SF supervisor pleads not guilty to fraud

SAN FRANCISCO - A San Francisco supervisor accused of attempting to extort $80,000 from a group of fast-food business owners pleaded not guilty Friday and was released on $1 million bail.

Ed Jew was charged Thursday with one federal count of mail fraud after an FBI sting where prosecutors say the operators of a group of tapioca drink shops gave him $40,000 in cash and said they would paid him another $40,000 later.

Jew, 47, has acknowledged taking the money, but says he did so at the businessmen's insistence and on behalf of a consultant he recommended they hire to help with their permit problem.

He faces up to 20 years in prison if convicted on the federal fraud charge.

The rookie supervisor already was facing felony charges of perjury and election code violations for allegedly lying about where he lived so he could run for office in San Francisco. He has pleaded not guilty to those charges.

Jew's attorney, Steven Gruel, called the mail fraud count a "throwaway charge because you can't get something else" and questioned what kind of influence Jew could have had over the issuing of city permits.

"He doesn't control the planning commission," Gruel said. "And he certainly doesn't control what types of permits are necessary for retailers."

Mayor Gavin Newsom called Thursday for Jew's resignation and has requested a one-on-one sit-down with him. Gruel said the supervisor had no plans to resign and would meet with the mayor only with lawyers present.

Jew's trial on the perjury and election code allegations is to begin late next month. Gruel questioned the timing of the "media-friendly" federal charge, claiming that the surrounding publicity will taint the jury pool in the other case.

"I have grave concerns whether or not the supervisor can get a fair trial in San Francisco on those state charges," Gruel said.

If convicted of any felonies, Jew would automatically lose his seat, but only after his appeals are exhausted.