Shen Zhen New World I LLC, Bribery, California 2023

LA-Based Company Found Guilty of Paying Over $1 Million in Bribes to LA Politician

LOS ANGELES, CA – Shen Zhen New World I LLC, a downtown Los Angeles-based company, was found guilty today of paying more than $1 million in bribes to then-Los Angeles City Councilman José Huizar to obtain city approval to build a 77-story skyscraper.

The jury deliberated for less than three hours before returning the guilty verdict on all eight counts, including 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 has yet to make a court appearance. 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.

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.

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.

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