Real estate development company Shenzhen New World I was fined up to $4 million and given five years of probation on Friday for its role in a bribery scandal involving former Los Angeles City Councilman Jose Huisal.
Shenzhen’s owner, Wei Huang, was not present at the 11-day trial in November, when a jury found the company guilty of three counts of honest services wire fraud, four counts of interstate and foreign travel assistance bribery and one count of bribery. Huang is currently a fugitive and is believed to be living in China.
Sentencing by U.S. District Judge John Walter. When a company is placed on probation, it must develop a compliance plan with the Justice Department, Justice Department spokeswoman Ciaran McEvoy said.
Between 2013 and 2018, Shen provided bribes to Huizar to fund former city councilors and their accomplices to travel to Las Vegas to gamble, where they enjoyed expensive meals, spa treatments and hooked up with prostitutes. The company also provided $600,000 to help Huizar settle his sexual harassment trial.
In return, Huizar will file motions and resolutions to help Shenzhen redevelop the LA Grand Hotel and lobby city officials to green-light other projects in Shenzhen.
Huizar was found guilty in January of one count of racketeering conspiracy and one count of tax evasion. In September, the former city councilor will be sentenced. According to the Ministry of Justice announcement, he has agreed to be sentenced to no less than 9 years in prison.
