LOS ANGELES (CNS) - A real estate development consultant is set to plead guilty Friday to a federal racketeering charge for his role in a pay-to- play scheme at City Hall allegedly tied to now-suspended Councilman Jose Huizar's approval of large building projects.

George Chiang, 41, of Granada Hills will plead guilty via videoconference to one federal count of conspiring to violate the Racketeer Influenced and Corrupt Organization (RICO) statute, which carries a sentence of up to 20 years behind bars. Because of his cooperation, Chiang is expected to receive a far lighter sentence.

 


What You Need To Know


  • Real estate development consultant involved in pay-to-play scheme to plead guilty

  • Case is allegedly tied to City Hall corruption probe tied to suspended Councilman Jose Huizar

  • George Chiang, 41, will please guilty via teleconference Friday

  • Chiang is among four defendants to agree to plead guilty in continuing federal corruption probe

 

Chiang is among four defendants to agree to plead guilty in the continuing federal public corruption probe of City Hall, and will be the second to formally enter his plea before a federal judge in downtown Los Angeles.

The central figure in the five-year probe, Huizar was arrested Tuesday and charged with accepting $1.5 million in bribes from developers in exchange for his support of downtown building projects. Huizar -- who was suspended from the council following his arrest -- said he "intends to respond to the government's allegations in court," not in the media, according to his attorneys.

 

 

Chiang admitted in his plea agreement to playing a role in a scheme allegedly run by Huizar in which a Chinese real estate company bribed city officials in exchange for approval to build a 77-story skyscraper in the councilman's district.

Huizar represented downtown L.A. and was the chairman of the Planning and Land Use Management Committee (PLUM), the powerful panel that reviews the city's largest development projects. After FBI agents raided his home and offices in November 2018, Huizar was removed from his committee assignments, including his role in PLUM.

U.S. Attorney Nick Hanna said the continuing probe has exposed "significant and blatant corruption" at City Hall, and indicated more charges could be forthcoming.

Huizar is scheduled for arraignment on July 20.

 

 

Earlier this month, Justin Kim, a former City Hall fundraiser, pleaded guilty to a federal bribery charge for arranging a $500,000 bribe for Huizar.

Kim's sentencing hearing is scheduled for Aug. 17 but prosecutors have asked for a six-month continuance because they plan to call him to the stand if Huizar's case goes to trial.

Former Huizar aide George Esparza agreed last month to plead guilty to the racketeering conspiracy count and has been cooperating in the investigation. A date has not yet been set for Esparza to plead guilty.

In March, ex-City Councilman Mitch Englander separately agreed to plead guilty to scheming to falsify facts in a probe of his acceptance of cash and other gifts from a businessman -- the same one accused of bribing Huizar. He is expected to enter his plea on July 7.