Here's what we know about the FBI raid on Oakland Mayor Sheng Thao
Raids on Thao's home, Oakland's recycling franchise, business group, point to rumored lurid junket to Vietnam last year
CITY NEWS
OAKLAND
—FBI RAID—The biggest news story in Oakland and Alameda County politics exploded early this morning. Here’s what we know about the FBI raid on Oakland Mayor Sheng Thao’s home.
FBI agents raided Thao’s home in the Lincoln Heights neighborhood in the Oakland Hills just prior to 6 a.m. this morning. Agents were seen carrying away boxes from Thao’s home. Thao was escorted out of the residence.
The IRS and U.S. Postal Service was also involved in the raid.
FBI agents also raided the home of Andy Duong, part owner of California Waste Solutions. The company is Oakland’s curbside recycling vendor. The Duongs and Thao are long-time political allies.
Raids were also made at Oakland City Hall, California Waste Solutions, and the Vietnamese American Business Association.
While the FBI confirmed the raid, no reason for the early morning operation was given.
Thao has made no public comment.
The raid comes two days after a bid to recall Thao from office was certified for a future election, likely in November.
—SPECULATION—The concurrent FBI raid on the home of Andy Duong, the president of California Waste Solutions, which holds Oakland’s recycling franchise, quickly connected the dots to several potential reasons for the early morning raids.
VIETNAM TRIP
—The July 2023 junket to Vietnam was a high-profile trip for Thao. The trip’s intent was to forge business connections in Vietnam and potential secure greater travel from Vietnam to the Oakland Airport.
—The trip was paid for by the Vietnamese American Business Association, a group backed by the Duongs and included a large delegation of Alameda County elected officials and Port of Oakland officials.
—Rumors about the 10-day trip to Vietnam have raged for more than six months and include lurid tales of public intoxication, drugs, and trips to massage parlors.
—Despite the large number of political insiders on the trip, confirming the rumors have been extremely difficult.
—If the Vietnam trip is a focus of the investigation, its scope could potentially expand to nearly every level of Alameda County government and San Leandro.
—Why San Leandro? One of the participants on the Vietnam trip was San Leandro Councilmember Bryan Azevedo. His inclusion on the trip seemed odd. San Leandro is not part of the Port of Oakland.
—But San Leandro’s garbage and recycling contracts are set to expire this year. California Waste Solutions was one of the companies interested in bidding for the contract.
—The Duongs courted Azevedo last year and donated to his 2022 mayoral campaign. The interactions between Azevedo and the Duongs worried San Leandro officials so much that a directive was approved by the city council that threatened to exclude potential bidders for the garbage contract from interacting with councilmembers.
—San Leandro’s new garbage and recycling contracts will likely be approved next month. California Waste Solutions is not part of the negotiations.
—California Waste Solutions have also contributed to the campaigns of Oakland City Council President Nikki Fortunato Bas and California Attorney General Rob Bonta.
—The involvement of the IRS and U.S. Postal Service in the raid could suggest false tax returns were filed and sent via the mail.
2016 RECYLCING CONTRACT
—A lawsuit filed by the East Bay Rental Housing Association in 2016 against the city of Oakland over the controversial contract given to California Waste Solutions, could be part of the investigation.
—The East Bay landlords group said the recycling company was charging excessive franchise fees, leading to the lawsuit.
—The California Waste Solutions contract was highly controversial. The company was given the lucrative contract without having infrastructure and equipment to do the job.
—A source with knowledge of the lawsuit, which was delayed by the pandemic, said the group had recently become suspicious about the city’s repeated attempts at blocking discovery in the case. The sense was the city is hiding something important, according to the source.
