Seven months ago, then Oakland Mayor Sheng Thao’s home was raided by the FBI. Two months ago, the embattled Thao was recalled overwhelmingly by Oakland voters. Last month, she left office. And later today, federal prosecutors are expected to announce that Thao is being indicted as part of an ongoing corruption probe.
I spoke yesterday with Natalie Orenstein, City Hall reporter for The Oaklandside, just hours after reports emerged about Thao’s pending indictment.What is the focus of this investigation?
(Orenstein) “We don't know what exactly these charges will be focused on, but we have some clues. A few days after the FBI raided the home of Thao and Jones, as well as three properties associated with the Duong family, which runs California Waste Solutions, the recycling contractor for the city of Oakland. The FBI issued some subpoenas to city officials, which named a whole bunch of local figures and ventures and kind of gave a little insight into what they were going to be investigating in the following months. Mayor Thao was named in these subpoenas. So was Andre Jones, her partner. The Duongs and others associated with this recycling contractor, California Waste Solutions. Another company called Evolutionary Homes, a homeless housing venture affiliated with the Duongs as well as local business. And Mario Juarez. They were also named in these documents. And finally the old Oakland Army base property. It's been a little unclear exactly which of these people or issues the FBI is zeroing in on.”
This comes after months of denials by Shang Tao that she was guilty of any wrongdoing and and also she was saying that she was not a target of a federal investigation, even though the FBI seized her phone and that of her partner, Andre Jones.
“The few days after the raid, she kind of disappeared and then she really came out swinging and made this really emotional statement, I am innocent. She talked for several minutes, really assuring observers that she was not the target here, and she repeated that often in the following months. I think that was cold comfort to a lot of residents, and I think images of the FBI carrying boxes out of the sitting mayor's house really didn't help there and so we'll see what the federal grand jury and what these federal agencies believe.”
There was another raid on another local politician's home a couple days ago.
“The FBI searched this week the home of San Leandro City Council member Bryan Azevedo. We believe this is probably connected to what they were doing over at Thao's house. Azevedo and Thao were Both on a 2023 trip to Vietnam that was actually sponsored by a company run by the Duong family. He has also in the past, when his name has come up, he said he's innocent, too.”
Now how do the Doungs figure in this?
“For all we know, they could be named at this announcement today. We really don't have a full sense of the scope of this, where this investigation and these indictments have landed. They, however, have not escaped scrutiny in the past. Oakland's Public Ethics Commission is actually investigating the wrongs, meanwhile about an alleged straw donor scheme that they facilitated. That's a process of funneling illegal donations into elected officials coffers. Thao was one of the officials that reportedly received some of these sketchy donations, but I should say she's one of many, many people locally who have rubbed shoulders with the Duongs or received money from them. The kind of patriarch of the family, David Duong, was known as his family was known as the recycling kings back in Vietnam. When the family came here, they set up a corollary in San Francisco and then have for many years to the tune of, yes, millions of dollars provided Oakland's recycling services to residents and businesses.”
I was speaking with Natalie Orenstein, city hall reporter with The Oaklandside.