A Caixin investigation has revealed details of several Chinese property developers implicated in one of the worst corruption scandals to rock Los Angeles City Hall in a century.

Suspended LA Councilman Jose Huizar was charged by a federal grand jury on July 30 with accepting at least $1.5 million in “illicit financial benefits” from a host of developers in exchange for favorable business treatment.

Two Shenzhen-based private companies — Shenzhen New World Group Co. Ltd. and Shenzhen Hazens Real Estate Group Co. Ltd. — were the main alleged bribers targeted by U.S. investigators.

Shenzhen New World was founded and controlled by businessman Huang Wei. Established in 1997, it was implicated in several corruption inquiries in China, Chinese court documents showed. In 2016, Huang was formally investigated by prosecutors as part of graft probe of Zhang Shiming, a former land resources chief in Shenzhen, but no charge against Huang was announced. Zhang was sentenced to 11 years in jail for bribery.

In a July statement Shenzhen New World denied any link with Huizar, and a Hazens executive declined Caixin’s request to comment on the matter. Shenzhen Hazens is owned by businessman Yuan Fuer.

A 2018 search of Huizar’s residence uncovered nearly $130,000 in cash that was stashed in Huizar’s closet and which, according to the indictment, he received from a Chinese billionaire and another businessperson seeking favors from him. Some of the money was in red envelopes with Chinese characters, according to the indictment.　　

An FBI agent told Caixin that investigations in the case are still underway, without disclosing whether any Chinese companies will be pursued.

Read the full story on Caixin Global here.

Contact reporter Han Wei (weihan@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)

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