Partner in Hidden Hills Housing Venture Quits After Conviction
A partner in a controversial effort to build lower-cost apartments in Hidden Hills is pulling out of the project after being convicted on federal charges stemming from a money-laundering investigation in Miami, one of his attorneys said Wednesday.
Michael Gilbert, a Los Angeles developer, withdrew from any decision-making role in the project last Thursday after news stories appeared about his March 30 conviction on a racketeering charge, attorney Hubert R. Sommers said.
In addition, Gilbert is negotiating with the project’s managing partner, Tarzana developer Danny Howard, to recover his investment from the project, Sommers said.
The partnership, H. H. Lasher Road Ltd., has proposed building nine single-family homes, a five-story office building and a 48-unit lower-cost apartment building for senior citizens on 25 acres recently annexed by Hidden Hills.
The proposal sparked a controversy that prompted project opponents to successfully challenge three incumbent Hidden Hills City Council members in Tuesday’s election.
Gilbert is withdrawing at the request of Howard, who is concerned about the effect that adverse publicity could have on the project, said Benjamin M. Reznik, an attorney representing H. H. Lasher. He said the money-laundering case was unrelated to the development proposal.
Gilbert maintains his innocence in the money-laundering case and plans to appeal his conviction, Sommers said. Gilbert is the son of Sam Gilbert, the late contractor and renowned UCLA basketball booster.
Judge Norman Roettger of the U.S. District Court for southern Florida has not scheduled a sentencing date for Gilbert, who faces a maximum of 35 years in prison on the racketeering count and three counts of undertaking interstate travel for illegal purposes, said a U.S. Department of Justice spokeswoman in Miami. He was acquitted of seven other charges, including conspiracy, Sommers said.
The case resulted in the government’s seizure last week of the Bicycle Club, a Bell Gardens card parlor that federal authorities said was built partly with funds from the illegal money-laundering operation.
Federal prosecutors alleged that the operation was an attempt to launder the drug profits of powerboat racer Benjamin Barry Kramer, an accused marijuana smuggler.
