(Yicai Global) July 20 -- Zhang Li, co-chairman of Guangzhou-based developer R&F Properties, has returned to China following the conclusion of a bribery case in the United States.

Zhang, 70, admitted to bribing Mohammed Nuru, former head of the San Francisco Department of Public Works, the US Attorney’s Office said in a press release yesterday. Zhang entered a deferred prosecution deal and the charges will be dismissed in three years if he abides by the terms including paying restitution, it added.

Zhang bribed Nuru with food, drink, luxury lodgings, and travel during a trip Nuru made to China in 2018, in exchange for favorable treatment and city approvals for a mixed-use project in San Francisco by Z&L Properties, the statement said.

Z&L Properties is a US company formerly based in Fremont and controlled by Zhang. Under the terms of Zhang’s deal, it will pay a fine of USD1 million and will enter into a corporate compliance program acceptable to the US Attorney’s Office.

Zhang was first charged in May 2021 and later arrested by police in London in November 2022. He posted bail of as much as GBP15 million (USD19.4 million) at the time to avoid extradition, but agreed to be extradited to the US last month.

Zhang founded R&F with Hong Kong entrepreneur Li Sze-lim in 1994 and remains co-chairman and chief executive. At the end of last year, Zhang owned about 27.8 percent of R&F, making him the second-largest shareholder after Li, according to the company’s annual report.

When Zhang was arrested last year, R&F announced that Z&L Properties was personally owned by Zhang and had no connection with R&F.

Shares of R&F [HKG: 2777] finished up 0.9 percent at HKD1.11 (14 US cents) each in Hong Kong today. Based on its market valuation, Zhang’s stake is worth about HKD1.2 billion (USD153.6 million).

Editors: Dou Shicong, Tom Litting