Oakland Officials React to Indictment of Former Mayor Thao in Corruption Case

Former and current Oakland officials expressed a combination of shock, hope and cynicism at the announcement Friday that the city’s recently recalled mayor was indicted on bribery and conspiracy charges, with four who are campaigning to replace her promising a brighter future for the city.

“The news that we got this morning was absolutely a blow to public trust at a time where trust is already so marginally slim,” said Oakland City Councilmember Janani Ramachandran, adding that she was disappointed but not completely surprised.
“Unfortunately, this is probably not the first time we’ve seen corruption at city hall and pay-to-play politics really define some of our leadership here in the city.”

Former Oakland Mayor Sheng Thao, her longtime romantic partner Andre Jones, and David and Andy Duong, the father and son of a politically-connected East Bay family that owns the city’s recycling provider, California Waste Solutions, were charged Jan. 9 in an eight-count indictment that federal authorities announced publicly Friday.

Federal prosecutors allege Thao and Jones were engaged in a corruption scandal with the Duongs that involved promises of extending the city’s contract with California Waste Solutions; committing the city of Oakland to purchase housing units from the Duongs’ company; and appointing city officials selected by the Duongs, in exchange for monetary compensation and paying for negative mailers targeting Thao’s opponents in the 2022 mayoral election.

Prosecutors charged Thao and Jones each with six counts of conspiracy, bribery concerning programs receiving federal funds, conspiracy to commit honest services mail fraud and honest services wire fraud, honest services mail fraud and honest services wire fraud.

David and Andy Duong were each charged with five counts of conspiracy, bribery concerning programs receiving federal funds, conspiracy to commit honest services mail fraud and honest services wire fraud, honest services mail fraud and honest services wire fraud. Andy Duong was charged with giving a false statement.

Officials with the FBI, U.S. Attorney’s Office, U.S. Postal Inspection Service and IRS Criminal Investigation announced the charges in a Friday press conference in San Francisco.

Thao and the other defendants appeared for arraignment before U.S. Magistrate Judge Kandice A. Westmoore at the Ronald V. Dellums Federal Building and U.S. Courthouse in downtown Oakland. All four pleaded not guilty and were released on bond.

Thao’s attorney, Jeffrey Tsai, speaking to reporters outside the courthouse afterwards, said the indictment did not serve the ends of justice.

“The indictment itself is chock-full of allegations, but it is not chock-full of evidence and that is what we are going to prove in the course of our defense in this case,” Tsai said.

Jones appeared in court alongside attorney Walter Riley, who said Jones plans to request an attorney be appointed for him.

Attorneys for David and Andy Duong denied the allegations.

“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 Winston Chan, Doug Sprague and Erik Babcock, lawyers representing Andy Duong, in a statement.

Ed Swanson and August Gugelmann, said their client, David Duong, will vigorously defend the allegations.

“He looks forward to prevailing in this case and continuing his decades of service, philanthropy and devotion to our community and the Bay Area,” they said in a statement.

Renia Webb, Thao’s former chief of staff while she was on the Oakland City Council and who worked for her during her transition to mayor, told KQED she testified before the federal grand jury in early December.

“I’m just extremely proud of Oakland,” Webb said. “We as a city said enough is enough. We voted for the recall, and today is confirmation that we did the right thing.”

“We said we wanted different. Change. We want a different tomorrow for Oakland,” Webb, who is running for Oakland mayor, continued. “This is what today means. It’s like a rebirth and a reset for our city.”

While the indictment brought to light a months-long FBI investigation of public corruption in Oakland, some said it confirmed why many Oakland residents have become distrustful and disillusioned with the city’s leadership.

“It’s going to take a lot to restore the trust so that we can start to rebuild, come together and get on top of these challenges,” said Loren Taylor, a former city council member and current candidate for mayor, standing outside the courthouse following Thao’s arraignment.

“Oakland’s progress has been undermined by having leaders in place that are not focused on the priorities that Oaklanders have on improving quality of life here. And instead have been pursuing personal gain or supporting those who have backed them, either financially or politically.”

In an emailed statement, former East Bay Congresswoman Barbara Lee called the allegations “devastating.”

“There should be no tolerance whatsoever for secret pay-to-play schemes that erode the public trust,” said Lee, who recently announced she is running for mayor. “We need a fresh start in Oakland. Our local governance and political system must be beyond reproach. Every Oaklander deserves no less.”

Mayoral candidate Mindy Pechenuk was also at the courthouse Friday with campaign flyers. She said she was glad Thao was indicted.

“It’s about time we clean up the corruption that’s been decades in this city and actually get new leadership, which is why I’m running for mayor of Oakland,” Pechenuk said. “I was part of the recall effort right from the very beginning, from day one. Because I knew the corruption that existed. I knew her leadership was failed.

“This city is suffering, it’s being destroyed because of pay-to-play, because of the leadership that has gone along with all these dirty deals.”

At a Friday press conference, California Attorney General Rob Bonta, who in the past received political donations from the Duongs, said Oakland was “obviously under some difficult times and challenges,” pointing to public safety and homelessness.

“I believe that everyone should be following the law and that our elected officials certainly should be held to the highest standard,” Bonta said.

Bonta returned some of those donations last year after the FBI raided the Duong family’s homes and business.