Former Oakland Mayor Sheng Thao and three other defendants were charged by federal prosecutors in an eight-count indictment unsealed on Jan. 17 alleging the group participated in a bribery and corruption scheme that sought to benefit a company with nearly $90 million in city contracts. 

The recently recalled Thao, who was arraigned during a 10:30 a.m. court hearing in Oakland, pleaded not guilty to six charges and was released on a $50,000 bond. 

Thao and Andre Jones, described in charging documents as her “longtime romantic partner,” and businessmen David Trung Duong and Andy Hung Duong, father and son, respectively, are charged with a litany of crimes.  

“The public deserves honesty and transparency from City Hall,” first assistant U.S. Attorney Patrick D. Robbins said in a statement. “When elected officials agree to a pay-to-play system to benefit themselves rather than work for the best interests of their constituents, that breaches the public trust.” 

He said communities relying on leaders for critical government services are hurt by their misdeeds. 

“The public needs to know it can trust those in charge of City Hall to work for the best interests of the people of Oakland,” he said during a press conference announcing the indictment. “This public trust is broken when elected officials agree to a pay-to-play system to benefit themselves.” 

According to the indictment filed by the grand jury on Jan. 9, in the weeks before Thao was elected mayor in November 2022, and after taking office, she offered influence and city contracts to the Duongs in exchange for campaign support and financial gain. 

Thao agreed to purchase units from the Duongs’ housing company, extend a contract with the Duongs’ recycling company, and allow the Duongs to select candidates for certain city appointments. 

In exchange, the Duongs allegedly paid $75,000 to fund a negative mailer campaign against Thao’s political rivals, founded websites attacking her opponents, and made $95,000 in payments through Jones to benefit him and Thao. 

After taking office, Thao allegedly used her power in office to allow the Duongs to appoint unnamed “high-level” city officials and asked her staff to tour the housing company.  

The indictment also alleges the group discussed a $3 million bribe payment if the city purchased 300 housing units from an unnamed co-conspirator’s company. The housing company stood to earn about $90 million, according to the indictment. 

In an attempt to conceal the payments, the arrangement was allegedly for the money to be paid as wages to Jones for a no-show job, and fake invoices were created, among other maneuvers.

Prosecutors allege improprieties involving a trip Thao took to Vietnam in July and August of 2023 with the Duongs, which cost tens of thousands of dollars and was partially paid for by the Port of Oakland. 

The unnamed co-conspirator was appointed to a city position and received $1.4 million from entities associated with Duong, according to the indictment.

Among the agencies involved in what is described as an ongoing investigation is the Internal Revenue Service’s Criminal Investigation Division. 

“The alleged crimes committed against the citizens of Oakland by former Mayor Thao and her co-conspirators are a clear breach of public trust and cannot be tolerated,” Linda Nguyen, special agent in charge for the division’s Oakland field office, said in a statement. “Public corruption schemes are rooted in greed and typically leave a money trail behind.  [Our division] specializes in following that trail and building cases that lead to justice.” 

FBI agents also helped unravel the scheme, including raiding Thao’s Oakland home in June 2024. Thao was recalled in November 2024.

“Our communities are entitled to leaders who act in their best interest, free from the shadow of corruption,” Dan Costin, special agent in charge for the FBI, said in a statement. “Today’s actions demonstrate our resolute determination to protect the integrity of our government and ensure accountability for those who betray the public’s trust.” 

U.S. postal inspectors were also involved because the scheme allegedly involved mail fraud.