Developer Sentenced in LA City Hall Bribery Scheme

Real estate development company Shen Zhen New World I received a maximum penalty of $4 million and five years of probation on Friday for its role in the bribery scandal involving former L.A. City Councilman José Huizar.

Shen Zhen owner Wei Huang did not appear at an 11-day trial in November, when a jury found the company guilty of three counts of honest service wire fraud, four counts of interstate and foreign travel in aid of bribery and one count of bribery. Huang is currently a fugitive and believed to be living in China.

U.S. District Judge John Walter handed down the sentence. When a company is placed on probation, it must set up a compliance plan with the Department of Justice, said Ciaran McEvoy, a Justice Department spokesman.

Between 2013 to 2018, Shen Zhen provided Huizar with bribes that financed gambling trips to Las Vegas where the former city councilman and his cohorts enjoyed expensive meals, spa treatments as well consorted with prostitutes. The company also provided $600,000 to help Huizar settle a sexual harassment trial.

In return, Huizar was expected to present motions and resolutions to benefit Shen Zhen’s redevelopment of L.A. Grand Hotel, as well as lobby city officials to give green lights to other Shen Zhen projects.

Huizar was found guilty in January of one count of racketeering conspiracy and one count of tax evasion. In September, the former city councilman is scheduled for sentencing. He has agreed to seek a sentence of no less than nine years in prison, according to a Justice Department announcement.