Former Compton Politician Pleads Guilty to Bribing Corrupt Baldwin Park Official for Marijuana Permits and to Cheating on Taxes

LOS ANGELES – A former Compton city councilman pleaded guilty today to federal criminal charges for paying $70,000 in bribes to a Baldwin Park city councilman in exchange for that official’s votes and support for commercial marijuana permits, and to evading the assessment of his federal income taxes by not filing tax returns for four consecutive years and failing to report to the IRS more than half a million dollars in income.

Isaac Jacob Galvan, 38, of Compton, pleaded guilty to one count of bribery concerning programs receiving federal funds and one count of evasion of tax assessment. Galvan remains free on $10,000 bond. He has agreed to pay $323,557 in restitution to the IRS. 

According to his plea agreement, Baldwin Park in June 2017 began permitting the cultivation, manufacture, and distribution of marijuana within its city limits. Soon afterward, then-Baldwin Park City Councilman Ricardo Pacheco, 62, of Baldwin Park, began soliciting bribes from businesses seeking marijuana development agreements and related permits in the city, according to court documents. In exchange for the illicit payments, Pacheco agreed to use his position in city government to assist the companies with obtaining marijuana permits, including voting in their favor. Pacheco served on Baldwin Park’s city council from 1997 until his resignation in June 2020, and he was the city’s mayor pro tempore in 2018. 

Galvan – who served on the Compton City Council from 2013 to 2022 – offered his consulting services to W&F International Corp., a Diamond Bar-based import-export business, who wanted a marijuana permit in Baldwin Park. After securing W&F International Corp. as a consulting client, Galvan facilitated $70,000 in bribes to Pacheco from Yichang Bai, 52, of Arcadia, the owner and operator of W&F. Bai has pleaded not guilty to federal charges alleging he helped orchestrate the bribery scheme and is scheduled to go to trial in this case in February 2026.

Galvan paid the bribes in exchange for Pacheco’s political support of and promise to deliver Baldwin Park’s approval of marijuana permits for W&F. Pacheco then delivered, voting in favor of W&F’s marijuana permit in June and July of 2018 and voting later that year in favor of W&F’s bid to relocate its operations.

Throughout the scheme, Galvan and Bai took steps to cover up their illegal payments to Pacheco by concealing Bai and W&F’s connection to the payments for Pacheco. For example, Bai collected checks from third parties who owed him money and then gave Galvan the checks with blank payee lines. Galvan then gave the checks to Pacheco.

Shortly after the votes to approve W&F’s relocation, Pacheco contacted Galvan and asked for him to obtain more money from W&F for his legal defense fund. Galvan told Bai that Pacheco wanted $25,000 for his fundraiser, but Bai insisted only on paying $20,000. Consistent with his arrangement with Galvan, Bai provided a total of seven checks from different bank accounts that were not Bai’s or W&F’s. Galvan arranged for the checks to be delivered to Pacheco as further payment in exchange for his votes and support of W&F’s marijuana permit.

Galvan further admitted in his plea agreement that he failed to file federal individual tax returns for the years 2017 through 2020, evading assessment of the federal taxes he owed in several ways. For example, he concealed his ownership and control of I&I LLC, a shell company Galvan used to solicit bribes for public officials and to facilitate paying those bribes. Galvan also directed individuals to issue checks with blank payee lines to later be cashed and converted into income for himself, and he individuals to write checks for income he earned to conduits who would pay for Galvan’s living expenses, including his rent.

In total, Galvan failed to report approximately $560,525 in income for the tax years 2017 through 2020, causing a total loss to the United States Treasury of $115,816. 

United States District Judge Otis D. Wright II scheduled a June 8, 2026, sentencing hearing, at which time Galvan will face a statutory maximum sentence of 10 years in federal prison on the bribery count and up to five years in federal prison on the tax count.

Pacheco pleaded guilty in June 2020 to one count of bribery for accepting tens of thousands of dollars in bribes – including $20,000 in cash – from a Baldwin Park Police officer working at the FBI’s direction, in exchange for the councilmember’s political support of the Baldwin Park Police Association’s contract with the city. Pacheco’s sentencing hearing is scheduled for March 30, 2026. Pacheco has signed a plea agreement in which he has agreed to cooperate with the government’s ongoing investigation.

The FBI and IRS Criminal Investigation are investigating this matter.

Assistant United States Attorneys Thomas F. Rybarczyk, Michael J. Morse, and Kedar S. Bhatia of the Public Corruption and Civil Rights Section are prosecuting this case.

Anyone who has information related to this or any other public corruption matter is encouraged to send information to the FBI’s Electronic Tip Form at tips.fbi.gov or to call (800) CALL-FBI.