'So we may go to jail… But we are $100 million dollars richer'
Scandal in the East Bay: The anxiety that riddled Thao’s campaign over the likelihood of losing the election, shifted to extra hubris after her come-from-behind victory
—CHAPTER 2—When it became clear that Sheng Thao would become Oakland’s mayor-elect in late November 2022, “co-conspirator 1” and Andy Duong reveled in the come-from-behind victory.
“So we may go to jail… But we are $100 million dollars richer,” “co-conspirator 1” texted Duong, who replied, “Money buys everything.”
Internal polling had showed Thao likely losing the mayoral election. Thao would finish second in first-place votes to Loren Taylor, but win the election by 677 votes after ranked choice voting tabulations were applied.
Just over one month after Election Day, they met across city limits at a Korean fried chicken chain restaurant in San Leandro where wings bathed in spicy BBQ sauce will set you back about $19.
It was here at this modest location across from a Pet Food Express and a stone’s throw from IHOP that payments from the Duongs to Thao’s boyfriend, Andre Jones, were discussed in order to move along the bribery scheme laid out by the FBI in a indictment handed down on Jan. 18.
“During this meeting, Thao and Jones requested that Andy Duong and “co-conspirator 1” begin making payments to Jones, according to the indictment. Payments to Jones had been flowing in increments of between $2,500 and $5,000 to his bank account since early December 2022, in addition to $20,000 loan, according to the indictment.
Three months later, in March 2023, Thao, Jones; along with David Duong and Andy Duong, the owners of California Waste Solutions, Oakland’s recycling franchise holder, met again, albeit, at a fancier dining establishment overlooking the bay in Berkeley.
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The anxiety that riddled Thao, her campaign, and associates over the likelihood of losing the mayoral election, along with the desperation that pushed them to entering the alleged bribery scheme with the Duongs, had quickly morphed into extreme hubris.
On March 9, 2023, Thao laid out new terms to the Duongs and “co-conspirator 1.” The compensation for Jones’s previously agreed “no-show job,” was about to increase substantially, according to the indictment.
Instead of the $300,000 payout to Thao and Jones prior to the election, she asked that Jones receive $3 million if the city of Oakland purchased 300 container homes from the Duongs, according to the indictment. Thao also proposed using emergency powers to quicken the pace of getting the container homes approved.
Months later, San Leandro Councilmembers Bryan Azevedo and Victor Aguilar, Jr. brought Evolutionary Homes’ to the attention of their city staff. According to city emails, associates linked to Thao lobbied San Leandro staff for enacting similar emergency powers to move along the purchase and installation of the container homes.
Last month, federal authorities charged Azevedo with felony wire fraud and lying to the FBI in connection to the push bring Evolutionary Hones to San Leandro. Federal authorities alleged that Azevedo opened an LLC and related bank account and accepted $2,000 from Andy Duong. Aguilar, Jr.’s role has been explained and he does not appear to be a subject of the investigation.
Thao, the single mother who was once sleeping in her car just to survive had raised herself up from a city staffer to councilmember and now mayor of Oakland, and all by the age of 34. Despite the naysayers, Thao had reached the pinnacle in local politics.
She appeared destined to be an icon of youthful female power. The local, state, and national media fawned over Thao. Photo shoots of the new mayor produced glossy images conveying strength and confidence. When news of the indictments against her broke on Jan. 18 those same photos accompanied the bad news, giving them new meaning—cunning and deceit.
In addition to cash payments to Thao and Jones, the deal also required Thao to place an existing city employee favored by the Duongs to become the director of Housing and Community Development, according to the indictment.
The city employee was expected to help grease the skids for the city’s purchase of 300 container homes, in addition to supporting the Duong’s recycling company, California Waste Solutions.
The city employee later identified in the media as Larry Gallegos would become interim deputy director of Housing and Community Development on March 10, 2023, according to the indictment.
Gallegos abruptly resigned on Jan. 18, the same day the FBI announced indictments against Thao, Jones, David Duong and Andy Duong. The indictments do not name Gallegos and do not suggest any wrongdoing on his part.
At the same time Thao asked the Duongs for $3 million to further the bribery scheme on March 9, 2023, she was also in deep negotiations to complete the massive Howard Terminal ballpark proposal with A’s owner John Fisher.
Almost one month after Thao allegedly dictated new terms of a deal that could net her and Jones up to $3 million from the proceeds of container homes in Oakland, Fisher abruptly pulled the plug on the ballpark deal. Curiously, the city and Fisher were reportedly only $36 million apart on a deal valued at $12 billion.
“It is clear to me that the A’s have no intention of staying in Oakland and have simply been using this process to try to extract a better deal out of Las Vegas,” Thao said after the A’s announced they would focus exclusively on building a ballpark in the desert.
Like Fisher in Las Vegas, Thao succeeded in extracting a better deal with the Duongs and Evolutionary Homes. However, by year’s end, Thao began having cold feet about the deal.
(This article previously appeared in a February edition of the East Bay Insiders Newsletter.)
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