- This Week
How the bakery's $1 million vanished. Along with loan from city, pledges to help community disappeared.
That same year, in addition to their salaries, E.M. Health paid approximately $40,000 in consulting fees and service payments to Nedir Bey and relatives either directly or through companies that he and other associates of the bakery controlled, according to records on file with the city of Oakland.
Bakery associates also made 15-day loans to E.M. Health to cover operating expenses and charged substantial interest fees in return. Nedir Bey earned a $750 fee for a $9,000 loan he made to the company, and Ali Saleem Bey charged $1,000 interest for a $13,750 loan. Time after time, city staff questioned the invoices E.M. Health submitted for reimbursement, asking for more details or supporting documentation. But the money was never withheld for long.
MediaNews investigative reporters Thomas Peele and Josh Richman, KQED reporter Judy Campbell and freelance radio reporter Bob Butler contributed to this report. Cecily Burt is a MediaNews staff writer. G.W. Schulz is a staff writer at the San Francisco Bay Guardian.