Key witness Mario Juarez has told a federal jury that former Oakland mayor Sheng Thao was selected as a candidate because she was expected to favour the business interests of a recycling company and a housing venture if elected.
Giving evidence on Friday, October 30, in Thao’s corruption trial, the political operative described an alleged pay-to-play arrangement involving Thao, her longtime partner Andre Jones, and businessmen David Duong and his son Andy Duong.
Juarez, who has pleaded guilty to taking part in the alleged bribery conspiracy, said he had built relationships with Thao and the Duong family over several years. He told jurors that the group believed she would “deliver for us if elected as mayor, someone that we could trust to do the things for us”.
Alleged election deal
The Duongs run California Waste Solutions, Oakland’s recycling contractor, and were involved in Evolutionary Homes, a company that proposed selling homes made from shipping containers for people experiencing homelessness.
Juarez said the Duongs secretly provided $75,000 for negative campaign mailers during the 2022 mayoral contest, including one featuring a doctored image of Loren Taylor, whom Thao narrowly defeated.
Prosecutors allege the campaign support was exchanged for commitments to extend California Waste Solutions’ city contract and persuade Oakland to buy units from Evolutionary Homes. They also claim Thao agreed to help influence senior appointments at City Hall.
Juarez told the court that Thao later sought $300,000, with the money to be channelled through Jones under the guise of a job that required no work. Federal prosecutors say the proposed arrangement was intended to conceal payments to Thao and Jones.
The indictment alleges that Jones ultimately received $95,000 in payments, while the campaign mailers cost about $75,000. It also accuses the defendants of discussing a larger arrangement linked to the possible sale of hundreds of housing units.
After Thao’s election appeared certain, Juarez said he messaged Andy Duong: “So we may go to jail, but we are a hundred million dollars richer.”
According to Juarez, Duong replied: “Money buys everything.” Juarez told jurors he was making light of what he believed was a crime involving the financing of Thao’s election campaign.
Witness faces credibility challenge
Juarez’s evidence is expected to be central to the prosecution’s case, but his credibility has already been challenged by the defence. His lawyers have highlighted his history of business disputes and alleged fraud, while prosecutors have acknowledged that he is “no angel”.
Assistant US attorney Abraham Fine told the jury that Juarez’s account would be supported by text messages, recordings, emails and other evidence gathered during the investigation. Thao’s lawyer, Jeff Tsai, has denied that she agreed to any bribe or deal involving housing units.
All four defendants have pleaded not guilty. The defence is expected to subject Juarez to sustained cross-examination when the trial resumes on Thursday.
