The first police raid at Pacific Place in El Monte uncovered an illegal casino in a gated office complex. Officers found gambling machines, cash, and methamphetamine on December 9, 2021. The El Monte police returned four times over three years, discovering gambling parlors, marijuana grow operations, and psilocybin mushroom cultivation in separate instances.
The most unusual find came when police searched a mansion in Arcadia owned by the property owner, Guojun Xuan, revealing 15 children, many under the age of five. Xuan, aged 65, claimed to have fathered 22 children, mostly through surrogacy. Arcadia Police called in the FBI when it emerged Xuan and his partner, Sylvia Zhang, had transferred money to surrogates across state lines.
Xuan’s ownership of the problematic El Monte property has not been previously reported. Court records show his companies evicted tenants in 2025 for illegal activities. No charges were filed against Xuan or Zhang, who declined to respond to media inquiries. Zhang stated to the Wall Street Journal her interest was in having a large family, influenced by the repercussions of China’s one-child policy.
We have not dove into the surrogacy thing and any illegal activity that may or may not be involved with that.
The mansion’s search, which unveiled the children, puzzled neighbors in Arcadia, a community popular with affluent Chinese immigrants. Media frenzy followed, with speculation about the family’s intentions. As headlines subsided, El Monte filed a civil abatement claim against Xuan in September, indicating repeated criminal activities at his properties.
Evidence from Xuan’s properties included drugs, firearms, and links to a criminal known as “Dragon.” First alerted by reports of a “possible illegal nightclub,” police pursued a warrant after finding methamphetamine in a vehicle leaving the premises. Xuan had acquired the large property for $10.5 million through Hongxing Investment approximately two years earlier. Within the Chinese business community in San Gabriel Valley, Xuan was recognized as a major property investor.
Questions remain on how Xuan and Zhang initially connected. Both had previously been married, filing divorce cases near the same timeframe in 2021. A child reportedly born to Xuan raises further questions about the use of surrogacy. On Zhang’s part, she managed a surrogacy and real estate company registered at their Arcadia home.
In March 2023, Zhang herself contacted El Monte officers, claiming she was attacked by a tenant. A subsequent search revealed a psilocybin mushroom farm and numerous drugs in rented units linked to Haoren “Dragon” Ma, a figure with a history of fraudulent immigration practices and prior arrests.
By year’s end, police reported yet another raid at Xuan’s El Monte property, discovering gambling equipment and counterfeit activities. It appears Xuan shifted property ownership to other entities he controlled, allegedly to continue illegal operations.
Simultaneously, in Arcadia, police were alerted by a social worker about an injured infant in Zhang’s care, leading to the discovery of a highly organized environment for raising children in Xuan’s home. Surveillance footage disclosed abusive behavior by nannies under Zhang and Xuan’s employ. Despite arrests, no charges were pursued against the couple, but police continue to investigate.
The Los Angeles County Department of Children and Family Services now has custody of the children. Public details about their welfare are limited by confidentiality laws. Arcadia authorities, coordinating with other agencies, still aim to substantiate child abuse charges. However, potential issues related to the surrogacy practices remain outside the current investigation’s scope.