Ex-Oakland Mayor Sheng Thao, 3 Others Charged With Bribery in Sprawling Corruption Probe

Updated 3:01 p.m. Friday 

Former Oakland Mayor Sheng Thao and three others were charged with eight counts of conspiracy and bribery in a federal courthouse in Oakland on Friday.

The arraignment followed the release of a bombshell federal indictment alleging a “pay-to-play” corruption scheme involving Thao, longtime romantic partner Andre Jones and two prominent businessmen affiliated with the city’s recycling contractor, Oakland-based company California Waste Solutions: David and his son Andy Duong.

“The indictment returned by the grand jury describes a corrupt scheme in which the defendants used bribes, mail fraud, wire fraud and other illegal practices to manipulate and corruptly influence the levers of local government,” First Assistant U.S. Attorney Patrick D. Robbins said at a Friday morning press conference, where officials provided more details about their probe.

All four defendants pleaded not guilty and were released on bond.

Fielding questions from the press and some jeering from Thao’s critics on the courthouse steps, Thao’s attorney criticized the role of an unnamed conspirator in the case, who he said provided the evidence central to the FBI’s case.

“The mayor looks forward to defending herself against these charges, showing that there is, in fact, no evidence to support these charges,” said Jeff Tsai, Thao’s counsel.

The indictment (PDF) alleges that Thao promised to take official actions as mayor to benefit the Duong family in exchange for benefits for her and Jones. This included a promise of a commitment by the city of Oakland to purchase housing units from the Duong family’s housing company, Evolutionary Homes, to extend contracts with the Duong family’s recycling company, and to appoint senior city officials selected by the Duongs and the unnamed co-conspirator, identified as “a local businessman.”

In exchange, the Duongs promised to pay $75,000 to fund negative mailers targeting Thao’s opponents in the mayoral election and to make $300,000 in direct payments for no-show jobs to Jones, according to the indictment.

It became clear that the FBI was investigating this network of relationships since the FBI raid of Thao’s home in June, along with properties owned by the Duong family. The Duongs have been the focus of a separate investigation by the Oakland Public Ethics Commission and California Fair Political Practices Commission into an alleged straw donor scheme.

Financial records indicate that after Jones began receiving payments from the one unnamed conspirator, he began contributing to his and Thao’s monthly rent payments. Previously, Thao had paid these bills, the indictment said.

Attorneys for both David and Andy Duong said the father and son were innocent of all charges. Andy Duong’s attorney called the allegations “baseless” and stitched together by “gossip and supposition.”

“Disappointingly, Andy instead is today the most recent in a long line of Asian Americans who unfairly are singled out and forced to pay a price for daring to be active in the political sphere,” Winston Chan, Andy Duong’s counsel, told KQED in an email.

Thao and Jones will make their next appearance in U.S. District Court on Feb. 6. Jones will return on Jan. 22 to resolve the question of whether he qualifies for appointed counsel after stating that he cannot afford a private attorney.

Thao, Jones and the Duongs face six counts, each carrying a maximum sentence of five to 20 years in prison and a $250,000 fine. Andy Duong also faces an additional charge of making a false statement to a government agency, which carries a maximum sentence of five years in prison.

Thao has repeatedly asserted her innocence and said that federal officials had told her attorney she was not the focus of their investigation.

Thao’s short tenure as Oakland mayor ended with a recall in November, decided by 65.3% of Oakland voters. Recall organizers blamed the city’s challenges — including crime, shuttering businesses and a multimillion-dollar budget deficit — on what they described as Thao’s incompetence.

In August 2023, Thao led a 50-person delegation of Port of Oakland officials and East Bay political players, including the Duongs and San Leandro Councilmember Bryan Azevedo, to Vietnam. The trip was co-sponsored by the Vietnamese American Business Association, an organization founded by David Duong and headquartered in Oakland. The FBI raided Azevedo’s home on Wednesday, but he was not named as a defendant in the indictment.

Thao said their goal was to invest in the city’s trade relationship with Vietnam and reported meeting with the mayors of major port cities, Ho Chi Minh and Haiphong, along with Prime Minister Pham Minh Chinh. In a press conference shortly after the trip, she reported that the port had signed a new memorandum of understanding with the Long An International Port.

“I advocated for Oakland, for the benefits of partnering with our port and for the opportunities at our airport,” she said.

However, the trip was also met with scrutiny after reporting revealed it had cost about $12,000 per attendee — including business class flights, five-star hotel stays and meals and transportation. The Duongs’ financial involvement is also questionable, considering their lucrative city contracts.

As far back as 2014, the Duongs have been accused of using political power to leverage business deals with the city.

Texas-based Waste Management sued the city of Oakland, alleging that the Duongs’ “long-term personal and political connections” with the City Council swayed its decision to award Cal Waste a $1 billion contract against city staff’s recommendations.

The council ultimately opted to give Waste Management the compost and trash contracts, while Cal Waste got the recycling deal.

The interim mayor’s office declined to provide a statement about the indictments.

A special election to replace Thao will be held in Oakland in April. Leading candidates, including former U.S. Rep. Barbara Lee, responded to the indictment on social media platform X.

“The allegations contained in the criminal indictment are devastating,” Lee wrote. “There should be no tolerance whatsoever for secret pay-to-play schemes that erode the public trust.”

Loren Taylor, who announced his candidacy in November and lost to Thao by a narrow margin in 2022, said it was unfortunate that the city of Oakland was back in the news because of a corruption scandal.

“We have to make sure that our elected officials are focused on the things that matter most to everyday Oaklanders’ lives,” Taylor said, “and are not distracted by things like political scandals or returning favors for others who have supported them.”

Renia Webb, Thao’s former chief of staff and another candidate in the special election, told KQED on Thursday when news of the indictment broke: “Today, I feel like Oakland is going to be able to move forward. We’re walking into a brighter future, and I feel that way, like we’re taking a turn.”

The winner of the special election will complete Thao’s unfinished term in 2027.

KQED’s Alex Hall contributed to this report.