LA County Fraud Network
$176.6M+ in government money to fraud-linked entities, 5 convictions, 5 incumbent politicians receiving fraud money
LA_COUNTY_FRAUD_NETWORK
├─ total_govt_expenditure $176.6M+
│ ├─ ppp_loans $95.6M (80% unforgiven)
│ └─ city_payments $81.0M
├─ political_donations $198K+
├─ incumbents_receiving 5
├─ convicted_individuals 5
├─ shell_cluster 27 entities at single address
└─ status PUBLICATION READY
Executive Summary
Investigation into LA County fraud networks reveals $176.6M+ in total government expenditure to entities with documented fraud, including $95.6M in PPP loans (80% unforgiven) and $81.0M in LA city payments. The investigation identifies 5 convicted individuals and tracks $198K+ in political donations from fraud networks to California politicians, including 5 currently serving incumbents.
Key findings include: Convicted developer Shen Zhen continues receiving $29.8M from LA City post-conviction, 27 shell companies at a single Fullerton address receiving $25.6M in PPP, and convicted officials continuing to donate to politicians while under federal investigation.
Corruption Circuit 1: Shen Zhen to Politicians
1. Shen Zhen pays $1M+ in bribes to Councilman Huizar (cash, casino chips, private jets)
2. Shen Zhen donates $71K directly to John Chiang for Governor/Treasurer
3. Shen Zhen employees donate additional $43K to Chiang
4. Convicted officials Raymond Chan and George Chiang donate $42.5K to Chiang
5. Huizar sentenced to 13 years, Chan to 12 years
6. Shen Zhen STILL receives $29.8M from LA City post-conviction
Corruption Circuit 2: Cingular/Jobsource Shell Network
1. Gabriel Garcia controls 17 shell companies
2. Companies receive $38.1M in PPP (38% unforgiven)
3. Garcia donates $22K+ to CA politicians
4. Jobsource Group Corp donates $2K directly to Senator Archuleta
5. 8 entities approved SAME DAY (April 16, 2021)
6. Garcia continues donating AFTER receiving PPP funds
Note: "JabSource" employer listed in FEC records appears to be deliberate misspelling of "Jobsource".
Incumbent Politicians Receiving Fraud Money
| Name | Office | Amount | Source |
|---|---|---|---|
| Bob Archuleta | State Senator | $2K | Jobsource Group Corp (direct corporate) |
| Gavin Newsom | Governor | $2K | Gabriel Garcia |
| Sharon Quirk-Silva | State Assembly | $2K | Gabriel Garcia |
| Paul Krekorian | LA City Council | $2K | Cingular Staffing Inc, Raymond Chan (convicted) |
| Rob Bonta | Attorney General | $750 | Gabriel Garcia |
KEY_FIGURES
├─ john_chiang_from_fraud $151K
├─ cingular_jobsource_total $38.1M
├─ shen_zhen_city_payments $81.0M
├─ post_conviction_payments $29.8M
├─ huizar_sentence 13 years
└─ chan_sentence 12 years