LOS ANGELES – Raymond Chan coordinated bribes for himself and convicted ex-city councilman José Huizar in a scheme to soak developers in exchange for getting building projects approved at City Hall, a prosecutor told a federal criminal jury in downtown Los Angeles Tuesday, but the defense countered that the former deputy mayor was motivated only by “love of his adopted city” and did nothing illegal.
Chan, 67, of Monterey Park, is facing a dozen federal counts, including racketeering conspiracy, two types of bribery and lying to federal agents for his alleged role in a pay-to-play scheme that prosecutors say monetized the real estate approval process at City Hall.
To federal prosecutors, 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.
During opening statements in Chan’s retrial Tuesday, Assistant U.S. Attorney Brian Faerstein said the longtime Los Angeles public servant had three goals: “Get money, keep power, and avoid the feds.”
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, Faerstein stated.
Chan “was an indispensable member of the criminal conspiracy for over five years,” the prosecutor said, adding that he “used his vast influence” to ease clients through the city’s approval process in exchange for bribes.
“But the defendant was careful to cover his tracks,” according to Faerstein.
Chan’s attorney, John Hanusz, told jurors that “the government’s narrative putting Ray Chan at the center (of the conspiracy) is fiction. It’s worthy of Hollywood.”
According to Hanusz, the city of Los Angeles benefited as a result of Chan’s honest work, making downtown development “attractive” to foreign investors.
“It was his mission to bring economic development to Los Angeles,” the defense attorney said in his opening statement Tuesday in Los Angeles federal court. “Unfortunately, Ray Chan thought everyone shared his vision.”
The defense attorney said his client “was motivated for love of his adopted city of Los Angeles,” not by greed or lust for power.
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.
Hanusz told the jury that after hearing the prosecutor discuss Huizar’s crimes, “you’d think that José Huizar is on trial. But he’s not. Ray Chan is on trial.”
Other members of the scheme included 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, and are expected to testify against Chan in the coming weeks, federal prosecutors said.
Also expected to take the stand for the prosecution is Huizar’s estranged wife, Richelle Rios, who is not charged in the case.
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.
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’s trial continues Wednesday and is expected to last several weeks.
1 Comment
The people who also paid into the consulting firms that doled out thousands of dollars every year to LADBS should be held accountable too…Mesmer.Properties.is one. Because of their fees, the City avoided citing them for their horrible building conditions. And they still do. You contact LADBS and their chief gives you a verbal run around and splits hairs. A lot of their upper management gained a lot from the years of Ray Chan.