The Los Angeles City Ethics Commission Wednesday is expected to determine violations and penalties against Councilman John Lee, who allegedly violated the city’s gift laws in 2016 and 2017 during a trip to Las Vegas and at various Los Angeles restaurants as chief of staff to ex-Councilman Mitchell Englander.
The five-member Ethics Commission will make a decision Wednesday, determining the number of violations Lee committed and the associated fine. In a 59-page proposed decision released Friday, Administrative Law Judge Ji-Lan Zang determined Lee violated the city’s ethics rules pertaining to the dollar amount of gifts a city official can receive and disclosing such gifts through what is known as a Statement of Economic Interests, or Form 700.
Zang recommended a fine of $43,730 — covering five counts — for Lee who represents the 12th Council District, encompassing the northwest San Fernando Valley. The alleged violations stem from lunches, dinners and a Vegas trip connected to Englander.
In 2020, Englander pleaded guilty to scheming to obstruct a federal investigation into the 2017 Vegas trip, and his acceptance of $15,000 in cash and other gifts from businessman Andy Wang. Englander was sentenced to 14 months in prison.
Lee was not charged by federal prosecutors nor named during Englander’s federal indictment, but referred to as “City Staffer B.”
In total, Lee faced 10 alleged counts: two counts for accepting gifts that exceeded a limit, three counts for failing to disclose those gifts, four counts for misusing his position and one count for helping Englander misuse his position.
Zang did not agree with the latter allegations made by city investigators, and ultimately recommended a fine of $43,730. Ethics investigators recommended a larger fine of about $138,000, covering all 10 counts.
The commissioners may decide to agree with Zang’s decision, or that of ethics investigators, or make a separate determination.
Lee’s case involves gifts such as food, wine, hotel stays, transportation and about $1,000 worth of gambling chips, which were provided by Wang, lobbyist Michael Bai, and developer Chris Pak.
Zang heard Lee’s case on June 2-6 via video conference, according to the city documents. Enforcement Officer Marian Thompson and Director of Enforcement Keith Hardy represented the commission while attorneys Amber Maltbie and Brian Hildreth represented Lee.
“Accordingly, Counts 1 to 5 of the Accusation are sustained, while Counts 6 to 10 are dismissed,” according to Zang’s 59-page proposed decision. “Considering the severity of respondent’s violations, his intentional concealment of his violations, his lack of remorse, and his lack of candor at the hearing, the maximum monetary penalty authorized under Charter section 706, subdivision (c), for each violation of Counts 1 to 5 is warranted.”
A spokesman for Lee’s office did not immediately respond to a request for comment.
Lee denied the allegations during those proceedings, explaining he attempted to pay for lodgings and food, or declined to eat during lunch meetings with Wang, Bai and Pak.
According to the Los Angeles Times, Lee’s attorneys argued that investigators incorrectly calculated the value of the gifts, and contended the statute of limitations expired on the alleged ethics violations. Lee’s attorneys pushed back on the larger fine suggested by city ethics investigators as well.