Feds indict former Oakland Mayor Sheng Thao and three others on corruption charges

Former Oakland Mayor Sheng Thao has been charged by the federal government of using her office to enrich herself, her boyfriend and Oakland contractors David and Andy Duong.

The eight-count indictment, which was handed down by an Oakland grand jury on Jan. 9 and unsealed Friday, contends that a few weeks before she was elected mayor in 2022, Thao committed to helping David and Andy Duong extend the recycling contract their company, California Waste Solutions, had with the city, and worked to steer a lucrative modular home contract to a company affiliated with the father and son. In exchange, the U.S. Attorney’s Office alleges, the Duongs spent $75,000 on mailers attacking Thao’s opponents in the tight mayoral race, and paid her boyfriend, Andre Jones, $95,000, with the promise of much more, for a fake job with the modular housing company. 

Jones and the Duongs also were charged in what Assistant U.S. Attorney Patrick D. Robbins called a “pay-to-play” scheme. Thao concealed the bribes, the government says, by channeling them through Jones, who began paying the entire rent for their shared Maiden Lane home and increased other household contributions after Thao took office in January 2023.

The indictment contends Thao also used her influence to get the city to hire someone the Duongs selected as interim deputy director of Housing and Community Development, even though the interim city administrator did not believe the person was qualified. 

“The public needs to know it can trust those in charge of City Hall to work for the best interest of the people of Oakland,” Robbins said at a news conference announcing the charges. “This public trust is broken when elected officials agree to a pay-to-play system to benefit themselves.”

The indictment was filed seven months after the FBI raided the homes of Thao and Jones, David Duong and Andy Duong.  Authorities said it stemmed from an investigation by Oakland’s Public Ethics Commission, which shared its findings with the FBI. 

In June, days after her home was raided, Thao told the media she was not the target of the investigation, adding, “This wouldn’t have gone down the way it did if I was rich.” 

A recall campaign launched shortly after Thao took office in 2023 gained steam after the raid. In November, Thao became the first Oakland mayor to lose a recall vote. She was forced to leave office halfway through her term.

Thao did not address reporters or answer questions as she stood beside her attorney, Jeff Tsai, outside the federal courthouse in Oakland Friday. Tsai said the government’s case lacks evidence and noted that it was built on information from an unnamed co-conspirator. 

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

In a statement to some media outlets, Andy Duong’s attorney called the charges baseless. 

The indictment quotes Duong in a damning text exchange with a source described only as “co-conspirator 1,” when it became apparent that Thao would win the election.

“So we may go to jail … but we are $100 million richer!” Co-conspirator 1 wrote.
“Money buys everything,” Andy Duong replied. 

Shortly after that, the indictment says, co-conspirator 1 started depositing checks into Jones’ account, with the promise of $300,000.

“Each of the defendants joined the conspiracy knowing that one object of the conspiracy was to give, offer and agree to offer bribes and benefits to Thao and Jones with an attempt to influence business and transactions of the City of Oakland,” the document reads. 

All four named in the indictment are charged with various counts of conspiracy to commit bribery,  bribery concerning programs receiving federal funds, and conspiracy to commit honest services mail and wire fraud.  Andy Duong is also charged with making false statements to government agents.

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