Former JEA CEO Zahn guilty of fraud

[marcuscnelson]

https://www.news4jax.com/news/local/2024/03/15/former-jea-ceo-found-guilty-in-federal-fraud-conspiracy-case-former-cfo-found-not-guilty/

Former JEA CEO Aaron Zahn was found guilty by a federal jury on Friday of attempting to defraud the city-owned utility.

The former executive was charged with conspiracy and wire fraud in connection with covering up an alleged scheme that would have resulted in Zhan making millions in bonuses if JEA was sold.

He now faces up to 25 years in prison. His sentencing is scheduled for June 18.

[BridgeTroll]

Good

[jaxlongtimer]

This went as I expected.  The CFO appeared to be making a decent case that he was working under the direction of Zahn, not himself creating the scheme and manipulating the process.  Zahn clearly seemed to be trying to pull a fast one.

That said, in my opinion, it is not out of the realm that Zahn had some, at least, implicit support from Curry for what he was pulling off and maybe even from one or more of Curry's appointees on the board. Maybe this wasn't illegal, but it surely wasn't in the best interests of the citizens of Jacksonville that they were supposed to be looking out for.

[CityLife]

Glad to see justice here. Now that Zahn has been found guilty, is it possible he can make a deal for a lighter sentence for rolling on Curry and/or others? Some stuff came out in the trial that made it look like Curry was complicit.

[Josh]

I doubt the feds care about Zahn rolling on Curry unless there's something criminal there, which there doesn't seem to be.

Although it is very interesting that Zahn was convicted of a conspiracy charge, which would normally require at least one other party to be guilty.....

[jaxlongtimer]

I doubt the feds care about Zahn rolling on Curry unless there's something criminal there, which there doesn't seem to be.

Although it is very interesting that Zahn was convicted of a conspiracy charge, which would normally require at least one other party to be guilty.....

One question I would have is did Curry stand to benefit from a JEA sale after he left office?  For example, if FP&L indicated to him they might have a cushy job waiting.

[BridgeTroll]

Here is the whole sordid story straight from USA TODAY. Wow... enjoy...

Written by NATE MONROE | CHRISTOPHER HONG
DAVID BAUERLEIN | MARK WOODS
The Florida Times-Union

MONEY & POWER

The secret origins — and public collapse — of the campaign to privatize Jacksonville’s electricity and water

THE INSTRUCTIONS WERE SIMPLE: Walk past the gate and into the courtyard, and leave the package at the front door.

The contents of the package were sensitive  —  sensitive enough that a lawyer from the powerhouse Florida law firm Foley & Lardner was instructed to deliver the package directly to the home of JEA chief executive officer Aaron Zahn. 

If nothing else, this would make it much easier for the leader of Jacksonville’s largest government agency to keep the contents of the package a secret.

“Aaron was concerned about leaks,” Ryan Wannemacher, JEA’s former chief financial officer, told city attorneys in an under-oath interview conducted months later. 

The package, according to an email exchange between JEA consultants, contained a draft version of what’s called an “invitation to negotiate”  —  in essence, the sales brochure Zahn would use to invite the largest companies in the world to compete to purchase JEA, Jacksonville’s century-old public electric, water and sewer utility, for billions of dollars in what would likely be the most complex transaction of its kind ever in the United States....

https://stories.usatodaynetwork.com/moneyandpower/home/

[jaxlongtimer]

^ This is the beginning of a book...  .  Great recap for those not keeping up with the story.

[BridgeTroll]

^ This is the beginning of a book...  .  Great recap for those not keeping up with the story.

True... I had missed many of the details after leaving Jax.... I  thought this was great as most everything was in one article... complete with timeline, a list of players, etc... even more interesting was this was published for a national audience.

[Tacachale]

I think that’s just an update of the article those reporters wrote in the aftermath, but fantastic work as always.