JACKSONVILLE, Fla. – Jacksonville is gearing up for a trial some would say focuses on the biggest planned fraud against the city, a proposed sale of JEA that could have led to millions in bonuses for some executives. Former JEA CEO Aaron Zahn and his CFO Ryan Wannemacher face federal charges of conspiracy and wire fraud and if found guilty they could spend up to 25 years in prison.
Six years ago, at the old headquarters, officials announced the possibility of selling JEA. The planned sale of JEA shocked many, including News4JAX political analyst, Rick Mullaney. Mullaney is the Founding Director of the Public Policy Institute at Jacksonville University and a former city lawyer.
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“If you look back at the 200-year history of Jacksonville, this by far and away, as I’ve said before, is the greatest scheme to defraud the taxpayers in the history of Jacksonville. And by the way, it’s one of the greatest schemes to defraud a municipality in the history of our country,” Mullaney said.
The first talk of a sale was in 2017. News4JAX anchor Tom Wills said on the news, “A new study will be done to see if selling JEA would be good for customers and taxpayers.” The idea created an uproar at city hall, with protests basically saying JEA is ours and don’t sell it.
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This created a rift between city council and the office of then Mayor Lenny Curry. Curry appeared in support of a sale to pay off some of Jacksonville’s pension debt. It died down during the 2019 election cycle, but the sale idea grew once again.
Aaron Zahn was appointed to the JEA board at the request of Mayor Curry. Then, he became the Interim CEO, then CEO. It was after that the board began hearing JEA was in trouble. And heard Zahn’s idea of selling JEA. News4JAX tried to ask about that in 2019.
“I can’t believe you are not going to talk to the viewers sir,” Jim Piggott said to Zahn in July of 2019.
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“The leadership of JEA began to make the case that JEA was in trouble. This was false. But, they began to make the case that they were in trouble and in a death spiral, and that there was no realistic alternative,” Mullaney said.
It was later we learned about a controversial bonus plan that would have benefited Zahn and others, had the sale gone through.
“Just think of what that would have meant to the taxpayers. A scheme to potentially defraud nearly a billion dollars,” Mullaney said.
In December of 2019, Zahn was removed as CEO and later other executives were let go, including Ryan Wannemacher.
The city council investigated, as well as the state attorney’s office. But it was then turned over to the feds who later indicted Zahn and Wannemacher in March of 2022. Both pleaded not guilty. Zahn has made reference to the fact that he was a scape goat.
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