July 13, 2025 Breaking News, Latest News, and Videos

Beverly Hills Developer Pleads Guilty to Bribery Related to $45 Million Government Lease

Arman Gabaee faces up to 10 years in prison

By Sam Catanzaro

A Beverly Hills developer faces up to 10 years in federal prison for offering to buy a million-dollar home for a Los Angeles County public official in exchange for assistance securing a $45 million county lease. 

Arman Gabaee, 61, a.k.a. “Arman Gabay,” of Beverly Hills, plead guilty April 27 to one count of bribery, a crime that carries a statutory maximum sentence of 10 years in federal prison.

Gabaee will enter his guilty plea on May 2 before United States District Judge George H. Wu. He also has agreed to pay a fine of at least $1,149,000 and any restitution ordered.

Gabaee was a co-founder and co-managing partner of the Charles Company, a Hollywood-based commercial and residential real estate development firm. The then-county official whom Gabaee bribed was Thomas M. Shepos, 72, of Palmdale, who worked in Los Angeles County’s Real Estate Division and was involved in awarding contracts to real estate developers and contractors.

According to his plea agreement, beginning no later than 2011 and continuing until April 2017, Gabaee paid Shepos bribes and kickbacks of approximately $1,000 per month in exchange for county leases, preferential contract terms, non-public information and other benefits. From December 2016 when Shepos began cooperating to April 2017, Gabaee paid Shepos $6,000 in cash bribes during meetings Shepos secretly recorded at the direction of the FBI.

Further, in 2017, Gabaee offered to buy Shepos a Northern California home – then worth more than $1 million – in exchange for Shepos’ assistance securing a county lease in the Hawthorne Mall, which Gabaee owned and was redeveloping. 

“Gabaee wanted the county to enter into a 10-year, $45 million lease for county departments to rent office space in the Hawthorne Mall,” prosecutors said. 

During other secretly recorded meetings with Shepos, Gabaee first offered to purchase him a home listed at $1,199,000 in Sonoma County. Upon learning that this property was already in escrow, Gabaee offered to buy Shepos a different house, listed at $1,095,000, and also located in Sonoma County. Gabaee placed two offers on this property, first for $1,035,000 and later for $1,065,000. Gabaee admitted in his plea agreement that he rescinded the second offer hours after he made it because FBI agents had approached and informed him that they were aware of his bribes to Shepos.

Shepos pleaded guilty in November 2018 to one count of making false statements to federal investigators who were investigating his financial relationship with Gabaee and one count of subscribing to a false tax return related to payments he received from Gabaee. Shepos is scheduled to be sentenced on June 27.

<>Related Posts

County Health Leaders Decry Federal Policy Barring Undocumented from Programs

July 12, 2025

July 12, 2025

The officials argued the policy jeopardizes care for all residents, noting it could deter people—regardless of status—from seeking treatment  Leaders...

County Supervisors Move to Preserve Measure J Amid Charter Error

July 12, 2025

July 12, 2025

Measure J mandates that at least 10% of the county’s locally generated, unrestricted funds be allocated to community investments like...

LA Medical Center Seeks Help Identifying Unconscious Patient

July 12, 2025

July 12, 2025

He has been unconscious since admission, and staff have been unable to determine his identity Los Angeles General Medical Center,...

Mayor Bass Issues Directive to Protect Immigrant Communities

July 12, 2025

July 12, 2025

The order expands access to city resources for affected families and requests records from ICE, including details on arrests Mayor...

Downtown Santa Monica CEO Andrew Thomas to Step Down

July 11, 2025

July 11, 2025

Thomas, who rejoined DTSM, Inc. in 2022, oversaw the introduction of a private security program, expanded homeless outreach, and boosted...

Conservancy to Tour Historic Miles Playhouse at State of the City Event

July 11, 2025

July 11, 2025

Built in 1929, the Miles Playhouse serves as the centerpiece of Lincoln Park The Santa Monica Conservancy will offer 15-minute...

Sen. Ben Allen Highlights Challenges, Economic Gains for LA28 Olympics

July 11, 2025

July 11, 2025

The remarks came during the first informational hearing of the Senate’s Special Committee on International Sporting Events State Sen. Ben...

(Video) Summer Camp at School of Rock West LA Turns Kids Into Rockstars

July 11, 2025

July 11, 2025

To Sign Up Now, Go To Schoolofrock.com Summer Camp at School of Rock West LA Turns Kids Into Rockstars To...

L.A. Louver Marks David Hockney’s 88th with Exhibit

July 11, 2025

July 11, 2025

Hockney, a British artist born in 1937, gained fame with the British Pop Art movement and later became known for...

Suspect Arrested in Shoe Retail Theft Spree Across LA County

July 11, 2025

July 11, 2025

During the search, police recovered two firearms and a significant quantity of merchandise The Los Angeles Police Department’s Organized Retail...

Suspect Arrested in Santa Monica Pier Arson Incidents

July 10, 2025

July 10, 2025

The suspect, matching video footage from an arcade, was taken into custody Santa Monica Police Department officers arrested a suspect...

SMPD Launch New Recruitment Website Amid High Vacancy Rates

July 10, 2025

July 10, 2025

The site features multimedia content, including day-in-the-life videos and officer profiles, highlighting the impact of serving the community The Santa...

Father-Daughter Authors to Host Book Signing to Aid Fire-Affected Women

July 10, 2025

July 10, 2025

Ten percent of proceeds from book and art sales will benefit the Pacific Palisades Rebuilding Fund, a nonprofit initiative created...

Metro Reports Crime Drop, Higher Rider Satisfaction, and Progress on Major Projects

July 9, 2025

July 9, 2025

The Authority said the drop in violent incidents—down to the lowest level since May 2019—coincided with more uniformed personnel and...

Santa Monica Joins Regional Lawsuit to Halt Unconstitutional ICE Raids

July 9, 2025

July 9, 2025

The motion to intervene seeks to ensure that Santa Monica and other plaintiff-intervenors can advocate for their residents’ rights in...