FBI raids San Francisco Building Inspection Department

By Erica Holt, Bay City News Service

July 27, 2006

SAN FRANCISCO (BCN) - Federal agents made a quiet visit to San Francisco's Department of Building Inspection this morning, apparently to gather documents related to an ongoing FBI and district attorney's investigation, the city department's acting director Amy Lee announced yesterday.

Officials could not say whether the search of one inspection employee's office was related to the case against former permit program manager Augustine Fallay.

"We were involved in a search,'' said FBI spokeswoman Larae Quy, "but the underlying documents are sealed.''

Fallay stands trial in October on 26 criminal counts including asking for and receiving bribes over 12 years in return for favors he could provide based on his position, according to the district attorney's office, but spokeswoman Debbie Mesloh could not say if this morning's search was connected.

"All I can say is that the investigation is ongoing,'' she said.

William Strawn, spokesman for the building inspection department, said "it was a very routine collection of information.''

Strawn said, "The FBI gave the department head a call early this morning to say there were documents they wanted from an employee's office.''

Acting Director Amy Lee wasn't there the entire time, he said, and neither federal agents nor the district attorney's office have briefed the department.

"We're not sure what they are gathering or why,'' Strawn said, but we "believe it may be tied-in as part of the Fallay situation.''

He was reluctant to speculate further.

"The fact we have an isolated incident like this is part of territory we're involved in,'' he said, while an "overwhelming majority of employees do their jobs exactly as it should be done.''

Strawn said a grand jury report from a few years ago criticizing the department for giving preferential treatment to certain customers has been widely addressed.

"Since Amy became department head since last May, she has been working very hard to make the department more transparent,'' Strawn said.

The department has initiated a request for proposal for a new integrated permit tracking system to ensure accountability and hired 41 new employees to make the permit process more efficient, he said.

Last fiscal year, the department processed more than 60,000 permits and conducted nearly 126,000 inspections.

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