Even before she was sworn into office, former Oakland mayor Sheng Thao was making plans to use her position for financial gain. That’s according to a grand jury indictment unsealed Friday by the U.S. Attorney’s Office.
The government says Thao and her boyfriend Andre Jones entered into a pay-to-play scheme with businessman David Duong and his son turned business partner Andy Duong, just weeks before the election in October 2022. As mayor, Thao promised to have the city purchase housing units from a company owned by the Duongs. She vowed to ensure that the city renew a contract with the Duongs’ recycling company, California Waste Solutions. And she agreed to hire an Oakland city official, handpicked by the Duongs, to protect their family's businesses.
In exchange, Thao and Jones allegedly accepted $95,000 in direct payments which were disguised as compensation for fake work. The Duongs also allegedly funded $75,000 worth of campaign mailers attacking Thao’s political opponents during the election.
Thao, Jones, David Duong, and Andy Duong have each been charged with one count of conspiracy to commit bribery; one count of bribery concerning programs receiving federal funds; one count of conspiracy to commit honest services mail and wire fraud; one count of honest services mail fraud; and two counts of honest services wire fraud. Andy Duong faces an additional charge of making false statements to government agents.
Reactions
Several Oakland leaders were caught flat-footed by the indictment. Thao’s home was raided by the FBI in June. However, she insisted she was not the target of the investigation.
Former Congresswoman Barbara Lee was among those who defended Thao after the raid, and was a stalwart supporter of hers during the recall campaign.
Lee, who is currently running for mayor, posted this on Friday:
“The allegations contained in the criminal indictment are devastating. There should be no tolerance whatsoever for secret pay to play schemes that erode the public trust. Oaklanders expect and deserve leaders who have only one agenda—honest, accountable leadership that serves the people of Oakland. Every individual is entitled to constitutional protections and a presumption of innocence, but City Hall must never be for sale. We need a fresh start in Oakland. Our local governance and political system must be beyond reproach. Every Oaklander deserves no less.”
Former Oakland Councilmember and mayoral candidate Loren Taylor expressed anger at the charges. Taylor believes he would have won the 2022 race against Thao if it hadn’t been for those mailers allegedly funded by the Duongs.
“We all knew that she was pretty corrupt and dishonest in addition to being incompetent," Tuan Ngo with Asian Unite told ABC 7. Asians Unite is one of the groups that supported the recall effort against Thao.
Councilmember Janani Ramachandran said the charges were shocking and disappointing.
How far does this corruption scheme go?
Two days before the indictment was unsealed, San Leandro City Councilmember Bryan Azevedo’s home was raided by the FBI. Notably, Azevedo was one of several politicians who accompanied Thao on a 2023 trip to Thailand, which was paid for by the Duongs.
It’s not clear if Wednesday’s raid is related to the Duongs’ alleged pay-to-play schemes. What we do know is that the Duongs’ political influence and activities reach far beyond Oakland — and even California. In fact, David Duong was in attendance at President Donald Trump’s inauguration on Monday.