Ex-Oakland Mayor Face Charges in Suspected Corruption Scheme

Former Oakland Mayor Sheng Thao and three others face federal charges in an eight-count indictment made public on Jan. 17, which claims the individuals were engaged in a bribery and corruption scheme aimed at benefiting a company with approximately $90 million in city contracts.

Thao, who was recently recalled, entered a not guilty plea to six charges during a court arraignment at 10:30 a.m. in Oakland and was released on a $50,000 bond.

Alongside Thao, Andre Jones—identified in the indictment as her “longtime romantic partner”—and father-son duo David Trung Duong and Andy Hung Duong face various criminal charges.

“The public deserves honesty and transparency from City Hall,” stated Patrick D. Robbins, first assistant U.S. Attorney. “When elected officials engage in a pay-to-play system for personal gain, it undermines the public’s trust.”

He emphasized that communities relying on their leaders for essential government services suffer due to such misconduct.

“The public needs assurance that those in charge of City Hall are working for the best interests of Oakland’s residents,” he mentioned during a press conference concerning the indictment. “This trust is lost when elected officials partake in a pay-to-play arrangement for their own benefit.”

The indictment from the grand jury, filed on Jan. 9, alleges that in the weeks leading up to Thao’s election as mayor in November 2022, and subsequent to her taking office, she offered her influence and city contracts to the Duongs in exchange for campaign assistance and financial rewards.

Thao purportedly agreed to buy units from the Duongs’ housing enterprise, extend contracts with their recycling business, and permitted the Duongs to choose candidates for specific city roles.

In return, the Duongs allegedly provided $75,000 to finance a negative mail campaign against Thao’s political opponents, established websites targeting her rivals, and made $95,000 in payments through Jones that benefited both him and Thao.

Following her inauguration, Thao allegedly wielded her office’s power to permit the Duongs to appoint unspecified “high-level” city officials and requested her staff to visit the housing company.

The indictment also claims that discussions occurred regarding a $3 million bribe payment if the city proceeded with the purchase of 300 housing units from a company connected to an unnamed co-conspirator. This housing company was projected to gain around $90 million, as noted in the indictment.

To disguise the payments, the arrangement reportedly involved directing the money as salary to Jones for a non-existent job, along with the creation of fake invoices and other deceptive tactics.

Prosecutors also cited irregularities related to a trip Thao took to Vietnam in July and August 2023 with the Duongs, a trip that allegedly cost tens of thousands of dollars and was partially funded by the Port of Oakland.

The unnamed co-conspirator was appointed to a city role and reportedly received $1.4 million from Duong-associated entities, as indicated in the indictment.

The investigation, described as ongoing, also involves the Internal Revenue Service’s Criminal Investigation Division.

“The alleged offenses committed against the citizens of Oakland by former Mayor Thao and her associates are a blatant violation of public trust and will not be tolerated,” remarked Linda Nguyen, special agent in charge of the division’s Oakland field office. “Public corruption schemes stem from greed and generally leave behind a financial trail. Our division excels at tracing that trail and creating cases that lead to justice.”

“Our communities deserve leaders who prioritize their interests, free from corruption’s taint,” declared Dan Costin, special agent in charge for the FBI. “Today’s actions affirm our unwavering commitment to uphold government integrity and hold accountable those who violate the public’s trust.”

U.S. postal inspectors were also involved as the scheme allegedly included elements of mail fraud.