Victor Makras, a politically connected real estate mogul, was found guilty of bank fraud and making false statements to a bank,
Politically connected San Francisco real estate mogul Victor Makras was found guilty Friday of bank fraud and making false statements to a bank, the latest conviction in the tangled web of San Francisco's City Hall corruption scandal that has ensnared a bevy of city leaders and business officials.
Federal prosecutors convinced the jury that Makras defrauded mortgage lender Quicken Loans in a $1.3 million real estate loan to former Public Utilities Commission head Harlan Kelly, who has yet to be tried on a number of charges, including for his own role in this scheme.
In order to get more money at a lower interest rate, prosecutors argued, Makras falsely inflated the amount of debt that Kelly owed to Makras' real estate investment firm by $200,000.
At the same time, Makras concealed other debts Kelly owed, including a $70,000 personal loan from Makras.
Makras' real estate firm's $715,000 loan as well as his personal loan to Kelly were paid off with the Quicken Loans money, prosecutors said.
Jurors did not reach a consensus on whether Makras conspired with Kelly to defraud Quicken Loans and make false statements to a bank.
Makras, who served on at least five city commissions for many years, could face decades in prison.
In addition to the Port Commission, Makras was a member of the city's Police Commission, Fire Commission, Employees' Retirement System board and Public Utilities Commission.
He was also a prolific political donor, having contributed many thousands of dollars to candidates and causes spanning San Francisco's ideological spectrum.
Makras' conviction comes just a day after Mohammed Nuru was sentenced to seven years in prison after pleading guilty to a federal fraud charge. Nuru admitted to bribery and kickbacks, using his authority as a city official to obtain money and gifts in exchange for providing insider information and preference to city contractors in a number of wide-reaching schemes.
Federal investigators said Thursday that their probe into the scandal - which has eroded public trust in city government - is ongoing.
Danielle Echeverria is a San Francisco Chronicle staff writer. Email: danielle.echeverria@sfchronicle.com Twitter: @DanielleEchev