A California property investor accused alongside his wife of abusing more than a dozen children born through surrogacy has also been linked to an illegal casino and suspected drug operations at a property he owned.

Guojun Xuan, 66, and Silvia Zhang, 39, were arrested Tuesday (Oct. 6) following an investigation into the alleged mistreatment of children at their mansion in Arcadia, a Los Angeles suburb.

The couple, who have pleaded not guilty, face charges including conspiracy to commit child abuse and dissuading witnesses.

Prosecutors allege they subjected 15 children, some as young as two, to repeated violence, sometimes encouraging nannies to administer beatings.

But Xuan was already on law enforcement’s radar because of suspected criminal activity at a commercial property he controlled in nearby El Monte.

According to a September 2025 civil complaint filed by the City of El Monte, police repeatedly raided the Pacific Place commercial complex on Valley Boulevard, discovering illegal gambling operations and evidence of drug trafficking.

The Los Angeles Times, which examined police search warrant affidavits, reported that officers first raided the property in December 2021 after receiving a tip about a possible illegal nightclub.

Police had stopped a man leaving the premises and discovered five pounds of methamphetamine in his vehicle.

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