during a trip to China in 2018.
According to prosecutors, the payments to Nuru were to influence him to act favorably toward Z&L Properties’ requests for city approvals needed to complete construction of a mixed-use development at 555 Fulton St. in San Francisco.
On Aug. 17, Z&L pleaded guilty to one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud.
Also charged with bribing Nuru was Chinese businessman Zhang Li, 70, who was the owner and controlling member of Z&L. Li was arrested in London in November 2022 and remained there under house arrest for seven months before being extradited to the U.S. to enter into a deferred prosecution agreement, or DPA. A DPA gives a defendant amnesty in exchange for abiding by certain conditions or requirements stipulated by the prosecutor.
Nuru is currently serving seven years in federal prison for his long-running corruption as head of San Francisco Department of Public Works.
