Time and again, ex-Oakland Mayor Sheng Thao’s chief of staff clashed with her boss on proposals that played central roles in the alleged bribery scheme that would later lead to the mayor’s indictment by a federal grand jury, court testimony in the trial of the former mayor and three other defendants revealed Thursday.
That staffer, Leigh Hanson, pulled back the curtain Thursday on Thao’s tumultuous, recall-shortened term as the city’s mayor in 2023 and 2024, when prosecutors say she had sold access to the mayor’s office by accepting bribes from the family in charge of the city’s recycling contractor, California Waste Solutions.
At no point Thursday did prosecutors suggest Hanson knew of the alleged scheme, which called for thousands of dollars in illicit payoffs to the mayor and her partner, Andre Jones, in exchange for vast influence within City Hall for the father-son business duo of David and Andy Duong. That ]included an alleged promise that the city of Oakland would purchase upwards of 300 housing units at a cost of $300,000 each from a company the Duongs helped found, called Evolutionary Homes.
The quartet faces a slew of charges in connection with the alleged scheme, including conspiracy to commit bribery and wire and mail fraud; all four have pleaded not guilty.
Disagreements come to light
Hanson on Thursday largely dismissed the viability of any city partnership with Evolutionary Homes – which allegedly served as a key vehicle for $95,000 in bribery payments – the first time that Thao introduced her to the company, she testified Thursday.
In a previously unreported meeting, Thao and Hanson met with one of the company’s representatives in May 2023 over Zoom for a 30-minute pitch on how the business could use repurposed shipping containers to house homeless families. Hanson came away unimpressed, saying the proposal “did not address the largest concerns for local governments” of where to put the homes, or how to connect them with electricity and plumbing.
At no point did Thao mention she had already spoken to the company’s founders, that Jones had already been tapped to work as a consultant for the business or that the Duong family was running it, Hanson said.
The former chief of staff recalled homelessness being a priority for Thao, citing how the mayor lived in a car when her son was born and was “very focused on making sure any solutions we were providing were of the highest quality.”
Defense attorneys seized on that interest, eliciting testimony Thursday that Thao personally introduced Hanson to the CEO of another housing company, Pallet Shelter. The mayor, Hanson added, was “very taken by Pallet, and thought they were a good company and worth considering.”
Vietnam trip becomes point of friction
More fireworks erupted when Thao insisted on leading a delegation trip to Vietnam largely funded by the Duongs mere months into her term.
Hanson thought the trip should wait, given how “it would be challenging to describe to the public why she was in a foreign country, if we had a public safety incident that required attention.” Thao disagreed – saying it was vital to “plant the seed” of economic ties between Vietnam and Oakland early in her administration.
“It was heated,” Hanson said.
David Duong coordinated much of the August 2023 trip, which included a host of local elected officials – among them Sheriff Yesenia Sanchez and Supervisor Lena Tam. A trade organization his family ran, the Vietnamese American Business Association, paid for much of the trip, though Hanson was adamant that Thao’s expenses be covered by the Port of Oakland. Prosecutors say the Duongs and the business association also paid travel expenses for Jones and his daughter during the trip, as well as for Thao and her son’s visit to Thailand afterward.
Hanson recalled viewing the Duong family warily, having read media reports detailing political donations that “were not very flattering.” The family had previously been investigated by city and state regulators over a widespread straw donor scheme, allegedly involving illicit campaign payments to a host of Bay Area politicians.
“Part of my job as the chief of staff was to evaluate political risk,” Hanson said. “And I was concerned her continued affiliation would associate her with those accusations of improper electoral activities.”
One potential crisis emerged just weeks later.
Hanson testified about an emergency meeting with Thao later that fall over an inquiry from an unnamed reporter, who was digging into allegations that several delegation members had been stopped by customs enforcement agents amid concerns of drug paraphernalia and sex trafficking of minors.
Immediately, Hanson and the city’s communications chief drafted a crisis communications plan.
In the meantime, Thao vented her frustrations to Hanson that some members of the delegation could have participated in that type of activity. She saved her greatest wrath for Andy Duong, calling him a “f—— playboy,” Hanson testified.
“He has always been trouble,” her chief of staff recalled Thao saying. “He’s going to ruin my career.”
No such article ever ran. Prior to the trial, prosecutors alleged that the Duongs paid an associate of the reporter $10,000 to kill the story.
Surprise visits and an alleged threat
Through it all, Jones served as a frequent presence within the administration – appearing on text chains with city staffers and in one instance blowing up a meeting over a brewing policing scandal — despite the fact he was never hired as a city employee.
Hanson recalled sharing her “surprise and frustration” with Jones in January 2023 after he unexpectedly logged into a video interview of a candidate to serve as Thao’s point person on housing-related matters. Hanson later wasn’t able to hire that person, and she ended up assuming that role herself.
Also that month, Jones tried to attend a meeting involving Thao, Hanson and the city attorney regarding the decision to place the city’s police chief, LeRonne Armstrong, on administrative leave. Hanson called the summit off, given that Jones’ presence could nullify the mayor’s attorney-client privilege.
Afterward, she recalled Jones leveling a threat in her direction, saying: “We’ll see which one of us is left at the end of the day.”
Jones had played an important role in Thao’s life, acting as a “close advisor” and someone she “trusted,” but Thao was “not interested in being married or ever having joint finances” with Jones, Hanson said. On cross-examination from Jones’ attorney, Hanson said the mayor even considered leaving him and getting a place of her own at various points in 2023 and 2024.
Jakob Rodgers is a senior breaking news reporter. Call, text or send him an encrypted message via Signal at 510-390-2351, or email him at jrodgers@bayareanewsgroup.com.