Corruption trial of former Oakland Mayor Sheng Thao centers on collapse of Evolutionary Homes
OAKLAND, Calif. (KGO) -- The collapse of Evolutionary Homes took center stage Thursday in the federal bribery and corruption trial of former Oakland Mayor Sheng Thao and three other defendants, as business partner Mario Juarez delivered emotional testimony about the company's downfall and an alleged violent attack that led him to go to police.
Juarez concluded his second day on the witness stand in tears while describing an attack by 10 men who he testified were ordered by the Duong family. He told jurors he thought he was going to die.
The testimony focused on the unraveling of Evolutionary Homes, a company Juarez founded with David and Andy Duong to sell converted shipping containers for use as housing for homeless people.
Jurors were shown evidence related to a confrontation on May 3, 2024, at the California Waste Solutions headquarters, where Evolutionary Homes operated a showroom on the first floor. Juarez testified that the Duongs locked him out of the showroom. Andy Duong recorded an argument between Juarez and his father, David Duong.
"I will give what you asked for. Don't play with me, okay? Don't play with me. If you don't want trouble, get out," David Duong said in the recording played for jurors.
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Juarez testified that he watched as Andy Duong called his brother, Johnny. Within minutes, Juarez said, 10 men arrived, surrounded him and beat him severely. He testified that he believed he was going to die.
Jurors also saw a photograph taken by Andy Duong showing an ambulance arriving for Juarez. According to testimony, the attack prompted Juarez to contact law enforcement.
Juarez testified that his business relationship with the Duongs had already begun to deteriorate. He said he used Google Translate to understand conversations in Vietnamese and learned of plans to take control of Evolutionary Homes by moving production from Mexico, where he established the factory, to Vietnam.
The court also heard testimony about an alleged agreement involving Thao and her romantic partner, Andre Jones. Juarez testified that Evolutionary Homes was expected to secure orders for container homes from the city of Oakland in exchange for as much as $3 million in direct payments and commissions. Jurors were shown a secret recording of a board meeting.
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"AJ approached us -- Andre Jones approached us. He wants $20,000. I already said that to you. But we were discussing it, and we think that you should call AJ, and you should tell him you owe us money, and you have not done anything for us," Juarez said in the recording.
Later in the day, jurors reviewed what prosecutors described as the final email from Juarez to the Duongs. In it, Juarez warned of a future FBI investigation and wrote that former San Leandro City Councilmember Bryan Azevedo was not the only public official who had engaged in sex with prostitutes during a trade mission to Vietnam that included Sheng Thao.
Juarez wrote, "Other elected and city officials were also part of that trip, and those sponsored sexual services paid by your family would come out."
Court proceedings ended with a brief cross-examination by an attorney for David Duong, who challenged Juarez's credibility by highlighting alleged inconsistencies between his testimony and body camera video from Juarez's first meeting with Oakland police. Cross-examination is scheduled to continue Friday.
