{"id":51914,"date":"2023-01-20T15:32:19","date_gmt":"2023-01-20T23:32:19","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=51914"},"modified":"2023-01-20T15:32:19","modified_gmt":"2023-01-20T23:32:19","slug":"former-l-a-city-politician-guilty-of-racketeering-tax-evasion-is-facing-prison-sentence","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=51914","title":{"rendered":"Former L.A. City Politician Guilty of Racketeering, Tax Evasion is Facing Prison Sentence"},"content":{"rendered":"<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>\u00a0LOS ANGELES\u00a0<\/strong><\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-6759 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice-300x197.jpg\" alt=\"\" width=\"300\" height=\"197\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice-300x197.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Former Los Angeles City Councilmember Jos\u00e9 Huizar pleaded guilty Friday to federal criminal charges for using his powerful position at City Hall to enrich himself and his associates and for cheating on his taxes.\u00a0<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Huizar, 54, of Boyle Heights, pleaded guilty to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one <\/span><\/p>\n<p style=\"text-align: center;\"><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/EqG2_LxGCww\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">The plea agreement was filed Thursday in U.S. District Court.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Huizar represented Council District 14 (CD-14), which includes downtown Los Angeles and its surrounding communities, from 2005 until his resignation in 2020.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">In his plea agreement, Huizar admitted to leading the CD-14 Enterprise, which operated as a pay-to-play scheme in which Huizar \u2013 assisted by others \u2013 unlawfully used his office to give favorable treatment to real estate developers who financed and facilitated bribes and other illicit financial benefits.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Specifically, Huizar and other city officials demanded and accepted cash bribes, casino gambling chips, prostitution and escort services, political contributions, flights on private jets and commercial airlines, stays at luxury hotels and casinos, expensive meals, tickets to concerts and sporting events, and other benefits.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Huizar also admitted to accepting a $600,000 bribe in the form of collateral from a billionaire real estate developer for Huizar to confidentially settle a pending sexual harassment lawsuit against Huizar by a former staffer.\u00a0<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-7857 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/12\/FBI-Logo-289x300.png\" alt=\"\" width=\"289\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/12\/FBI-Logo-289x300.png 289w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/12\/FBI-Logo.png 636w\" sizes=\"auto, (max-width: 289px) 100vw, 289px\" \/>\u201cMr. Huizar&#8217;s actions, to include accepting a staggering amount of bribe money and lavish gifts, eroded the trust in the office he held for many years,\u201d said Donald Alway, the Assistant Director in Charge of the FBI&#8217;s Los Angeles Field Office. \u201cAngelenos deserve better than being used for the personal enrichment of politicians grifting the system and foreign investors whose currency is corruption. I&#8217;m proud of the investigators and prosecutors whose hard work led to today&#8217;s admission of guilt.\u201d<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Huizar led the CD-14 Enterprise from at least February 2013 until July 2020, including for several years when he chaired the city\u2019s Planning and Land Use Management (PLUM) Committee, which oversaw major commercial and residential development projects in the city.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-5851 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-300x199.jpg\" alt=\"\" width=\"300\" height=\"199\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-300x199.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-180x120.jpg 180w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image-95x64.jpg 95w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Image.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Members and associates of the CD-14 Enterprise also included lobbyists, consultants, and other city officials and staffers, who sought to personally enrich themselves and their families and associates in exchange for official acts. <\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">These members included\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/former-aide-la-city-councilmember-agrees-plead-guilty-rico-charge-stemming-pay-play\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">George Esparza<\/a>, Huizar\u2019s former special assistant, real estate development consultant\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/consultant-agrees-plead-guilty-rico-offense-related-bribery-scheme-enriched-la-city\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">George Chiang<\/a>, political fundraiser\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/fundraiser-agrees-plead-guilty-federal-corruption-charge-delivering-hundreds-thousands\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Justin Jangwoo Kim<\/a>, and lobbyist\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/lobbyist-agrees-plead-guilty-city-hall-bribery-scheme-which-city-councilman-jose-huizar\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Morrie Goldman<\/a>, among others. <\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Each of these individuals has pleaded guilty in this case, is cooperating with the government\u2019s investigation, and awaits sentencing.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The enterprise\u2019s members and associates raised and solicited funds from developers and their proxies with projects in CD-14 to be paid to Huizar\u2019s desired accounts and political action committees, including to benefit a Huizar relative\u2019s campaign for the CD-14 seat.\u00a0<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In exchange for these benefits, Huizar, Esparza and other city officials agreed to perform and performed official acts, including:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 24px;\">Presenting motions and resolutions in various city committees to benefit projects<\/span><\/li>\n<li><span style=\"font-size: 24px;\">Voting on projects in various city committees, including the PLUM Committee, and City Council<\/span><\/li>\n<li><span style=\"font-size: 24px;\">Taking, or not taking action in the PLUM Committee to expedite or delay the approval process and affect project costs<\/span><\/li>\n<li><span style=\"font-size: 24px;\">Exerting pressure on city officials to influence the approval and\/or permitting process of projects<\/span><\/li>\n<li><span style=\"font-size: 24px;\">Using their office to negotiate with and exert pressure on labor unions to resolve issues on projects<\/span><\/li>\n<li><span style=\"font-size: 24px;\">Leveraging voting and scheduling power to pressure developers with projects pending before the city to affect their business practices<\/span><\/li>\n<li><span style=\"font-size: 24px;\">Introducing or voting on city resolutions to enhance the professional reputation and marketability of businesspersons in the city.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-size: 24px;\">In return for Huizar pleading guilty to the two felony counts, prosecutors have agreed to seek no more than 13 years in prison for Huizar, who also has agreed to forfeit $129,000 in cash that law enforcement found during a law enforcement search of his home in November 2018. The government also intends to seek more than $1 million in restitution on the city\u2019s behalf.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">As part of the plea agreement, Huizar has agreed to seek a sentence of no less than nine years in prison.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">U.S. District Judge John F. Walter scheduled an April 3 sentencing hearing for Huizar.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><a rel=\"nofollow noopener noreferrer\" name=\"_Hlk125105319\"><\/a><span style=\"font-size: 24px;\">The plea agreement is \u201cbinding,\u201d which means the court must accept or reject all aspects of it. Should the court reject the plea agreement, any party may withdraw.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"> Judge Walter said at today\u2019s hearing that he would make that decision prior to Huizar\u2019s sentencing date.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">In June 2022, real estate developer\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/real-estate-developer-found-guilty-fraud-bribery-and-obstruction-charges-paying-500000\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Dae Yong Lee<\/a>, a.k.a. \u201cDavid Lee,\u201d\u00a057, of<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Bel Air and one of his companies, 940 Hill LLC, were found guilty of providing $500,000 in cash to Huizar and Esparza in exchange for their help in resolving a labor organization\u2019s appeal of their downtown Los Angeles development project. Both defendants are scheduled to be sentenced on May 5.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In November 2022, downtown Los Angeles-based company\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/chinese-real-estate-developer-s-la-based-company-found-guilty-paying-over-1-million\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Shen Zhen New World I LLC<\/a>\u00a0was found guilty of eight felonies for \u2013 through the actions of its owner, billionaire real estate developer and fugitive Wei Huang, 57, of Shenzhen, China \u2013 paying more than $1 million in bribes \u2013 including luxury trip expenses, casino gambling chips and the $600,000 sham loan \u2013 to Huizar to obtain city approval to build a 77-story skyscraper. <\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">The company\u2019s sentencing hearing is scheduled for May 12. <\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Huang, who is charged with several felonies, has yet to make a court appearance in this case and is considered a fugitive believed to be in China.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 On February 21, former Los Angeles deputy mayor and co-defendant Raymond She Wah Chan, 66, of Monterey Park, is scheduled to go on trial. <\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Chan, who is accused of being a member of the corrupt CD-14 Enterprise, has pleaded not guilty to charges of RICO conspiracy, bribery, honest services fraud and lying to federal agents.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 24px;\">Defendants are presumed innocent unless proven guilty.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/span><span style=\"font-size: 24px;\">In a related case, Huizar\u2019s brother,\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/brother-former-la-city-councilman-jos-huizar-admits-lying-investigators-about\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Salvador Huizar<\/a>, 56, of Boyle Heights, pleaded guilty in October 2022 to lying to federal investigators and a federal grand jury about accepting cash from his brother on numerous occasions in exchange for paying certain of Huizar\u2019s bills. Salvador Huizar\u2019s sentencing hearing is scheduled for May 15.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">The FBI is investigating this matter with assistance from IRS Criminal Investigation.\u00a0\u00a0<b><\/b><\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Assistant U.S. Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant U.S. Attorneys Cassie D. Palmer, Susan S. Har, and Brian R. Faerstein of the Public Corruption and Civil Rights Section, are prosecuting this case.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Any public member who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI\u2019s email tip line at <a href=\"mailto:pctips-losangeles@fbi.gov\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">pctips-losangeles@fbi.gov<\/a>\u00a0or to contact the FBI\u2019s Los Angeles Field Office at (310) 477-6565.<\/span><\/p>\n<p class=\"yiv7968877728MsoNormal\" style=\"text-align: center;\">\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 Former Los Angeles City Councilmember Jos\u00e9 Huizar pleaded guilty Friday to federal criminal charges for using his powerful position at City Hall to enrich himself and his associates and for&#8230;<\/p>\n","protected":false},"author":1,"featured_media":39705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,3],"tags":[],"class_list":["post-51914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","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>Former L.A. City Politician Guilty of Racketeering, Tax Evasion is Facing Prison Sentence<\/title>\n<meta name=\"description\" content=\"\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 Former Los Angeles City Councilmember Jos\u00e9 Huizar pleaded guilty Friday to federal criminal charges for using his powerful position\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cjnotebook.com\/?p=51914\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Former L.A. 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