Investigators with the FBI claim that Sheng Thao, the Democratic Mayor of Oakland, California, received political donations from the owner of a brothel that is suspected to be connected to a sex trafficking ring. This follows the federal government’s raid on Thao’s home two weeks ago, as well as the homes of two individuals involved with an ostensible waste management company and the company headquarters itself.
Andy Duong, a California business owner, used a karaoke bar that had been converted into a brothel to launder campaign donations to Thao along with other city leaders, according to the investigators. Andy’s home was raided in connection with Thao and a waste management company his relatives founded, as mentioned in the last report.
The Duongs’ company, California Waste Solutions, is said to serve as the cycling contractor for the city of Oakland, but it is unclear if this business is merely a front for criminal activity. Andy is accused of ordering individuals to hand out $18,000 to political candidates from 2016 to 2018, according to court documents. Critics suspect Thao could have been bought off by sex traffickers to allow their criminal activity to continue uninterrupted.
BREAKING: FBI raid on Oakland Mayor Sheng Thao reveals Oakland Government Officials allegedly received donations laundered through a sex trafficking drug ring. pic.twitter.com/FApgDLOn7w
— BAY AREA STATE OF MIND (@YayAreaNews) July 1, 2024
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In 2018, three people were arrested at the brothel in a sting operation, including a former manager who is believed to be one of the middle-men that carried out Duong’s political donation scheme.
A representative for the Duong family told ABC7 that the family members are “good citizens who always obey the law.” Thao publicly denied the accusations during a press conference last week.
A 2021 court filing regarding an investigation into Duong and an affiliate was uncovered by news outlet Oaklandside over the weekend. It reads:
“The straw donors made their donations at the behest of the scheme’s authors and were reported as the true donors on public campaign finance filings but were surreptitiously reimbursed for their contributions
…
The authors of this scheme engaged in this activity in a deliberate effort to circumvent various restrictions on the true source and amount of campaign donations.”
The city of Oakland prohibits contractors from making political donations. Charlie Ngo, the former manager of the karaoke bar, was arrested during the brothel raid. He donated over $5,000 to political campaigns around 2018, including to Thao’s city council run, despite not having such sums in his bank account.
As Valuetainment previously reported, the home of Thao was raided by the FBI on the morning of Thursday, June 20th, according to the Department of Justice as well as local news crews. A neighbor told POLITICO that FBI agents were “banging” on Thao’s door around 6 o’clock in the morning in the uneventful neighborhood of Lincoln Highlands. The neighbor said they saw Thao being escorted out of the home by the authorities.
The federal agents also raided California Waste Solutions at the Embarcadero, the home of California Waste Solutions’ Andy Duong, and the home of California Waste Solutions’ David and Linda Duong. They are being investigated by the Public Ethics Commission for allegedly bribing council members through pass-through donors, which was first reported on by news outlet Oaklandside in 2020. Thao allegedly received some of those funds, and had a trade mission trip to Vietnam paid for by the Duong brothers, who accompanied her.
A “news insider” with ABC7 said this was one of four FBI raids ordered throughout the city via issued warrants. He pointed out that a proposition to recall Mayor Sheng Tao was approved for the ballot in the November election. He clarified that the public does not yet know if she is directly involved in the FBI case or if it is another resident of the address, but it is certainly a significant development.
Alameda County District Attorney Pamela Rice is dealing with a recall challenge this election season over accusations that she is too allied with criminals. She was elected in 2022, as was Thao.
Oakland has reportedly been thrown into a crime wave in recent years: violent crime increased 21 percent in 2023 compared to the previous year, according to Oakland police numbers. Since 2019, the violent crime rate has increased 29 percent, for a total of roughly 7,500 incidents. Robberies increased by 38 percent and car thefts increased by 45 percent in 2023 compared to the previous year.
Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.
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