Chinese Company’s SoCal Subsidiary Agrees to Pay More Than $1 Million to Resolve Criminal Investigation into Bribe Payments to Jose Huizar and Illegal Contributions to Other Political Figures

A Chinese company’s Arcadia subsidiary, established to redevelop a downtown Los Angeles hotel, has agreed to pay $1,050,000 to resolve an investigation into the company’s conduct with public officials in the City of Los Angeles, including bribery, honest services fraud, and foreign and conduit campaign contributions.

A three-year non-prosecution agreement (NPA) with Jia Yuan USA Co., Inc. is the latest development in the ongoing investigation into a wide-ranging “pay-to-play” scheme in which developers bribed Los Angeles city officials to secure official acts to benefit their real estate projects.

The China-based Shenzhen Hazens established Jia Yuan to acquire, operate and redevelop the Los Angeles Luxe City Center Hotel, which it purchased in 2014 for more than $100 million. Jia Yuan “planned a massive redevelopment that would include retail space, residential units, and hotel rooms, valued at approximately $700 million,” according to a “statement of facts” accompanying the NPA.

https://www.justice.gov/usao-cdca/pr/chinese-company-s-socal-subsidiary-agrees-pay-more-1-million-resolve-criminal