Chinese Real Estate Developer’s L.A.-Based Company Found Guilty of Paying Over $1 Million in Bribes to L.A. Politician José Huizar

LOS ANGELES – Based on the actions of its agents, including its billionaire Chinese real estate developer owner, a downtown Los Angeles-based company was found guilty today of paying more than $1 million in bribes – including luxury trip expenses, casino gambling chips and a sham loan – to then-Los Angeles City Councilman José Huizar to obtain city approval to build a 77-story skyscraper.

          After the jury deliberated for less than three hours, Shen Zhen New World I LLC was found guilty of all eight counts it faced: three counts of honest service wire fraud, four counts of interstate and foreign travel in aid of bribery, and one count of bribery.

          The owner of Shen Zhen – Wei Huang, 57, a resident of Shenzhen, China, who also maintains a residence in San Marino – is also charged in this case, but he has yet to make a court appearance in this matter. He is a fugitive believed to be in China.

          According to evidence presented at trial, in 2010, Shen Zhen – on behalf of its owner – purchased the L.A. Grand Hotel in downtown Los Angeles. The property was located in the 14th City Council District, whose representative at that time was José Huizar. As part of his roles on the Los Angeles City Council, Huizar was the chairman of the Planning and Land Use Management Committee, commonly referred to as the PLUM Committee, which oversaw major commercial and residential development projects in the city.

          In June 2018, Shen Zhen filed an application with the Los Angeles City Planning Department to redevelop the L.A. Grand Hotel into a skyscraper featuring a mix of residential and commercial uses.

          From February 2013 to November 2018, Shen Zhen, acting through Huang, provided Huizar and his aide George Esparza with cash, casino gambling chips, flights on private jets and commercial airlines, stays at luxury Las Vegas hotels and casinos, expensive meals, spa services, prostitution services, political contributions, and a $600,000 collateral for Huizar to confidentially settle a pending sexual harassment lawsuit against Huizar by a former staffer that threatened his career.

          At the time Shen Zhen provided these items, it did so intending to influence Huizar to take official acts to benefit the L.A. Grand Hotel redevelopment project, a project that would have transformed Shen Zhen’s hotel into a 77-floor mixed use skyscraper that would have been the tallest such structure west of the Mississippi River.

          Specifically, Shen Zhen intended that Huizar benefit the project by presenting motions and resolutions in various city committees; voting on the project in the PLUM Committee and City Council; taking action in the PLUM Committee to expedite the approval process of the project; exerting pressure on other city officials to influence the approval process of the project; and introducing and voting on city resolutions to enhance the professional reputation and marketability of Wei Huang.

          United States District Judge John F. Walter scheduled a January 23, 2023 sentencing hearing, at which time the company is expected to face a multi-million dollar fine.

          Huizar and former Deputy Mayor Raymond Chan have pleaded not guilty to the charges against them, which include racketeering conspiracy and multiple bribery counts, and are scheduled to go to trial on February 21, 2023. Esparza pleaded guilty in July 2020 to one count of racketeering conspiracy, and is scheduled to be sentenced on June 5, 2023.

          Federal prosecutors have now convicted a total of nine defendants along with receiving over $3 million in criminal penalties to resolve their investigation into two other major real estate development companies, as a result of Operation “Casino Loyale,” the ongoing corruption investigation into Los Angeles City Hall being conducted by the FBI and the United States Attorney’s Office.

          Salvador Huizar, José Huizar’s brother who testified as a witness for the prosecution in the Shen Zhen trial and is expected to testify at his brother’s trial, is scheduled to be sentenced on May 15, 2023 after he pleaded guilty to a felony charge of making false statements to federal investigators.

          In the first Huizar-related trial in this case, a federal jury on June 27 found real estate developer Dae Yong Lee, a.k.a. David Lee, 57, of Bel Air, and 940 Hill LLC, a Lee-controlled company, guilty of felony charges, including fraud and bribery, for providing $500,000 in cash to Huizar and his special assistant in exchange for their help in resolving a labor organization’s appeal of their downtown Los Angeles development project. Their sentencing hearings are scheduled for January 30, 2023.

          Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, Assistant United States Attorneys Susan S. Har and J. Jamari Buxton, also of the Public Corruption and Civil Rights Section, and Assistant United States Attorney Patrick Castañeda of the International Narcotics, Money Laundering, and Racketeering Section, are prosecuting this case.

          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’s email tip line at pctips-losangeles@fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Source-FBI

On Wednesday, 28 September 2011, the Federal Executive Council approved N30.066 billion for the accelerated implementation of the ‘back-end’ component of the National Identity Management System(NIMS).

The delivery date of the NIMS was December, 2013.

It should be noted that the National Identity Management Commission(NIMC) was to receive a sum of N23.074 billion, in the last quarter of 2011, for the procurement of the redesigned multi-application National Identity Card.

Before this time, the National Identity Card Scheme executed by SAGEM was a failure.

The NIMC Act №23 of 2007 mandated the NIMC to establish a reliable, secure and ‘scalable’ identity management system that makes use of advance Bio-metrics technologies to identify every individual in Nigeria in unique ways.

Despite the colossal amount government has expended on the project, most Nigerians, who have registered have only laminated papers to present where necessary.

Although choice brand of papers serve the same purpose, on a condition that negotiated payments are made to the relevant officials.

The insinuation is that the laminated papers are just open cover ups for the failed project.

The expectations of Nigerians were that , upon completion of registration, physical cards would be issued. This is not the case.

At the NIMC registration center at the University College Hospital(UCH)Ibadan, Nigerians are made to pay N100.00 for the registration form, while N500.00 is the amount for the change of name after registration and other unspecified fees for the lamination of the registration slip. There are other hidden fees.

The NIMC officials also instruct people to write their Bank Verification Numbers(BVN) on the form. Nigerians want to know the reason why this is so ?

Of worry, is the rude behavior exhibited by the NIMC officials in a sizable number of centers, which over time has discouraged several Nigerians from having faith in the project.

Indeed, NIMC proudly insists that over the years, it has issued out millions of the National Identification Numbers(NIN), even though it has continuously avoided making categorical statements on the Identity Cards.

Nigerians have the impression that the project is one among several white elephant projects of government.

Recently, Vice President Of Nigeria, Prof. Yemi Osinbajo  disclosed that some religious leaders and members of the elite class pleaded on behalf of political office holders and  government officials, facing corruption allegations. Prof. Osinbajo's statement is coming at a time when allegations of corruption are trailing the activities  of several state Governors and government officials, with one of the state Governors insisting that he has spent N200 billion on infrastructure.  Nigerians   have expressed concern and worry over the ability of the leadership of the Economic and Financial Crimes Commission(EFCC) and the Independent Corrupt Practices and Related Crimes Commission(ICPC) to convincingly prosecute the affected officials, including the Kano state Governor, Alhaji  Abdullahi Ganduje.

In this interview with People, the Founder, Spiritual head  and Grand Imam of Shafaudeen-in-Islam Worldwide, Prof. Sabitu Olagoke opines that the personalities pleading with government to forgive those identified to be corrupt are satanic. Excerpts :

What is your reaction to the Vice President's statement that some  religious leaders and members of the elite class plead on behalf of corrupt government officials ?

Let us first  look at the personality of Mr. Vice President, he is a Pastor and a powerful member of one of the most widely spread religious organizations in Nigeria. He is equally a Professor of law and above all, he is the number two man handling the destiny of Nigeria.

Whatever he says now, needs to be viewed along these three lines of personality colossus. From the religious angle the voice of God, is universal from whichever Scripture it mus have come from.

Proverbs 22 : 22-23, says'' Do not rob the poor, because he is poor or crush the afflicted at the gate. 23-For the Lord will plead their cause and rob of life those who rob them.''

Whoever is  guilty of this offense must therefore face the wrath of the law as he awaits the wrath of God.

The Holy Koran Chapter 5 :62-63 says '' You will see people transgressing in sins, transgressions and corrupt enrichment''.

 However the elite who perpetrate this  evil of institutional indiscipline ought to have been made to face judgement through the admonitions of the Doctors of Law, as well as the heads of religious houses, who will be directly answerable  to the queries from God. 

If Mr. Vice President's statement should be judged against this, he would be  found wanting, as a Minister of God, Professor of law and as an elite in the political realm. From the Governors and the political angle, the Vice President violated the international rules of law against corruption and the need for accountability. For example, Transparency International defines corruption as the abuse of  entrusted power  for private gains The United Nations Development Programme defines corruption as the misuse of a public or private position for direct or indirect personal gain.  It further defines accountability as an obligation 1) to demonstrate the work that has been conducted in accordance with the agreed rules and standards. 2) Report fairly and accurately on performance results vis-a-vis mandated roles and / or plans.

Accountability refers not only to those in power, holding their subjects to account, but also to the authorities, both public and private, been held accountable by their citizens.

The Vice President and the entire government workforce need to role model all these, and stand firmly on the rule of law  to bring to book all  suspects in the arena of institutional indiscipline and corruption, including those so called rotten religious houses in Nigeria, which have enjoyed most from the largess derived from treasury looting.

Government need to embark on  accountability and anti-corruption drives because these provide a democratic means to among others 1) Evaluate the government's conduct 2) Prevent the development of concentration of power 3) Enhance the learning capacity and effectiveness of public administration, according to the World Bank accountability and anti-corruption measures.

It also provides citizens with information, they need to measure and judge the progress of the government of the day as well as  to enhance good conditions of service.

Voices from the houses of worship demanding that government should look away or forgive  corrupt officials will continue to be satanic, until these worship centres are re-orientated towards supporting the cause of the anti-graft agencies, because the impact of corruption in Nigeria has been detrimental as it has stalled progressive development, it has been one of the greatest factors responsible  for the growth in poverty, lack of progressive advancement and internal conflict, as we can link it to underdevelopment.

It has also led to unequal access to power, resources and positions between men and women, as well as the wise poor and the foolish rich.

Besides the above, government  has to get the root of Democracy as established in Greek-egocentredness, is likened to the status of an idiot. Self has no place in governance, clan or ethnic based consideration extended to nepotism will continue to lead to barren development.

Nigerians, generally, from religion, culture, community and ethnic nationalities need to be integrated into an altruistic philosophy for the development of the entire  citizenry as a way of achieving patriotism for true and correct nationhood.

Most  edifice like structure in Nigeria, are products of treasury looting.

Presently, Nigerians are being indoctrinated into the culture of self-enrichment as a way of life, rather than the dignity of labour that would have aided innovation and creativity, which are the bedrock of true  development.

Mr. Vice  President sir, please let us think more of the future,  sustainable development and safe landing into true paradise. 

Nigerians have for several years embarked on the journey to promote a just and equitable society without encouraging results.

This is regardless of the countless number of prominent citizens, who belong to the private and public sectors, including the civil society community at home and in diaspora.

Sadly, most of the innovative ideas and policy options of governance have failed woefully to serve as springboard for the country's social, political and economic emancipation from the vicious circle  of underdevelopment.

Of note, is the fact that Nigeria is yet to attain the status of a free, dynamic and knowledge based economy, this is just as there are no genuine signs of commitment  to fairness, equity and justice.

The foregoing stems from bad and improper  governance at all levels of government. 

Decisions and policies of government are guided by self-centered ideals and obsessive greed.

 Most political office holders lack ideology and principles to recommend a soothing cure for the country's ailments, this is convincingly reflected in the very weak economic and political reforms which are without doubt not the compass for a new world order.

The myriad of problems confronting the country amplifies the need for transparent and incorruptible institutions to decisively address pressing issues which have taken a political turn.

Those institutions that were in place from time immemorial, might not have achieved the purpose for which they were established, even though enormous financial resources heralded their establishment.

The major questions on the lips of most Nigerians, include, Who is saddled with the responsibilities for policy formulation and governance under  the present dispensation?

Is it the state or does it rest on the exploitative hands of a few private individuals ?

These questions remain unanswered, definitely not one of the high points of Democracy.

Busia Governor, Sospeter Ojaamong and three County Ministers  were on Wednesday arraigned before the Milimani, Nairobi, Anti-Corruption Court on a 7 count charge of corruption.

Before now the accused persons had been detained at the Integrity Centre -the headquarters of the Ethics and Anti-Corruption Commission (EACC).

 Others arraigned alongside the Governor are Mr Bernard Yaite, Mr Allan Ekweny and Mr Samuel Ombui, who are County Ministers.

Charges against them include defrauding the County of Sh 8 million.

Other charges are abuse of office, conspiracy to commit an economic crime and engaging in a project without proper planning.

Also, they were charged for  willful failure to comply with the law relating to management of public funds and fraudulent acquisition of public property.

The accused persons peladed not guilty to the charges.

As Nigerians continue to knock the President Muhammadu Buhari led administration’s elective fight against corruption, the spiritual head and founder of Shafaudeen worldwide, Wakajaiye, Ibadan, Nigeria, Prof. Sabitu Olagoke, in this interview with Federationews2day, says that the present administration’s corruption fight,  has the traces of  the corrupt class who funded its emergence. Excerpts:

Nigerians are expressing worries  over the present administration's continued selective corruption war, what do you think is wrong ?

It is unfortunate that the All Progressives Congress(APC) was formed on the basis of looking for credible people, they were able to get that in President Muhammadu Buhari, but how to win the election depended mainly on who could fund the party. Unfortunattely, most of those people, who have the strenght to do it,  belong to the corrupt class of the nation. It happened in Singapore, when Lee  Kuan Yew wanted to moun the reign of power, he had nothing, but was sponsored by those  who had amassed ill gotten wealth. Fortunately for them they were able to have a memorandum of Understnading(MOU) and they agreed with him, to suppor the cause of sanitizing the country in order that Singapore would be great again . That was how they were able to have their way. Singapore today, is a country that competes with the developed world, but in the case of Nigeria, the same scenario of change is not in play. Unfortunately, the big wigs in the pary are not ready to, let go of their ill gotten wealth.

At a time the President became ill, the illness was not natural, it was not, from God.  And that is why he cried out. When you fight corruption, corruption may want to fight back. If not for God, the illness would have c onsumed him and that would  have been to the advantage of the cabal and cartel, who would have returned to their free meal of ill-gotten wealth,amidst the turbulence surrounding this Government of President Buhari. Despite the fact that he survived the death threat and fire, his manliness began to fail him into mortgaging his conscience.

By now, dily dallying with the cabal, in taking some decisions, most especiallt the delayed ones. It is unfortunate, that his people are not helping him to succeed in the anti-corrution war, because they are damned to many and  too powerful.  Unfortunately, nobody wants to die again for the antion.  A comparative analysis of Nigeria and some  other nations, shows Nigeria as a  nation that has failed the test of corporate governance, leading us into the stage of building strong individuals, rather than strong institutions.

As Nigerians continue to knock the President Muhammadu Buhari led administration’s elective fight against corruption, the spiritual head and founder of Shafaudeen worldwide, Wakajaiye, Ibadan, Nigeria, Prof. Sabitu Olagoke, in this interview with Federationews2day, says that the present administration’s corruption fight,  has the traces of  the corrupt class who funded its emergence. Excerpts:

Nigerians are expressing worries  over the present administration's continued selective corruption war, what do you think is wrong ?

It is unfortunate that the All Progressives Congress(APC) was formed on the basis of looking for credible people, they were able to get that in President Muhammadu Buhari, but how to win the election depended mainly on who could fund the party. Unfortunattely, most of those people, who have the strenght to do it,  belong to the corrupt class of the nation. It happened in Singapore, when Lee  Kuan Yew wanted to moun the reign of power, he had nothing, but was sponsored by those  who had amassed ill gotten wealth. Fortunately for them they were able to have a memorandum of Understnading(MOU) and they agreed with him, to suppor the cause of sanitizing the country in order that Singapore would be great again . That was how they were able to have their way. Singapore today, is a country that competes with the developed world, but in the case of Nigeria, the same scenario of change is not in play. Unfortunately, the big wigs in the pary are not ready to, let go of their ill gotten wealth.

At a time the President became ill, the illness was not natural, it was not, from God.  And that is why he cried out. When you fight corruption, corruption may want to fight back. If not for God, the illness would have c onsumed him and that would  have been to the advantage of the cabal and cartel, who would have returned to their free meal of ill-gotten wealth,amidst the turbulence surrounding this Government of President Buhari. Despite the fact that he survived the death threat and fire, his manliness began to fail him into mortgaging his conscience.

By now, dily dallying with the cabal, in taking some decisions, most especiallt the delayed ones. It is unfortunate, that his people are not helping him to succeed in the anti-corrution war, because they are damned to many and  too powerful.  Unfortunately, nobody wants to die again for the antion.  A comparative analysis of Nigeria and some  other nations, shows Nigeria as a  nation that has failed the test of corporate governance, leading us into the stage of building strong individuals, rather than strong institutions.