Key witness testifies in Sheng Thao corruption trial
OAKLAND, Calif. (KGO) -- A key witness in the federal bribery and corruption trial of former Oakland Mayor Sheng Thao began testimony Friday after appearing unexpectedly at federal court Thursday.
Mario Juarez, who has pleaded guilty to one count of conspiracy to commit bribery, has agreed to testify for the prosecution.
Government attorneys had indicated Juarez would testify next week, but he was seen arriving at Oakland Federal Court at about 10:20 a.m. Thursday.
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Juarez played an essential role in the Evolutionary Homes project with David Duong and Andy Duong of California Waste Solutions.
According to testimony and evidence presented in court, Juarez established the operation in Mexico to build homes for homeless people using shipping containers.
Prosecutors have introduced secret recordings of Evolutionary Homes board meetings that they say show Juarez served as the primary contact with Thao and Andre Jones.
The government alleges Juarez bribed them in connection with a multimillion-dollar contract with the City of Oakland to purchase the housing units.
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In one recording played in court, Juarez recounted a phone call in which Jones allegedly requested an additional $20,000 on top of $85,000 he had already received.
"David is not going to be happy to hear that you were asking for more money, especially when nothing has come about," Juarez said in the recording.
Juarez did not testify Thursday. Instead, the afternoon was devoted to testimony from former Oakland City Manager Jestin Johnson, who said Thao directed him to meet with David Duong and tour the Evolutionary Homes showroom located on the ground floor of California Waste Solutions headquarters.
Former Assistant City Administrator LaTonda Simmons also testified about an text message from Thao that referenced "permanent modular homes."
"I saw them, they look amazing. I think we should pilot a site with these," Thao wrote in the message submitted as evidence.
MORE: Photos, texts and videos detail alleged pay-to-play scheme in former Oakland Mayor Sheng Thao trial
Earlier in the trial, prosecutors introduced photographs showing Thao touring the Evolutionary Homes showroom.
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Simmons testified that Thao never mentioned the company, the Duong family or Jones' connection to the project. Simmons also testified about Thao providing Andy Duong with advice related to a closed-door City Council meeting at a time when California Waste Solutions was accused of overcharging customers.
In a recording previously introduced by prosecutors, Thao told Andy Duong: "But if you have a rationale, if you could better explain why you don't owe the ratepayers any refund."
After Duong responded, "Right," Thao continued: "And if I could better understand it and we can argue it better."
Simmons testified that city employees and elected officials are not permitted to discuss details of closed-door meetings with people outside the meetings.
Prosecutors contend the evidence demonstrates the closeness of Thao's relationship with the Duong family and argue she was willing to break rules to help them.
Juarez took the witness stand Friday as the government continued presenting its case.
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