A commercial real estate developer has agreed to plead guilty to paying off a Los Angeles County employee in exchange for help obtaining a government lease worth $45 million, according to court papers obtained Wednesday.
Arman Gabay, 61, of Beverly Hills, is expected to enter his plea to a bribery count on a date to be determined, according to his plea agreement, filed late Tuesday in Los Angeles federal court.
Gabay, a co-founder and co-managing partner of the Charles Company, a Hollywood-based real estate development firm, admitted paying cash bribes to the employee for more than six years.
According to federal prosecutors, the government employee’s job involved negotiating leases for the county to rent office space from private parties and he had “significant autonomy to contractually bind the county.”
Gabay was pushing to have L.A. County enter into a 10-year, $45 million lease to rent space in the Hawthorne Mall — which the developer owned through one of his companies and was renovating — for the Department of Public Social Services and other county departments, according to the U.S. Attorney’s Office.
Prosecutors allege that along with monthly payments, Gabay offered to buy the public official a $1.1 million home in Santa Rosa wine country in exchange for signing off on the lucrative lease.
In 2016, the employee began cooperating with the FBI, and officials allegedly recorded conversations with Gabay, who also uses the last name of Gabaee, according to the 2018 criminal complaint against the developer.
Gabay was scheduled to go on trial in June.
Thomas J. Shepos, 72, of Palmdale, formerly employed in the county’s real estate division, pleaded guilty in November 2018 to accepting bribes and is scheduled to be sentenced on June 27. One of the individuals from whom Shepos admitting receiving bribes was Gabay, court papers show.
As part of his job, Shepos was able to request and receive proposals from private real estate developers, like Gabay, who wanted to lease their buildings to county departments.