Huizar arrest fallout: Carmel Partners places exec on leave

Los Angeles /
Jul.July 02, 2020 09:33 AM
View of Carmel Partners' 520 Mateo
View of Carmel Partners’ 520 Mateo

Carmel Partners has placed an executive on leave following the government’s allegations the development firm bribed Los Angeles City Councilmember Jose Huizar in exchange for getting projects approved.

Carmel Partners was clearly cited to — but not named — in the FBI’s 116-page complaint detailing racketeering charges against Huizar, who was arrested last week.

San Francisco-based Carmel did not identify the executive by name, according to the Los Angeles Times. The company also denied any knowing-involvement in the alleged scheme. But it said The firm said in a statement it planned to take “appropriate disciplinary actions needed,” against the executive, according to the report.

Federal authorities charged Huizar on June 23 with taking bribes from developers to the tune of $1.5 million in exchange for favorable actions on their projects at the City Council. At the time, he was head of the powerful Planning and Land Use Management committee.

According to the Times, Carmel said the FBI’s complaint had “numerous false and/or misleading conclusions, suppositions, innuendos, and opinions.”

The firm is a player in L.A. real estate, and is developing an Arts District project, 520 Mateo, that was also referred to in the FBI complaint. For that project, the government claims Huizar reduced the number of affordable units required after Carmel and its lobbyist provided “direct and indirect financial benefits” to him.

The company also donated tens of thousands of dollars to political action committees tied to Huizar, according to the FBI. Federal authorities even allege that a Carmel executive provided Huizar with dirt on a pair of former aides who sued him for harassment.

Other prominent developers have been named in search warrants and other FBI documents related to the Huizar probe, including Shenzhen Hazens and Shenzhen New World Group. [LAT]Dennis Lynch


Related Articles

arrow_forward_ios
Continuum CEO Mark Falcone and a rendering of the project (EYRC Architects via Urbanize)

Continuum Partners, Platinum Equities plan Arts District office tower

Continuum Partners, Platinum Equities plan Arts District office tower
Gov. Gavin Newsom, Shenzhen New World Group chairman Huang Wei and former L.A. City Council member Jose Huizar (Getty, the L.A. Grand Hotel Downtown)

Inside LA’s opaque program to house homeless in hotels

Inside LA’s opaque program to house homeless in hotels
Los Angeles City Council member Kevin de León

New LA Council member who won Huizar’s vacated seat vows affordable housing push

New LA Council member who won Huizar’s vacated seat vows affordable housing push
Jose Huizar and the Luxe Center hotel (Credit: Kirk McKoy/Los Angeles Times via Getty Images, and Google Maps)

Developer implicated in Jose Huizar scandal cuts deal with feds

Developer implicated in Jose Huizar scandal cuts deal with feds
Tim Naughton and a rendering of the project (Credit: OFFICEUNTITLED and AvalonBay)

AvalonBay secures $167M loan for Arts District resi project

AvalonBay secures $167M loan for Arts District resi project
A photo illustration of Ron Zeff and Jose Huizar (Credit: Desiree Stone/Getty Images, and iStock)

To live and bribe in LA: The sweet past and sticky present of Carmel Partners

To live and bribe in LA: The sweet past and sticky present of Carmel Partners
Wei Huang, Jose Huizar and a rendering of the 77-story tower at 333 S. Figueroa Street (Shenzhen New World Group, Getty)

Huizar-linked Chinese developer sued by construction contractor

Huizar-linked Chinese developer sued by construction contractor
Jose Huizar (Credit: Kent Nishimura / Los Angeles Times via Getty Images)

Carmel Partners lobbyist pleads guilty to brokering $150K Huizar bribe

Carmel Partners lobbyist pleads guilty to brokering $150K Huizar bribe
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...