OAKLAND, Calif. (KGO) -- The fallout continues from the FBI's investigation into bribery and corruption charges related to Oakland Mayor Sheng Thao.
"If these allegations are true, it truly shocks the conscience. The idea that Mayor Thao was selling out Oakland even before she won the election, it speaks of arrogance and malicious intent that I think few people can wrap their heads around," says Justin Berton, who served five years in Oakland City Hall.
He was Director of Communications for Mayor Libby Schaaf, the predecessor to recalled mayor, Sheng Thao.
On Friday, Thao plead not guilty to six counts related to bribery, conspiracy and mail and wire fraud. Thao's lawyer spoke after Friday's hearing, calling the government's case "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 Jeff Tsai, Thao's attorney.
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One of the allegations in the indictment unsealed Friday is that, "Once in office, Thao took steps to carry out her end of the corrupt arrangement, including using her influence to help appoint a high-level City of Oakland official."
The indictment states that the city official was to be approved by David and Andy Duong - the father and son of a high-profile family in Oakland, which has contracts with the city for its recycling program.
"The Duong's have been well-known entities in Oakland politics for more than a decade. And the concerns about them have been well known," says Berton.
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The East Bay Times identified the alleged individual to be Larry Gallegos. He is listed on the city's website as a project manager for the Economic and Workforce Development Department. In a statement to ABC7 News on Tuesday, the City of Oakland confirmed that Gallegos resigned on Friday.
There are now concerns about the recycling contract with the Duong's company: California Waste Solutions.
"The contract, it must have an out clause. And any city councilmember who wants to raise concerns with who the City of Oakland does business with, now would be the time to speak up," Berton says.
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The agreement that dates back to July 2015, is a 20-year service contact with an option for two 5-year extensions. Which adds up to the 10-year extension the Duong's wanted Thao to get them as indicted in the indictment.
"What also stood out in that indictment was, not only was Oakland for sale, it was on sale for cheap. $95,000 and a few other things. It just boggles the mind how cheap they were willing to sell out the city," says Berton.
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The eight count indictment is part of a joint investigation by the FBI, IRS and the United States Postal Service.
Special Agent Linda Nguyen with the IRS Oakland Field Office says a money trail exposed a pay-to-play scheme in which Thao and her long-time romantic partner, Andre Jones, allegedly traded political promises for campaign financing and cash.
Thao faces a maximum of 95 years in prison and upwards $1.5 million in fines. She will be back in court on February 6.