Jury renders verdict on charges against former CEO Aaron Zahn in JEA corruption trial
Update: On Friday, the verdict was unsealed. Jurors returned a guilty verdict against former JEA CEO Aaron Zahn and a verdict of not guilty in the case against former CFO Ryan Wannemacher. Read more.
A federal jury reached a verdict late Thursday afternoon for Aaron Zahn, former CEO of JEA, on charges he conspired to enrich himself by creating an incentive plan that would have kicked in huge payouts if the city had sold JEA, but U.S. District Judge Brian Davis sealed the verdict while a separate jury continues to deliberate in the companion case of Ryan Wannemacher.
Zahn was CEO when the JEA board put the utility up for sale and also approved the incentive plan. The case against Zahn alleged he pushed the board down the path of privatization because he knew a sale of JEA would deliver a $40 million payday for him because of the formula in the incentive plan.
Zahn and Wannemacher, who was chief financial officer of JEA, both were charged with two counts of conspiracy and wire fraud. Prosecutors said the conspiracy was based on creating the formula for the incentive plan, which was extremely unusual for a government entity, and then concealing how much it would be worth so the board would approve it.
The jury considering Wannemacher's case did not reach a verdict Thursday and will return Friday to continue deliberations. After that jury delivers its verdict, Davis will unseal the verdict on the charges against Zahn. The sealing of the verdict means Zahn, who was at the federal courthouse Friday waiting along with others, does not now what his jury decided.
The jury that deliberated on Zahn reached its verdict around 5:30 p.m. Thursday after beginning deliberations at about 9:45 a.m.
A conviction on both the conspiracy and fraud charges would have a maximum penalty of up to 25 years in prison. An acquittal would end the prosecution of the indictments brought by a federal grand jury in March 2022.
Zahn, 44, was CEO of JEA from April 2018 until the board fired him in January 2020 after the sales process fell apart in December 2019.
He had never worked before in a public utility but board members said his background in the private sector could bring innovation to the utility as it faced industry-wide changes brought by energy-efficient products and building construction.
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His attorneys told jurors Zahn had sought to bring concepts from the world of private business into JEA, including the long-term incentive plan, and if it turned out those ideas didn't fit, Zahn would drop them. His attorneys said that's what happened with the incentive plan after "armies of attorneys" reviewed it without Zahn stopping them.
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Zahn also called an accountant expert who testified the City Council Auditor's Office got it wrong and the actual value of the incentive plan if JEA were sold for the highest bid amount would have been about $31 million to JEA employees.
This article originally appeared on Florida Times-Union: JEA trial: Jury returns verdict for former CEO Aaron Zahn
