By Frank Parlato
On January 17, 2025, the final day of the Biden administration, federal prosecutors unsealed an eight-count indictment charging former Oakland Mayor Sheng Thao; her partner, Andre Jones; recycling executive David Trung Duong; and Duong’s son, Andy Hung Duong, with conspiracy to commit bribery, substantive bribery offenses, and wire and mail fraud.
Prosecutors allege that David Duong, whose company, California Waste Solutions, provides recycling services to 1.4 million residential and commercial customers in Oakland and San Jose, bribed Thao both before and after her election, issuing payments totaling approximately $170,000.
Despite the relatively modest dollar figure involved, the investigation has mobilized extensive federal resources, including the FBI, IRS Criminal Investigation, U.S. Postal Inspection Service, the DOJ’s Public Integrity Section, senior officials in Washington, D.C., and the U.S. Attorney’s Office for the Northern District of California.
Prosecutors Outline Alleged Quid Pro Quo
The government alleges that the $170,000 in bribe payments were divided into two parts: $75,000 for campaign mailers, and $95,000 paid to Thao’s boyfriend, Andre Jones, in connection with what prosecutors describe as a no-show job.
According to prosecutors, in exchange for the alleged bribe, Mayor Thao agreed to assist David Duong in securing a 10-year extension of his company’s recycling contract with the City of Oakland, facilitate the city’s purchase of modular housing units from Duong’s business, and support the appointment of individuals favored by Duong to positions within city hall.
None of the alleged quid pro quo actions linked to the bribe ever materialized—possibly because, under Oakland law, the mayor lacked the authority to carry them out.
According to the city charter, the mayor holds no independent spending power. All major expenditures and contracts—including those involving modular housing purchases or the extension of recycling contracts—require approval from a majority of the eight-member city council. The mayor does not vote, even in the event of a tie.
‘Evidence’ Comes From Cooperating Witness
The government’s case of a $170,000 bribe where nothing was delivered in return hinges entirely on Mario Roberto Juarez, identified as “Coconspirator #1” in the indictment.
Juarez allegedly proposed the original bribery arrangement to Sheng Thao at a fundraiser on October 11, 2022.
According to the indictment, no recordings or third-party witnesses exist from the meeting. Juarez is the sole source of the bribe’s inception and its terms.
Prosecutors allege that businessman David Duong provided $75,000 to Juarez to fund campaign mailers supporting Thao’s mayoral bid. Records show that Duong never paid for mailers. Nobody did.
Butterfly Direct Marketing printed and mailed 120,000 negative attack mailers targeting Thao’s opponents in October 2022—under Juarez’s direction—just days before the election.
Juarez, not Duong, issued $53,000 in checks to Butterfly Direct Marketing. On the same day, Juarez withdrew $32,500 from his account, leaving just $215. The checks bounced.
Samari Johnson, the owner of Butterfly Direct Marketing, filed a criminal complaint, stating that Juarez defrauded him. This indirectly was the genesis of the sprawling federal investigation and indictment of four individuals for bribery.
On January 23, 2024, the Alameda County District Attorney charged Juarez with felony check fraud. The state charges were dismissed following the January 2025 federal indictment of the Duongs, Thao and Jones.
DOJ Claims $95,000 to Jones Benefited Thao
According to the federal indictment, the second portion of the alleged bribery payments occurred in 2023, after Thao was elected.
The indictment concedes that Mario Juarez paid most of a $95,000 sum to the mayor’s boyfriend, Andre Jones. Jaurez is the sole source of the narrative that these payments were part of the bribe scheme he originally claims he proposed.
David Duong wrote one check to Jones—for $35,000 – at Jaurez’s behest. While Jaurez claims that it was bribe money, Duong’s records – referenced in the indictment – show the money was an advance on commissions to Jones.
Before issuing the $35,000 payment, Duong required Jones to execute an independent contractor agreement. The indictment acknowledges that the agreement included commission memos, compensation schedules, and defined performance conditions.
Prosecutors allege that Duong’s $35,000 payment was made pursuant to a written consulting contract that provided for base compensation tied to successful performance, with additional bonuses per modular unit sold above a specified price. They say that this was corrupt because the fix was in since Jones’ girlfriend, the mayor, already corruptly agreed to have the City of Oakland buy the modular homes and therefore Jones had to do nothing to collect his commissions.
Jones however received no further payments because no modular homes were purchased.
Despite the lack of completion of any promises made in the alleged bribe, federal prosecutors contend that Mayor Thao personally benefited from the money paid to her boyfriend, Jones.
According to the indictment, Thao had previously either split or paid the entirety of the rent while living with Jones. Beginning in January 2023—after Jones began receiving payments —he began contributing more, either covering or splitting rent and paying a greater share of household expenses, including utilities and phone bills.
Alleged Quid Pro Quo Never Came to Fruition
Ultimately, the two alleged financial promises that Mayor Thao was to deliver resulted in nothing.
Not only did Oakland not purchase any modular housing units, Duong’s recycling contract was not extended.
The recycling contract between the City of Oakland and Duong’s company, California Waste Solutions, was signed in 2014—nine years before Mayor Sheng Thao took office. It is a 20-year agreement that remains in effect and is set to expire in 2034. The contract was executed during the Obama administration and remained unchanged throughout Thao’s tenure.
Prosecutors allege that, as part of the bribery scheme, Mayor Thao promised to appoint individuals aligned with David Duong to leadership positions within City Hall. The indictment only names one such individual, who did not get the job, possibly because the mayor does not have authority to hire anyone unilaterally.
Under Oakland’s city charter, hiring authority for most city departments rests with the City Administrator. The mayor may only appoint the Police Chief and the City Administrator—both subject to confirmation by the City Council.
The indictment alleges that, as mayor, Sheng Thao sought to promote longtime City Hall employee Larry Gallegos to the position of Director of Housing and Community Development to benefit David Duong. There were no other hiring efforts cited in the indictment.
In early 2023, Mayor Thao inquired about Gallegos’s promotion with Interim City Administrator Harold Duffey. Duffey opposed the appointment and selected Emily Weinstein to serve as director instead.
Gallegos briefly served as Weinstein’s deputy before being reassigned.
Juarez at the Center of the Narrative
According to the indictment, every major act—the messages, the meetings, the proposed appointments, the housing proposals, the flow of money—originates with him. Juarez is the one who filtered all communication between Thao and Duong. He narrates the alleged agreement. He claims the favors were promised.
Juarez is not just central to the case—he is the case. Every action tied to the alleged bribery is either performed by Juarez or described by him.
The indictment includes texts sent by Juarez. It does not include a single message from Thao confirming any agreement. The prosecution’s theory hinges entirely on what Juarez says Thao did—yet Juarez is the only one not charged.
For example, the indictment alleges that at a dinner on March 9, 2023, Sheng Thao, Andre Jones, David and Andy Duong, and Mario Juarez discussed increasing the alleged bribe to $3 million if the City of Oakland agreed to purchase 300 modular housing units. Thao allegedly proposed invoking emergency powers to bypass the city’s competitive bidding process.
In reality, Oakland never purchased any modular housing units. Emergency powers were never used. And the meeting was not recorded. The entire episode relies on Jaurez’s version of events.
The Modular Housing Idea Began With Juarez
Before any alleged bribe was discussed, the modular housing idea began as a business pitch from Juarez.
In 2022, Juarez approached the Duong family with the idea of building homes out of revamped shipping containers for the homeless. In September 2022, David and Andy Duong, along with Juarez, formed Evolutionary Homes LLC. Juarez held a 20% stake; the Duongs held the majority. They paid Juarez $1 million to construct 50 modular housing units in Mexico and ship them to California.
Juarez began by producing two model units which were delivered to Duong’s offices to show to officials.
Over the following year, Andy Duong and Mario Juarez pitched their modular housing concept to officials in Alameda County, Santa Clara County, and the City of Oakland—including Mayor Thao.
The company received no contracts, no funding, and no formal commitments. Jaurez used the million for various purposes but did not build the other 48 units he contracted to build.
Contract Breach and Missing Modular Homes
On May 3, 2024, Juarez visited Duong’s office seeking funds to pay workers in Mexico. He confronted David and Andy Duong who held he was in breach of contract.
Jaurez said he needed more money to pay six workers in Tijuana a combined total of $33,000 for the work they had already done.
The Duongs refused to release any additional money.
The dispute turned hostile. The subsequent police report contains conflicting accounts.
The Duongs said that Jaurez, who carried a pistol, claimed that he had “cartel” associates stationed around the recycling headquarters and that the Duong’s must pay him.
Juarez claimed that associates of the Duongs “brutally attacked” him and robbed him of valuables, including a high-end watch, heirloom jewelry, cash, documents, and multiple phones.
No arrests were made.
Juarez registered a new business entity just three days later to market his own modular housing units.
On June 3, 2024, he texted Oakland City Administrator Jestin Johnson, seeking support for his project. The message included pointed language implying that Johnson’s cooperation—or lack thereof—would reflect directly on his leadership. Juarez followed up with a second message invoking Johnson’s family’s well-being that could be interpreted as veiled pressure.
Weeks later, after receiving no reply, he texted again: “Jestin – you left me on seen. Good morning.”
A Shooting Outside Juarez’s Home
A few days later, on June 9, 2024, Juarez claimed he was the victim of an attempted drive-by shooting outside his home. He told police he believed he was targeted because of a case in which he was involved but declined to explain what case. It is unclear if he told police he was now cooperating with federal agents on an investigation into an alleged bribe he admitted he had conceived.
As for the drive by, ShotSpotter data recorded three separate gun-fire incidents within twenty minutes, involving two vehicles with obscured plates and a brick hurled through a windshield. Juarez stated one car’s occupant fired nine rounds at him; he returned four. No one was injured. Investigators have not verified whether Juarez was the intended target—or he initiated a confrontation by shooting at others. Despite the hail of bullets, every shot missed, leaving only shattered glass and Juarez’s assertion that assassins came twice and departed twice without success.
No arrests were made.
Immunity Secured, Raids Begin
By June 2024, Juarez had made a deal with federal authorities.
Less than two weeks after the alleged shooting incident, federal agents raided the homes of David and Andy Duong, the offices of their recycling company, and Mayor Thao’s residence.
News of the FBI investigation quickly became public. The raids effectively ended Mayor Thao’s political career. Seven months later, indictments were issued against all of those alleged to be part of the bribe – except Juarez.
Local Charges Also Disappear
Juarez was in the clear not only in the federal case he had essentially created, but he also escaped prosecution at the state level. The felony counts filed against him by Alameda County prosecutors in January 2024 were dismissed.
Those charges originally arose from bounced checks used to fund mailers attacking Mayor Thao’s political rivals during the 2022 mayoral campaign—an episode that later evolved into the federal bribery probe.
Meanwhile, a separate inquiry into Juarez’s other business dealings had continued for a time. Jaurez’s cooperation with the feds ultimately halted County Investigator David Bettencourt’s work to uncover evidence of Jaurez’s mortgage fraud.
State Charges Against Juarez Dismissed
After the federal indictment of the Duongs, Thao, and Jones —and with Juarez now cooperating with federal authorities—the Alameda County District Attorney requested, and Superior Court Judge Thomas Reardon granted, dismissal of the state fraud case against Juarez, effectively ending the mortgage-fraud investigation into Juarez.
When the county felony case was dismissed, Juarez wrote that this was “not just a legal victory — it is a victory for truth, fairness, and the resilience of the human spirit against corruption and abuse of power.”
The dismissal effectively ended Butterfly Direct Marketing’s ability to recover the funds from Juarez’s bounced checks. Butterfly’s owner, Samari Johnson, had urged the judge not to dismiss the case. He explained that Juarez had written checks to pay for the campaign mailers, but they bounced—leaving Johnson with unpaid bills he could not cover.
The Chen Complaint
The dismissal also effectively ended the Alameda County District Attorney’s investigation into a separate complaint filed by Stewart Chen, who accused Juarez of defrauding him out of $230,000.
Chen, head of the Oakland Chinatown Improvement Council, alleged that Juarez provided him with collateral—two adjoining parcels at East 12th and High Streets in Oakland—that had already been pledged on another loan.
According to Chen, after he filed the complaint, Juarez retaliated by confronting Chen’s wife at her workplace and accusing Chen of soliciting prostitutes.
A $3 Million Loan and No Repayment
The dismissal also eliminated any potential criminal penalties related to Juarez’s conduct in a separate loan from Jack Cohen of Balboa LLC. Cohen told county investigators that Juarez failed to repay a $3 million loan tied to a proposed 2021 development on the same properties he subsequently pledged to Stewart Chen.
County Investigator Bettencourt reported that Juarez had falsely claimed to have more than $400,000 in a bank account at the time he induced Cohen to issue the loan.
After Cohen loaned Juarez $3 million, Juarez failed to make payments. According to Cohen, Juarez became threatening when confronted about the unpaid debt. In December 2022, Balboa LLC foreclosed on the High Street and East 12th Street properties—taking them from Juarez and consequently leaving Stewart Chen without collateral for his $230,000 loan, which remains unpaid.
Juarez: The Linchpin Witness
As the government’s key witness, Juarez is expected to testify to the existence and terms of the alleged bribery scheme. He is not just a participant; he is the architect. Juarez drafted every “deal sheet,” made most of the payments – and Duong’s alleged payment in the bribe were potentially monies he paid Jaurez to build modular homes but which Jaurez claimed was money for bribe payments.
Jaurez serves as the sole narrator of the promises he claims were made.
Federal prosecutors have acknowledged that there are no wiretaps or third-party corroboration. The case rests on Juarez’s version of events—and on the text messages he sent.
Given the absence of recordings or witnesses, the most pivotal moment in the government’s narrative hinges entirely on Juarez’s word. The so-called bribery agreement, allegedly finalized at a fundraiser, exists only in Juarez’s account. It is Juarez—not Thao—who guarantees outcomes and speaks in absolutes.
Without Juarez, there is no direct evidence of an agreement, no confirmation of intent, and no voice to connect the defendants to the alleged scheme.
While the federal government succeeded in getting the mortgage fraud and bad check charges against Juarez—totaling more than $3.3 million—dismissed, it is far from out of the woods.
To secure a conviction on the alleged $170,000 bribery scheme, prosecutors must work carefully to prevent Juarez’s prior conduct from entering the case and undermining his credibility.
Juarez’s public record is extensive—and potentially damaging. And dates long before he met the Duongs.
A Public Record Fraught with Allegations
Public records indicate that Mario Juarez, once married with two children, operated a debt collection agency in San Leandro. Court filings allege he withheld funds from clients and failed to pay settlements. His marriage dissolved amid serious allegations of domestic abuse, including photographic evidence submitted by his ex-wife. He later lost custody of his son. In 2002, a business partner sued him for fraud following the collapse of a second collection agency.
In 2002, Mario Juarez filed for bankruptcy, with creditors claiming nearly $679,000 in debt against approximately $309,000 in assets—primarily his home. At the time, he was delinquent on child support and facing foreclosure.
In 2006, the Oakland City Council ordered Mario Juarez to repay $32,000 in restitution for fraud related to a city bill collection contract.
In 2012, Juarez was accused by multiple former business partners of failing to repay more than $230,000 in private investments tied to a proposed biodiesel plant and a sports bar.
In 2015, the State of California revoked Juarez’s real estate license reportedly for fraud.
In 2016, he pleaded no contest to felony grand theft for diverting rental payments while acting as a middleman between a landlord and tenant. He avoided incarceration through a court-approved diversion program.
Despite this extensive public record, none of Juarez’s past legal or financial troubles prevented him from becoming the government’s central witness.
Duong Moves to Trump
On January 17, 2025, the defendants—David Duong, his son Andy, former Mayor Sheng Thao, and her boyfriend Andre Jones—were arraigned in federal court and pleaded not guilty.
After his arraignment, David Duong was placed under travel restrictions by Judge Yvonne Gonzalez Rogers—an Obama appointee—except for one notable exception: permission to attend the inauguration of President Donald Trump.
A former Democratic donor, and once a supporter of Biden, Duong endorsed Trump in 2016 – making him unpopular with many in Democratic circles. In 2020, he again ran afoul of the Biden supporters when Duong contributed over $250,000 to the Trump Victory PAC.
In 2022, he donated an additional $155,000 to a Republican committee supporting congressional candidates.
Prior to backing Trump, Duong had supported Barack Obama, Hillary Clinton, Biden and other Democratic campaigns.
And then – on the final day of President Biden’s administration—the Department of Justice unsealed its indictment, and a federal judge appointed during the Obama era granted David Duong permission to attend the inauguration of Trump.
The trial will proceed, Juarez will take the stand, and twelve jurors will be asked to decide where credibility ends and reasonable doubt begins.
To be continued…
