Ex-Aide to Corrupt LA Politician Escapes Prison Sentence

In 2020, George Esparza pleaded guilty to a single count of conspiring to violate federal anti-racketeering law after he originally lied to FBI agents who were responsible for investigating City Hall corruption.

However, he proved to be a key player in the intricate $1.5 million graft scheme that led to ex-Councilman Jose Huizar’s 13-year prison sentence in January on charges of tax evasion and racketeering.

Operation “Casino Loyale”

Esparza preserved thousands of text messages, photographed bribe money, and even recorded his boss demanding cash in a City Hall bathroom.

In total, as per his attorney, he met with prosecutors over two dozen times and gave critical testimony in four different trials.

All his efforts and openness to collaborate were well worth it, helping him dodge a prison sentence that would have spread over several years at the end of last week.

The Federal Bureau of Investigation’s complex inquiry, which was given the codename “Casino Loyale,” eventually led to US District Judge John Walter sentencing the 38-year-old to 12 months of home detention.

Esparza was asked to complete 300 hours of community service for his role in the conspiracy and ordered to pay $130,459 in restitution to the city of Los Angeles.

Prosecutors recommended no prison time for Esparza, noting he had taken responsibility for his crimes over the past six years. 

Assistant US Attorney Susan Har told the judge that, without Esparza’s cooperation, “the public may have never known the full scope” of Huizar’s corruption.

“Nothing Short of Extraordinary” Cooperation

Judge Walter was lenient with Esparza due to his significant cooperation with federal authorities, which he described as “nothing short of extraordinary,” according to The LA Times.

Walter stated that, in his 20 years as a district court judge, he has never seen “a defendant who has provided such extensive and helpful cooperation to the government.”

Standing before the judge, Esparza expressed remorse to his family, the city of Los Angeles, and his Boyle Heights neighborhood, where he was raised and still resides. 

He admitted that his criminal activities had allowed him to lead a lavish lifestyle.

“At the time, I was a mini-Jose Huizar,” he confessed to the judge.

Extensive Pay-to-Play Operation at City Hall

Huizar ran an extensive pay-to-play operation at City Hall, extorting at least $1.5 million in kickbacks from property developers.

As chairman of the Los Angeles Planning and Land Use Management Committee, he held substantial influence over major construction projects in the city.

When Shenzhen World, the Chinese developer and owner of the downtown LA Grand Hotel, sought to enhance the property with a 77-floor mixed-use skyscraper, Huizar asked for bribes.

From 2013 to 2018, Wei Huang, the chairman of Shenzhen World, offered Huizar “cash, casino gambling chips, flights on private jets and commercial airlines, stays at luxury Las Vegas hotels and casinos, expensive meals, spa services, prostitution services, [and] political contributions,” according to court documents.

Esparza Used Coded Language

Esparza acted as a frontman for Huizar, communicating demands for bribes using coded language. He also accompanied Huizar on several trips to Las Vegas with Wei and shared the perks.

Huizar and Huang took eight trips to Las Vegas casinos together between 2014 and 2016, with Esparza joining in some of those, prosecutors reported.

As Huizar’s intermediary, Esparza acted as an intermediary in another bribery scheme involving the developer of a proposed 20-story residential tower at Hill and Olympic in downtown Los Angeles. 

The developer of the project, Dae Yong Lee, received a six-year sentence for orchestrating a $500,000 bribe.

Eventually, the FBI was tipped off to the arrangement by staff at the Palazzo Las Vegas, who recognized Huizar as a prominent politician and therefore a “politically exposed person” (PEP).

Anti-money laundering guidelines instruct casinos to pay extra attention to PEPs due to their higher risk of involvement in bribery, corruption, and money laundering.

Billionaire Wei was absent from Shenzhen World’s 2022 bribery trial. He is currently considered a fugitive by the US government.

Third Sentencing in Five Days

Friday’s sentencing marked the third in five days for participants in Huizar’s so-called “criminal enterprise.”

Last Monday, former lobbyist Morrie Goldman was sentenced to three years of probation and six months of home detention, along with a $60,000 fine. 

Goldman had pleaded guilty in 2020 to one count of conspiring to commit bribery.

The following day, real estate consultant George Chiang received three years of probation, a year of home detention, and 150 hours of community service. 

Chiang, who pleaded guilty to conspiracy to violate federal racketeering law, must also pay a $250,000 fine.