CaliforniaCityNews.org: Indictment of LA Developer over Campaign Money Laundering; Illegal Contributions to Mayor

CaliforniaCityNews.org: Indictment of LA Developer over Campaign Money Laundering; Illegal Contributions to Mayor
May 02, 2011

Indictment of LA Developer over Campaign Money Laundering; Illegal Contributions to Mayor

Los Angeles Mayor Antonio Villaraigosa and former Councilman Jack Weiss received $26,000 in illegally funneled campaign contributions, according to a five-count grand jury indictment. According to a deputy district attorney, the campaigns for the mayor and Weiss were not aware of any scheme. It is being alleged that developer Alexander Hugh and Annette Lee facilitated a campaign money laundering process in which employees at Lee’s escrow business would make campaign donations and then the developer would reimburse the employees with cash. The Times reports that Hugh and Lee are facing one count of conspiracy to commit campaign money laundering, two counts of filing a false instrument, one count of forgery and one count of identity theft. The LA Times reports the following on the developer’s background:

“Hugh’s company, CIC Group, won City Council approval to develop the Emhurst Hotel in 2007. The Planning Commission had recommended that the council reject the proposal after a city planner warned that the project’s 16- and 21-story towers were so large that they would overwhelm the surrounding neighborhood. But the council ignored that recommendation and Villaraigosa backed the council, not his appointees on the planning commission. Months later, Hugh co-hosted a June 2008 fundraiser for Villaraigosa’s reelection campaign. In November of that year, the mayor went to the groundbreaking for the Emhurst, saying the project ‘symbolizes the economic hope and promise of Koreatown.’”

Both Hugh and Lee have pleaded not guilty.

Posted by jbrown at 12:17 PM in Legal | Permalink ShareThis