Oakland FBI Raids and 'Straw Donor' Probe Spur Allegations of Corruption

This report contains a correction.

Last week’s FBI raids in Oakland have brought renewed attention to a campaign finance investigation into the city’s curbside recycling contractor. On Wednesday, the daughter of a man who was tied up in that investigation suggested it was politically motivated and emblematic of a “corrupt game of local politics.”

Jennifer Tran, president of the Oakland Vietnamese Chamber of Commerce and a congressional candidate, said she believes the straw donation probe launched years ago by local and state political watchdogs into California Waste Solutions was fueled by a desire for leverage against the family who owns the recycling company.

The FBI has not disclosed what it was searching for in the raids, which targeted Thao’s home, Cal Waste’s waterfront offices and two homes connected to the Duong family. However, the raids raised renewed questions about the politically connected family and an investigation into campaign donations linked to Cal Waste and the son of founder David Duong, Andy.

In a probable cause report filed in 2021, the California Fair Political Practices Commission and Oakland Public Ethics Commission alleged that Cal Waste was the “true source” of at least 93 donations filed under different peoples’ names — including seven by Tran’s father, Phuc Tran — in a “campaign contribution laundering scheme,” according to court records first obtained by the Oaklandside. The investigation is pending, according to the commission’s case portal.

Tran, who is running for the House seat that will be vacated by Rep. Barbara Lee (D-Oakland), said Wednesday that the probe was conducted during a lawsuit and countersuit over Oakland’s recycling contract with Cal Waste.

“It strongly appeared that the city was investigating the Duongs as vindictive leverage for the lawsuits. The investigators harass and antagonize dozens of immigrant small business owners in the Vietnamese community, just like my father,” she told reporters.

She said that she does not believe her father was aware of the straw donation allegations but that if either he or the Duongs committed a crime, she was confident they would “do the time.”

“Within the immigrant community, a lot can be missed with translation and I was not aware,” she said. “It wasn’t until these FBI raids that I actually looked at the investigation.”

Tran’s congressional campaign has received four donations from the Duong family totaling $13,200, which she said she would return even though they were legally contributed.

Earlier on Wednesday, Oakland Councilmember Carroll Fife, who has been an ally of Thao, spoke about the raids for the first time, saying she had limited information but did not believe Thao is the target of a federal investigation and was focused on her council duties.

“The council is intact and united, so legislatively, we’re going to do our jobs, and our jobs right now are focusing on passing a balanced budget,” she told KQED.

This week, the City Council must approve a balanced budget for the 2024-2025 fiscal year ahead of the July 1 deadline. They are slated to meet on Friday to cut $63 million from the budget as the city is still trying to finalize the sale of the Oakland Coliseum, estimated to generate that amount.

The city, already facing a budget shortfall of over $100 million, is also set to declare a “state of extreme fiscal necessity and the existence of a severe and unanticipated financial event” at the meeting.

KQED’s Nik Altenberg contributed to this report.

June 27: The original version of this report incorrectly said the California Fair Political Practices Commission and Oakland Public Ethics Commission published a probable cause report in 2021. The document was never published by the commission but appeared in public court record. The story has been edited to correct the inaccuracy.