S.F. corruption: Real estate mogul with deep political ties found guilty of bank fraud

In order to get more money at a lower interest rate, prosecutors argued, Makras falsely inflated the amount of debt that Kelly owed to Makras’ real estate investment firm by $200,000.

At the same time, Makras concealed other debts Kelly owed, including a $70,000 personal loan from Makras.

Makras’ real estate firm’s $715,000 loan as well as his personal loan to Kelly were paid off with the Quicken Loans money, prosecutors said.

Jurors did not reach a consensus on whether Makras conspired with Kelly to defraud Quicken Loans and make false statements to a bank.

Makras, who served on at least five city commissions for many years, could face decades in prison.

In addition to the Port Commission, Makras was a member of the city’s Police Commission, Fire Commission, Employees’ Retirement System board and Public Utilities Commission.

He was also a prolific political donor, having contributed many thousands of dollars to candidates and causes spanning San Francisco’s ideological spectrum.

Makras’ conviction comes just a day after Mohammed Nuru was sentenced to seven years in prison after pleading guilty to a federal fraud charge. Nuru admitted to bribery and kickbacks, using his authority as a city official to obtain money and gifts in exchange for providing insider information and preference to city contractors in a number of wide-reaching schemes.

Federal investigators said Thursday that their probe into the scandal — which has eroded public trust in city government — is ongoing.

Danielle Echeverria is a San Francisco Chronicle staff writer. Email: danielle.echeverria@sfchronicle.com Twitter: @DanielleEchev

Article source: https://www.sfchronicle.com/bayarea/article/S-F-corruption-Real-estate-mogul-with-deep-17401130.php

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