Former Oakland Mayor Sheng Thao, her romantic accomplice and a pair of influential Oakland enterprise homeowners all pleaded not responsible to a rash of federal corruption and bribery prices final week.
Thao, her accomplice Andre Jones, David Duong and his son Andy have been all named in a federal indictment that was unsealed Friday morning.
All 4 have been subsequently arraigned in U.S. District Courtroom in Oakland, the place they entered their pleas, posted bail and have been launched.
“The indictment returned by the grand jury describes a corrupt scheme in which the defendant used bribes, mail fraud, wire fraud and other illegal practices to manipulate and corruptly influence the levers of local government,” stated Patrick Robbins, first assistant U.S. legal professional for the Northern District of California.
FILE: The FBI carried out a court docket licensed legislation enforcement exercise at Oakland Mayor Sheng Thao’s home at 80 Maiden Lane in Oakland on June 20, 2024. (Kiley Russell/Bay Metropolis Information)
The indictment comes about six months after a well-publicized FBI raid on the house Thao and Jones share within the Oakland hills and about two months after Oakland voters eliminated her from workplace in a recall election.
Properties belonging to the Duongs have been additionally searched by the FBI, the IRS and the U.S. Postal Inspection Service on the identical day because the raid on Thao’s house.
Funds and guarantees
The alleged scheme began round October 2022, simply weeks previous to the November election Thao narrowly received, and concerned $95,000 in 4 separate funds from the Duongs to Thao and Jones, in line with federal prosecutors, who say an extra $205,000 was promised.
At Thao’s course, the cash was allegedly paid to Jones for non-existent work he did for the Duongs’ recycling firm, California Waste Options.
In trade, Thao allegedly agreed that town would purchase small modular properties from a Duong-owned firm, lengthen a metropolis recycling contract for an additional of their firms and appoint a high-level metropolis official to learn the Duongs’ enterprise pursuits.
Along with the $95,000, the Duongs additionally allegedly bribed Thao by paying $75,000 for a destructive marketing campaign mailer concentrating on her political foes within the closing days of the 2022 election.
Thao’s lawyer Jeff Tsai stated Friday that the federal government’s case is filled with holes, his shopper is harmless of all prices and that the indictment got here as a whole shock given Thao’s willingness to cooperate.
“There are numerous allegations that are made, but what is missing from this indictment is anything that truly indicates that the mayor had any involvement in the scheme that the government has described,” Tsai stated.
Unsealed indictment for former Oakland Mayor Sheng Thao, Andre Jones, and businessmen David Trung Duong and Andy Hung Duong on Friday, Jan. 17, 2025 in San Francisco, Calif. (Alise Maripuu/Bay Metropolis Information)
“From the beginning, the mayor has indicated that she is willing to sit down and cooperate with the government’s investigation. That opportunity ultimately never arose,” he stated.
Andy Duong’s legal professionals launched an announcement following the arraignment saying their shopper can also be harmless of all prices.
“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,” in line with the assertion despatched on behalf of attorneys Winston Chan, Doug Sprague and Erik Babcock.
David Duong’s legal professionals launched an announcement saying he’s harmless and is wanting ahead to proving so in a courtroom.
“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,” in line with the assertion despatched on behalf of attorneys Ed Swanson and August Gugelmann.
Jones declined to remark Friday however stated he would make an announcement in some unspecified time in the future sooner or later.
Fees and attainable penalties
All 4 defendants are dealing with a wide range of prices together with conspiracy, wire fraud, mail fraud and bribery. As well as, Andy Duong is dealing with one rely of creating false statements to a authorities agent.
Thao and Jones are free on separate $50,000 bond agreements, whereas the Duongs are each free on a $100,000 bond every.
If convicted on all counts, they might every face roughly 90 years in jail and fines of greater than $1 million.
