A real estate developer is set to be sentenced on Friday for paying a $500,000 bribe to former Los Angeles City Councilman José Huizar in order to facilitate the approval of a downtown condominium project.
Dae Yong “David” Lee, a 58-year-old resident of Bel Air, was the first defendant to go on trial in the City Hall corruption scandal involving Huizar and his associates.
Lee and his company, 940 Hill, were convicted in June 2022 of bribery, honest services fraud, and obstruction.
During the sentencing before U.S. District Judge John Walter, Lee could face up to 40 years in prison for fraud and obstruction, as well as up to 10 years for bribery. His company may be fined $1.5 million or twice the gross gain or gross loss from the offense.
According to testimony during his trial in Los Angeles federal court, Lee used Justin Kim, an associate of Huizar, to deliver bags of cash to George Esparza, a councilman’s aide. Following the payment, Huizar resolved bureaucratic obstacles that were hindering the proposed development.
At the time, Huizar, as head of the city planning committee, played a crucial role in reviewing major development projects in the city.
Assistant U.S. Attorney Cassie Palmer told the jury that Huizar’s vote was crucial for the approval of Lee’s project. Palmer stated, “Huizar’s vote mattered, and the defendant knew it. They needed José Huizar on their side.”
Ariel Neuman, Lee’s attorney, argued that his client had been misled by Kim, who claimed the cash was needed for administrative fees. Neuman said, “He made the mistake of trusting the wrong person. He was taken advantage of by a liar and a thief. David Lee did not knowingly or intentionally bribe anyone. He believed he was paying a consulting fee.”
Kim has admitted to facilitating the payment from Lee and pleaded guilty to a federal bribery offense. Kim and Esparza, who pleaded guilty to a racketeering charge, are both scheduled for sentencing in October.
In addition to bribery, Lee and 940 Hill were convicted of falsifying accounting and tax records to conceal the bribe, which formed the basis for the obstruction charge.
Both Kim and Esparza testified for the prosecution during Lee’s trial.
Due to the size of the case against Huizar, involving him and his associates, U.S. District Judge John Walter divided the complex six-defendant indictment into three separate criminal trials, ensuring that evidence against the co-defendants does not get overshadowed.
Huizar and former Deputy Mayor Raymond Chan were charged in November 2020 with racketeering conspiracy, bribery, honest services fraud, and other counts.
Huizar, a central figure in a six-year probe of alleged corruption in City Hall politics, pleaded guilty in January to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and tax evasion. He is facing a significant prison sentence.
Huizar admitted to receiving $1.5 million in cash and benefits as part of a pay-to-play scheme, where developers were extorted for money and campaign donations in exchange for assistance with real estate projects in downtown LA.
Despite the allegations, Huizar’s lawyers maintain his innocence, claiming that he was simply advocating for the development of downtown and Boyle Heights during his time in office.
In another part of the case, real estate development company Shen Zhen New World I was found guilty of paying Huizar over $1 million in bribes for help with gaining approvals for a proposed downtown skyscraper.
The jury convicted Shen Zhen New World I, led by Chinese billionaire Wei Huang, of bribery and wire fraud. The company was fined $4 million and placed on probation for five years.
The retrial of Huizar’s co-defendant, Raymond Chan, has been delayed until March after a mistrial was declared due to Chan’s attorney falling ill. Chan is facing multiple charges, including racketeering conspiracy, bribery, honest services fraud, and lying to federal agents, related to the pay-to-play scheme orchestrated by Huizar.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
