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SF Supe Jew Indicted On Federal Corruption Charges

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SF Supe Jew Indicted On Federal Corruption Charges

SAN FRANCISCO (CBS 5 / KCBS / AP) ― Suspended San Francisco Supervisor Ed Jew was indicted by a federal grand jury on Tuesday for mail fraud, bribery, and extortion charges, according to the U.S. Attorney's Office.

Authorities allege Jew tried to extort $84,000 from small business owners having city permit problems. The indictment claims that Jew accepted $40,000 in cash at his Chinatown flower store on May 7 as a partial payment from various franchises of the Quickly USA refreshments chain, which sells milk tea and tapioca drinks.

The indictment alleges, "Jew improperly and unlawfully demanded and extracted cash payments from two different sets of businesses." It contends that in exchange, he "attempted to influence and did influence" decisions of the city planning department.

The second business involved, according to the indictment, was Wonderful Desserts & Cafi on Irving Street.

The indictment expanded on a mail fraud charge that federal prosecutors filed against the 47-year old Jew on Sept. 20 and adds new charges to the complaint.

"Today's indictment alleges that an elected representative of city government corruptly traded on his good office," said U.S. Attorney Scott Schools. "The public places a tremendous amount of trust in its elected representatives by voting them into office, and elected officials who violate that trust for personal gain must be held accountable for their actions."

If convicted on the mail fraud and extortion charges, Jew faces a maximum sentence of 20 years in prison. A bribery conviction could lead to a maximum sentence of 10 years.

The indictment also seeks forfeiture of $10,000 not yet recovered in the Quickly case and $4,000 allegedly taken from the cafi owner.  FBI agents searching a house belonging to Jew in Burlingame found $10,000 in marked bills there on May 18, a court affidavit said.

Jew's lawyer, Steven Gruel, said the supervisor denies all the allegations and will plead not guilty at an arraignment Wednesday in federal court in San Francisco. Jew had pleaded not guilty to the earlier federal complaint on Sept.
21 and was released at that time on a $1 million bond.

Jew, who was suspended by Mayor Gavin Newsom last month from the 11-member Board of Supervisors pending the outcome of the legal proceedings, also remains on the hot seat over his place of residence. 

In a separate court case, Jew faces nine state felony counts of election fraud, accusing him of lying about his San Francisco residence to qualify for representing the city's Sunset district. Proseuctors contend he actually lived in Burlingame.

Election laws require supervisors to have lived in their districts for at least 30 days before declaring their candidacies.
  
A San Francisco Superior Court judge has set a trial date of Nov. 26 in that case.

In addition, Jew faces civil action by City Attorney Dennis Herrera who is seeking to formally remove him from office. Herrera filed the civil removal lawsuit in Superior Court last week.

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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