SF Lawmaker Charged With Fraud
Published: 9/20/07, 10:05 PM EDT
By PAUL ELIAS
SAN FRANCISCO (AP) - Federal authorities on Thursday charged a rookie San Francisco lawmaker with fraud, accusing him of attempting to extort $80,000 from a group of fast-food franchisees who had business permit troubles with the city.
During an FBI sting earlier this year, the tapioca drink shop owners delivered a $40,000 payment to Supervisor Ed Jew in marked $100 bills and promised to pay the rest later, authorities said. Jew has acknowledged taking the money, but said he did so at the businessmen's insistence and on behalf of a consultant he recommended they hire to help with their permit problems.
The owners of the Quickly chain of 12 tapioca drink stores insisted it was Jew who first approached them with word of their permit problems. Tapioca drinks, also known as "bubble tea," are popular beverages throughout Asia and San Francisco's Chinese neighborhoods.
According to the complaint, after his election Jew learned from city planning officials that many of the Quickly stores appeared to be violating a city ordinance regulating chain stores in San Francisco.
Jew, 47, told the owners of the Quickly drink store that for $10,000 a store, he could help get them permits they needed. Jew insisted the payments be made in cash, the complaint said.
Jew is charged with a single count of mail fraud, a felony. Authorities allege that Jew deprived his constituents of his "honest services" by attempting to shake down the chain store owners.
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