Jia Yuan USA Co., Inc., Bribery, California 2023

A SoCal subsidiary of a Chinese company has agreed to pay $1,050,000 to resolve a federal investigation into bribery and campaign finance violations in Los Angeles.

The three-year non-prosecution agreement (NPA) with Jia Yuan USA Co., Inc. was announced by United States Attorney Nick Hanna and FBI Assistant Director in Charge Kristi Koons Johnson on Monday. Jia Yuan will pay the monetary penalty within two weeks and will continue to cooperate with the FBI's ongoing public corruption probe.

The NPA requires the cooperation of Jia Yuan's parent company, Shenzhen Hazens, as well as other subsidiaries in the Los Angeles-area. Jia Yuan's conduct in relation to former Los Angeles City Councilmember Jose Huizar and real estate development consultant George Chiang is detailed in the statement of facts accompanying the NPA.

Huizar faces a trial in June on a 34-count racketeering indictment, while Chiang is scheduled to be sentenced in February after pleading guilty earlier this year to participating in a Huizar-led racketeering enterprise.

The statement of facts outlines several acts, including Jia Yuan employees providing Katy Perry concert tickets to Huizar, making campaign contributions to U.S. political candidates, providing in-kind contributions to U.S. political candidates, and facilitating an introduction that resulted in a contract that paid indirect bribe payments to Huizar.

After receiving these benefits, Huizar voted to approve the Luxe Hotel project in Los Angeles. The project was valued at approximately $700 million and included retail space, residential units, and hotel rooms.

Jia Yuan USA Co., Inc., Bribery, California 2023: Defendant Name: Jia Yuan USA Co., Inc.; Exact Criminal Charges: Bribery, honest services fraud, and foreign and conduit campaign contributions; City and State: Los Angeles, California; Exact Date: Not specified; Sentence or Outcome: Jia Yuan will pay a monetary penalty of $1,050,000 and cooperate with the FBI's ongoing public corruption probe; Dollar Amounts: $1,050,000, $100 million, and $700 million.

Source: https://www.justice.gov/usao-cdca/pr/chinese-company-s-socal-subsidiary-agrees-pay-more-1-million-resolve-criminal