Former Oakland Mayor Sheng Thao faces up to 95 years in prison on federal charges

BySuzanne Phan, Lena Howland and Anser Hassan KGO logo
Saturday, January 18, 2025
Recalled Oakland mayor, 3 others facing federal bribery charges: FBI
Former Oakland Mayor Sheng Thao and three others have been charged with bribery after a federal corruption investigation.

OAKLAND, Calif. (KGO) -- Former Oakland Mayor Sheng Thao and three others have been indicted by a federal jury following a corruption investigation, the FBI and US Attorney's Office announced Friday.

The federal charges include bribery, mail fraud and wire fraud.

The three others being indicted are Thao's longtime partner Andre Jones, as well as two prominent East Bay businessmen David Duong and his son Andy Duong.

READ THE FULL INDICTMENT HERE

All four were arraigned Friday morning. Thao pleaded not guilty and faces a maximum of 95 years in prison. She has been released with travel restrictions.

This comes seven months after the FBI raided Thao's home along with several other locations, including properties belonging to the Duong family.

The family holds Oakland's curbside recycling contract with California Waste Solutions and has been the focus of a city probe into campaign contributions.

"As is often the case, the accused left a money trail from their deceptive acts of corruption," says special agent Linda Nguyen with the IRS Oakland field office.

EXCLUSIVE: First-hand account of Oakland Mayor Sheng Thao donor paying to help her 2022 campaign

ABC7 News I-Team has learned Loren Taylor is preparing his campaign staff to take another run for Oakland mayor after FBI raid at Mayor Thao's home.

The 22-page indictment alleges that Thao and Jones accepted $95,000 worth of bribes and left a money trail to show for it. ABC7 News video shows Jones arriving to the Oakland Courthouse for his arraignment, and his attorney said he was planning to turn himself in Friday.

Andy Duong also arrived at the same courthouse in a white suit.

Federal prosecutors detailed the indictment at a press conference, saying the illegal scheme began in October 2022, just a month before the mayoral election.

"The indictment charges a scheme the defendants entered into knowing bribes would be offered and accepted by Thao and Jones. In exchange for allowing the Duongs to exercise illegal influence over the levers of city government," explains Patrick Robbins, First Assistant United States Attorney.

The indictment alleges that Thao made commitments to take official action that would benefit the Duongs.That includes an agreement to purchase housing units from a company owned by the Duong family and her agreement to ensure a contract extension that the city of Oakland has with a recycling company owned by the Duongs. It also includes her agreement to use her influence to appoint a high-level city official to benefit the Duongs.

RELATED: Loren Taylor believes Sheng Thao's alleged $75K bribe cost him Oakland mayoral race

But Thao's lawyer, Jeff Tsai, who spoke after the hearing, claims the evidence in the U.S. government's case is weak.

"The case is built on allegations from an unknown co-conspirator, that we believe when the evidence is reveled, it will show that my client has committed no crimes," says Tsai. "The timing as well is curious. And we think the timing of the event has amplified the politicalization of this issue."

Thao was released on an unsecured $50,000 bond with travel restrictions. Her next court appearance is set for February 6.

Lawyers for David Duong issued a testament to ABC7 News, saying, "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."

Lawyers for Andy responded by saying: "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."

TIMELINE: FBI political corruption investigation involving Oakland Mayor Sheng Thao, Duong family

TIMELINE: FBI political corruption probe involving Oakland Mayor Thao (1 of 10)

ABC7 News spoke with Thao's former Chief of Staff Renia Webb Thursday night.

"Two years ago, everyone said I was lying and tonight, everyone knows I was telling the truth," Webb said.

She said this moment is a reset for the city of Oakland.

Thao was elected mayor of Oakland in 2022, and was then recalled by voters last fall.

"I'm honestly sad about Sheng. Again, she's a mom. She's very bright and smart. She just made really foolish decisions. She has to deal with the consequences of her actions," Webb said.

In front of cameras days after the raid, former Mayor Thao denied any wrongdoing.

"I want to be crystal clear; I have done nothing wrong, and I can tell you with confidence that this investigation is not about me," Thao said in June 2024.

Webb testified in front of a federal grand jury last month.

"I was informed there was pay-to-play behavior going on. That there was corrupt behavior going on in that administration," Webb said.

VIDEO: Report alleges 'campaign contribution laundering scheme' involving Oakland mayor, city officials

Report details Andy Duong family's political ties and who they donated to, including Oakland Mayor Sheng Thao whose home was raided by the FBI.

Thursday evening, ABC7 News insider Phil Matier says the federal indictment has profound implications.

"For a long time the question was -- was she involved or was she just in the room? Did something happen or was it an associate of hers? Was it her live-in boyfriend, is it other people? If this indictment comes out, then what we are saying is we know she was directly involved in some way," Matier said.

He went on to say, "The feds don't mess around. If federal money is involved, they are going to do an investigation. They have zero tolerance for public officials bartering or dealing on the side."

Webb says let this be a lesson to other elected leaders.

"Serve the people in the way you are supposed to with honesty and transparency and if you don't, you are going to get recalled and you might go to jail if you are doing illegal and corrupt stuff," she said.

Indictment of former Oakland Mayor Sheng Thao a setback for city; leaders focus on future

With Oakland's former mayor now indicted on federal bribery charges, the indictments are another blow for a city already facing a number of major setbacks.

With Oakland's former mayor now indicted on federal bribery charges, the indictments are another blow for a city already facing a number of major setbacks.

Friday night, community leaders shared their concerns and their hopes for the future of Oakland.

"It's really painful for myself and a lot of people that I've spoken with," said Bishop Bob Jackson of Oakland. "I'm at a loss. I've been here 79 years. This is the first time I've ever seen anything like this in our city. It's just sad. It's a sad day."

Former Oakland Mayor Sheng Thao has been criminally indicted by a federal grand jury.

Some say the indictment is a major setback for Oakland, a city already reeling from Thao's recall along with crime, homelessness, budget issues, and the recall of the County District Attorney.

Jackson said he and other pastors are praying for the city to recover.

"We're praying for the city and praying God will give us the leadership that we need. to get us all out of this," said Jackson.

Community leader Carl Chan said he was not surprised by Friday's bombshell announcement.

He said the indictment of the former mayor proves that nobody is above the law.

"The public servants, the people who are elected are supposed to be looking for the best interest of the people and the community," said Chan.

Chan said the indictment of Thao and three others is a wake-up call for elected officials and voters.

"We are on the verge of bankruptcy, and we are facing many, many challenges-- especially public safety. However, this city is very strong we have to come back and work together," said Chan.

Cathy Adams is the President and CEO of the Oakland African-American Chamber of Commerce.

Adams says it's time to "reboot."

"We feel bad and now we've got to reboot and motivate and work together," said Adams.

Adams said her own responsibility is making sure that Black-owned businesses thrive.

She believes the city needs to refocus its attention.

"Our priority has to be on making our community safe. Making sure our businesses thrive. Making sure we deal with the homeless crisis. We have a whole lot of other things that we have to be dealing with," said Adams.

According to Adams, the indictments are a "disruption" and Oakland has to get through it.

"Even with some of the disruption we've had--we've had a few-- I love Oakland. This is our town. I know we are resilient. I know we are coming back," said Adams.

Now Streaming 24/7 Click Here
Copyright © 2025 KGO-TV. All Rights Reserved.