Federal prosecutors have charged former Oakland Mayor Sheng Thao, her boyfriend, and two businessmen with bribery and fraud, alleging a pay-to-play scheme that exploited her political office for personal benefit. Thao, 41, served as mayor from January 2023 until her recall in November 2024.

Court documents indicate that Thao, her boyfriend Andre Jones, and businessmen David and Andy Duong are accused of orchestrating a corruption scheme to benefit the Duongs' businesses, California Waste Solutions and Evolutionary Homes. Prosecutors allege the scheme began before Thao was elected, with promises to leverage her future political power for the Duongs' companies, which relied on city contracts.

In exchange for these alleged favors, the Duongs reportedly paid Jones $300,000 annually for a "no-show" job. The Duongs also allegedly funded a trade trip to Vietnam for Thao and other Oakland officials, which included former San Leandro City Councilmember Bryan Azevedo, and later paid for a vacation to Thailand for Thao and her son.

Allegations of Corruption and Cover-Up

During the Vietnam trip in August 2023, which was partially funded by a Duong-led organization, Azevedo allegedly engaged in a bribery conspiracy with the Duongs. He is accused of agreeing to use his councilman powers to assist Evolutionary Homes in exchange for a percentage of sales prices, with funds to be channeled through an LLC and bank account opened in his wife's name. Court documents also allege that Azevedo engaged in activities involving prostitutes and illegal drugs during this trip.

Prosecutors claim Thao attempted to conceal Azevedo's alleged misconduct, reportedly becoming angry when a journalist began investigating the councilman's behavior. Thao allegedly feared that the revelations would reflect negatively on her politically. According to court filings, Thao also threatened to sever ties with the Duongs if the story became public.

Thao's defense has filed motions to exclude evidence, arguing that it is irrelevant to the charges and could lead to improper character inferences. They described the evidence as "reed-thin" and more prejudicial than probative. The Daily Mail has reached out to the legal representatives for Thao, Jones, the Duongs, and the U.S. Attorney's Office for comment.

City Conditions During Thao's Tenure

While facing these federal charges, Thao is also criticized for the state of Oakland during her term. Reports from the time indicate a significant increase in crime, with 15,000 car thefts occurring in one year, a 20% rise in overall crime, and a proliferation of homeless encampments. Car thefts reached a 15-year high, with approximately one-third of residents reportedly falling victim. The city's police department, facing understaffing and underfunding, was reportedly prioritizing violent crimes, leading to fewer arrests for auto theft. By mid-2024, large "shantytowns" had emerged on city streets.