Federal authorities on Friday accused former Oakland Mayor Sheng Tao, her longtime boyfriend, and the father-son team that ran a company that contracted recycling services for the city of bribes in an alleged widespread corruption scheme involving cash payments and campaigns. It was announced that he had been indicted on the charges. Postman in exchange for a city contract.

The federal charges come two months after Tao was recalled from public office amid growing voter frustration over crime, homelessness and a sense that the city government was not responding to the needs of its citizens. This was a radical turning point for Mr. Tao, who took office in January 2023. The press praised his path from homelessness to CEO, hailing him as the first Hmong American to lead a major American city.

The indictment was handed down by a grand jury in U.S. District Court in Oakland, filed on January 9, and unsealed on Friday. It indicts the Tao. her boyfriend, Andre Jones; Two local waste company executives, David Duong and his son Andy, committed bribery and collusion. Andy Duong was also charged with lying to federal officials.

The indictment alleges that in the weeks leading up to the fall 2022 Oakland mayoral election, Thao signed a contract with Cal, a recycling company run by the Duong family, in exchange for campaign emails targeting opponents and payments to her boyfriend. He said he promised to direct them to Waste Solutions. “No-show” jobs. Jones ultimately received $95,000, according to the indictment. Thao also claims that he promised the city of Oakland to buy modular housing for the homeless from the Duong family’s housing company and to appoint people of the Duong family’s choice to key city posts. .

According to local news, Tao pleaded not guilty at his arraignment on Friday and was released on $50,000 bail. Jones also pleaded not guilty.

“The mayor is innocent. She looks forward to the opportunity to defend herself in court,” said Tao’s attorney, Jeff Tsai. san francisco chronicle. “What is missing from this indictment is any real indication that the Mayor had any involvement in the scheme described by the government. We are very confident that we can exonerate the Mayor on these charges.” have.”

Andy Duong’s lawyer said in a statement Friday that the accusations against his client are “baseless,” calling them “nothing more than gossip and speculation strung together by fabrications and delusions of people who lack any fundamental credibility.” No,” he said. The statement said Mr. Duong is “the latest in a line of Asian Americans to be unfairly singled out and forced to pay the price for their courage in the political arena.”

David Duong also denied any wrongdoing.

The accusations stunned Oakland’s political class. Former U.S. Rep. Barbara Lee, who represented the East Bay city in Congress for more than 20 years and is currently running for mayor in a special election in April, issued a statement calling the allegations “devastating.” .

“We should never tolerate secret pay-to-play schemes that undermine public trust,” she said. “City Hall should never be for sale.”

rumors of corruption investigation Suspicions about Tao have been swirling for months after the FBI raided his home in June.

At the time, Tao said in a fiery press conference that he was not a target of the investigation.

“I want to be transparent. I did nothing wrong,” she said in a tearful speech days after FBI agents gathered at her home and left with the box. spoke. “I can say with confidence that this investigation is not about me.”

She also questioned the FBI’s tactics, saying, “If I had been rich, if I had gone to an elite private school, if I had grown up with money, none of this would have happened.” Ta.

On the same day that Thao’s home was searched, investigators executed warrants at Cal Waste Solutions’ Oakland office and the homes of David and Andy Duong. The company issued a statement at the time denying any involvement in any illegal activity.

Separate from the FBI investigation, the Oakland Public Ethics Commission and the state Fair Political Practices Commission say members of the Duong family used “straw donors” to circumvent donation limits and boost the campaigns of local elected officials. We are investigating the suspicion.

The 22-page indictment, unsealed on Friday, includes numerous text exchanges that purportedly describe the scheme, sometimes including self-corrected fraud.

According to the indictment, the alleged “Co-conspirator 1” told Andy Duong in October 2022, about a month before Thao was elected, “Mr. Shen called you $$. “I’m planning to come,” he wrote in a letter.

Mr. Duong is said to have replied: What money? ”

Co-conspirator 1 allegedly replied, “She needs it,” and added, “I said you guys are a committee.” A subsequent text message clearly stated, “Committed.”

In another series of text messages in late November 2022, after Tao’s election, the two discussed concerns that the scheme would be exposed, according to the indictment.

According to the indictment, Co-conspirator 1 wrote a letter to Duong saying, “So we might go to jail.” “But we’re $100 million richer.”

Andy Duong reportedly replied, “Money can buy everything.”