Fake DBI Corruption Scandal Blows Up in Chronicle’s Face

by Randy Shaw, 2007-05-16

After writing dozens of stories and editorials from 1995 to 2003 about alleged corruption at the San Francisco Department of Building Inspection, the San Francisco Chronicle finally got its “smoking gun” when the FBI invaded the agency’s offices and arrested a low-level employee on bribery charges. The Chronicle and Mayor Newsom trumpeted Gus Fallay’s arrest as conclusively proving there was a “culture of corruption” at DBI. Well, yesterday the jury spoke: Fallay was acquitted on bribery charges, and the only reason he was not freed of the rest was because a single juror held out for conviction. The Chronicle ruined Fallay’s life, and wrongfully attacked the integrity of a hard-working city department---will the paper retract its corruption charges, or continue to launch allegations toward DBI regardless of the facts?

After writing 27 stories on the arrest of a low-level DBI employee on bribery charges, the Chronicle was all ready to put a giant “we told you so” on tomorrow’s front-page. But since criminal cases are decided by the facts, not headlines, and by juries, not newspapers with a political agenda, the Chronicle now looks abundantly foolish for its promotion of the Gus Fallay/culture of corruption line.

In case you were among the 99% of readers who did not follow the case, the entire “culture of corruption” theory, which included a media-accompanied FBI raid into DBI’s offices to “seize” evidence, came down to a single witness whose credibility closely approximated the alleged “victim” in the Duke lacrosse case.

Why was this person’s story of giving bribes to permit processor Gus Fallay believed? Well, with the Chronicle and the Mayor desperate to find corruption at DBI, District Attorney Kamala Harris “found” what evidence she could.

Little did the DA’s office suspect that their star witness would testify under oath that the “culture of corruption” at DBI extended to former Director Amy Lee, to Mayor Newsom, and even to the judge hearing the case!

How’s that for credibility?

To think that Gus Fallay’s reputation was destroyed and his life-savings depleted on the strength of such a witness.

The Chronicle owes Fallay, and DBI staff, a public apology.

Send feedback to rshaw@beyondchron.org