El Monte police discovered an illicit casino in Pacific Place, a complex of office buildings, during their first raid in December 2021. Inside the suite, officers found electronic gambling tables, flashing lights, and several pounds of methamphetamine. Police conducted four additional raids over three years, revealing illegal activities like gambling parlors, marijuana stash houses, and a psilocybin mushroom operation.
Authorities then made a surprising discovery in Arcadia, at a mansion owned by Guojun Xuan, finding 15 children, mostly toddlers. Xuan claimed to be the father of 22 children, mostly born via surrogates. Arcadia police requested FBI assistance to determine if human trafficking was involved, as money was transferred to surrogates and children were collected across state lines.
Xuan owns the El Monte property linked to the illegal activities. Court documents show his companies evicting tenants for illegal operations. Xuan and his partner, Sylvia Zhang, have not faced charges and denied human trafficking, claiming a desire for a large family due to the impact of China’s one-child policy.
Recent civil abatement claims filed against Xuan highlight police raids uncovering criminal enterprises involving drugs and counterfeit currency. The El Monte police were initially led to the Pacific Place property in 2021, based on tips about illegal activities. Xuan purchased the property for $10.5 million in 2019, using it as a hub for his real estate ventures.
Xuan’s connections within the San Gabriel Valley’s Chinese community as a property investor have drawn attention. He acquired the property through his firm, Hongxing Investment, and used it as a base for various holding companies.
The movements of Haoren “Dragon” Ma, a known felon, also intersect with Xuan’s activities. Ma’s prior arrest history includes running illicit operations, and in 2023, he was found with illegal substances at the El Monte property.
Additional police raids in December 2024 unveiled gambling setups, counterfeit money production, and drug distribution schemes. Allegations suggest Xuan transferred property ownership to hide connections and maintain illegal operations.
Arcadia police’s involvement began May 2025 when detectives responded to a report from Children’s Hospital Los Angeles about an injured infant. The child’s conditions, coupled with surveillance footage from Xuan’s home, prompted concerns of child abuse by employed nannies. Despite arrests, Xuan and Zhang were released, as prosecutors sought more evidence.
Arcadia police intend to press charges relating to potential child abuse, though complexities around surrogacy agreements and other illegal activities are yet to be explored. The children are under the care of the Los Angeles County Department of Children and Family Services.