A former Compton city councilman has admitted to paying $70,000 in bribes to a Baldwin Park official in exchange for support with commercial marijuana permits and also pleaded guilty to evading federal income taxes by failing to file returns over four years.
Isaac Jacob Galvan, 38, of Compton, entered his plea on one count of bribery concerning programs receiving federal funds and one count of evasion of tax assessment. He is currently free on a $10,000 bond and has agreed to pay $323,557 in restitution to the IRS.
According to court documents, after Baldwin Park began allowing marijuana-related businesses in June 2017, then-city councilman Ricardo Pacheco started soliciting bribes from companies seeking permits. In exchange for these payments, Pacheco agreed to use his influence within the city government to help secure marijuana permits for those companies. Pacheco served on the city council from 1997 until June 2020 and was mayor pro tempore in 2018.
Galvan provided consulting services to W&F International Corp., an import-export business based in Diamond Bar that sought a marijuana permit. After securing W&F as a client, Galvan facilitated $70,000 in bribes from Yichang Bai, 52, the owner of W&F International Corp., to Pacheco. Bai has pleaded not guilty and is set for trial in February 2026.
The bribes were exchanged for Pacheco’s political backing and commitment to approve permits for W&F. Court records show that Pacheco voted in favor of W&F’s permit applications during city council meetings held in June and July 2018 and later supported the company’s request to relocate operations.
Efforts were made by Galvan and Bai to hide their involvement by routing payments through third parties using checks with blank payee lines. This process helped obscure the connection between Bai, W&F International Corp., and Pacheco.
Following votes related to W&F’s relocation, Pacheco requested additional money from Galvan for his legal defense fund. While Galvan relayed this request for $25,000 from Pacheco to Bai, only $20,000 was provided via multiple checks from various bank accounts not directly linked to Bai or his company.
Galvan also admitted he did not file individual tax returns from 2017 through 2020. He concealed ownership of I&I LLC—a shell company used both for soliciting bribes and facilitating payments—and directed others to write checks that would ultimately be converted into personal income or used by intermediaries for living expenses such as rent. The total unreported income over these years amounted to approximately $560,525 with an estimated loss of $115,816 to the U.S. Treasury.
United States District Judge Otis D. Wright II scheduled sentencing for Galvan on June 8, 2026. He faces up to ten years in prison on the bribery charge and five years on the tax charge.
Pacheco previously pleaded guilty in June 2020 after admitting he accepted tens of thousands of dollars—including $20,000 cash—from an undercover officer working with the FBI while supporting a police association contract with Baldwin Park. His sentencing is set for March 30, 2026; he has agreed to cooperate with authorities as part of his plea agreement.
The case is being investigated by the FBI and IRS Criminal Investigation teams. Prosecutors are Assistant United States Attorneys Thomas F. Rybarczyk, Michael J. Morse, and Kedar S. Bhatia from the Public Corruption and Civil Rights Section.
“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.”
