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Oakland corruption trial testimony details recordings, rent payments and alleged business ties
An FBI agent’s testimony in the federal trial of former Oakland Mayor Sheng Thao has brought thousands of pages of messages and recordings into evidence. Prosecutors say the materials support allegations of a campaign-support-for-favors deal; all four defendants deny wrongdoing.
OAKLAND — An FBI agent’s testimony in the federal corruption trial of former Mayor Sheng Thao has focused jurors on secretly recorded calls, the finances of Thao and her longtime partner, and questions about a job he held with a company founded by a recycling executive’s son.
Special Agent Katherine Barclay spent four days testifying about evidence collected during the investigation, including private text messages, digital files and audio recordings. Her testimony was scheduled to continue Tuesday, Oct. 27, with defense lawyers set to question her further.
Thao, her partner Andre Jones, California Waste Solutions executive David Duong and his son Andy Duong face federal bribery, conspiracy and fraud charges. Prosecutors allege they arranged to exchange campaign support for favorable treatment of the Duongs’ business interests, including a promised $300,000 bribe. All four have pleaded not guilty.
Among the recordings discussed in court were calls Andy Duong made with Thao and other public officials, many apparently without the other participants’ knowledge. Oakland City Councilmember Kevin Jenkins and Alameda County Supervisor Nikki Fortunato Bas, whose recorded conversations were identified in court, have not been accused of wrongdoing. Both are expected to be government witnesses.
In an April 2019 call, Thao told Andy Duong about a confidential City Council discussion concerning a legal dispute with his family’s company, California Waste Solutions. Oakland had sued the company in 2017, alleging it overcharged ratepayers; the company countersued over its contract. The dispute settled in 2021. California Waste Solutions agreed to pay ratepayers $6 million, while Oakland paid the company nearly $2 million and released it from commitments for waste studies and community outreach worth about $1.5 million.
During the call, Thao discussed council members’ questions about a possible refund and advised Duong to prepare with others for a meeting the next day. She also suggested they meet privately for lunch because, she said, they did not want to be seen together. In a separate call from September 2023, Thao told Duong he and his business partners would have to choose between backing her and supporting two council members. She criticized the other council members in profane terms.
Barclay also testified about electronic devices seized in FBI raids on June 20, 2024, at the homes of Thao and Jones, the Duongs’ homes and California Waste Solutions’ waterfront offices. Investigators found no references to Evolutionary Homes on Jones’ laptop, she said. Jones had said he worked as a government relations specialist for the housing startup, which Andy Duong founded with Mario Juarez, a former co-conspirator who became an informant. Jones’ defense has pointed to company presentations listing him as an employee and a note about business cards. Barclay said investigators did find evidence of Jones’ work for communications firm Kearns and West.
Texts between Thao and Jones also detailed financial strain. Messages showed Thao reminding Jones to pay rent, and their landlord eventually requiring cashier’s checks after late payments. In April 2022, Thao wrote that she could not cover the rent alone. In November 2023, she warned Jones that the household’s electricity bill was $3,000 and asked him to limit heating and lighting. In January 2024, she asked him to work out how they would pay rent; he replied that he would handle it.
Prosecutors noted that Jones deposited a check from Juarez the same day as that January exchange, suggesting the money may have helped cover household costs. On cross-examination, Thao’s attorney, Jeffrey Tsai, questioned whether her use of the word “how” referred only to the method of payment. Barclay said she did not know. Jones’ lawyer has argued that he sometimes forgot to move money into accounts used for bills, rather than lacking funds.
Barclay further testified that Juarez told investigators other local politicians had taken bribes. Under questioning, she said the government had not interviewed several current and former elected officials in Oakland, Berkeley and San Leandro, except for one who declined an interview. Those claims have not been substantiated, and the officials were not identified in court coverage. Defense attorneys have sought to undermine Juarez’s credibility, citing his history of alleged fraudulent conduct.
The trial continued Tuesday with cross-examination of Barclay by attorneys for Thao, Jones and the Duongs. Another FBI agent and Juarez were also slated to testify. The case could have significant consequences for public trust in Oakland government and for scrutiny of the city’s major waste and recycling contracts, but the allegations remain unproven unless established at trial.