A real estate developer has been sentenced to six years in federal prison and fined $750,000 for offering a $500,000 bribe to former Los Angeles City Councilman José Huizar in order to facilitate the approval of a downtown condominium project.
David Lee, 58, of Bel Air, and his company 940 Hill were found guilty in June 2022 of bribery, honest services fraud, and obstruction in relation to the City Hall corruption scandal involving Huizar and his associates.
In addition to the prison sentence, Lee’s company has been sentenced to five years’ probation and ordered to pay a $1.5 million fine.
Evidence presented during Lee’s trial revealed that he used Justin Kim, an associate of Huizar, to deliver bags of cash to George Esparza, the councilman’s aide. Shortly after receiving the payment, Huizar resolved a bureaucratic issue that was preventing Lee’s development project from moving forward.
As the head of the city planning committee at the time, Huizar had significant influence over the approval of major development projects in the city.
The prosecution argued that Huizar’s support was crucial for the success of Lee’s project, stating, “Huizar’s vote mattered, and the defendant knew his vote mattered. They needed José Huizar on their side.”
Lee’s defense attorney contended that his client had been deceived by Kim, who claimed the cash was necessary to pay administrative fees. According to the defense, Lee believed he was paying a consulting fee and did not intentionally bribe anyone.
Kim has confessed to facilitating the payment and pleaded guilty to a federal bribery offense. Both Kim and Esparza, who pled guilty to racketeering charges, are scheduled to be sentenced in October.
In addition to the bribery and obstruction charges, Lee and his company were also convicted of falsifying accounting and tax records to cover up the bribe.
The trial included testimonies from both Kim and Esparza, who cooperated with the prosecution.
The indictment against Huizar and his associates has been split into three separate trials to avoid overshadowing evidence against the co-defendants. Huizar and former Deputy Mayor Raymond Chan were charged with racketeering conspiracy, bribery, honest services fraud, and other offenses. Huizar has already pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and tax evasion.
A key figure in a corruption probe at City Hall, Huizar admitted to receiving $1.5 million in cash and benefits through a pay-to-play scheme involving developers seeking approval for downtown real estate projects. However, Huizar’s legal team denies the allegations, claiming he was advocating for development in downtown and Boyle Heights.
In a separate part of the case, Shen Zhen New World I, a real estate development company, was convicted of paying over $1 million in bribes to Huizar for assistance with a downtown skyscraper project. The company faces a $4 million fine and five years of probation.
The retrial of Raymond Chan has been delayed until March, following a mistrial declaration in his first trial due to his attorney’s illness. Chan is facing multiple charges related to the pay-to-play scheme linked to Huizar.
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