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Northern District of California | Two Former San Francisco Division Of Constructing Inspection Engineers Charged With Trustworthy Providers Fraud Conspiracy

SAN FRANCISCO – Two former San Francisco Department of Building Inspection (DBI) construction plan engineers have been charged in federal court with participating in an honest services wire fraud conspiracy for accepting bribes in return for expediting and approving building and construction plan permits, announced Attorney for the United States Thomas A. Colthurst and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp.

According to a criminal Information filed on November 2, 2023, Rodolfo “Rudy” Pada, 68, of Millbrae, California, began accepting bribes in 2003 and continued to do so until he retired in September 2017. The Information alleges the bribes consisted of cash, free meals, drinks, and other benefits bestowed upon Pada by executives at a construction planning and design firm in return for Pada expediting and approving permits for building and construction plans. In addition, Pada is alleged to have solicited, accepted, and concealed an interest-free $85,000 loan facilitated by a construction planning and design firm executive.

According to a separate Information filed on November 2, 2023, Cyril Yu, 41, of San Francisco, began accepting bribes in January 2018 and continued to do so until February 2021. The Information alleges the bribes consisted of cash, free meals, drinks, and other benefits bestowed upon Yu by executives at a construction planning and design firm in return for Yu expediting and approving permits for building and construction plans.

The Informations allege that DBI is a regulatory agency in the City and County of San Francisco responsible for overseeing enforcement of building, electrical, plumbing, and housing codes for San Francisco’s more than 200,000 commercial and residential buildings. According to the Informations, contractors and builders submit construction plans to DBI for approval and permitting; the plans must be reviewed and approved by DBI to ensure that proposed construction plans meet City codes and regulations.

An information merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Pada and Yu were each charged with one count of conspiracy to commit honest services wire fraud in violation of 18 U.S.C. § 1349. If convicted, each defendant faces a maximum sentence of 20 years imprisonment, and a fine of up to $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The case is being prosecuted by the Corporate and Securities Fraud Section of the United States Attorney’s Office. Assistant U.S. Attorneys David Ward and Ilham Hosseini are prosecuting the case, which is the result of an investigation by the FBI

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