Recology San Francisco, Bribery Scheme, California 2024

Three San Francisco trash companies, Recology San Francisco, Sunset Scavenger Company, and Golden Gate Disposal & Recycling Company, have admitted to a bribery scheme involving a former San Francisco official. The companies, all subsidiaries of Recology Inc., have agreed to pay $36 million in criminal penalties as part of a deferred prosecution agreement.

According to the agreement, the companies conspired to bribe Mohammed Nuru, the former Director of the San Francisco Department of Public Works (DPW), from 2014 through January 2020. Nuru had substantial influence over the companies’ business with the city, including the ability to influence their contract rates and approve or deny their proposed operational changes.

The companies admitted that they directed a stream of benefits to Nuru, including financial contributions, services, gifts, and other things of value, in exchange for Nuru taking official actions and positions favoring their business and contracts with the city.

The payments and benefits provided by the companies included ‘financial contributions, services, gifts, and other things of value,’ according to the agreement. The companies also admitted that they prioritized money over the trust of their customers during the bribery scheme.

The federal investigation and prosecution against the companies is being resolved with a deferred prosecution agreement, which is subject to court approval. As part of the agreement, the companies must revamp their corporate structure and cooperate fully in ongoing law enforcement and regulatory investigations.

Acting United States Attorney Stephanie M. Hinds called the bribery scheme ‘a flagrant wrong’ that victimized San Francisco citizens for years. ‘San Francisco citizens expect and deserve honest services from its government,’ Hinds said.

Craig D. Fair, Special Agent in Charge of the FBI San Francisco Field Office, said that the bribery scheme was the result of ‘years of hard work by the FBI and its partners to combat corruption in San Francisco.’ The FBI remains committed to seeking out instances of public corruption and holding those who violate federal law accountable for their actions.

Michael Daniels, Acting Special Agent in Charge of the IRS Criminal Investigation, said that the bribery scheme was ‘a corrupt and reprehensible cheating of the American public.’ ‘It is unacceptable and illegal to help yourself to public funds, but if you do, know this: IRS Criminal Investigation will be there waiting to seek justice on behalf of the citizens of San Francisco,’ Daniels said.

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