Former LA deputy mayor found guilty of corruption in case linked to José Huizar
LOS ANGELES - Former Los Angeles Deputy Mayor Raymond Chan was found guilty Wednesday of federal racketeering conspiracy and bribery charges for his role in a scheme run by convicted ex-City Councilman José Huizar to monetize the real estate approval process at City Hall.
The guilty verdicts on all counts came a little over an hour after the federal criminal jury in downtown Los Angeles began deliberations for the day.
Chan, 67, of Monterey Park, was convicted of a dozen charges, including racketeering conspiracy, two types of bribery and lying to federal agents for his role in the bribery scheme.
LOS ANGELES, CA MARCH 26: Former Deputy Mayor Raymond Chan walks to the United States Courthouse in downtown Los Angeles on Tuesday, March 26, 2024 for his trial on corruption charges. (Myung J. Chun / Los Angeles Times via Getty Images)
Sentencing is set for June 10.
Chan was a key member of the so-called Council District 14 enterprise, a conspiracy in which Huizar -- assisted by others -- unlawfully used his office to give favorable treatment to wealthy developers who financed and facilitated bribes and other illicit benefits.
RELATED: José Huizar: Disgraced former LA City Councilman sentenced to 13 years in federal prison
During opening statements two weeks ago in Chan's retrial, Assistant U.S. Attorney Brian Faerstein said the longtime Los Angeles official had three goals: "Get money, keep power, and avoid the feds."
But to defense attorneys, Chan was a dedicated, detail-oriented civil servant who spent his hours working for the city.
José Huizar sentenced to 13 years
Disgraced former Los Angeles City Councilman José Huizar was sentenced Friday to 13 years in federal prison for using his powerful position at City Hall to shake down real estate developers for at least $1.5 million in cash and benefits in exchange for help driving downtown real estate projects through the city's approval process, and for cheating on his taxes.
"He was helpful -- almost to a fault," Michael Freedman told the jury. "Huizar used him just like Huizar used everyone. Ray Chan didn't create problems -- he solved problems."
An ex-deputy mayor who oversaw economic development for then-Mayor Eric Garcetti in 2016 and 2017, Chan "sold access" to Huizar, and arranged bribe payments for himself, for the then-councilman and for other city officials, prosecutors said.
Chan worked for the city for almost three dozen years, serving at one point as the top executive overseeing the Department of Building and Safety, which reviews building plans and inspects construction projects.
Before Huizar pleaded guilty to federal charges, he and Chan were scheduled to go on trial together.
Huizar, 55, pleaded guilty last year to felony charges for using his powerful position at City Hall to enrich himself and his associates, and for cheating on his taxes. He was sentenced in January to 13 years in federal prison and ordered to surrender to begin his sentence no later than April 30. He was also ordered to pay nearly $444,000 in restitution to the city of Los Angeles and nearly $39,000 to the IRS.
A mistrial was declared in Chan's first trial last year due to a defense attorney's medical emergency.
"He sold out his office," Assistant U.S. Attorney Cassie Palmer told the jury Tuesday in her closing argument. "He helped Huizar take bribes from developers who were willing to pay to play."
During the two-week trial, prosecutors called several cooperating witnesses to the stand to testify against Chan in Los Angeles federal court, including George Esparza, Huizar's former special assistant, and real estate development consultant George Chiang, each of whom pleaded guilty to participating in the City Hall-based racketeering conspiracy.
Chan was "careful but corrupt," and for years stayed "under the radar" while coordinating bribes in a scheme to soak developers in exchange for getting building projects approved at City Hall, prosecutors said. The defense countered that the former deputy mayor was motivated only by "love of his adopted city" and did nothing illegal.
John Hanusz, one of Chan's attorneys, told jurors that the city of Los Angeles benefited as a result of Chan's work, making downtown development "attractive" to foreign investors.
"It was his mission to bring economic development to Los Angeles," the defense attorney said. "Unfortunately, Ray Chan thought everyone shared his vision."
The defense attorney told jurors that his client "was motivated for love of his adopted city of Los Angeles," not by greed or lust for power.
As a result of the sprawling public corruption case, a developer, a former lobbyist, a land-use consultant, a Chinese-based real estate company and even Huizar's older brother, Salvador Huizar, have either pleaded guilty or been convicted by a jury.
Chan was the final defendant charged in the City Hall corruption investigation.