JACKSONVILLE, Fla. — Two former executives of the city-owed utility JEA were brought to court in handcuffs and shackles, their first appearance after their criminal indictments were unsealed Monday.
Ousted JEA CEO Aaron Zahn and JEA CFO Ryan Wannemacher pleaded not guilty to two counts of conspiracy and wire fraud stemming from a criminal probe into the failed sale of the city-owned utility in 2019.
Prosecutors say the men crafted a lucrative bonus scheme predicated on the sale of JEA – and that would have yielded millions for top executives.
Zhan and his wife exchanged a long hug in court, but left the courthouse hours later, smiling amid a crush of media. Neither Wannamacher nor Zhan commented.
They were released on a $100,000 signature bond, which means they were required to put no money down. They are also required to surrender their passports. However, Zhan will be allowed to keep his until after a prepaid vacation to the Bahamas.
The court set a status conference on April 18 at 3:30 p.m, with a trial date scheduled for May 2. However, attorneys for both men said they both may consider requesting a change of venue.
The attorneys said that there is voluminous discovery in the complicated case, which is being turned over on 1-terrabyte drives.
Zahn and Wannamacher face a maximum penalty of 25 years and $500,000 in fines if convicted.
Monday's indictments were culmination of a more than two year federal investigation into a controversial Performance Unit Plan, or PUP, that could have enriched JEA senior executives to the tune of millions of dollars in the event of a sale. Prosecutor say the men created the PUP, which was predicated on a sale of JEA.
According to the indictment, “The PUP …that Zahn and Wannemacher created and designed … would have paid hundreds of millions of dollars in bonuses, primarily to the top JEA executives, including themselves, upon a sale of JEA’s assets and liabilities.”
It continues, “Aaron Zahn and Ryan Wannemacher did knowingly and willfully combine, conspire, confederate and agree with each other … too embezzle steal, obtain by fraud and otherwise … convert to their own use” city property.
“Zahn and Wannemacher would and did breach their fiduciary duty … by failing to disclose material information and making and causing to be made fraudulent representations to the JEA Board.”