FBI agent details alleged deal behind corruption charges in Sheng Thao trial

OAKLAND, Calif. (KGO) -- A federal jury heard testimony Monday from an FBI agent who described how the corruption and bribery investigation involving former Oakland Mayor Sheng Thao began and revealed evidence prosecutors say points to a broader pay-to-play arrangement involving Thao, her partner Andre Jones and executives at California Waste Solutions.

FBI Special Agent Katherine Barclay testified that the investigation originated with a referral from Oakland's Ethics Commission after local printer Samari Johnson complained he had not been paid for producing a negative campaign mailer targeting Thao's opponent in the 2023 mayoral election.

"We want to get paid back and we're not going to stop until we do. At some point, the truth has to come to light," Johnson said in a June 25, 2024, interview with 7 On Your Side Investigates' Dan Noyes.

Johnson had previously said of the project, "As far as business wise, I would say that we did a good job."

MORE: Trial exhibits detail extensive bribery, fraud, corruption allegations against ex-Oakland mayor

According to Barclay's testimony, Mario Juarez, a business partner of California Waste Solutions executives David and Andy Duong, ordered the mailer and reportedly made statements that "he expected things in return for his efforts."

Barclay said the FBI obtained a sealed search warrant for Juarez's iCloud account and recovered a WhatsApp exchange with Andy Duong that prosecutors contend outlined a larger agreement.

The message, titled "Deal Points for Sheng Thao: Election, Post Election," included proposals that:

• $75,000 be invested in campaign mailers


• Another $40,000 be spent on websites attacking Thao's opponents


• The city of Oakland purchase 300 modular housing units at $300,000 each


• Thao's partner receive $300,000


• California Waste Solutions receive a 10-year contract extension


• A land deal at the Army base be completed through the mayor's staff


• Duong-backed candidates be appointed to various city positions

The exchange concluded with Juarez asking, "Should we share with David?" and Andy Duong responding, "David knows already," referring to California Waste Solutions founder David Duong.

Jurors also heard from a consultant for Thao's mayoral campaign, who testified about a campaign mailer attacking opponent Loren Taylor.

The consultant said they initially approved of the mailer but later concluded it was racist.

MORE: Corruption trial begins for former Oakland Mayor Sheng Thao

The mailer altered a newspaper photograph of Taylor, changing his appearance by making his eyes red, modifying his eyebrow and turning his mouth into a frown.

Taylor lost the election to Thao by 677 votes out of about 125,000 cast.

"We're trying to play by the rules and move things forward and its, unfortunately the odds are stacked against us," Taylor told ABC7 Eyewitness News in January 2025.

Former federal prosecutor Wilson Leung said Monday's testimony appeared to be laying the foundation for additional witnesses expected to provide more direct evidence.

"It's still early on in the case, so I think the prosecution is laying, sort of, the groundwork before they called the cooperators, which will then have more direct evidence of culpability," Leung said.

Those cooperating witnesses include Juarez and former San Leandro Councilmember Bryan Azevedo, both of whom have pleaded guilty to bribery and are expected to testify for the prosecution.

Before adjournment, the judge warned the defense about the pace of its cross-examinations, saying jurors had expressed concerns about the length of the trial. Proceedings are scheduled to resume Thursday in Oakland.