JACKSONVILLE, Fla. — The verdicts in the case of former-JEA CEO Aaron Zahn and former-CFO Ryan Wannemacher have been read. Zahn’s verdict was returned on the first day of deliberations Thursday, but Judge Brian Davis kept it sealed until Wannemacher’s jury had made their decision.
Zahn has been found guilty of conspiracy to embezzle federal property and guilty of wire fraud. He faces a maximum sentence of 25 years in federal prison. Zahn was sobbing audibly with his head down on the table after the verdict was read.
Wannemacher has been found not guilty of conspiracy to embezzle federal property and not guilty of wire fraud. Wannemacher broke down in relieved tears in the courtroom when the clerk read the verdict.
Wannemacher said he was emotional Friday after leaving the courthouse. He praised his lawyers and said he was going home to see his family.
"I'm happy. I'm so thankful for the jury and the decision they made. That's all I can really say ... I can't wait to get back to life."
Zahn will be sentenced on June 18 at 9 a.m.
'This city's going to move on'
Jacksonville has been mired down in the JEA scandal since 2019. But Federal Prosecutor Tysen Duva says it's over for good.
While there has been speculation that others, like ex-JEA COO Melissa Dykes and former mayor Lenny Curry, could be charged in the case, Duva says it's time to put it to bed and let the city move on.
"This case is over, this finishes it," he said after the verdict was read. "We're gonna proceed to Mr. Zahn's sentencing, and this city's going to move on from the scandal of the failed effort to sell JEA and all of the things that came with it, and we're gonna move forward."
He thanked both juries, and said he accepts Wannemacher's verdict. "We don't know what happened in there and we never will, but that's one of the great parts of our system. They worked hard, and that's all we can ask for. And the system worked."
He said this case is a "huge event" in Jacksonville's history. "I think it's a reminder that if there's a breach in the public trust, we're gonna be here," he said.
He also thanked the press, who the FBI has said largely contributed to bringing evidence to light. Duva was likely referring to in-depth investigations by Jacksonville's Florida Times-Union, which several witnesses said was the first source to bring the case to their attention. The Times-Union began covering the case at the end of 2019.
The accusations
Zahn, who was appointed as CEO in 2019, and Wannemacher, appointed as CFO in 2018, were accused of misleading the JEA board to authorize a sale of the utility. Prosecutors said Zahn conspired from "day one" to create a conspiracy to make millions, and Wannemacher was brought in to help him further his plan.
The two were accused of running a campaign to convince the board JEA was in grave peril, which prosecutors called Zahn’s "doom and gloom" agenda.
The board was given two options to save JEA: One, a plan that would lay off 30% of employees, and two, privatizing and selling JEA, the largest community-owned utility in Florida and the city’s “crown jewel.”
The board approved a resolution approving the sale at a pivotal July 23, 2019 meeting. The resolution also included a long-term incentive plan called the performance unit plan, also referred to as the PUP.
Under the PUP, employees would have the opportunity to buy “performance units,” essentially a quasi-stock option, for $10 apiece. If JEA increased its value by a certain degree, the performance units would gain value.
The number of units available increased with an employee’s rank — meaning executives like Zahn and Wannemacher would have access to the most units.
But prosecutors say Zahn and Wannemacher never told the board that a sale could funnel enormous funds into the PUP, inflating the value of the units to be worth thousands.
The six board members who attended the July 23, 2019 meeting all testified the same thing at the trial: They were never told what would happen to the PUP in the event of a sale, and they didn’t know how much money was at stake.
Each one said they would not have voted for the plan if they were aware of the potential payout. One, Herschel Vinyard, said he would have left JEA if he thought executives would make even $1 off a sale.
Prosecutors also said the plan’s potential was concealed from attorneys and public officials who were vetting the plan.
The defense
Zahn’s attorneys used an advice-of-counsel defense throughout the trial, arguing that the plan had been thoroughly vetted and Zahn had been told it was legal.
They focused on players who they called “circuit breakers,” people who would have raised red flags if they saw a problem. Their argument was twofold: If none of the “circuit breakers” caught a problem with the plan, it must have been legal, and if Zahn was willing to turn the plan over to so many people, he couldn’t have been hiding it. But many of these players testified, and all of them told the jury they had never discussed what would happen in the event of a sale.
Some did have suspicions and questions — and Zahn and Wannemacher did end up ensnared by some of the “circuit breakers,” when a report from the city auditor revealed how much money could go into the PUP if the utility sold. But at that point, it didn’t matter that they had been given a chance to run the numbers. The conspiracy charge stems from their agreement to conceal what they were doing, not whether or not the plan was implemented. And city auditors testified that they had tried to get through to Wannemacher several times, but he dodged emails rather than be forthcoming.
Zahn’s attorney, Eddie Suarez, made an effort during his closing statement to paint him as a victim of dirty politics. He said people who reported Zahn to the State Attorney’s Office had other agendas. To this point, Federal Prosecutor Tysen Duva said: “You call the council auditors ‘the deep state.’ People that make a city salary.”
Both defense teams argued that their clients were simply visionary leaders trying to take JEA in a new direction. Suarez said Zahn was brought in to JEA to propose fresh ideas from his time working in the private sector.
Wannemacher’s legal team presented him as an honest man who may have been duped by Zahn just like everyone else. Prosecutors reminded the jury that they are not there to judge whether Wannemacher is a good person or not.
During his closing arguments, Jim Felman, Wannemacher’s attorney, said his client may have been charged because it would look “weird” to charge Zahn with conspiracy on his own.
He also claimed ignorance, saying that there’s no proof Wannemacher “knew” he was doing anything illegal. Prosecutors refuted this, saying Wannemacher knew exactly what was going on, and sounded “like he was going to throw up on himself” with guilt in videos where he testified about the plan.
Felman also said that evidence Wannemacher was making calculations to determine the payout if JEA sold — two spreadsheets that dated before the board ever heard about the plan — were just theoretical.
Community reaction
Mayor Donna Deegan responded to trial, providing First Coast News a statement:
"I'm glad justice was served. As has been said, this was one of the greatest schemes to defraud the taxpayers in the history of Jacksonville. During the trial, we heard a lot about the type of behavior that we don't want to see in our government ever again. JEA will always stay in public hands as long as I'm mayor," Deegan said.
JEA also responded to Friday's verdict with a statement:
"The trial reinforced at least one key fact: The value of JEA is, and has always been, based on the incredible work of its employees. JEA is proud to be a community-owned utility and will continue to focus on serving our Northeast Florida customers and community every day, as it has since 1895.
We are grateful for the dedication and commitment of the members of both juries, who considered a tremendous amount of evidence and delivered a just verdict consistent with that evidence. At JEA, we remain committed to integrity, respect, and transparency in all that we do. The actions of a former CEO do not reflect our organization or our values. We appreciate the efforts of all who assisted in delivering this outcome, and we look forward to putting this matter behind us while we focus on moving forward to serve our community."
UPDATE 7:35 p.m.- Ryan Wannemacher released the following statement:
"These last 5 years have been the most difficult thing I have ever gone through. I would not be here today without relying on God and his faithfulness. He has truly seen me through the valley of darkness. I am so thankful to Judge Davis for a fair trial and the jurors for seeing the truth of this situation without the lens of politics. Their commitment to the deliberation process was humbling. Thank you to my legal team. This outcome would not have been possible without their tireless work and dedication to my cause. Most of all, thank you to my wonderful wife, family and friends who stood by and supported me through this journey.
You really learn a lot about your marriage and friendships when you go through something like this. My marriage has never been better and my wife has been the strongest, most loving and incredible person I could ever imagine and I am so grateful to be doing life with her. In the midst of this challenging and emotional process I have been changed for the better. This has re-prioritized my life. I am softer and more empathetic. This may have destroyed my former career but I have spent more time pouring into the lives of my two sons than I ever imagined could be possible, and for that I am grateful. With so much future uncertainty, I learned to be more present each day and try to focus on making the most of what really matters in this short time we have in life.
I just want to finish by saying to anyone out there who is going through a tough time right now, I would encourage you to turn to God. My day to day dependency on Him has expanded dramatically through this process. For anyone who is going through a tough time, understand it’s not from God. We live in a broken and fallen world. Bad things happen in life. It’s not always happy endings. But even in the midst of the brokenness and sin we can still run to God and rest under the shadow of his wings. Walking through the brokenness is far better with God at your side than going alone. In my case it’s the only way I could have made it through. I prayed Philippians 4:6-7 during so many sleepless nights and over the course of this trial: Don’t worry about anything; instead, pray about everything. Tell God what you need and thank Him for all He has done. Then you will experience God’s peace, which exceeds anything we can understand. His peace will guard your hearts and minds as you live in Christ Jesus. Today, I have truly seen the goodness of God."