Developer Sia Tahbazof gets no prison time for bribing SF officials

Sia Tahbazof, the developer who pleaded guilty to bribing San Francisco building officials for 18 years, got off without serving a day in prison.

U.S. District Court Judge Susan Illston sentenced the man behind SST Investment and SIA Consulting to three years of probation and a $75,000 fine for his crimes, the San Francisco Standard reported.

Prosecutors had recommended the lesser sentence because of Tahbazof’s cooperation in other cases. 

The immigrant from Iran had approached the government before he was even on its radar, agreeing to aid it by wearing a wire and helping prosecutors build cases against several building inspection officials, according to Assistant U.S. Attorney David Ward, who tried the case.

“This was a serious offense,” Illston told the court before handing down the sentence. “It took place over 18 years. That’s a long time to be paying bribes. That’s a long time to foster corruption in the housing department.” 

Tahbazof had faced a maximum sentence of 15 years in prison and a $250,000 fine.

After changing his plea to guilty early this year, alongside his employee and nephew, Bahman Ghassemzadeh, prosecutors recommended the lighter sentence. Tahbazof expressed remorse and his regret in court.

​​“I just want to apologize to your honor, the government and the city of San Francisco,” he said as he covered his face to wipe away tears. “I came to this city in 1973, when I was a student. I fell in love with this city.”

Both were charged with conspiracy to commit honest services wire fraud in connection with an alleged bribery scheme involving Department of Building Inspection employees.

Ghassemzadeh, who also cooperated with the government, was sentenced to three years probation and must pay a $25,100 fine. He also apologized to the court, saying, “I know the actions I have taken have caused shame, and I thoroughly regret them.”

The plea follows a series of cases initiated by the U.S. Attorney’s Office, stemming from the prosecution of Bernie Curran, a former city building inspector involved in illegal payments from Tahbazof and structural engineer Rodrigo Santos. 

Tahbazof, 72, was the most prominent local business leader charged in the alleged bribery scheme, which compelled the resignation of Building Inspection Director Tom Hui. It also spurred criminal charges against Curran, a former city building inspector, and plan-checkers Rudy Pada and Cyril Yu. 

Tahbazof is the head of a powerful real estate family that owns, develops and manages properties across San Francisco. His children, attorneys Yosef Tahbazof and Sufi Tahbazof Hariri, run the Tahbazof Law Firm and Atlas Property Group, a property management firm. 

Before he was sentenced, his defense attorney, Edward Swanson, commended his client’s cooperation with the government and for the good he has done in his life. 

Swanson told the judge that Tahbazof had completed many building projects, including for low-income tenants, all of which were properly built and safe. “He’s not just a developer who has done well, but he did good,” Swanson told the court. 

In their plea agreement, Tahbazof and Ghassemzadeh admitted to conspiring to bribe Pada and Yu with money, meals and drinks in exchange for building permits. 

Tahbazof and Ghassemzadeh admitted to also paying Curran $1,500 for every inspection he performed on their projects. Tahbazof forgave Curran a $30,000 debt.

Reza Khoshnevisan, a third defendant in the scheme, pleaded guilty to one count of conspiracy to commit honest service fraud. He has yet to be sentenced. 

In August, Yosef Tahbazof stepped down from the city’s Assessment Appeals Board after allegations surfaced that he helped prepare a loan at the center of a corruption case against Curran.

In July, Curran was sentenced to a year and a day in federal prison after pleading guilty to charges related to taking payments from people whose properties he inspected.

In August, former Public Works Director Mohammed Nuru was sentenced to seven years in prison. Santos received a 30-month sentence. Pada and Yu have pleaded guilty.

Prosecutors also charged Chinese billionaire Zhang Li with bribing Nuru. Li agreed to a deferred prosecution agreement; his company, Z&L Properties, has agreed to pay a $1 million fine.

— Dana Bartholomew

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