Crime and politics

How an FBI probe of organized crime in Chinatown took down a senator and well-connected political consultant

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steve@sfbg.com

San Franciscans awoke March 26 to the surprising news that state Sen. Leland Yee (D-SF) had been arrested on federal corruption charges as part of early morning police raids targeting an organized crime syndicate based in Chinatown, along with reputed gangster Raymond "Shrimp Boy" Chow and two dozen others.

Yee had a reputation for sometimes trading votes for campaign contributions, a perception that had only gained strength in recent months as he launched his first statewide campaign, running to lead the Secretary of State's Office, casting key votes for landlords and big industries that he refused to explain to local activists.

So in a year when two other Democratic Senators have also been stung by federal corruption and bribery probes, the televised image of Yee in handcuffs wasn't beyond the realm of possibilities. It was surprising, but not shocking.

Yet by the mid-afternoon when the 137-page federal criminal complaint was unsealed and journalists started reading through what undercover FBI agents had discovered during their five-year criminal investigation, it read more like a sensational organized crime and espionage novel than a court document, a real page-turner that just got more wild and incredible as it went on.

timelineYeeWhat began with the FBI investigating a murder and leadership transition in the San Francisco branch of the ancient Chinese organized crime syndicate known as the Triad, led by an undercover FBI agent who had infiltrated the group, evolved into a widening investigation accusing Yee of arranging an illegal arms trafficking deal with a Muslim rebel group in the Philippines in exchange for $100,000 funneled into his campaign, on top of smaller favors that Yee allegedly did in exchange for envelopes with $10,000 in cash.

It was even worse for local political consultant Keith Jackson, a key Yee fundraiser who was also on contract with Lennar Urban for its Bayview-Hunters Point development projects, with the undercover FBI agents allegedly drawing Jackson into big cocaine deals, money laundering, bribery, and even a murder-for-hire plot. If the complaint is to be believed, Jackson seemed willing to do just about anything to enrich himself and raise money for Yee.

Meanwhile, the public image that Chow has been cultivating for himself since his 2003 release from federal prison — that of a reformed career gangster turned Chinatown civic leader, someone praised by local politicians for inspiring fellow ex-convicts to turn their lives around — was replaced the complaint's description of a powerful "Dragonhead" overseeing a vast criminal enterprise involved in drugs, guns, prostitution, protection rackets, moving stolen booze and cigarettes, and money laundering.

"I think the whole city is in shock at the moment," Board of Supervisors President David Chiu, who represents Chinatown and ran against Yee in the 2011 mayor's race, told the Guardian that afternoon. "Today's widespread law enforcement actions are incredibly disturbing. The detail and scale of the criminal activities are shocking."

In the days that followed, Yee withdrew his candidacy for Secretary of State and was suspended by his colleagues in the California Senate. But where this wild tale of crime and corruption goes next — and who else gets implicated as these powerful and well-connected defendants look to cut deals to avoid the lengthy prison sentences they all face — is anyone's guess.

 

THE CRIMINAL

Chow, 54, was raised a criminal, telling the History Channel's "Gangland" that he stabbed someone in Hong Kong at the age of nine before moving to San Francisco in 1977 and getting involved in the Hop Sing Boys gang and Chinatown's criminal underworld.

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