A former San Francisco official who oversaw a multimillion-dollar initiative that aimed to shift funding from law enforcement into Black communities after George Floyd’s death is accused of funneling taxpayer money to a nonprofit she was tied to for personal gain.
Sheryl Davis, 57, the former executive director of the San Francisco Human Rights Commission who led the city’s Dream Keeper Initiative, is accused of directing more than $4.5 million in program funds to a nonprofit she previously ran while maintaining financial ties to it, according to the San Francisco District Attorney’s Office.
Prosecutors said Davis used public funds for personal benefit, while a city audit flagged spending on a 30-night luxury hotel stay, hundreds of sports tickets and lavishly catered events.
MASSACHUSETTS AUDITOR TAKES TRANSPARENCY FIGHT TO HIGH COURT AFTER ALLEGED $12M FRAUD UNCOVERED
Dream Keeper was described as a $120 million investment in San Francisco’s Black communities following Floyd’s death, with officials initially seeking to redirect funding away from law enforcement.
Prosecutors alleged Davis remained connected to the nonprofit’s finances even after taking her city role, including serving as a signatory on its bank account and helping steer how the money was spent.
Authorities said Davis directed millions in city funds to the nonprofit, Collective Impact, while maintaining personal and financial ties to the organization and its leadership.
The district attorney’s office also alleges Davis approved more than $3.5 million in city funds to another organization that later paid her son nearly $140,000, with the money deposited into an account she jointly controlled.
Davis and James Spingola, 65, a nonprofit executive and former head of Collective Impact with whom she had a personal relationship, were arrested Monday and charged in connection with the case, according to prosecutors.
"Davis and Spingola’s finances were completely intertwined, suggesting a deep personal relationship in which the financial benefits to Spingola resulted in a benefit to Davis," San Francisco District Attorney Brooke Jenkins said, adding that the pair lived together, shared bank accounts and traveled together.
WATCH: San Francisco DA announces charges against ex-Human Rights Commission leader accused of funneling city funds to nonprofit
"We did find that a portion of this money was spent in a manner that was self-dealing and was for her benefit," Jenkins said at a news conference.
The charges follow a September city audit that found public funds paid for a 30-night stay at a luxury San Francisco hotel, more than 500 San Francisco Giants tickets, and over $350,000 in catering and events. The audit also flagged 700-plus gift cards worth a total of more than $20,000 and at least $75,000 spent promoting Davis’ personal brand, including her book and podcast.
Davis also allegedly arranged the sale of 1,500 copies of her children’s book, "Free to Sing," and used public funds to promote her personal projects, according to the New York Post.
The audit found the department under Davis engaged in a "pattern and practice" of bypassing safeguards and abusing public funds.
CONVICTED MINNESOTA FRAUDSTER ALLEGES WALZ, ELLISON WERE AWARE OF WIDESPREAD FRAUD
According to prosecutors, Davis faces 13 felony counts of financial conflict of interest in government contracts, as well as additional felony charges, including misappropriation of public funds and perjury.
Spingola faces felony charges tied to aiding and abetting the alleged conflicts of interest involving city contracts connected to the nonprofit.
An affidavit filed in the case described what prosecutors called a "pervasive pattern of self-dealing" tied to Davis’ role overseeing tens of millions of dollars in public funding.
The Dream Keeper Initiative has faced scrutiny over how funds were allocated and tracked, with critics raising concerns about transparency and oversight.
Defense attorneys pushed back on the allegations.
"This case has all of the hallmarks of public corruption, but none of that holds water," Davis’ attorney, Tony Brass, said, per KTVU, adding that she disclosed potential conflicts and sought oversight from the city.
Brass said Davis attempted to distance herself from contract decisions and requested additional financial supervision and audits that were not provided.
Spingola’s attorney, Randall Knox, said he had not yet reviewed the evidence and emphasized his client is presumed innocent.
"I’ve not seen the evidence against him yet. He is presumed to be innocent under the law. I don’t want to try this case in the press," Knox said.
