Ex-LA Deputy Mayor Ray Chan found guilty in developer bribery scheme

Former Los Angeles Deputy Mayor Raymond Chan has been found guilty of arranging bribes from developers for him and convicted ex-Councilman José Huizar.

The former public official who spent decades at Los Angeles City Hall was found guilty Wednesday of racketeering, bribery, fraud and giving false statements to investigators in the sprawling pay-to-play corruption case, the Los Angeles Times reported.

The federal jury reached the verdict in hours, finding Chan guilty on 12 of 12 counts. Sentencing is slated for June 10. Chan’s attorney, John Hanusz, told the judge that his client would appeal the verdict.

A juror, who declined to give his or her name, told The Times that the prosecution’s case was “very solid.”

Chan is the last defendant to go on trial in the City Hall pay-to-play investigation, dubbed “Casino Loyale” by the federal government due to Huizar’s frequent Las Vegas trips. Lawyers for both sides finished their closing arguments on Tuesday afternoon, City News Service reported.

Prosecutors had accused Chan of playing a central role in the bribery scheme that prosecutors say turned the real estate approval process at City Hall into an ATM machine.

“He sold out his office,” Assistant U.S. Attorney Cassie Palmer told the jury. “He helped Huizar take bribes from developers who were willing to pay to play.”

Defense attorneys maintained that Chan, 67, of Monterey Park, was an honest public servant who committed no crimes during his many years working for the City of Los Angeles.

His attorney, Michael Freedman, said in his closing argument that his client was merely “trying to bring development to Los Angeles,” and was never part of Huizar’s scheme.

“Most of the evidence has to do with José Huizar,” Freedman told the jury. “Mr. Chan didn’t take bribes … because he’s not corrupt.”

During the two-week trial in Los Angeles federal court, prosecutors called several cooperating witnesses to testify against Chan, including George Esparza, Huizar’s former special assistant, and real estate development consultant George Chiang.

Each has pleaded guilty to participating in the City Hall-based racketeering conspiracy.

They said Chan was “careful but corrupt,” and for years stayed “under the radar” while coordinating bribes in a scheme to extract money from developers in exchange for getting building projects approved at City Hall. Palmer said Chan was “the indispensable person in the middle” of the conspiracy.

The defense countered that the former deputy mayor was motivated only by “love of his adopted city” and did nothing illegal. “The evidence in this case is about José Huizar’s crimes,” Freedman said. “There’s no evidence like that with Mr. Chan.”

To federal prosecutors, Chan was a key member of the so-called Council District 14 enterprise, a conspiracy led by Huizar to use his office to give favorable treatment to wealthy developers who financed and facilitated bribes and other illicit benefits.

During opening statements two weeks ago, Assistant U.S. Attorney Brian Faerstein said the longtime L.A. public servant had three goals: “Get money, keep power and avoid the feds.”

A former 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.

To his defense attorney, Chan was a dedicated, detail-oriented civil servant who spent his hours working for the city, not trying to arrange bribes. “He was helpful — almost to a fault,” Freedman told the jury. “Huizar used him just like Huizar used everyone. Ray Chan didn’t create problems — he solved problems.”

Chan worked for the city for nearly three dozen years, ultimately serving as the top executive overseeing the Department of Building and Safety, which reviews building plans and inspects construction projects. He left city government to become a private-sector consultant representing real estate developers.

Before Huizar pleaded guilty to federal charges, he and Chan were scheduled to go on trial together.

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Huizar, 55, pleaded guilty last year to felony charges for using his position at City Hall to enrich himself and his associates, and for cheating on his taxes. 

The former councilman 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.

— Dana Bartholomew