Developer Pleads Guilty to Bribery

A real estate developer pleaded guilty in federal court Monday to paying a $4,000 bribe to Huntington Park’s mayor, who was working undercover for the FBI.

Harry Hwang, 49, of Hancock Park faces 12 to 30 months in prison when he is sentenced in Los Angeles federal court April 15 on two counts of bribery.

Mayor Richard Loya went to the FBI after Hwang first offered him a bribe to gain his support for a $110-million retail and entertainment center and his vote to forgive past due fees owed to the city, according to federal prosecutors.

Wearing a concealed recording device, Loya met several more times with Hwang and was offered campaign contributions, a job and $4,000 for a cruise to Mexico.

“This has gone through a lengthy process, and justice is being done,” Loya said Monday. “You can’t go bribing elected officials, and hopefully more of my colleagues, when offered little things, will not only turn them down but turn people in.”

While not denying the payoff, Hwang’s lawyer, Brian Hennigan, said his client offered Loya money only after the mayor told him that he had reservations about the project and that he was heavily in debt from a recent election campaign.

Assistant U.S. Atty. Daniel N. Shallman disagreed.

“This is an issue that’s going to be litigated at sentencing,” Shallman said. “It’s our belief that it was the defendant who offered the bribe and had corrupt intentions when he did so.”

The bribery case grew out of Hwang’s efforts to build the retail and entertainment center in Huntington Park.

A previous council had given tentative approval for the development. According to federal authorities, Hwang sought Loya’s help in getting a $7-million subsidy from the city to get the project going.

Hwang was accused of promising Loya campaign contributions in exchange for his support in obtaining the subsidy.

Authorities said that during a subsequent meeting, Hwang offered to make Loya the development’s property manager after he left the City Council.

Another time, prosecutors said, Hwang offered to launder political contributions to Loya through tenants at a mini-mall he operates. Hwang allegedly said he had done the same for another Huntington Park council member.

Finally, Hwang offered to pay for a cruise that Loya and his wife were planning to take to Mexico.

Last August, FBI agents videotaped Hwang outside the Bonaventure Hotel in Los Angeles as he handed Loya an envelope with $4,000 in $100 and $20 bills.

Hwang was originally indicted on six felony counts. The government agreed to drop four of those counts in exchange for Hwang’s guilty plea.

U.S. District Judge Terry J. Hatter allowed Hwang to remain free on $50,000 bail.

Hwang formerly operated the L.A. Casino card club in Huntington Park. Hennigan, his attorney, said the club ceased operations two years ago when business fell off as a result of the Alameda Corridor construction project.

Some city officials said Monday that they believe the federal investigation is continuing. Council members and city officials received subpoenas last week ordering them to appear Thursday before a federal grand jury.

It was not clear, however, whether they will still be required to appear.

*

Times staff writers Richard Marosi and Richard Winton contributed to this report.