JACKSONVILLE, Fla. – There was major testimony on Wednesday in the fraud trial of two former top JEA executives.
Attorney Stephen Amdur testified that former CEO Aaron Zahn told him he would make $40 million through a controversial bonus plan if JEA were sold and that Zahn had former Jacksonville Mayor Lenny Curry’s support.
Federal prosecutors have been laying out their case that Zahn and his Chief Financial Officer Ryan Wannamacher devised a plan that would allow them to walk away with millions if the sale took place. Both could spend 25 years in prison if found guilty.
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It was the first time the juries heard the story, but Amdur previously said the same thing during a pre-trial hearing last month. After pressuring former JEA CEO Paul McElroy to resign, according to testimony, Curry appointed Zahn to JEA’s board, before Zahn became interim CEO and then permanent CEO.
When reached by News4JAX following the hearing last month, Curry gave a three-word response to Zahn’s statement as relayed in testimony: “That never happened.”
That never happened. https://t.co/Et0fbOnEgz
— Lenny Curry (@lennycurry) March 7, 2024
Curry has never been charged in connection with the JEA sale and has not been accused of any wrongdoing.
Amdur, Zahn’s old college roommate from Yale, testified on Wednesday about his role in the potential sale as an attorney for a firm handling the deal. He told the court Zahn reached out to him by phone and suggested the Pillsbury Law firm in New York where Amdur worked should get involved.
In cross-examination, Amdur said he was not told by Zahn to keep what he told him quiet but said he would not go tell others. He did talk to colleagues and concluded that he did not think it would be illegal.
In other action on Wednesday, Jason Gabriel, the city’s top lawyer when the bonus plan surfaced five years ago, finished up his testimony and said the way the plan was proposed by JEA executives, he had no idea there was a chance those executives and even a member of his staff could have walked away with millions.
Gabriel said he had arguments and cursing matches with Zahn when he questioned Zahn about the bonus plan. Gabriel said he felt deceived and duped.
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“Here’s the only thing I’m going to say: my dad always said tell the truth. I testified, I told the truth and this is my dad’s tie,” Gabriel told News4JAX as he left the federal courthouse.
Former City Council President and attorney Kevin Hyde also took the stand. His firm represented JEA when the proposed sale was being discussed.
Portions of a JEA meeting were shown where Hyde explained the plan to allow companies to bid on JEA and why they had to develop what is called a “cone of silence” where the deals could not be discussed in public until a decision had been made. In court, he said his firm had no idea the bonus plan could pay out so much.
Hyde said he had told Zahn that one plan that would use bond money to pay the bonuses would not work. He said Zahn replied, “Tell your lawyers I’m not paying for that advice.”
Under cross-examination, Zahn’s attorney pointed to emails sent by an associate of Hyde that raised concerns about the payout. Hyde said he did not pass that information on to JEA executives at the time.
Prosecutors pointed out that JEA never asked the law firm to look at the payouts.