March 21, 2023 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

Bel Air Real Estate Developer Guilty of Fraud, Bribery and Obstruction for Paying $500,000 in Cash to City Officials

David Lee charged in connection to José Huizar bribes

A real estate developer and one of his companies were found guilty by a jury last week of federal criminal charges for providing $500,000 in cash to then-Los Angeles City Councilman José Huizar and his special assistant in exchange for their help in resolving a labor organization’s appeal of their downtown Los Angeles development project.

Dae Yong Lee, a.k.a. “David Lee,” 57, of Bel Air, and 940 Hill LLC, a Lee-controlled company, each were found guilty of three felonies: one count of honest services wire fraud, one count of bribery, and one count of falsification of records in federal investigations.

According to evidence presented at his nine-day trial, Lee, a commercial real estate developer, was the majority owner of 940 Hill LLC and was planning on building a mixed-use development located at 940 South Hill Street in downtown Los Angeles. The development was to include 14,000 square feet of commercial space and more than 200 residential units.

In August 2016, after a labor organization filed an appeal that prevented the 940 Hill project from progressing through the city’s approval process, Lee called Justin Jangwoo Kim, a Huizar fundraiser, to request Huizar’s help in dealing with the appeal. At the time, Huizar was the chairman of the city’s Planning and Land Use Management (PLUM) Committee, a body that oversaw many of the city’s most significant commercial and residential projects.

In September 2016, George Esparza, then Huizar’s special assistant, informed Kim that Huizar would not help the 940 Hill project for free and would require a financial benefit. In 2017, after several months of bribe negotiations, Lee provided cash totaling $500,000 to Kim to deliver to Huizar and Esparza, including in a liquor box.

Two years after paying the bribe, Lee and 940 Hill LLC impeded a federal criminal investigation by altering accounting and tax records to falsely categorize the $500,000 bribe as a legitimate business expenditure for resolving the labor organization appeal.

United States District Judge John F. Walter scheduled a September 19 sentencing hearing, at which time Lee will face a statutory maximum sentence of 20 years in federal prison for the honest services wire fraud count, 20 years for the obstruction count, and 10 years for the bribery count. Defendant 940 Hill LLC will face a statutory maximum fine of $1.5 million or twice the gross gain or gross loss from the offense.

Kim pleaded guilty in June 2020 to a federal bribery offense. Esparza pleaded guilty in July 2020 to one count of racketeering conspiracy. Both men are cooperating with the investigation and are scheduled to be sentenced in September.

The next scheduled trial in this case is against Shen Zhen New World I LLC, an entity owned by real estate developer Wei Huang – another defendant in the case. Both defendants are charged with bribing Huizar related to another downtown Los Angeles development project and are scheduled to go to trial on October 18. Huang remains a fugitive.

Huizar and former Los Angeles Deputy Mayor Raymond Chan are scheduled to go to trial February 21, 2023, on federal charges alleging they conspired to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. Huizar allegedly agreed to accept at least $1.5 million in illicit financial benefits and faces dozens of additional federal criminal charges.

Related Posts

LA Sanitation & Environment Hosts Community Celebration Inaugurating Venice Dual Force Main Sewer

March 20, 2023

March 20, 2023

Two-mile long 54-inch force sewer main will operate as a parallel system in conjunction with the existing 48-inch force main...

LAUSD Families Prepare for Potential Three-Day Strike Starting Tuesday

March 20, 2023

March 20, 2023

Union representing workers, including custodians, cafeteria workers, teacher assistants and other support staff have voted to walk off the job...

LAPD Investigates Shooting in Palms After Man Dies from Multiple Gunshot Wounds

March 20, 2023

March 20, 2023

Andrew Conaway arrested in connection to March 16 shooting The Los Angeles Police Department’s West Bureau Homicide Detectives are investigating...

LAFD Rescues Man Who Fell Into Well at Hyperion Water Reclamation Plant

March 20, 2023

March 20, 2023

Man falls into roughly 20 foot well Thursday  LAFD reports rescuing a 32-year-old man who fell into a well at...

Brand New Four-Bedroom Farmhouse in Venice Hits Market

March 19, 2023

March 19, 2023

Louella Avenue listed for $4.2 million.  A modern farmhouse in Venice designed by Joanna Leon has hit the market for...

Developer Seeks Approvals for New Multifamily Residential Building in Palms

March 19, 2023

March 19, 2023

Helio, a Los Angeles-based real estate development firm, has submitted an application for a new multifamily residential building at 3734...

Los Angeles Water and Power Employees Plans to Invest Up to $500M in Real Estate in 2023

March 18, 2023

March 18, 2023

Pension fund in 2022 committed $850 million to new real estate investments Los Angeles Water and Power Employees is reportedly...

Are You Staying in Venice Over the Summer?

March 17, 2023

March 17, 2023

Spring is officially here, which means summer is just around the corner. Venice residents, what are your travel plans this...

Emerging Artist Jesse Liu Opens First-Ever Exhibition in Venice Gallery

March 17, 2023

March 17, 2023

“Spring Fever” currently on display at Yiwei Galler By Keemia Zhang Local artist Jesse Liu has opened her first solo...

LA City Council Asks Staff to Develop Report on Mental Health & Domestic Violence Calls

March 17, 2023

March 17, 2023

The proposed report will consider the current capacity and response times for the Mental Evaluation Unit and Domestic Abuse Response...

Prince Street Pizza up and Running in Venice

March 16, 2023

March 16, 2023

Famed NYC pizzeria Prince Street Pizza now open on Lincoln Boulevard just south Rose Avenue By Dolores Quintana The newest...

Two New Eateries Slatted for Boardwalk MDR

March 16, 2023

March 16, 2023

Winston Pies, Planta Cocina headed for shopping center By Dolores Quintana Marina Del Rey has two new restaurants to look...

LA City Council Motion Seeks to Reduce Financial Burden on Street Vendors

March 16, 2023

March 16, 2023

The Los Angeles City Council’s Neighborhoods and Community Enrichment Committee approved a motion Wednesday calling for a study of the...

Famed Hinano Cafe in Venice Replaces Sign, Celebrating Sixty Years of Business

March 16, 2023

March 16, 2023

“We put it out to say we’re here for another 60 years,” says owner  By Keemia Zhang The Hinano Cafe,...