Former Oakland mayor reportedly indicted after FBI corruption probe

Two months after she was recalled as Oakland mayor, Sheng Thao has reportedly been criminally indicted by a federal grand jury — a blockbuster blow to the struggling Bay Area city already reeling from residents’ frustration with crime, homelessness and a perception that government is ineffectual.

The indictment was reported by the San Francisco Chronicle, which cited an anonymous source and did not provide details about the charges. The U.S. attorney’s office declined to comment on the report but said officials are planning to announce “a significant law enforcement action” Friday.

Thao was sworn in as mayor in January 2023 amid a wave of glowing press detailing her rise from a homeless single mother and her status as one of the country’s most prominent Hmong elected officials. She was recalled in November as fears about crime convulsed her city, and restaurants such as In-N-Out and Denny’s closed local outlets, citing safety concerns.

Thao did not immediately respond to a request for comment.

Rumors of a corruption investigation involving Thao have been swirling since June, when the FBI raided her home right around the time recall backers gathered enough signatures to qualify for the ballot.

California

FBI raid of Oakland mayor rocks city, fuels questions over family’s political influence

FBI raids in Oakland — including at the home of Mayor Sheng Thao — have cast a spotlight on a years-long probe into the political influence of the Duong family and California Waste Solutions.

June 22, 2024

The same day Thao’s home was searched, agents executed warrants at the Oakland office of Cal Waste Solutions, which provides Oakland’s recycling services. Agents also searched the homes of the company’s chief executive, David Duong, and his son, Andy Duong, a purchasing agent who is in charge of the company’s public relations. The company released a statement at the time expressing surprise at the raid and denying involvement in illegal activities.

Separate from the FBI probe, the Oakland Public Ethics Commission and the state Fair Political Practices Commission have been investigating allegations that members of the Duong family have used “straw donors” to circumvent donation limits and bolster the campaigns of local public officials. Thao is among the politicians who have received funds from the family.

The Duongs have not been charged with any crimes and have denied making any illegal political contributions.

Last summer, Thao said in a fiery news conference that she was not a target of the probe.

“I want to be crystal clear. I have done nothing wrong,” she said in a tearful speech days after FBI agents converged on her home and left with boxes. “I can tell you with confidence that this investigation is not about me.”

At the time, she also questioned the tactics of the FBI.

“This wouldn’t have gone down the way it did if I was rich, if I had gone to elite private schools, or if I had come from money,” she said.

Federal officials have been tight-lipped about their probe, but by some indications it is wide-ranging. The radio station KQED reported this week that the FBI on Wednesday raided the home of a City Council member in nearby San Leandro who had traveled with Thao and others to Vietnam on a 2023 trip sponsored by an organization affiliated with the Duong family.

Reports about the indictment whipped through Oakland’s close-knit and fractious political circles Thursday.

Would-be contenders to replace Thao in an April special election prompted by the recall decried it as a blow to their city.

Renia Webb, a former aide to Thao, said she testified before a federal grand jury on Dec. 12. She said she also had spoken with FBI agents about alleged corruption in the city. “I told many people,” she added. “No one wanted to listen.”

Webb declined to share a copy of her subpoena or reveal what she knew about any alleged crimes authorities might be investigating.

“My first reaction is devastation for Oakland,” said Loren Tayor, an engineer who represented East Oakland on the council for four years and lost to Thao in the 2022 mayoral race. “It’s unfortunate that we are back in the news for corruption.”

Former U.S. Rep. Barbara Lee, a prominent Democrat who represented the East Bay in Congress for more than two decades, has also announced her candidacy for mayor.

“The news of a potential criminal indictment is devastating for Oakland,” Lee said Thursday. “While every individual is entitled to constitutional protections and a presumption of innocence, this news and the recent recall election underscore the need for a fresh start in Oakland. Every Oaklander deserves a full understanding of the nature of these potential charges, and the parameters of any ongoing or future investigation.”