Tag: FBI

OAKLAND, Calif. – Former Oakland Mayor Sheng Thao has been indicted by a federal grand jury on criminal charges related to an FBI bribery case, the Department of Justice announced Friday, six months after agents raided her home and two months after she was voted out of office.

Thao’s longtime boyfriend, Andre Jones, and David Duong and his son, Andy Duong, were also charged in the indictment.

U.S. Attorney Patrick D. Robbins said the defendants used bribes, mail fraud, wire fraud, and other illegal practices to manipulate and corruptly influence local government.

Robbins said the defendants knowingly entered into agreements “knowing that bribes would be offered and accepted by Thao and Jones in exchange for allowing the Duong’s to exercise illegal influence over the levers of city government.”

The San Francisco Chronicle was first to report this latest development. 

Thao, Jones, and the Duongs appeared before a judge at the United States Courthouse in Oakland around 11 a.m. Following the arraignment, the former mayor exited the courthouse alongside her attorney, Jeff Tsai, who addressed the media on her behalf.

“The case is built on allegations from an unknown co-conspirator that we believe when the evidence is revealed will show that my client has committed no crimes,” said Tsai. “The indictment’s timing as well, is curious, we think the timing has amplified the politicization of this issue, but it has not served the ends of justice, ensuring that everyone is treated fairly.”

After Tsai addressed the media, he and Thao went back inside the courthouse for processing by U.S. Marshals on the federal charges. She was then interviewed for pre-trial services. She appeared calm and was quiet.

A federal judge said Thao is free on an unsecured bond with travel limits. She must surrender her passport.

When did it start?

What we know:

According to the indictment, the illegal dealings began in October 2022, before the November Oakland mayoral election. Before the election, Thao allegedly made promises that would benefit the Duong family if she were elected.

“Examples of promises allegedly made by Thao included her agreement to purchase housing units from a company owned by the Duong family, her agreement to ensure the extension of a contract for recycling services that the City of Oakland had with one of David and Andy Duong’s companies, and her agreement to use influence to help appoint a high-level city official to benefit the Duong’s business interests.,” said Robbins.

The exchange

Federal officials said that in exchange for Thao carrying out her commitments, the Duongs made payments to Thao and her boyfriend in various forms, including funding a $75,000 negative mailer campaign targeting her political rivals. The Duong family also made $95,000 in payments to Thao and her boyfriend disguised as wages for a no-show job for Jones. The payments were made to look as if Jones had a legitimate job with the Duongs housing company to cover up the bribery. 

Federal officials said Thao directed that the payments be made to Jones to avoid a “paper trail.”

Once Thao was elected, she fulfilled her promise to use her influence to appoint an Oakland city official, selected by the Duongs, to protect the family’s business investments, including the housing company and recycling business. That city official is not named in the indictment.

FBI raid at Thao’s home

The backstory:

Thao’s home was raided by the FBI in June, though at the time, the agency would not confirm what they were investigating.

“The FBI is conducting court-authorized law enforcement activity on Maiden Lane. We are unable to provide additional information at this time,” the department said in June.

FBI agents were seen coming in and out of the Maiden Lane home with gloves and badges.

Thao was not seen at the home when agents carried out the raid.

RELATED: The real politics of the federal raid on Oakland’s mayor

At least three other locations were also raided in 2023 and were being investigated by the FBI, including 1211 Embarcadero, the location of Cal Waste, owned by the Duong Family.

FBI raid at 3 more locations

The two other locations were also associated with the Duong family, on View Crest Court and Skyline Boulevard.

At the View Crest home, a neighbor who wished to remain anonymous told KTVU in June he saw two people in handcuffs at the home, as FBI agents continued their investigation.

RELATED: Oakland mayor’s lawyer says she has ‘nothing to hide,’ ‘will cooperate’ with FBI investigation

Who is the Duong Family?

The Duong family is heavily involved in politics and fundraising for politicians in state and local government. The IRS also confirmed with KTVU that their criminal investigation agents were at the scene of Cal Waste on Embarcadero for law enforcement reasons.

The Duong family owns Cal Waste Solution. David Duong and his son Andy Duong are the only members of the family charged.

Winston Chan, an attorney for Andy Duong, told KTVU in a statement that his client is innocent and that the allegations have no merit.

“We have kept quiet despite the media frenzy of the past months in the hope that the government would correctly come to see through objective investigation that the allegations are baseless, and being fanned by nothing more than gossip and supposition stitched together by the fabrications and delusions of those who lack all fundamental credibility,” said Chan. “But 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.  We look forward to clearing his good name before the court and a jury of his peers.”

Who is Andre Jones?

Following the FBI raid of Thao’s home, Oakland City Attorney Barbara Parker was required to hand over documents to federal officials, including those related to Andre Jones.

Parker was instructed to preserve and provide documents and communications tied to Jones, who had been the assistant chief for the State Bureau of Cannabis Control. He has been Thao’s romantic partner for 10 years. The two met when he was chief of staff for Councilwoman Rebecca Kaplan, where Thao also worked.

Federal agents requested documents related to the 2022 Oakland mayoral election and all calendar entries involving Thao and Jones from June 1, 2022, to the present.

Thao’s denial

The other side:

Thao has consistently said she is innocent of any crime or wrongdoing.

“I am 1,000% confident that I will be vindicated,” Thao said in 2024.”I still have the same questions. What was the probable cause to come into my home, to make this huge scene? You know, at the end of the day, the reason why I’m still making sure that we’re moving with all the successes in the city of Oakland is because I know I did nothing wrong.”

Thao’s recall

Dig deeper:

Thao was recalled by Oakland voters in the November election. Thao’s recall, along with former District Attorney Pamela Price, were the first successful recalls in the city’s history.

The last time a mayoral recall vote occurred in Oakland was in 1917 against Mayor John Davis, and it was unsuccessful, the city clerk’s office told the San Francisco Chronicle. There were calls to recall Mayor Libby Schaaf and Mayor Jean Quan, but those efforts never made the ballot.

Thao departs mayoral seat

Thao departed her mayoral seat in December after the recall election. Nikki Fortunado Bas served as mayor until Jan. 6, when she assumed her role as an Alameda County supervisor. City councilmember Kevin Jenkins was appointed president of Oakland’s city council on Jan. 6, allowing him to become the city’s interim mayor. 

Voters will choose the city’s next mayor in an April special election.

Sheng ThaoOakland