Published on: November 11, 2024, 06:39h.
Last updated on: November 11, 2024, 06:39h.
The former assistant to disgraced former Los Angeles city councilman Jose Huizar avoided a prison sentence despite being involved in his boss’ corruption scheme and initially lying to the FBI when the scandal was revealed.
In 2020, George Esparza pleaded guilty to conspiring to violate federal anti-racketeering law. He played a key role in the elaborate $1.5 million scheme that led to Huizar serving 13 years in prison for tax evasion and racketeering.
The FBI called the investigation “Casino Loyale.”
On Friday, U.S. Dist. Judge John Walter sentenced Esparza to 12 months of home detention and 300 hours of community service for his involvement in the racketeering scheme. He was also ordered to pay restitution of $130,459 to the city of Los Angeles.
‘Extraordinary’ Cooperation
Judge Walter commended Esparza for his exceptional level of cooperation with federal authorities, which he described as “nothing short of extraordinary,” according to The LA Times.
“In my 20 years as a district court judge … I have not seen a defendant who has provided such extensive and helpful cooperation to the government,” Walter stated.
Huizar ran a widespread pay-to-play operation at City Hall, where he extorted over $1.5 million in kickbacks from property developers.
As the chairman of the Los Angeles Planning and Land Use Management Committee, Huizar had significant influence over major construction projects in the city.
When Chinese developer and owner of downtown’s LA Grand Hotel, Shenzhen World, sought to enhance the property with a 77-floor mixed skyscraper, Huizar demanded bribes.
From 2013 to 2018, Wei Huang, chairman of Shenzhen World, provided Huizar with “cash, casino chips, private jet and commercial airline flights, stays at luxury Las Vegas hotels and casinos, expensive meals, spa services, prostitution services, [and] political contributions,” as detailed in court records.
Politically Exposed
Esparza acted as a middleman for Huizar, conveying bribe demands using coded language. He accompanied Huizar on numerous trips to Las Vegas with Wei and enjoyed the perks as well.
Huizar and Wei made eight trips to Las Vegas casinos together from 2014 to 2016, some of which Esparza also attended, according to prosecutors.
The Palazzo Las Vegas staff, recognizing Huizar as a prominent politician and a “politically exposed person” (PEP), alerted the FBI to this arrangement.
Anti-money laundering regulations require casinos to closely monitor PEPs due to their heightened involvement in bribery, corruption, and potential money laundering activities.
Billionaire Wei did not appear at Shenzhen World’s 2022 bribery trial and is currently considered a fugitive by the U.S. government.