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  • Plot thickens in Oakland as grand jury investigates influential family, Mayor Thao, her partner

    Plot thickens in Oakland as grand jury investigates influential family, Mayor Thao, her partner

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    Federal investigators are ordering the city of Oakland to hand over documents involving a prominent, influential local family who hold a waste management contract with the city, as well as Mayor Sheng Thao and her partner, according to documents reviewed by The Times.

    The federal subpoena, issued five days after federal agents raided Thao’s home on June 20, confirms there is a current federal grand jury investigation that appears centered around Cal Waste Solutions Inc.; its owners, members of the Duong family; and their dealings with Oakland city officials, particularly its mayor.

    Dated June 25, the eight-page subpoena asks the city to turn over all documents and communications regarding Cal Waste Solutions, all of its employees and representatives, and any documents involving appointments to prominent city posts.

    The deadline is Thursday.

    A spokesperson for the Department of Justice did not immediately respond to questions regarding the subpoena.

    Federal investigators are also requesting documents related to the 2022 Oakland mayoral election, when Thao was elected as the first Hmong mayor of a major U.S. city.

    The subpoena further reveals the possible involvement of Thao’s partner, Andre Jones, in the inquiry. Investigators requested the city turn over calendar entries and records involving meetings for Thao and Jones from June 1 to the present.

    Attorneys for Thao declined to comment on the subpoena but said the investigation involving Thao did not involve criminal charges or allegations.

    Thao has denied any wrongdoing.

    “I can tell you with confidence that this investigation is not about me,” the mayor said in a news conference three days after FBI agents raided her home.

    Exactly what the focus of the federal investigation is remains unclear, but the June 25 subpoena offered a slightly wider glimpse into the scope of the federal investigation, the latest scandal to plague the Bay Area city that has recently faced a mayoral recall effort, a growing budget deficit, and concerns about crime that have driven out major businesses.

    Shortly after city officials received the subpoena, Oakland’s city attorney directed staff in an email to preserve all records involving Thao, Jones, and the Duong family, the San Francisco Chronicle reported.

    A spokesperson for the Oakland city attorney’s office confirmed the existence of the memo to staff but in an email declined to provide a copy of it or answer questions about it, referring to the memo as “confidential attorney-client communication between the Oakland City Attorney and the other city of Oakland staff members.”

    The federal subpoena, issued by the U.S. attorney’s Northern District of California, requests multiple documents involving the Duong family, including David, Andy, Kristina, Victor and Michael Duong.

    For at least five years, the family has been at the center of an investigation involving the state’s Fair Political Practices Commission and the Oakland Public Ethics Commission. The family is accused of using “straw donors” to circumvent legal donation limits and fill the campaign coffers of elected public officials while the family’s companies sought contracts with cities.

    The family’s company, Cal Waste Solutions, currently provides recycling services to Oakland.

    After the warrants were executed, Cal Waste Solutions officials issued a statement saying they were surprised by the searches and had cooperated with investigators.

    “We believe that we have not engaged in or committed any illegal activities and are awaiting the decision of the law enforcement agency,” the company statement read.

    A spokesperson for the company did not immediately respond to a request for comment Tuesday.

    But the state and local inquiry into the family’s dealings with city officials in the area paint a troubling picture.

    Court records reveal the Fair Political Practices Commission has been probing political donations made by the family since 2019. The agency alleges that Andy Duong and former business associates used friends and business connections to make political contributions, then reimbursed them with cash to hide the true origin of the money.

    “CWS was the true source of at least 93 contributions to multiple local campaign committees,” the court record reads, with the goal being “to curry favor with candidates and provide more access to candidates.”

    The agency tracked questionable donations made in Oakland, as well as San Jose and other parts of Santa Clara County, where the family was looking to do business.

    The investigation found there had been multiple contributions made to Thao’s campaign in 2018 for City Council, including “seven of which were admitted reimbursements by or on behalf of [Andy] Duong.”

    One former associate told investigators, according to court records, he saw Andy Duong pull cash from a drawer in his office at Cal Waste Solutions to reimburse people for donations.

    FPPC officials confirmed their inquiry is still ongoing.

    Federal officials are also requesting documents involving the city’s declaration of a local emergency on homelessness, and any communication regarding the former Oakland Army Base, a site that had been considered as possible housing for unhoused individuals.

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    Salvador Hernandez

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  • Federal agents raid home of Oakland Mayor Sheng Thao

    Federal agents raid home of Oakland Mayor Sheng Thao

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    The federal agents conducted a search of a home owned by Oakland Mayor Sheng Thao early Thursday, according to the U.S. Department of Justice.

    Abraham Simmons, spokesperson for the department, did not say who the target of the search warrant was and declined to comment further.

    The search of Thao’s home on Maiden Lane also includes officers from the IRS as well as the U.S. Postal Service. Neither agency could be immediately reached for comment.

    Video footage from local news agencies showed agents carrying boxes and bags out of the house.

    The search comes as Thao and Dist. Atty. Pamela Price are facing a recall election this November. The recall campaign is a response to increased crime and budgetary problems that have challenged city leaders.

    Also Thursday, FBI agents searched a house on View Crest Court in the Oakland hills but authorities did not say if the two search warrants were connected.

    Property records show that latter home is connected to Andy Duong, who also owns Cal Waste Solutions, which has been investigated over campaign contributions to Thao and other elected city officials, the Oaklandside reported.

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    Ruben Vives

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  • Could the closure of Oakland’s only In-N-Out help the city with its crime problem?

    Could the closure of Oakland’s only In-N-Out help the city with its crime problem?

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    The demise of Oakland’s only In-N-Out restaurant due to increasing crime could be the last straw for community members — and possibly a blessing in disguise for local leaders who’ve been pleading for help.

    This week, In-N-Out announced that the burger joint near Hegenberger Road, a main route to and from the Oakland International Airport, would close its doors in March.

    “Despite taking repeated steps to create safer conditions, our customers and associates are regularly victimized by car break-ins, property damage, theft and armed robberies,” Denny Warnick, chief operating officer for the company, said in a statement.

    Some Oakland residents believe the crime problem persists at least in part because of Mayor Sheng Thao.

    The group Oakland United to Recall Sheng Thao, led by a former Alameda County Superior Court judge whom Thao removed from the city’s Police Commission in June, has faulted the mayor for not declaring a state of emergency on crime, not replacing the police chief she fired in February, and missing the application deadline last year when Gov. Gavin Newsom’s office offered more than $276 million to cities and counties to fight retail thefts.

    On Friday, the group published a notice of intent to recall and plans to start collecting signatures in early February for a petition to put a recall on the ballot. The mayor did not respond to the notice by the legal deadline, the group said on X, formerly Twitter, so the recall petition won’t include any response from Thao to the group’s criticisms.

    “After missing the deadline to apply for a retail theft grant worth millions of dollars to assist Oakland in battling crime, she has now failed once again to respond to voters as to why she should not be recalled,” Seneca Scott, spokesperson for the group, said on X. “Mayor Thao must realize that there is no defense for the indefensible. The current state of Oakland is deplorable, and she is directly at fault.”

    In a statement to The Times, Thao said, “As mayor, I have prioritized this critical gateway to Oakland and surged police presence and employed technology to deter and respond to criminal behavior.”

    Thao said the added public safety resources have led to a reduction in property crimes along the Hegenberger corridor.

    “However, more is necessary, and I will be working with regional and state leaders to protect this tourist gateway into Oakland,” she said.

    Others in the city believe the current situation is largely the result of state or local laws that they believe impede enforcement, such as Proposition 47 from 2014 and Proposition 57 from 2016. In a statement, the Oakland Latino Chamber of Commerce said In-N-Out’s decision to close its Oakland outlet is sad, but departures like that are happening more and more in their communities.

    “Many businesses small and large in the state are suffering from ongoing crime, and a lot of times the police have their hands tied and can’t do much because of a city ordinance or laws that end up protecting criminals instead of the victims,” the statement said.

    The chamber said,”when the city, state leaders and prosecutors do very little to stop crime, this is the end result, businesses close and people start giving up.”

    Several In-N-Out restaurants have been relocated over the course of its 75-year history. But the Oakland location will be the first the company has had to close.

    “We feel the frequency and severity of the crimes being encountered by our customers and associates leave us no alternative,” Warnick said, despite the location being “busy and profitable.” The company can’t ask its customers or employees “to visit or work in an unsafe environment,” Warnick said.

    The move drew headlines across the country, in part because it reinforced the argument by some conservative pundits that the liberal Bay Area is being destroyed by crime. The politics surrounding the closure became so intense, the largest group of In-N-Out aficionados on Facebook decided to ban posts about the Oakland closure, SFGate reported.

    In an interview, Oakland City Councilmember Treva Reid conceded that her district is reeling from rampant crime, but said she regrets that this caused the company to close its doors. It wasn’t the first, as many local businesses have had to close their operations.

    Reid has been dealing with the problem since she took office in January 2021.

    What should be a welcoming economic hub for locals and tourists coming into the city from the airport is instead a place where “you have to look all around you when you’re pumping gas,” Reid said.

    The community “lives in the midst of all the disparities that you can imagine [and] we carry the weight of that in this district,” she said.

    For the last two years the councilmember has been calling on local, regional and state partners to create a regional interagency public safety task force because the current siloed approach isn’t addressing the problem.

    The councilmember’s office has been wrestling with the issue from different angles, including adding more foot patrols, securing a commitment from the California Highway Patrol to dedicate overtime hours to the area, increasing efforts to suppress burglaries, and obtaining $1 million for community safety ambassadors.

    Reid said the district saw a 40% reduction in crime, and yet “you’ll hear from businesses that it’s not enough.” The councilmember doesn’t contradict them.

    “People are showing up in this corridor like [committing crimes] is their everyday job,” she said. “They’re clocking in and clocking out and wreaking havoc in between.”

    In bimonthly meetings, Reid gets about 75 business owners at the table with department leaders, faith leaders, the neighborhood council, the police department and the sheriff’s department to figure out what can be done.

    “We are a force multiplier of advocacy, to put a demand on our city and county local leaders to get the resources into this corridor to make it look clean and beautiful … and tackle this crime issue,” she said.

    In 2023, auto burglaries in the area dropped 23% from the previous year’s total due in part to additional resources deployed by the Oakland Police Department from July through December.

    While progress has been made in one section of the city, the Oakland Police Department’s crime analysis of gunfire show that reports of violence throughout Oakland have risen 21% last year compared with 2022.

    Against this backdrop, Oakland’s 700-person police department has been operating with a vacuum at the top since last February, when Police Chief LeRonne Armstrong was fired for mishandling police misconduct cases. At the end of 2023, the Oakland Police Commission presented Thao with three potential candidates, and she rejected all of them.

    Tim Gardner, co-founder of the online publication Oakland Report, criticized the decision to fire Armstrong, saying Armstrong fostered relationships and trust with the community. Thao, he said, has lost that trust.

    He’s appealed to the City Council to establish a task force dedicated to improving public safety, with regular reports to the community to track its progress. The council didn’t bite.

    “[Councilmember Reid] was the most engaged and responsive of the council members, all the others kind of wanted to avoid it,” he said. “Because to put together a task force that is dedicated to the safety problem, would kind of be an admission that you have a problem.”

    Even though Gardner doesn’t live in Reid’s district, he said residents throughout the city need to hold their local leaders accountable to do more to ensure public safety. He said what affects one district, affects them all.

    Reid is trying to create a different kind of task force, a regional one that would be held accountable for the situation in her community. In the short term, she said, many people are reaching out to help.

    She said she hopes they’ll stay long after the spotlight cast by In-N-Out’s departure fades.

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    Karen Garcia

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