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Supervisors press for accountability in SF SAFE scandal; committee continues investigation

Government Audit and Oversight Committee, San Francisco Board of Supervisors · December 5, 2024
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Summary

At a Dec. 5 Government Audit and Oversight Committee hearing, Board President Aaron Peskin and supervisors pressed for answers after audits and the district attorney—s affidavit allege SF SAFE misused more than $700,000; the committee continued the item to the chair to pursue subpoenas and further testimony.

Board President Aaron Peskin told the Government Audit and Oversight Committee on Dec. 5 that a controller—s review and subsequent district attorney—s affidavit show misuse of SF SAFE funds beyond an initial $80,000 finding. Peskin said the amount "was over $700,000" and noted former SF SAFE director Kyra Worthy was arrested on 34 felony charges related to alleged fraud and misappropriation of public funds.

Peskin described repeated difficulties in obtaining candid cooperation from SF SAFE—s former board leadership. He said written responses from former board president Daniel Lawson and former CFO Tom Yeh, provided by their counsel, conflict with the DA—s affidavit, which records auditors repeatedly contacting Lawson and Yeh to request controls and purchases review. "The written responses ... are wholly unsatisfactory," Peskin said, and he urged the committee to compel testimony.

Acting Assistant Chief Walsh and Catherine Maguire of SFPD described a diffuse, long-standing partnership between SFPD and SF SAFE. Maguire said monitoring visits occurred in 2019 and again in 2023 but that the department did not maintain a single owner of the grantee relationship. Acting Assistant Chief Walsh said she had "minimal contact" with SF SAFE in recent years and could not fully characterize the hiring process for the nonprofit—s executive.

Committee members and staff highlighted specific expenditures cited in the DA affidavit and controller materials, including luxury gift boxes and large events. Peskin read particulars from the record: more than $350,000 on luxury gift boxes, a holiday event costing about $56,000, and a "candy explosion" event costing about $98,000 (including a $19,000 petting zoo). He asked whether those gifts and events had been reported on affected employees' statements of economic interests; witnesses said reporting appears limited.

Peskin described efforts to subpoena Lawson and Yeh, and said their counsel raised objections by letter instead of providing public testimony. Deputy City Attorney Brad Russy told the committee the next available remedy is enforcement in Superior Court if meet-and-confer attempts fail.

Following a public-comment period and further discussion, Chair Supervisor Dean Preston moved to continue the item to the call of the chair so the committee can pursue subpoenas and secure testimony. The committee voted to continue the matter (Member Chan: aye; Chair Preston: aye). The committee indicated it will revisit the record and seek compelled testimony or court enforcement if necessary.

What happens next: the item remains open and will be continued at the call of the chair while the committee and city attorney pursue further legal and investigatory steps. The DA affidavit, the witnesses— written responses, and the controller—s audit remain part of the public record for the committee—s review.