Former JEA CEO Aaron Zahn and former CFO Ryan Wannemacher are accused of trying to scheme the city out of millions. We’re updating throughout Day 1 of the trial.
First Coast News (On Your Side), Tobie Nell Perkins, Renata Di Gregorio
1:40 PM EST February 21, 2024
1:40 PM EST February 21, 2024
JACKSONVILLE, Fla. — Former JEA CEO Aaron Zahn and former CFO Ryan Wannemacher go to trial Wednesday in federal court, in what has been called the largest fraud case in Jacksonville history.
The two executives are accused of masterminding a plot to privatize sell JEA — the largest public utility in the state of Florida — and skim a profit off the top. Prosecutors say it’s a scheme that could have stolen millions of dollars from Jacksonville taxpayers.
The charges are conspiracy and wire fraud. The two will be tried together, but with separate juries.
A federal indictment alleges they worked together from March 2019 through November 2019 on a bonus plan that “would have paid hundreds of millions of dollars in bonuses, primarily to the top JEA executive including themselves” if JEA was sold.
Editor’s note: This story will be updated during breaks throughout the trial and updates may not be in real time. Due to federal court regulations, updates cannot be provided while court is in session.
Live updates
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9:05 a.m.: Judge Brian Davis, presiding over the case, announces one juror is sick and has been excused, but the jury will move forward. Davis says the Wannemacher jury will be excused for Zahn’s opening statement and Zahn’s will be excused for Wannemacher. Zahn’s attorneys want to keep this ruling, but Wannemacher’s want their jury to hear Zahn’s opening statements. The judge agrees, so Wannemacher’s jury stays in the room for Zahn’s opening statement.
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9:40 a.m.: Judge calls recess until 10:15 to “collect the jury”
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10:20 a.m.: Court back in session, judge reminds jury that they are separate. The juries are sworn in separately. Court says jurors cannot speculate as to the reason that they, or the other jury, has been removed from the courtroom at any given time, or speculate about why there are two juries.
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10:46 a.m.: Federal prosecutor opening statement
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12:12 p.m.: Zahn’s attorney creates list a on an easel to show the jury the steps it would take to pass Wannemacher’s plan. Davis agreed to have Zahn’s jury removed from the courtroom during Wannemacher’s opening statements upon Zahn’s attorney’s request, but Wannemacher’s defense allowed their jury to hear Zahn’s opening statements.
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12:20 p.m.: Zahn’s attorney leaves the stand.
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12:23 p.m.: Wannemacher’s attorney, Jim Felman, asks for a mistrial because the federal prosecutor called the use of two juries “strange” and they do not want the jury speculating about why they have been split. (In the judge’s jury instructions, he specified the jury should not speculate about why there are two juries.) Zahn’s attorney agrees. The judge says that this is indeed a strange case, so the prosecutor did not imply anything untoward and denied the motion.
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12:30 p.m.: The juries are dismissed for lunch. Wannemacher’s jury will return at 1:30 p.m. for his attorney’s opening statements. Zahn’s jury will be excused for that statement as decided earlier, and return at 2:30 p.m.
This live blog will be updated at the next court recess.