Aussie cash splash link in LA corruption probe
LOS ANGELES: A photo of wads of Australian cash inside a car has become key evidence in a corruption probe rocking Los Angeles City Council.
The FBI and US federal prosecutors released the photo after announcing the arrest of Jose Huizar, a powerful LA councilman accused of leading a “pay-to-play” criminal enterprise.
He is the fifth person to be charged in the investigation. Huizar, 51, allegedly accepted $US1.5 million ($2.2 million) in illicit benefits from developers, including trips to Australia and Las Vegas funded by a Chinese billionaire who showered him with casino chips.
“There are at least a dozen luxurious trips to casinos in the US and abroad, where Mr Huizar was given over $US250,000 in gambling chips,” US Attorney for the Central District of California, Nick Hanna alleged.
The criminal complaint alleges Huizar flew to Australia in 2016 with a former aide, George Esparza, the Chinese billionaire, named in court documents by the alias “Chairman E”, and a fourth person known as “Executive Director E”.
The Chinese billionaire had hoped to build “the tallest building west of the Mississippi River” in Huizar’s district and provided $US800,000 in benefits to the councilman, according to prosecutors.
“On January 1, 2016, Huizar, Esparza, Chairman E, and Executive Director E travelled to Australia, where Huizar and Esparza accepted financial benefits from Chairman E, including private jet flights for Esparza, a $US10,980 commercial airline ticket for Huizar, hotels, meals, alcohol, and other expenses,” the criminal complaint states.
“In addition, Chairman E provided Huizar and Esparza casino chips, which Huizar and Esparza cashed out in Australian dollars.”
Esparza, who has pleaded guilty to one count of conspiring to violate the Racketeer Influenced and Corrupt Organisation statute, is co-operating with authorities.
The photo of the wads of Australian cash sitting in a car, with Huizar’s council work schedule in the background, was allegedly taken by Esparza on his iPhone.
The complaint details alleged text messages between Huizar and Esparza discussing how to convert the Australian dollars to US and avert bank reporting requirements.
Huizar is charged with one count of conspiring to violate the RICO Act. He is yet to enter a plea.