FBI Corruption Probe Looks Into Downtown LA Political Players And Real Estate Developers

Several major constructions projects slated for downtown Los Angeles are under scrutiny as it was revealed over the weekend an FBI corruption probe focused on two city council members and former city hall employees who are being investigated for bribery, kickbacks, extortion and money laundering.

As part of its continuing probe into Jose Huizar, a city councilman who oversees downtown Los Angeles, the FBI is seeking additional evidence into alleged corruption involving Mayor Eric Garcetti’s former deputy mayor for economic development, Raymond Chan.

Chan, who was not available for comment, retired last year. The warrant requests information pertaining to potential crimes, including bribery, kickbacks, extortion and money laundering involving several members of LA’s political scene, including Councilman Curren Price; Councilman Herb Wesson’s chief of staff, Deron Williams; Public Works Commissioner Joel Jacinto; Huizar’s planning director, Shawn Kuk; and former Huizar aide George Esparza, among others, according to the federal search warrant. The document also names executives from the Shenzhen New World Group, the owner of the LA Grand Hotel in downtown Los Angeles, according to the Los Angeles Times. Additionally, the FBI is seeking “all records relating to development projects in and around Los Angeles that relate to foreign investors to include, but not limited to, Hazens (a subsidiary of Shenzhen New World Group), Greenland, Oceanwide and other foreign investors not yet identified.” Greenland and Oceanwide are China-based developers. Greenland is developing the Metropolis, a 3.5M SF multibillion-dollar, four-tower condominium, hotel and retail development in downtown Los Angeles. Oceanwide is developing the $1B Oceanwide Plaza, a 1.5M SF mixed-use project across the street from Staples Center. No one has been charged with a crime or arrested. The FBI probe is part of a much larger investigation into Huizar, who formerly served as the chairman of the city’s Planning and Land Use Management Committee.