Business
Ex-Oakland mayor, boyfriend, waste company execs indicted in sprawling corruption probe
Federal officials announced Friday that they have indicted former Oakland Mayor Sheng Thao on bribery charges, along with her longtime boyfriend and a father-son team who run the company that provides the city’s recycling services, alleging a sprawling corruption scheme involving cash payments and campaign mailers in exchange for city contracts.
The federal charges come two months after Thao was recalled from office amid roiling voter frustrations with crime, homelessness and a sense that city government is not responsive to citizens’ needs. It was a sharp turnabout for Thao, who took office in January 2023 to heady press lauding her journey from homelessness to chief executive and celebrating her as the first Hmong American to lead a major American city.
The indictment, handed down by a grand jury at the U.S. District Court in Oakland, was filed Jan. 9 and unsealed Friday. It charges Thao; her boyfriend, Andre Jones; and two local waste company executives, David Duong and his son Andy, with bribery and conspiracy. Andy Duong was also charged with lying to federal agents.
The indictment alleges that in the weeks leading up to her election as Oakland’s mayor in fall 2022, Thao pledged to steer contracts to the Duong family’s recycling company, Cal Waste Solutions, in exchange for campaign mailers targeting her opponents and payments to her boyfriend for a “no show” job. Jones ultimately received $95,000, the indictment alleges. It also alleges that Thao promised to get the city of Oakland to buy modular housing units for the homeless from the Duong family’s housing company and to appoint people selected by the Duongs to powerful city posts.
Thao pleaded not guilty during her arraignment Friday, according to local news reports, and was released from custody on a $50,000 bond. Jones also pleaded not guilty.
“The mayor is innocent. She looks forward to the opportunity to be able to defend herself in court,” Jeff Tsai, Thao’s attorney, told the San Francisco Chronicle. “What is missing from this indictment is anything that truly indicates that the mayor had any involvement in the scheme that the government has described. We are very confident that we are going to be able to vindicate the mayor of these charges.”
In a statement Friday, Andy Duong’s attorneys called the charges against his client “baseless” and said they were “being fanned by nothing more than gossip and supposition stitched together by the fabrications and delusions of those who lack all fundamental credibility.” The statement said Duong was “the most recent in a long line of Asian Americans who unfairly are singled out and forced to pay a price for daring to be active in the political sphere.”
David Duong also denied wrongdoing.
The charges stunned Oakland’s political class. Former U.S. Rep Barbara Lee, who represented the East Bay in Congress for more than two decades and is now running for mayor in a special election in April, issued a statement calling the allegations “devastating.”
“There should be no tolerance whatsoever for secret pay-to-play schemes that erode the public trust,” she said. “City Hall must never be for sale.”
Rumors of a corruption investigation involving Thao have been swirling for months, after the FBI raided her home in June.
At the time, Thao said in a fiery news conference that she was not a target of the probe.
“I want to be crystal clear. I have done nothing wrong,” she said in a tearful speech days after FBI agents converged on her home and left with boxes. “I can tell you with confidence that this investigation is not about me.”
She also questioned the tactics of the FBI: “This wouldn’t have gone down the way it did if I was rich, if I had gone to elite private schools, or if I had come from money,” she said.
The same day Thao’s home was searched, agents executed warrants at the Oakland office of Cal Waste Solutions, as well as the homes of David and Andy Duong. The company released a statement at the time denying involvement in illegal activities.
Separate from the FBI probe, the Oakland Public Ethics Commission and the state Fair Political Practices Commission have been investigating allegations that members of the Duong family have used “straw donors” to circumvent donation limits and bolster the campaigns of local elected officials.
The indictment unsealed Friday spans 22 pages and includes numerous text exchanges that allegedly lay out the scheme — and at times contain auto-correct hijinks.
“Sheng is going to call you re $$,” a person identified as “Co-Conspirator 1” wrote to Andy Duong in October 2022, about a month before Thao was elected, according to the indictment.
Duong allegedly responded: “Lol. What money?”
“She needs,” Co-Conspirator 1 allegedly answered, adding: “I said you are committees.” A subsequent text message clarified: “committed.”
The indictment alleges that in another series of text messages in late November 2022, after Thao’s election, the two discussed fears that the scheme could come to light.
“So we may go to jail,” Co-Conspirator 1 wrote to Duong, according to the indictment. “But we are $100 million richer.”
“Money buys everything,” Andy Duong allegedly responded.
The luxury shopping center in Pacific Palisades will reopen next month after more than $100 million in renovations forced by the January 2025 wildfire that devastated the Los Angeles neighborhood.
Palisades Village will reopen Aug. 15, owner Rick Caruso announced Wednesday. The outdoor center survived the blaze that destroyed homes and other businesses but needed refurbishment to eliminate contaminants that the fire could have spread.
Crews are putting finishing touches on mall buildings after tearing them down to the studs, treating the wood and rebuilding the walls, Caruso said.
“Everybody’s working, and stores are moving their products in,” he said. “It’s a really cool feeling that people have really locked arms and are working together.”
An electrician installs lighting for a restaurant at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.
(Myung J. Chun / Los Angeles Times)
Pacific Palisades resident Allison Polhill, who is rebuilding the home of 30 years that her family lost in the blaze, said she is “thrilled” at the prospect of returning to the mall she used to frequent. Its comeback is a boost for the community, she said.
“Every single step that we make to reopen our commercial corridors is going to bring more people back into the Palisades,” said Polhill, who expects to move back into her home at the end of August.
A total of 6,822 structures were destroyed in the Palisades fire, including more than 5,500 residences and 100 commercial businesses, according to the California Department of Forestry and Fire Protection.
Caruso previously attributed the mall’s survival to the hard work of private firefighters and the fire-resistant materials used in the mall’s construction.
The $200-million shopping and dining center opened in 2018 with a movie theater and a roster of upmarket tenants, including Erewhon, which may be the only grocer in the heart of the fire-ravaged neighborhood when it opens.
Caruso’s company was able to fill the mall with tenants despite the long shutdown.
Palisades Village is 99% leased, with the majority of tenants returning, said Jackie Levy, chief financial and revenue officer. Nearly one-third of the shops and restaurants are new to the property.
A firefighter carries a hose back to his rig while walking through a destroyed home from the Palisades fire in Pacific Palisades on Jan. 7, 2025.
(Genaro Molina / Los Angeles Times)
Last year, Pacific Palisades-based fashion designer Elyse Walker said she would reopen her eponymous store in Palisades Village after losing her 25-year flagship location on Antioch Street to the inferno.
Other neighborhood shops destroyed in the fire that are reopening at the mall include K Bakery and Loomey’s Toys, which caters to children up to age 12 and used to be across the street from Palisades Elementary Charter School.
“It’s been a journey and I’m excited because I wasn’t sure that there was going to be a place to come back to,” said toy store owner Amanda Rastegar. “Hopefully we can bring some of that magic back.”
Rastegar’s home in the Palisades survived but was damaged by the fire. The family returned about eight weeks ago. Her last memory of the fire was a burning supermarket.
“I just couldn’t wrap my brain around what was happening,” she said. “By the time I left, Gelson’s was on fire.”
Among the returning tenants is Angelini Ristorante & Bar. Well-known Los Angeles chef Gino Angelini said he will be in the kitchen next month for a return of the Italian restaurant.
“We won’t do a big celebrity open,” he said. “We want to have a very soft opening and see our customers come back.”
Construction takes place at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.
(Myung J. Chun / Los Angeles Times)
An elaborate celebration would not feel “correct for me,” Angelini said, because the devastation has been “very sad” for so many.
Other new tenants include local chef Nancy Silverton, who has agreed to move in with a new Italian steakhouse called Spacca Tutto. Women’s activewear retailer LESET will open its first West Coast location.
Caruso said he is optimistic that customers will return to the center, even though many Pacific Palisades residents are still dispersed. One tracking system estimated that about 30% of the Village’s customer base was impacted by the fire, he said.
“That means 70% did not get impacted, so there’s a lot of customers still left out there,” Caruso said. Historically, the center drew customers from as far away as Beverly Hills and Calabasas, as well as Malibu, Brentwood and Santa Monica.
He also hopes many will be inspired to visit the revived mall.
“I believe in the goodness of people and I believe that people are going to want to support the Palisades,” he said. “They’re going to want to be there and support the businesses that have had the courage and the heart to reopen.”
Walmart is rapidly expanding its network of electric vehicle chargers designed for customers to use while they shop.
The network could help fill gaps in EV infrastructure in states with greater need for chargers. Walmart, which has more than 5,000 locations in the U.S. and hundreds in California, says more than 90% of Americans live within 10 miles of one of its stores.
The chargers also offer an incentive for customers to choose Walmart — Walmart Plus members will receive a 10% discount off an average price of $0.46 per kilowatt-hour of energy at the company’s chargers.
Walmart chargers are already available at more than 75 locations in 17 states, with Texas boasting the most charging stations, followed by Florida and Arizona.
Matthew Nelson, Walmart’s director of energy policy, said last week on LinkedIn that the network will soon reach 29 states, including California.
“We are delivering on the promise of affordable, reliable and convenient charging,” Nelson said in his post.
According to Walmart’s website, six charging stations are coming to California soon, though the company did not offer a specific timeline.
The chargers will be installed at stores in Antelope, Brea, Fresno, Stockton, Suisun City and Vallejo.
Most charging sites in California will include eight to 16 fast-charging stalls, said Walmart spokesperson Kelsey Bohl.
The company first announced plans in April 2023 to install its own EV chargers at Walmart and Sam’s Club stores, with a goal of installing thousands of chargers by 2030. Partnering with ABB E-Mobility and Alpitronic, it added 25 new charging sites this past May and six more in June.
“Walmart is building a leading retail-integrated EV fast-charging network, focused on delivering an affordable, reliable and convenient charging experience where customers already shop,” Bohl said in an emailed statement. “Customers can charge while they shop, access stations through the Walmart app they already use, and benefit from affordable pricing.”
The charging stations already available include 612 individual charging stalls using 400-kilowatt chargers. Each stall has a dual charging cord with both Combined Charging System and North American Charging Standard connectors. The standard connectors, designed by Tesla, are smaller and lighter than the combined systems.
The primary way to pay for the chargers is through the Walmart app, but the company is also experimenting with built-in credit card readers to allow those without the app to use the stations.
Customers can check charger availability on the Walmart app. The company said the chargers will be available 24 hours a day.
Robotaxis could be turning into robocops.
A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.
According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.
“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”
Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.
“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “
A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.
Waymo did not immediately respond to a request for comment.
Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.
The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.
The company said it does not use facial recognition or other biometric identification technologies to identify individuals.
“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.
The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”
“At least they got a designated driver?!” one user commented.
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