JACKSONVILLE, Fla. — It was a citywide scandal – involving dozens of players, thousands of employees and potentially billions of dollars.
In the end, just two people are being held accountable.
“I think a lot of people are breathing a sigh of relief,” said Jacksonville attorney Stephen Busey, who led the Jacksonville City Council investigation into the 2019 JEA sale debacle.
Former JEA CEO Aaron Zahn and CFO Ryan Wannemacher pleaded not guilty on Tuesday to charges of conspiracy and wire fraud. Both declined comment.
Their federal indictment mirrors the findings of earlier city investigations and news reports that the JEA sale process was an orchestrated sham that stood to enrich multiple people.
So, how did the broad scope of the investigation become a two-top? For one, fraud cases are notoriously difficult to prosecute.
“With fraud, there is no body in the street with a bullet hole,” said Florida Times-Union columnist Nate Monroe, whose reporting helped expose the JEA debacle. “Often the argument is whether there was a crime committed at all.”
He added, "People who find themselves disappointed that maybe others aren't charged -- it's worth reading the indictment, right? Read it. It's complicated, and it's an impressive document."
In covering the sale of JEA, Monroe reported on the involvement of dozens of lobbyists and top city officials – none mentioned by name in the indictment.
The document does identify two senior JEA execs by title alone – former Chief Operations Officer Melissa Dykes and former Chief Administrative Officer Herschel Vinyard. The indictment says they helped advance the specious sale effort but does not allege specific wrongdoing.
Busey called the indictments “thorough” but “narrow.”
“I think they could have been broader and -- I think -- more people included as co-conspirators,” he explained.
The key to the criminal case is proving the two men knew the Performance Benefit Units they crafted – known as PUPs -- would allow them to pocket millions if JEA was sold. Both have denied having that information.
At a Dec. 16, 2019 City Council hearing, Councilmember Rory Diamond expressed skepticism.
“We’re at a hearing to talk about this enormously expensive plan, and the problem with recapitalization, and your response to me on what the math is, is: ‘I haven’t done the math yet.’”
Diamond pressed, “Did you ever plug the numbers in to see that this was a lot of money?”
“It’s pretty easy math,” Wannemacher responded.
Councilmember Ron Salem followed up, “Were calculations possibly done on a legal pad or a whiteboard in your office … did that occur in some fashion?”
“No,” Wannemacher responded.
But during his investigation, Busey located a secret spreadsheet where calculations were done, as well as a legal opinion -- never disclosed to the JEA Board or the public -- that the PUP plan violated Florida law.
Busey said that finding alone “should take the defense away from these guys. They were told it was illegal.”
Though nobody else is named in the indictment, the anonymity of other players won’t extend to the trial, as the men defend their actions to a jury.
"There is no question that Aaron and Ryan were at the center -- they were the leaders of it. But there were people that that were around them and who knew what they were doing was wrong,” said Busey. “There is always the possibility that during the course of that [court] process that they will plead. There’s also the possibility that they could provide the Justice Department with information that could lead to other responsible persons.”
“There are a lot of different controversies that could yet be looked into,” Monroe agrees. “I don't know that this is truly the final chapter.”