Crooked LA Pol’s Aide Avoids Prison in ‘Casino Loyale’ Corruption Case

Posted on: November 11, 2024, 06:39h. 

Last updated on: November 12, 2024, 09:08h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.

The former aide to disgraced former Los Angeles city councilman Jose Huizar dodged a prison sentence Friday despite being a point man in his boss’ corruption racket and initially lying to the FBI when the scheme unraveled.

George Esparza, Jose Huizar, Casino Loyale, Shenzhen New World, Wei Huang
Jose Huizar, above, was sentenced to 13 years in prison in January for tax evasion and racketeering after pleading guilty to extorting bribes from property developers. His aide, George Esparza, avoided prison after cooperating extensively with the FBI. (Image: NBC Los Angeles)

In 2020, George Esparza pleaded guilty to a single count of conspiring to violate federal anti-racketeering law. Esparza was a major cog in the complex $1.5 million graft scheme that bought Huizar 13 years in prison in January for tax evasion and racketeering.

The investigation was codenamed “Casino Loyale” by the FBI.

On Friday, US District Judge John Walter sentenced Esparza to 12 months of home detention and 300 hours of community service for conspiring to violate federal anti-racketeering law. He must also pay restitution of $130,459 to the city of Los Angeles.

‘Extraordinary’ Cooperation

Walter went easy on Esparaza because of the defendant’s extensive cooperation with federal authorities, which the judge described as “nothing short of extraordinary,” as reported by The LA Times.

“In my 20 years as a district court judge … I have not seen a defendant who has provided such extensive and helpful cooperation to the government,” Walter said.

Huizar operated a sprawling pay-to-play scheme at City Hall that involved extorting at least $1.5 million in kickbacks from property developers.

As chairman of the Los Angeles Planning and Land Use Management Committee, Huizar had the power of life and death over major construction projects in the city.

When Chinese developer and owner of downtown’s LA Grand Hotel, Shenzhen World, wanted to embellish the property with a 77-floor skyscraper, Huizar demanded inducements.

From 2013 to 2018, Shenzhen World chairman Wei Huang showered Huizar with “cash, casino gambling chips, flights on private jets and commercial airlines, stays at luxury Las Vegas hotels and casinos, expensive meals, spa services, prostitution services, [and] political contributions,” according to court documents.

Politically Exposed

Esparza was a frontman for Huizar, relaying demands for bribes using coded language. He accompanied his boss on numerous trips to Las Vegas with Wei and shared the perks.

Huizar and Wei made eight trips to Las Vegas casinos together from 2014 to 2016, some of which also involved Esparza, according to prosecutors.

The FBI was alerted to this arrangement by staff at the Palazzo Las Vegas who recognized Huizar as a prominent politician, and therefore, a “politically exposed person” (PEP).

Anti-money laundering directives urge casinos to pay close attention to PEPs because they present a greater risk of involvement in bribery or corruption, and therefore, money laundering.

Billionaire Wei wasn’t present at Shenzhen World’s 2022 bribery trial and is considered a fugitive by the US government.