Former Oakland Mayor Sheng Thao was indicted Thursday by a federal grand jury, following an FBI corruption investigation that focused on City Hall and the Duong family, operators of the city’s curbside recycling program, according to a source familiar with the matter.
Former Oakland Mayor Sheng Thao has been criminally indicted following an FBI corruption investigation pic.twitter.com/AtKysfwHzU
— BAY AREA STATE OF MIND (@YayAreaNews) January 16, 2025
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The indictment was reported just one day before federal officials are set to provide more details on what they described as a “major law enforcement action.”
While federal officials and spokespeople for the U.S. Attorney’s Office and the FBI declined to comment, the source indicated that Thao was indicted along with others whose identities have not been disclosed.
Just In,
Another Democrat,
Former Oakland DEI Mayor Sheng Thao has been criminally indicted by a grand jury on corruption charges,
In 2024, Madam DEI became the first Mayor in Oakland’s history to be recalled, following a surge in crime, murder and homelessness. pic.twitter.com/JuY3EkWv0J
— RealRobert (@Real_RobN) January 16, 2025
The former mayor was recalled by Oakland voters in November 2024.
The indictment follows months of scrutiny involving Thao, whose rise in Bay Area politics once symbolized a new era of leadership.
Thao was the first Hmong American to serve as mayor of a major U.S. city.
She was elected to Oakland’s City Council in 2018 and later became mayor in 2022, narrowly defeating Loren Taylor by fewer than 700 votes.
The corruption investigation gained public attention in June 2024 when the FBI raided Thao’s home just two days after a recall petition against her was certified.
The raid was part of a broader investigation that also targeted properties linked to the Duong family, which operates California Waste Solutions, a company holding Oakland’s recycling contract.
Federal agents reportedly seized phones belonging to Thao and her partner during the search.
Documents later revealed that a federal grand jury subpoena demanded records related to Jones, as well as communications involving Thao and members of Evolutionary Homes, a venture tied to the Duong family.
Evolutionary Homes sought $90 million in city funding for a project to build 300 tiny homes for the unhoused.
Thao was shown to have advocated for the project, which was spearheaded by some of her key campaign supporters.
Evolutionary Homes was incorporated in California in September 2022, with ties to David Duong’s family.
Juarez, a political operative who supported Thao’s campaign, allegedly funded an independent expenditure campaign that spent over $100,000 attacking Thao’s opponents. Juarez was later charged with passing more than $50,000 in bad checks meant to cover campaign expenses.
Emails and documents released by the city of Oakland showed Thao’s direct involvement in supporting the Evolutionary Homes project.
The venture ultimately collapsed, but its connections to Thao and her campaign have remained a focal point of federal investigators.
The investigation extends beyond Thao and includes other East Bay officials.
Earlier this week, federal agents raided the home of San Leandro Council Member Bryan Azevedo, who also has ties to the Duong family.
Azevedo and Thao were part of a 2023 delegation of East Bay officials who traveled to Vietnam on a trip sponsored by the Vietnamese American Business Association, led by David Duong. Azevedo has denied any wrongdoing.
“I didn’t do nothing wrong. They’re trying to connect me with Sheng Thao, but no, I have nothing to do with her,” Azevedo told reporters after the FBI raid.
Thao’s term as mayor was marked by controversy, including her decision to fire Oakland Police Chief LeRonne Armstrong, which left the city without a permanent police chief for nearly a year.
Critics blamed her for rising crime, and her political standing diminished amid the corruption investigation.
Thao has maintained her innocence throughout the probe, stating in a prior interview that the FBI’s actions constituted “complete overreach.”
She claimed agents told her attorney she was not the target of the investigation.
Federal officials are expected to provide further details on Friday regarding the charges against Thao and others involved in the case.
The developments mark a dramatic turn for Oakland politics and raise ongoing questions about the intersection of governance and ethics in the city.
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