Former Oakland Democrat Mayor Sheng Thao Indicted On Bribery, Fraud Charges

Former Oakland Democrat Mayor Sheng Thao and three other individuals were indicted on federal corruption charges last week for their part in an alleged bribery scheme.

The U.S. Department of Justice said in a statement that in addition to Thao, her longtime romantic partner, Andre Jones, and local businessmen David Trung Duong and Andy Hung Duong were also charged in the case.

“In the weeks leading up to the City of Oakland mayoral election in November 2022 and following her election as mayor, Thao promised to take official actions as the mayor of Oakland to benefit David Duong and Andy Duong, in exchange for the Duongs providing various benefits to Thao and Jones,” the statement said, according to the recently unsealed indicted.

David Duong was the president and CEO of a recycling company that provided residential recycling collection services to Oakland households, and was also the chairman and co-owner of a housing company formed to develop and manufacture prefabricated modular homes, the DOJ said. Andy Duong, David Duong’s son, was an employee of the recycling company and also a founder and co-owner of the housing company.

“The indictment describes that Thao promised to commit the City of Oakland to purchase housing units from the Duongs’ housing company, extend the City’s contract with the Duongs’ recycling company, and appoint city officials selected by the Duongs,” the statement continued. “In exchange, David and Andy Duong promised to and did fund a $75,000 negative mailer campaign targeting Thao’s opponents in the mayoral election, and made $95,000 in payments to Jones for a no-show job with their housing company, with the promise of additional payments, all intended for the benefit of Thao and Jones.”

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Prosecutors said that once Thao became mayor in January 2023, she allegedly continued the corrupt scheme by following through on delivering her end of the deal.

“Defendants allegedly took steps to conceal their bribery scheme by, among other actions: at Thao’s direction, making the bribe payments to Jones to avoid a paper trail to Thao; misrepresenting that Jones had a legitimate job with the Duongs’ housing company to mask the bribery payments; creating false invoices for the bribe payments from the Duongs’ recycling company; and failing to disclose benefits received on California Form 700, Statement of Economic Interests,” the statement added.

All four defendants in the case were 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.

Prosecutors also charged Andy Duong with one count of making false statements to government agents.

If convicted, the defendants could each face more than 60 years in prison.