{"id":51647,"date":"2022-12-15T15:46:54","date_gmt":"2022-12-15T23:46:54","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=51647"},"modified":"2022-12-15T15:50:41","modified_gmt":"2022-12-15T23:50:41","slug":"developer-sentenced-to-four-years-in-prison-for-offering-bribe-to-get-million-dollar-bribe-to-land-a-45-million-county-lease","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=51647","title":{"rendered":"Developer Sentenced to Four Years in Prison for Offering Bribe to Land a $45 Million County Lease"},"content":{"rendered":"<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0<\/strong><\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"> <img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1073 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2.jpg\" alt=\"\" width=\"299\" height=\"188\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2.jpg 299w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-120x76.jpg 120w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-265x168.jpg 265w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-284x180.jpg 284w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-274x173.jpg 274w\" sizes=\"auto, (max-width: 299px) 100vw, 299px\" \/>A real estate developer was sentenced Thursday to four years in federal prison for offering to buy a million-dollar home for a Los Angeles County public official in exchange for the official\u2019s assistance in securing a $45 million county lease for the developer, officials stated.<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Arman Gabaee, 61, a.k.a. \u201cArman Gabay,\u201d of Beverly Hills, was sentenced by U.S. District Judge George H. Wu, who also ordered him to pay a fine of $1.1 million.<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Gabaee pleaded guilty on May 2 to one count of bribery.<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Gabaee was a co-founder and co-managing partner of the Charles Company, a Hollywood-based commercial and residential real estate development firm. <\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-582 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/JUSTICE-DEPT-IMAGE.jpg\" alt=\"\" width=\"228\" height=\"222\" \/>The then-county employee Gabaee bribed Thomas J. Shepos, 72, of Palmdale.\u00a0 <\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Shepos was a high-level official in Los Angeles County\u2019s Real Estate Division involved in awarding contracts to real estate developers.<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In the years leading up to his million-dollar bribe offer, from about 2010 to April 2017, Gabaee paid Shepos bribes and kickbacks of about $1,000 every month in exchange for county leases, preferential contract terms, non-public information and other benefits. <\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Shepos began cooperating with the FBI in December 2016. <\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><a href=\"https:\/\/cjnotebook.com\/photo-by-precondo-ca\/\" rel=\"attachment wp-att-51649\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-51649 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/qhdfm084rnk-300x169.jpg\" alt=\"real estate letter blocks\" width=\"300\" height=\"169\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/qhdfm084rnk-300x169.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/qhdfm084rnk-1024x576.jpg 1024w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/qhdfm084rnk-768x432.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/qhdfm084rnk-1536x864.jpg 1536w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/12\/qhdfm084rnk.jpg 1600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>From then until April 2017, Gabaee paid Shepos $6,000 in cash bribes during recorded meetings in cars, restaurants and men\u2019s restrooms, prosecutors said.<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 After years of paying cash bribes, Gabaee in 2016 \u201csought to further exploit the corrupt arrangement, this time soliciting Shepos\u2019s help obtaining a $45 million county lease for his Hawthorne Mall property \u2013 a lease he believed would increase the value of his property ten-fold,\u201d prosecutors said in sentencing papers. <\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-6172 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading-300x228.jpg\" alt=\"\" width=\"300\" height=\"228\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading-300x228.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading-45x35.jpg 45w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>In recordings, Gabaee offered to buy Shepos a million-dollar home in exchange for his assistance securing a 10-year, $45 million county lease for office space in the Hawthorne Mall, which Gabaee owned and redeveloped. <\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Gabaee admitted in his plea agreement to placing two offers on a Northern California home, first for $1,035,000 and later for $1,065,000, as a bribe for Shepos in exchange for the $45 million lease.<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Wiretap calls showed that with a long-term, reliable tenant like the county anchoring the mall, Gabaee believed he could get bank loans to redevelop the property, attract other tenants, and ultimately increase the mall\u2019s assessed value from $17 million to $500 million. <\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">With the county lease, Gabaee was considering selling the mall to capitalize on its increased value, wiretap calls showed.<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u201cThis defendant gamed the system during a seven-year bribery spree designed to expand his real estate empire,\u201d said U.S. Attorney Martin Estrada. \u201cThe scheme culminated in a massive million-dollar bribe that was motivated by Mr. Gabaee\u2019s immense greed. By facilitating this pay-to-play system, Mr. Gabaee undermined confidence in the integrity and fairness of our public institutions.\u201d<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Shepos pleaded guilty in November 2018 to\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/former-la-county-public-official-who-steered-contracts-bribe-paying-developer-and\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">one count of making false statements<\/a> to federal officials investigating his financial relationship with Gabaee and one count of subscribing to a false tax return related to payments he received from Gabaee. <\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Shepos is scheduled to be sentenced on Jan.19.<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI investigated this matter.<\/span><\/p>\n<p class=\"yiv7331555100MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorneys Lindsey Greer Dotson and Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section prosecuted this case.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 A real estate developer was sentenced Thursday to four years in federal prison for offering to buy a million-dollar home for a Los Angeles County public official in exchange for&#8230;<\/p>\n","protected":false},"author":1,"featured_media":5851,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3256,3],"tags":[],"class_list":["post-51647","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-courts-cases","category-u-s-department-of-justice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Developer Sentenced to Four Years in Prison for 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