The Complex Case of Guojun Xuan’s Troubled Real Estate and Family
The El Monte police first targeted Pacific Place, a gated office complex, in a 2021 raid, uncovering an illicit casino. Electronic gambling tables filled an entire suite. Officers seized these alongside cash and methamphetamine. Over three years, additional raids revealed a gambling parlor, a marijuana stash, and a psilocybin mushroom farm. Each discovery differed, escalating the complexity of the case.
In a strange twist, police found 15 children during a search of the property owner’s mansion in Arcadia. Most were toddlers. Guojun Xuan, 65, claimed fatherhood of 22 children, with all but two birthed by surrogates. This raised questions regarding a potential human trafficking operation, prompting Arcadia police to consult the FBI. Despite suspicions, neither Xuan nor his partner, Sylvia Zhang, faced charges.
The Arcadia home, owned by Xuan and Zhang, became a fascination for many. Its connection to illicit activities shrouded the couple’s motives in mystery. Court records revealed several tenant evictions due to illegal activities, yet no formal charges were filed against the couple.
Zhang responded to media by rejecting human trafficking allegations, explaining a desire for a large family due to China’s one-child policy.
Through Hongxing Investment, Xuan acquired his estate on Valley Boulevard. His properties drew attention within the San Gabriel Valley’s Chinese community. Colleagues noted his investment in foreclosed properties at auctions. His mapping technique with red dots on a map fascinated an unnamed associate but puzzled many about the vast real estate holdings.
The timeline of Xuan and Zhang’s relationship coincided with divorces and rapid family expansion. Their encounter remains unclear. With children born via surrogacy arrangements, Zhang’s role as manager of a surrogacy company deepened suspicions.
In March 2023, Xuan’s properties became the focus again when Zhang sought police assistance. Officers uncovered a psilocybin grow operation in a rented office. The tenant, known as Dragon, has an extensive legal history. His past includes federal charges stemming from immigration services linked to asylum claim fraud.
Returning to Pacific Place in 2024, police discovered illegal gambling operations and illicit items. A detained individual confessed to managing a gambling establishment linked to unidentified associates. In response, Xuan shifted property ownership to obscure connections and hinder law enforcement, according to El Monte’s legal complaint.
Simultaneously, Arcadia police were alerted to potential child abuse. A surrogate-born child presented with injuries. The couple’s home operated as a school-like environment with facilities for numerous children, raising further concerns.
Nannies caring for the children reportedly engaged in abusive behavior. Surveillance showed staff inflicting harm, leading police to arrest Xuan and Zhang. Lack of charges reflected a need for stronger evidence to substantiate allegations.
Child services intervened, and the children’s placement remains confidential. Arcadia police maintain intentions to ensure accountability for any abuse. The claim remains about their direct involvement in alleged surrogacy-related legal violations, although it isn’t actively pursued.