Sheng Tao's indictment by a federal grand jury comes two months after he was recalled as Oakland mayor — a blockbuster blow to a Bay Area city already plagued by residents' frustration with crime, homelessness and a perception that government is ineffective.
There was an allegation As reported by the San Francisco ChronicleIt cited an anonymous source and did not provide details of the allegations. The US attorney's office declined to comment on the report, but officials plan to announce “a significant law enforcement action” on Friday.
Thao took office as mayor in January 2023 amid a wave of glowing press detailing her rise from a homeless single mother to one of the country's most prominent Hmong elected officials. She was Recalled in November Fears about crime rocked his town, and restaurants like In-N-Out and Denny's closed local outlets, citing safety concerns.
Tao did not immediately respond to a request for comment.
Rumors a Corruption investigation Thao's involvement has been swirling since June, when the FBI raided his home just as supporters gathered enough signatures to qualify for the ballot.
On the same day Tao's home was searched, agents executed warrants at the Oakland office of Cal Waste Solutions, an Oakland recycling services provider. Agents also searched the homes of the company's chief executive, David Duong, and his son, Andy Duong, a purchasing agent in charge of the company's public relations. The company issued a statement at the time, expressing surprise at the raid and denying involvement in illegal activities.
Separate from the FBI investigation, the Oakland Public Ethics Commission and the state Fair Political Practices Commission are investigating allegations that members of the Duong family used “straw donors” to avoid donation limits and promote the campaigns of local public officials. Thao is one of the politicians who received funds from his family.
The Duongs have not been charged with any crimes and have denied illegal political contributions.
Last summer, Tao A Fiery news conference That she was not the target of the investigation.
“I want to be clear. I did nothing wrong,” she said in a tearful speech days after FBI agents came to her home and left with the boxes. “I can say with confidence that this investigation is not about me.”
At the time, he also questioned the FBI's tactics.
“If I had been rich, had gone to top private schools, or if I had come from money, this wouldn't have happened,” he said.
Federal officials have been tight-lipped about their investigation, but some indications are that it is wide-ranging. Radio station KQED reported This week the FBI raided the home of a city council member in nearby San Leandro on Wednesday who was traveling with Thao and others on a 2023 trip to Vietnam sponsored by an organization affiliated with the Duong family.
Reports of the indictment surfaced Thursday in Oakland's close and conflicted political circles.
Those seeking to replace Tao in April's special election denounced the recall as a blow to their city.
Renea Webb, Tao's former aide, testified before a federal grand jury on Dec. 12. He said he also spoke to FBI agents about alleged corruption in the city. “I told a lot of people,” he added. “No one wants to hear.”
Webb declined to share a copy of his subpoena or reveal what he knows about the crimes authorities are investigating.
“My first reaction was devastation for Oakland,” said Loren Dyer, who represented East Oakland on the council for four years and lost to Dao in the 2022 mayoral race. “It is unfortunate that we are back in the news for corruption.”
Former U.S. Representative Barbara Lee is a prominent Democrat who represented the East Bay in Congress for more than two decades. Also announced His candidacy for mayor.
“The news of a possible criminal indictment is devastating for Oakland,” Lee said Thursday. “While every individual is entitled to constitutional protections and the presumption of innocence, this news and the recent recall election underscore the need for a fresh start in Oakland. Every Oaklander deserves a full understanding of the nature of these potential charges and the parameters of any current or future investigation.