Dae Yong Lee, also known as David Lee, is the first defendant to go on trial in the City Hall corruption scandal surrounding former Councilman José Huizar and his associates.
Prosecutors allege that Lee used Huizar associate Justin Kim to transfer bags of cash on behalf of his company, 940 Hill LLC, to the councilman’s aide, George Esparza. Within days of payment, Huizar allegedly smoothed out a bureaucratic tangle that had halted the proposed mixed-use development from moving forward.At the time, Huizar was head of a powerful city planning committee that reviewed the city’s biggest development projects.
Defense attorney Ariel Neuman offered a different view, telling jurors that his client had been conned by Kim, who allegedly told the developer the cash was needed to pay legitimate fees. Kim admitted to facilitating the payment from Lee and pleaded guilty to a federal bribery offense. Lee and 940 Hill are also accused of falsifying accounting and tax records to cover up the alleged bribe — the basis for the obstruction charge.
Huizar and former Deputy Mayor Raymond Chan, who was general manager of the Department of Building and Safety before becoming the city’s deputy mayor of economic development, are scheduled to be tried on racketeering conspiracy, bribery, honest services fraud and other charges in February.
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