By Frank Parlato
OAKLAND, Calif. — On Jan. 17, 2025, federal prosecutors unsealed their indictment. The indictment charged the former mayor, Sheng Thao, her boyfriend, Andre Jones and recycling executives David and Andy Duong. There were eight counts. They included conspiracy, bribery, and fraud.
Prosecutors said campaign mailers were sent to voters. They said a no-show job was arranged for the boyfriend. The indictment alleged the mayor promised city contracts in return.
The FBI raid made the investigation public. Six days after the recall-the-mayor petition qualified for the ballot, agents raided the mayor’s home. Media were present.
The recall was backed by a hedge fund executive. His firm had invested heavily in coal. The mayor had opposed coal exports through the Port of Oakland. The mayor lost the recall election and left office before the indictment was unsealed.
One defendant, David Duong, is a Vietnamese refugee who built a successful business in America. He had supported Democrats for years. In the past few years, he had donated $250,000 to Donald Trump. The indictment was unsealed on the final day of the Biden administration.
If convicted, the defendants face more than twenty years in federal prison.
The government’s case rests almost entirely on one witness. The government’s cooperating witness is Mario Juarez. Federal prosecutors granted him full immunity.
TEXTS CITED IN THE INDICTMENT
Text messages cited in the indictment alleging bribery originated from the cooperating witness, Mario Juarez. The indictment includes the following exchange dated Oct. 7, 2022:
(The cooperator) Juarez:
“Meet with Sheng She will buy 100 units if mayor”
“Guarantee”
“$30 million contract for 100 units”
“$300k contract”
Defendant Andy Duong:
“What money?”
“Are you sure?”
Juarez:“Pretty certain 110 percent”
The indictment cites another text exchange dated Nov. 18, 2022.
Juarez:
“So we may go to jail… but we are $100 million dollars richer.”
Andy Duong:
“Money buys everything.”
Juarez:
“You are right!… Plus we have a 10 year extension to [Recycling Company].”
The indictment further alleges that on March 26, 2023, Juarez sent Andy Duong an Apple Note titled “Deal Points for Sheng Thao.” The document lists proposed payments, contracts, and appointments.
The indictment includes the following text exchange, on March 26, 2023:
Andy Duong:
“Am I missing something?”
Juarez:
“We are missing communications assignments.”
Andy:
“Not missing”
“All right”
Juarez:
“Should we share with David (Duong)?”
Andy:
“We go hear first … Then share after … David knows already … We share to him numerous times.”
The prosecution says that this exchange demonstrates that David Duong, Andy’s father, had prior knowledge of the alleged bribery scheme. But it is ambiguous. First, Andy says we will share after they hear, then says they have shared with David numerous times.
In the texts cited in the indictment, Juarez initiates each exchange.
He texts about his October 7th meeting with the mayor, of which he is the sole witness. He texts about the “deal.” He texts about payments to the mayor’s boyfriend, Andre Jones. He texts draft letters and contracts. He texts deal summaries.
At the time Juarez agreed to cooperate with the FBI, the Alameda District Attorney had charged him with felony bad check fraud. He had written checks totaling $53,000 for campaign mailers that were returned for nonpayment. He was also under investigation for mortgage fraud totaling more than $3 million. Prosecutors granted Juarez immunity after he agreed to cooperate; the felony bad-check charge was dropped following the indictment. The mortgage fraud investigation halted.
“The Deal is the Deal”
The indictment cites a board meeting held on Nov. 28, 2023. It was a meeting of Evolutionary Homes, the company owned by the Duongs in partnership with Juarez, that made modular homes for the homeless.
During the meeting, which was recorded, Juarez asked David Duong whether the mayor had promised to buy housing units.
David said she was not ready to buy yet. She wanted proof of concept. Another municipality to purchase units first.
Juarez said that was not the deal.
David pushed back. He said deals do not include promises that lead to prison.
David:
“The deal is the deal, but—
“It’s not because I promise you, so yeah, I will go to jail for this. You know that. People don’t promise and die because of their promise.”
David said he asked the mayor to have the City Administrator tour the facility. He said she agreed.
David:
“That means she has that input. She has control.”
The government offered the recording as evidence of a criminal conspiracy. But when you listen closely, it tells a different story. David is careful. Measured. He draws a line and refuses to cross it. There is no deal, no agreement. Instead of proving conspiracy, the recording shows something far more inconvenient for the prosecution: A man saying no.
The Relationship Sours
By May 2024, Juarez’s business relationship with the Duongs had ended. According to filings and public records, Juarez had been paid about one million dollars to deliver fifty housing units. He had delivered only two units. Juarez owed workers in Mexico $33,000 for work performed on the two units he had delivered. He had not paid them. He requested that the Duongs cover the debt.
They refused.
On May 3, 2024, Juarez went to the Duongs’ office. He was reportedly armed. He demanded money. According to the Duongs, Juarez said cartel associates were surrounding the building.
According to Juarez, the Duongs’ associates assaulted him. He said they robbed him of his jewelry and an expensive watch. He said he was beaten.
At this time, Juarez was still facing an indictment for felony bad check fraud and faced possible criminal charges for mortgage fraud.
The Deal Is the Deal – with the FBI
A month later, Juarez met with the FBI. He had 18 months of text messages with Andy Duong. In them, Juarez writes about “deals.” He wrote about “payments.” He wrote about “promised contracts.”
Juarez wrote the messages. He initiated them. The responses by Andy Duong did not repeat the language.
Juarez told the FBI he had been part of a bribery scheme. He had texts and documents. He offered to cooperate.
After that, Juarez no longer faced prison.
Others did.
He was a cooperating witness with immunity. Juarez faced more than $3 million in fraud exposure. That case ended.
The alleged bribes totaled $170,000.
The people who lost that money would not recover it. The smaller case moved forward.
The exchange was formalized through cooperation. The FBI handled the terms.
Part 2…
