{"id":55872,"date":"2024-03-27T20:48:54","date_gmt":"2024-03-28T03:48:54","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=55872"},"modified":"2024-03-27T20:49:41","modified_gmt":"2024-03-28T03:49:41","slug":"former-l-a-deputy-mayor-guilty-of-corrupting-city-real-estate-development-projects","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=55872","title":{"rendered":"Former L.A. Deputy Mayor Guilty of Corrupting City Real Estate Development Projects"},"content":{"rendered":"<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0<\/strong><\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3918 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice.png 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>A former deputy mayor and long-time Los Angeles city official was found guilty by a jury Wednesday of accepting tens of thousands of dollars in bribe money and facilitating illicit payoffs from property developers to then-Los Angeles City Councilmember Jos\u00e9 Huizar, according to officials.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">The bribes and payoffs were part of a long-running conspiracy that corrupted the approval of city real estate projects, officials stated.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Raymond She Wah Chan, 67, of Monterey Park, was found guilty of all 12 felony counts he faced: one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, seven counts of honest services wire fraud, three counts of bribery, and one count of making false statements to a federal government agency.<\/p>\n<p><iframe loading=\"lazy\" title=\"Former Los Angeles deputy mayor convicted in pay-to-play corruption case\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/EOdbPOVxX4E?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=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u201cMr. Chan made decisions to enrich himself and his corrupt colleagues instead of advancing projects to benefit the residents of Los Angeles, and then lied about it when confronted with the facts,\u201d said Mehtab Syed, the Acting Assistant Director in Charge of the FBI\u2019s Los Angeles Field Office. \u201cThe \u2018Casino Loyale\u2019 investigation has shined a light on the city of Los Angeles, and the FBI will continue to weed out corruption to ensure local government operates honestly to improve the lives of Angelenos.\u201d<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">Chan formerly was the general manager of the Los Angeles Department of Building and Safety (LADBS) and later served as the city\u2019s deputy mayor of economic development from 2016 to 2017.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Huizar, 55, of Boyle Heights, represented Council District 14 (CD-14) on the Los Angeles City Council from December 2005 until his resignation in October 2020. CD-14 encompassed downtown Los Angeles and some of its surrounding areas.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">During his years on the City Council, Huizar chaired the Planning and Land Use Management (PLUM) Committee, which oversaw all major commercial and residential development projects in the city.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Huizar\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/former-los-angeles-politician-jose-huizar-sentenced-13-years-federal-prison\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">was sentenced<\/a> on January 26 to 13 years in federal prison. He was also ordered to pay $443,905 in restitution to the City of Los Angeles and $38,792 in restitution to the IRS.<\/p>\n<p><iframe loading=\"lazy\" title=\"Former LA Councilman Jose Huizar gets 13 years in prison\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/YwqVdEG63SM?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=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">He pleaded guilty in January 2023 to one count of racketeering conspiracy and one count of tax evasion.<\/p>\n<figure id=\"attachment_39705\" aria-describedby=\"caption-attachment-39705\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-39705 size-medium\" 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\" \/><figcaption id=\"caption-attachment-39705\" class=\"wp-caption-text\">Then-Los Angeles City Councilmember Jos\u00e9 Huizar<\/figcaption><\/figure>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0According to evidence presented at a 12-day trial, Chan and Huizar operated the \u201cCD-14 Enterprise,\u201d a criminal conspiracy that tainted the city approval of real estate projects in the downtown area.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">Huizar led the enterprise from at least February 2013 until July 2020 and Chan played a key role in ensuring the enterprise\u2019s success during that period.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 As part of the conspiracy, while he was the general manager of LADBS and a deputy mayor, Chan established a secret business partnership with 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>, securing a lucrative real estate consulting agreement with Chinese real estate developer Shenzhen Hazens.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">As part of that agreement, Chan accepted hundreds of thousands of dollars in bribes to advise and pressure city officials in favor of the Hazens\u2019 Luxe Hotel redevelopment project.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">To maintain the conspiracy\u2019s political power, Chan also facilitated a $100,000 campaign contribution commitment from Hazens to support Huizar\u2019s wife\u2019s candidacy for the CD-14 seat in exchange for Huizar\u2019s votes to approve the project.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">A central goal of the enterprise was the succession plan of Huizar\u2019s wife taking over Huizar\u2019s council seat so that Huizar would still have control over downtown through his wife.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">Hazens\u2019 U.S. subsidiary,\u00a0<a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/chinese-company-s-socal-subsidiary-agrees-pay-more-1-million-resolve-criminal\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Jia Yuan USA Co. Inc.<\/a><span class=\"yiv2497472751MsoHyperlink\">,<\/span>\u00a0which was seeking to redevelop the Los Angeles Luxe City Center Hotel, has paid $1.05 million to resolve the government\u2019s investigation into its conduct related to this case, which included bribery and illegal campaign contributions.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">Chan also facilitated payment of more than $1 million in bribes to Huizar from billionaire developer Wei Huang, 58, a resident of Shenzhen, China, including $600,000 to settle a sexual harassment lawsuit and luxury-laden gambling trips.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">When he provided these bribes, Huang\u2019s company, <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 planning to redevelop the L.A. Grand Hotel into the tallest tower west of the Mississippi, which would require city approvals and Huizar\u2019s help.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">At Huizar\u2019s and Chan\u2019s request \u2013 and after Huizar had helped save Chan\u2019s city position by helping to prevent a planned merger that would have eliminated Chan\u2019s department \u2013 Huang paid $600,000 to fund a settlement of a sexual harassment lawsuit filed against Huizar by a former CD-14 staffer that threatened his 2015 re-election campaign and thus the enterprise\u2019s political power base.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">Chan also lied to FBI agents in November 2018 about his involvement in facilitating and structuring the $600,000 settlement, that Huang had no real estate projects needing Huizar\u2019s political support, and that Huang had never asked Huizar for any help with his properties.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 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.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Following today\u2019s guilty verdicts, U.S. District Judge John F. Walter scheduled a June 10 sentencing hearing.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">At that hearing, Chan will face a statutory maximum sentence of 20 years in federal prison for each count of racketeering conspiracy and honest services wire fraud, up to 10 years in federal prison for each bribery count, and up to five years in federal prison for the false statements count.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Previously, 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 59, of Bel Air, and one of his companies, 940 Hill LLC, were convicted 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.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">Lee is serving a six-year federal prison sentence.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">940 Hill LLC was sentenced to five years\u2019 probation, was fined $1.5 million, and was ordered to pay the costs of prosecution.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In November 2022, Huang\u2019s 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 convicted of eight felonies for \u2013 through the actions of its owner, Huang \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.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">The company was sentenced to five years of probation, fined $4 million, and ordered to pay the costs of prosecution.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">Prosecutors also have secured guilty pleas from Chiang,\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, 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>\u00a0for their roles in the CD-14 Enterprise.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">Each defendant cooperated with the government, testified during at least one trial, and awaited sentencing.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI investigated this matter.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant United States Attorneys Cassie D. Palmer, Susan S. Har, and Brian R. Faerstein of the Public Corruption and Civil Rights Section are prosecuting this case.<\/p>\n<p class=\"yiv2497472751MsoNormal\" style=\"text-align: center;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Any member of the public 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\u00a0<a href=\"https:\/\/tips.fbi.gov\/home\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">https:\/\/tips.fbi.gov<\/a>\u00a0or to contact the FBI\u2019s Los Angeles Field Office at (310) 477-6565.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 A former deputy mayor and long-time Los Angeles city official was found guilty by a jury Wednesday of accepting tens of thousands of dollars in bribe money and facilitating illicit&#8230;<\/p>\n","protected":false},"author":1,"featured_media":55873,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-55872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-department-of-justice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Former L.A. 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