In 2020, George Esparza pleaded guilty to a single count of conspiring to violate federal anti-racketeering law. He 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, U.S. Dist. 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.
Walter went easy on Esparza 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.
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 mixed 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.
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 greater risk of involvement in bribery or corruption and therefore money laundering.
Billionaire Wei was not present at Shenzhen World’s 2022 bribery trial and is considered a fugitive by the U.S. government.
This case sheds light on the pervasive issue of corruption in politics and the lengths to which some individuals will go to exploit their positions of power for personal gain. The fact that Esparza avoided jail time due to his cooperation highlights the importance of whistleblowers and individuals willing to come forward to expose wrongdoing.
Additionally, the role of casinos in facilitating corruption is concerning. The lavish gifts and perks provided to Huizar and Esparza by Wei Huang demonstrate how easily individuals in positions of power can be swayed by bribes and incentives. This serves as a reminder of the need for stricter regulations and oversight in industries that are vulnerable to exploitation by corrupt individuals.
Overall, the “Casino Loyale” case serves as a cautionary tale about the consequences of engaging in corrupt activities and the importance of holding individuals accountable for their actions, regardless of their status or position in society.
