{"id":53636,"date":"2023-07-21T14:03:02","date_gmt":"2023-07-21T21:03:02","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=53636"},"modified":"2023-07-21T14:03:02","modified_gmt":"2023-07-21T21:03:02","slug":"real-estate-developer-sentenced-to-six-years-in-prison-for-paying-500000-cash-bribe-to-corrupt-l-a-politician-and-official","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=53636","title":{"rendered":"Real Estate Developer Sentenced to Six Years in Prison for Paying $500,000 Cash Bribe to Corrupt L.A. Politician and Official"},"content":{"rendered":"<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES<\/strong>\u00a0<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5906 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/U.S.-Department-of-Justice.jpg\" alt=\"\" width=\"200\" height=\"200\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/U.S.-Department-of-Justice.jpg 200w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/U.S.-Department-of-Justice-150x150.jpg 150w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/>Officials stated that a real estate developer was sentenced Friday to six years in federal prison for paying a $500,000 cash bribe to then-Los Angeles City Councilman Jos\u00e9 Huizar and his special assistant.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In exchange for the bribe, the developer got their help in resolving a labor organization\u2019s appeal of the developer\u2019s downtown Los Angeles development project.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-39705 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/06\/200623-jose-huizar-main-se-206p_4e92ab3b429faedb14517dc350870781.fit-760w-300x214.jpg\" alt=\"\" width=\"300\" height=\"214\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/06\/200623-jose-huizar-main-se-206p_4e92ab3b429faedb14517dc350870781.fit-760w-300x214.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/06\/200623-jose-huizar-main-se-206p_4e92ab3b429faedb14517dc350870781.fit-760w.jpg 760w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>U.S. District Judge John F. Walter sentenced Dae Yong Lee, a.k.a. \u201cDavid Lee,\u201d 58, of Bel Air.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">According to authorities, the judge also ordered him to pay a $750,000 fine, the maximum permitted by law.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 At Friday\u2019s sentencing hearing, Judge Walter highlighted why significant sentences are important for deterrence in white-collar crimes, saying such defendants \u201cdon\u2019t think they will get caught, don\u2019t think they will get charged, and don\u2019t think they will face significant terms of imprisonment.\u201d\u00a0 Judge Walter further said that Lee \u201creadily accepted and exploited\u201d Huizar\u2019s corrupt offer and showed a \u201clack of remorse and arrogance\u201d in recorded telephone conversations when discussing his crimes. <\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Lee\u2019s \u201conly regret is that he got caught,\u201d the judge said.<\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"Former Councilman Jos\u00e9 Huizar pleads guilty to federal charges\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/DDBi2nFoxzU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Judge Walter also sentenced 940 Hill LLC, a Lee-controlled, Los Angeles-based company, to five years of probation and ordered it to pay the statutory maximum fine of $1.5 million, as well as the cost of prosecuting the case, along with requiring it to enact variance compliance measures to prevent future criminal activity.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-39979 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/judge-gavel-300x160.jpg\" alt=\"\" width=\"300\" height=\"160\" \/>At the conclusion of a nine-day trial in June 2022, a federal jury found Lee and 940 Hill LLC guilty of honest services wire fraud, bribery, and falsifying records in federal investigations.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Lee, a commercial real estate developer, was the majority owner and managing member of 940 Hill LLC and planned to build a mixed-use development located at 940 South Hill Street in downtown Los Angeles, which was in Huizar\u2019s council district. <\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The development was to include 14,000 square feet of commercial space and more than 200 residential units.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In August 2016, after a labor organization filed an appeal that prevented the 940 Hill project from progressing through the city\u2019s approval process, Lee called Justin Jangwoo Kim, a Huizar fundraiser, to request Huizar\u2019s help in resolving the appeal. <\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">At the time, Huizar chaired the city\u2019s Planning and Land Use Management (PLUM) Committee, a body that oversaw many of the city\u2019s most significant commercial and residential projects.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In September 2016, George Esparza, then Huizar\u2019s special assistant, informed Kim that Huizar would not help the 940 Hill project for free and would require a financial benefit. In 2017, after several months of bribe negotiations, Lee agreed to provide $500,000 in cash to Huizar and Esparza. Lee then made three cash payments through Kim over several months, including in a paper bag, which Esparza then transferred to a liquor box to show to Huizar.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Two years after paying the bribe, 940 Hill LLC was served with a federal grand jury subpoena from the U.S. Attorney\u2019s Office for records relating to Huizar.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In response, Lee and 940 Hill LLC obstructed justice by making false entries in the company\u2019s accounting records and then submitting false state and federal tax returns, which categorized the $500,000 bribe as a legitimate business expenditure for resolving the labor organization appeal.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cDespite enjoying a life of privilege and abundance, Lee wanted more,\u201d prosecutors argued in a sentencing memorandum. \u201cBut instead of earning it, he wanted a guaranteed shortcut to circumvent the city process and silence community opponents threatening to thwart his attempts to expand his substantial real estate empire.\u201d<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Kim pleaded guilty in June 2020 to a federal bribery offense. <\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Esparza pleaded guilty in July 2020 to one count of racketeering conspiracy. Both men cooperating with the investigation testified against Lee at trial and are scheduled to be sentenced in October.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Huizar pleaded guilty on January 20 to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one count of tax evasion. <\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">His sentencing hearing is scheduled for December 15. <\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Huizar has agreed to seek a sentence of no less than nine years in prison, and prosecutors have agreed to recommend a sentence of no more than 13 years in prison.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In May, Judge Walter sentenced real estate development company Shen Zhen New World I LLC to five years of probation and the statutory maximum financial penalty of $4 million for its conduct in Huizar\u2019s pay-to-play scheme, including providing more than $1 million in benefits to Huizar \u2013 among them, luxury trips to Las Vegas and a sham loan to settle a sexual harassment lawsuit filed against Huizar \u2013 in exchange for approval to build a 77-story skyscraper.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <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\" \/>Former Los Angeles Deputy Mayor Raymond Chan is scheduled for a re-trial on March 12, 2024, on federal charges alleging he conspired to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and that he agreed to accept while he was deputy mayor more than $100,000 for official acts to benefit a project by a Chinese real estate developer. <\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Chan also is charged with lying to federal investigators in this public corruption case.\u00a0<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI investigated this matter.<\/span><\/p>\n<p class=\"yiv3640091208MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Assistant U.S. Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant U.S. Attorney Cassie D. Palmer of the Public Corruption and Civil Rights Section prosecuted these defendants.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 Officials stated that a real estate developer was sentenced Friday to six years in federal prison for paying a $500,000 cash bribe to then-Los Angeles City Councilman Jos\u00e9 Huizar and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":5851,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3255],"tags":[],"class_list":["post-53636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Real Estate Developer Sentenced to Six Years in Prison for Paying $500,000 Cash Bribe to Corrupt L.A. Politician and Official<\/title>\n<meta name=\"description\" content=\"\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 Officials stated that a real estate developer was sentenced Friday to six years in federal prison for paying a $500,000 cash bribe\" \/>\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=53636\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Real Estate Developer Sentenced to Six Years in Prison for Paying $500,000 Cash Bribe to Corrupt L.A. 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