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Federal investigators have contacted at least two people regarding allegations that Breed traded a coveted Board of Supervisors seat in the hope of future employment from Michael Bloomberg, according to the people who received the calls. Breed has denied those claims.
Neither of those who have received calls from the FBI would discuss the substance of the conversations.
The FBI’s inquiries follow an investigation published this week by The Standard and Mission Local (opens in new tab), featuring two former allies of Breed who accused her of appointing Stephen Sherrill to a supervisor seat in the hopes of convincing Bloomberg, the former New York City mayor, to offer her a job in the future.
Sherrill worked for Bloomberg, a billionaire Democratic donor. Breed confirmed to The Standard that Bloomberg had called her to recommend Sherrill for the appointment.
District 2, which Sherrill represents, encompasses Pacific Heights, the Marina, and Cow Hollow, among other neighborhoods. The seat is viewed as a stepping stone to a bigger office; it was previously held by former San Francisco Mayor Mark Farrell, Assemblymember Catherine Stefani, and Gov. Gavin Newsom.
Sherrill, who is running to keep his seat, has received support from well-heeled San Franciscans, with more than $340,000 in third-party spending to defend him in the upcoming special election in a district with only 85,000 people. Mayor Daniel Lurie has endorsed Sherrill (opens in new tab), a close ally on the board, in the race, which pits him against neighborhood activist Lori Brooke.
It’s unclear how many people federal investigators have contacted or whether the FBI has opened a formal investigation. However, a Northern District federal court issued at least one search warrant Thursday investigating wire fraud, just three days after the news about Breed and Sherrill was published. The Northern District encompasses San Francisco, among other places. The warrant was sealed, and it is unclear if it is connected to the allegations against Breed.
Wire fraud involves illegal acts taking place over text message, phone calls, or other electronic communication. In addition to detailing Bloomberg’s call to Breed, The Standard published text messages between Breed and a staffer that referred to the Sherrill appointment.
The San Francisco FBI field office and a national FBI media spokesperson did not return requests for comment. Breed did not return a request for comment. Federal authorities typically do not confirm or deny ongoing investigations.
San Francisco Democratic insiders are concerned that any inquiry involving Breed could be politically motivated, given that the FBI is led by Kash Patel, a close ally of President Donald Trump. Bloomberg has invested heavily in defeating Trump electorally, with outlets characterizing (opens in new tab)the pair as “fierce rivals.”
Sherrill’s campaign said neither he, nor anyone he is aware of, was contacted by the FBI.
“If Trump’s Justice Department wants to attack Democrats and chase the lies of a disgruntled ex-staffer with an axe to grind, that says everything about them and nothing about Stephen,” a Sherrill campaign spokesperson said in a statement, adding that the supervisor’s “record of delivering for District 2 speaks for itself, and he won’t be distracted from fighting for the constituents of District 2.”
Rumors surrounding Breed’s handling of the appointment had circulated for months before two former associates publicly raised accusations: Conor Johnston, one of Breed’s closest advisers and her chief of staff during her time as a supervisor, and Eric Kingsbury, who managed Breed’s unsuccessful 2024 reelection campaign.
Johnston previously told The Standard that Breed explained her motivation for appointing Sherrill by saying, “This one’s for me.” Breed was an adviser to a program last year at the Aspen Institute, which has partnered with Bloomberg Philanthropies.
Previously, Breed told The Standard, “I hold a BA from Davis and a master’s from USF; I am deeply experienced, and I have built a long record of public service and leadership that speaks for itself. … To once again attempt to portray me as a puppet of a man is deeply offensive.”
Insiders told The Standard at the time of Sherrill’s appointment that Breed “was not seriously considering most of the candidates” and seemed to be speaking to some “only out of courtesy.”
Johnston and Kingsbury declined to comment.
More about the authors
Han Li is a politics reporter for The San Francisco Standard covering local government and elections. He is bilingual in Chinese and focuses on immigration, race and equity, and U.S.–China relations.
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