Former Los Angeles Deputy Mayor Found Guilty in Pay-to-Play Corruption Case
ICARO Media Group
In a sweeping corruption investigation aimed at exposing pay-to-play schemes within Los Angeles City Hall, former Los Angeles Deputy Mayor Raymond Chan has been found guilty on multiple charges. A federal jury rendered the verdict, convicting Chan on all 12 counts, including racketeering, bribery, fraud, and making false statements to investigators.
The jury deliberated for only a few hours before reaching a unanimous decision, following the completion of closing arguments from both prosecution and defense attorneys. Chan's sentencing is scheduled for June 10, and his attorney, John Hanusz, has announced plans to file an appeal.
Throughout the trial, Hanusz argued that Chan was not a part of the criminal enterprise led by former Los Angeles City Councilmember Jose Huizar, who recently received a 13-year prison sentence for racketeering and tax evasion. Hanusz maintained that the case revolved around Huizar and not his client.
Prosecutors presented evidence during the two-week trial that positioned Chan as a pivotal intermediary between Huizar and Chinese real estate developers seeking to initiate high-rise projects in downtown Los Angeles. Chan was portrayed as a key player in Huizar's corrupt activities, facilitating benefits for Huizar, his associates, and himself.
One particular scheme highlighted by the prosecution involved Chan's assistance in secretly settling a sexual harassment lawsuit lodged against Huizar by a former aide. Billionaire developer Wei Huang, the owner of Shen Zhen New World I, reportedly provided Huizar with $600,000 in collateral, enabling him to acquire a bank loan and settle the case discreetly. Later, Shen Zhen proposed a 77-story skyscraper, which garnered Huizar's support during his re-election campaign against Gloria Molina, ultimately leading to his victory.
The guilty verdict encompassed Chan's involvement with another Chinese developer, Shenzhen Hazens, in their efforts to redevelop the Luxe Hotel near the L.A. Live entertainment complex. Prosecutors alleged that Chan, while working for the city, helped establish a company that represented Shenzhen Hazens and exerted pressure on city officials to support the Luxe project. After leaving his position, Chan received payment from the developer for his assistance in navigating the city's approval process.
Chan's trial marked the final chapter in the investigation, aptly named "Casino Loyale" due to Huizar's frequent trips to Las Vegas. Huizar, who pleaded guilty last year, admitted accepting lavish gifts and benefits from real estate developers operating within his district. George Esparza, Huizar's former aide, and real estate consultant George Chiang also pleaded guilty to racketeering charges and testified against Chan.
This case covers the period from 2013 to 2018, during which Huizar held significant power as the chair of the council's Planning and Land Use Management Committee. As the top executive at the Department of Building and Safety, Chan played a crucial role until 2016 when he became the deputy mayor responsible for economic development under Mayor Eric Garcetti. He later transitioned into a private-sector consultant, representing real estate developers.
Chan's conviction further illustrates the widespread corruption and illicit practices that permeated the highest levels of City Hall during this period. The city faces a daunting task in rebuilding public trust and ensuring transparency in its dealings with developers and lobbyists in the future.
As the legal process continues, the fallout from this case serves as a stark reminder that accountability remains vital in maintaining the integrity of public office and safeguarding taxpayers' interests.