Oakland

Former Oakland Mayor Sheng Thao faces federal bribery, fraud charges

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Former Oakland Mayor Sheng Thao, her longtime partner and two local businessmen were named in an indictment unsealed Friday alleging the four conspired to funnel city business to companies owned by the men in exchange for money and benefits to Thao and her partner. Emma Goss has the latest details.

Former Oakland Mayor Sheng Thao, her longtime partner and two local businessmen were named in an indictment unsealed Friday alleging the four conspired to funnel city business to companies owned by the men in exchange for money and benefits to Thao and her partner.

Thao, Andre Jones and business owners Andy and David Duong were indicted on charges of bribery, conspiracy and mail and wire fraud. Andy Duong also was charged with one count of lying to federal agents. All four made an initial appearance Friday.

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Friday’s indictment by federal prosecutors charges former Oakland Mayor Sheng Thao with “a corrupt relationship with her partner Andre Jones, and local businessmen, defendants David Duong and Andy Duong.” NBC Bay Area's Raj Mathai spoke with Paula Canny, a criminal defense attorney, to understand the charges against Thao and what is next for the former mayor.

Federal prosecutors allege Thao, who was elected Oakland’s mayor in 2022, agreed that the city would purchase housing units from one of the Duongs’ companies and renew the city’s contract with a recycling company David Duong owned. In exchange, David Duong and his son, Andy, promised to fund a $75,000 mailer attacking Thao’s political opponents and make $300,000 in payments for a no-show job for Jones, who is described in the indictment as Thao’s longtime romantic partner who lived with Thao in Oakland.

“The alleged activities of the accused have led to a growing sense of distrust among taxpayers and elected officials,” Internal Revenue Service Special Agent Linda Nguyen said at a news conference Friday announcing the indictments. “As alleged, David and Andy Duong used bribes to further the profitability of their business interests and to obtain undo influence over the appointment of high-level Oakland city officials.”

Read the full indictment below

David Duong was the president and CEO of a recycling company that provided residential recycling collection services to Oakland homes and also co-owned with Andy Duong a housing company formed in 2022 to manufacture prefabricated modular homes for unhoused people.

If convicted of all counts, each faces up to 35 years in prison. Andy Duong faces up to an additional five years if convicted of lying to agents.

The indictment comes about six months after a well-publicized FBI raid of the home Thao and Jones share in the Oakland hills and about two months after Oakland voters removed her from office in a recall election.

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Jeff Tsai, counsel on behalf of Thao, issued a statement outside the courthouse Friday:

"Today's indictment and the press conference that was held by the government earlier this morning was successful in grabbing headlines, but what it did not do was serve the ends of justice. The indictment itself is chock-full of allegations, but it is not chock-full of evidence, and that's what we're going to prove in the course of our defense in this case. 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."

Jones declined to take questions Friday.

Attorneys Ed Swanson and August Gugelmann, representing David Duong, released the following statement Friday:

"Mr. Duong denies wrongdoing and will vigorously defend these allegations in court. He looks forward to prevailing in this case and continuing his decades of service, philanthropy, and devotion to our community and the Bay Area."

Attorney Winston Chan, representing Andy Duong, released the following statement later Friday:

"Our client and friend, Andy Duong, is innocent of the charges. 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.

"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."

Thao delivered a defiant statement in June after federal authorities raided her home, saying at the time that she did nothing wrong and that she had no plans to resign from office.

Voters in Oakland ousted Thao from office during a recall election in November just two years after she narrowly won office, becoming the first Hmong-American woman to become the mayor of a major U.S. city.

She faced criticism almost immediately after taking office for firing popular Oakland Police Chief LeRonne Armstrong. Frustrated voters, including the local NAACP, blamed Thao for a long list of city woes related to public safety, homelessness and the city’s budget, and she went into the recall election weakened by the FBI raid on her home.

Longtime Democratic U.S. Rep. Barbara Lee is among those seeking to replace Thao as Oakland’s next mayor.

Watch: Feds announce indictment of former Oakland Mayor Sheng Thao
Federal authorities announce the criminal indictment of former Oakland Mayor Sheng Thao during a news conference Friday, Jan. 17, 2025.
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