Developer Z&L properties fined $1M for role in Mohammed Nuru SF corruption scandal
SAN FRANCISCO – A Bay Area subsidiary of a Chinese property development company has been fined $1 million for its role in the corruption scandal involving former San Francisco Public Works Director Mohammed Nuru, federal officials said.
According to the U.S. Attorney's Office of the Northern District of California, a federal judge ordered Z&L Properties of Foster City to pay the fine after pleading guilty to wire fraud and conspiracy to commit wire fraud. The company was also ordered to implement a three-year anti-corruption corporate compliance program.
In its plea agreement, Z&L Properties admitted that executives approved or paid bribes to Nuru to get favorable treatment towards the construction of a mixed use property at 555 Fulton Street. Prosecutors said the bribes included providing Nuru and another person food, drinks, lodging and transportation during a trip to China in 2018.
The company's chairman, 70-year-old Zhang Li, was also charged in the scheme. Zhang was arrested in London in November 2022 and was extradited to the United States in June.
In July, Zhang admitted to bribing Nuru and entered into a deferred prosecution agreement with prosecutors, in which the charge would be dismissed in three years if he abides by the terms.
More than a dozen people and entities have been charged in connection with the bribery and public corruption scandal, which has gripped City Hall. Nuru is in the midst of serving an 84 month sentence in federal prison for his role in the scandal.