Former Oakland mayor indicted on bribery charges in money scheme: FBI

A federal grand jury has indicted Oakland’s former mayor, Sheng Thao, in connection with a public corruption scheme exposed by the FBI. Thao faces bribery and conspiracy charges alongside three co-defendants, including her alleged boyfriend, Andre Jones, and two East Bay businessmen, Andy and David Duong.

The indictment accuses Thao and her associates of orchestrating a plot to use Thao’s position as mayor to secure city contracts for the Duong family businesses. The Duongs own a local housing company and the city’s recycling service.

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Investigators claim that Thao pushed the city to purchase housing units from one of the Duongs’ companies and to renew a contract with David Duong’s recycling business. In return, the Duongs allegedly helped fund a $75,000 ad campaign that attacked Thao’s political opponents and arranged nearly $400,000 in wages for a “no-show” job for Jones, prosecutors say. The investigation also revealed the job did not exist.

The IRS traced the money and found Thao and Jones used part of it to cover expenses for their rental home.

Thao, elected mayor in 2022, was ousted by voters in a recall election in November 2024. Federal agents say she began planning her scheme weeks before the election. They also say she took advantage of her office to secure financial gain.

The FBI raided Thao’s home in June 2024 after receiving a tip from Oakland’s Ethics Commission. Thao has denied the charges and insists she is innocent.

During her two years in office, Thao faced intense criticism over the city’s growing public safety problems. While homicides in Oakland dropped, the city remained a leader in property crimes. In response, California Gov. Gavin Newsom launched a public safety initiative. It included cracking down on illegal car shows and retail theft. During a months-long operation, the California Highway Patrol recovered over 2,000 stolen cars in the city.

The violence in Oakland was so severe that In-N-Out Burger closed its location there, citing safety concerns for its employees. It also became the first time the burger chain had closed an outpost.

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Thao has pleaded not guilty to all charges and is scheduled to return to court in February.

The Duongs’ defense attorney has denied the allegations, calling the investigation “fabricated.”