Illegal business, drugs, and violence in Los Angeles shock the city and raise questions for the police

In one of Los Angeles’ neighborhoods, a network of underground casinos, drug labs, and childcare facilities where cases of abuse were recorded operated covertly for several years. Despite numerous raids, criminal activity continued, and the scale of violations is staggering. How did it happen that the police were unable to stop the operation of this criminal center for so long? This question concerns not only the residents of El Monte but the entire city.

Hidden world: what happened at Pacific Place

Pacific Place on Valley Boulevard remained unnoticed by most residents for a long time. However, it was here, as investigators discovered, that a complex criminal “hub” operated, combining several types of illegal activity.

In one building, an underground casino with slot machines and gaming tables was combined with warehouses and laboratories for the production of methamphetamine, marijuana, and hallucinogenic mushrooms, as well as storage for weapons and ammunition.

Such a “multifunctional” scheme is typical for large metropolises, where criminal groups use the same locations for different operations.

However, cases where such a base becomes public and ends up in the media spotlight are extremely rare, since organizers usually carefully disguise their activities.

Nevertheless, in El Monte, several criminal episodes were uncovered over a few years, each of which on its own would have qualified as a high-profile case.

Other violations include the organization of illegal gambling, particularly online. For example, in the past year alone, investigators have uncovered several such cases. However, such violations are less common, as many residents prefer to play on licensed sites, most of which offer no deposit bonuses. For example, almost anyone can find here a list of sites with such offers.

Chronology of the crime’s exposure

However, this was only part of the shocking picture revealed by police raids.

The first major incident was recorded in December 2021: police detained a man leaving Pacific Place and found five pounds of methamphetamine in his car. Inside the building, investigators stumbled upon an operating underground casino with electronic gaming tables, flashing slot machines, and cash. According to the LA Times, police seized equipment, drugs, and a large sum of cash.

In 2022, another raid took place, during which law enforcement discovered an entire warehouse of marijuana inside the complex. Although the exact date is not specified in the reports, officials confirm this episode in court documents.

March 2023 brought a new wave of scandal: after a report of an assault on one of the property’s co-owners, Sylvia Zhang, police officers searched the premises. As a result, 1,715 pounds of hallucinogenic mushrooms, 95 pounds of concentrated cannabis, ammunition, and firearms were found. During the operation, Haoren Ma, previously convicted of fraud and drug possession, was detained.

As the local press notes, the scale of the seizures impresses even seasoned narcotics officers.

In August 2023, police again detained Ma near the properties. His car contained one pound of marijuana and the same amount of psilocybin mushrooms, which further indicated the stability of the scheme and the connection between the persons involved.

In December 2024, operatives once again discovered a functioning gaming hall at Pacific Place, where poker and mahjong tables, as well as electronic machines, were seized. One of the arrested individuals confessed that he managed the casino for a group he called “the six friends.”

These facts are confirmed by both police reports and LA Times publications.

Attempts to cover tracks and continue business

According to the materials of the El Monte city lawsuit, the owner of the complex, Guojun Xuan, took measures to conceal traces after each major raid.

In particular, he transferred property rights to affiliated companies, which allowed him to “cover tracks,” complicate the investigation, and make police work more difficult.

Municipal authorities initiated a civil lawsuit for the elimination of violations—this is a special legal procedure aimed at recognizing the property as a public nuisance and prohibiting its further use for illegal purposes.

The difference from a criminal case is that the decision is made on administrative grounds rather than criminal charges, which allows for faster intervention and elimination of the source of danger.

Who was behind the organization of such a dangerous business?

The main defendants in the case were Guojun Xuan (65 years old) and his partner Sylvia Zhang (38 years old), who, according to the investigation, were the direct organizers of the business and control over the property.

Other participants are also mentioned in the documents: Haoren Ma, known in criminal circles as “Dragon,” rented premises for his operations for a long time and had previous convictions for drug and fraud cases.

For comparison: against the backdrop of this case, the episode with former basketball player Gilbert Arenas, who set up an underground poker club in his own mansion, also received wide publicity. However, as local media note, the list of violations at Xuan’s property is much broader, coverin