Alan Varela, Honest Services Wire Fraud, California 2020

SAN FRANCISCO – Alan Varela, 60, of Orinda, was sentenced to 24 months in federal prison and ordered to pay a $127,000 fine for a seven-year conspiracy to commit honest services wire fraud by bribing a San Francisco public official.

A federal complaint filed September 17, 2020, charged Varela and William Gilmartin, 61, of San Mateo, with bribery of a public official. Varela founded ProVen Management, a Bay Area civil engineering and construction firm, in 1991.

According to the complaint, Varela and Gilmartin provided a stream of benefits to Mohammed Nuru, then the Director of San Francisco’s Department of Public Works (DPW), in exchange for favorable treatment of their business interests, including non-public inside information.

Varela entered his guilty plea to conspiring to commit honest services wire fraud on May 27, 2021, and described his role in the bribery conspiracy of then-DPW Director Nuru. The bribery’s goal was to use Nuru’s prominence as a powerful San Francisco public official to ensure the success of Varela and his co-conspirators’ business ventures.

Nuru’s position as DPW Director provided him with great influence over San Francisco public contracts, permits, and construction projects, as well as over other City departments and private companies seeking DPW contracts.

Varela and his co-conspirators focused on winning a lucrative DPW contract and its related Port of San Francisco lease to operate an asphalt recycling plant and a concrete plant on the Port’s land. Nuru agreed, in exchange for cash and other valuables, to use his official position to get Varela and his co-conspirators’ proposal selected.

The conspirators’ proposal was selected in September 2015. Nuru continued to meet with the group to supply additional inside information during the expensive meals paid for by Gilmartin.

Varela’s sentence was handed down by the Honorable William H. Orrick, United States District Judge. The government argued that Varela’s conduct with Nuru was business as usual for Varela, and asserted that Varela had coordinated with Gilmartin and Hernandez to deliver a tractor to Nuru for his ranch.

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