US District Judge John F. Walter recently denied a motion filed by Raymond Chan, who previously served as Los Angeles’ Deputy Mayor of Economic Development. Chan had sought to dismiss a series of charges linked to an extensive public corruption case. The former Deputy Mayor currently faces a 12-count federal indictment that includes allegations under RICO, bribery, honest services, and false statements.
Specifically, the indictment alleges that Chan leveraged his Deputy Mayor role to apply pressure on city officials, encouraging them to take favorable actions concerning the Luxe Hotel Project. These allegations surfaced during Friday’s ruling.
The Justice Department first announced the charges against Chan in November 2020, also making an accompanying indictment public. According to federal prosecutors, Chan and a former Los Angeles City Councillor took money from Luxe Hotel developer George Chiang. They argue that Chan exploited his official status to enhance Chiang’s application.
Initially, the ex-City Councillor, Jose Huizar, was meant to be tried alongside Chan; however, Huizar opted to plead guilty to RICO and tax evasion charges in 2023. His sentencing is expected to occur in January 2024.
Despite being Chan’s second attempt to have the charges dismissed without proper leave of court, Judge Walter stayed steadfast in his judgement. The Judge was unswayed by Chan’s argument that the alleged acts fell outside his employment period with the city. Judge Walter also dismissed Chan’s assertion that the indictment “failed to properly state the federal bribery offence” and claimed that the RICO count didn’t “sufficiently allege the existence of a conspiracy”. Judge Walter stood by the prosecutors, noting that they had met their burden in both regards.
The only person implicated in the alleged scheme that will stand trial is Chan, with the trial planned to continue later in 2024. Earlier, in June, Los Angeles District Attorney George Gascón formally charged Los Angeles Councilmember Curren Price Jr. with embezzlement, perjury, and conflict of interest.
Find more details about this ongoing legal matter here.