Ismail J. Ramsey, U.S. Attorney | U.S. Attorney for the Northern District of California
An indictment has been unsealed charging former Oakland Mayor Sheng Thao, her partner Andre Jones, and businessmen David Trung Duong and Andy Hung Duong with bribery offenses. The charges against Andy Duong also include making false statements to government agents.
The indictment alleges that in the period leading up to and following the November 2022 mayoral election, Thao promised official actions benefiting David and Andy Duong in exchange for various benefits. David Duong led a recycling company serving Oakland households and co-owned a housing company developing prefabricated modular homes. His son, Andy Duong, was an employee of the recycling company and co-owner of the housing firm.
Thao allegedly committed Oakland to purchase housing units from the Duongs' company, extend their recycling contract, and appoint city officials chosen by them. In return, David and Andy Duong funded a $75,000 negative mailer campaign against Thao's opponents and paid $95,000 to Jones for a no-show job at their housing company. Once Thao assumed office in January 2023, she reportedly furthered this corrupt relationship by helping appoint a high-level city official selected by the Duongs.
Financial records suggest that after Jones began receiving payments from this scheme in January 2023, he took over paying rent for his shared residence with Thao. He also increased his contributions to household bills.
Efforts were allegedly made to conceal these activities through various means such as misrepresenting Jones' employment status with the housing company and creating false invoices. These benefits were not disclosed on California Form 700 as required.
First Assistant United States Attorney Patrick D. Robbins stated: "The public deserves honesty and transparency from City Hall...This indictment reaffirms the U.S. Attorney’s Office’s commitment to root out...corruption in our local governments."
FBI Acting Special Agent Dan Costin emphasized: "Our communities are entitled to leaders who act in their best interest...Today’s actions demonstrate our resolute determination to protect...our government."
Stephen M. Sherwood of USPIS noted: "To protect the public trust...we worked closely with the U.S. Attorney’s Office...to investigate those responsible for fraud schemes."
IRS Criminal Investigation's Linda Nguyen commented: "Public corruption schemes are rooted in greed...IRS-CI specializes in following that trail."
Each defendant faces multiple charges including conspiracy to commit bribery under several statutes such as 18 U.S.C. § 371 and honest services fraud under 18 U.S.C. §§ 1341, 1346 among others. If convicted, they face varying maximum sentences based on specific charges.
The defendants will appear before U.S Magistrate Judge Kandis A Westmore at Oakland federal court on January 17th at 10:30 am.
Assistant U.S Attorneys Molly K Priedeman et al., are prosecuting this case resulting from investigations by FBI USPIS & IRS-CI
