Ex-Oakland mayor trial: Prosecutors' star witness takes the stand

OAKLAND, Calif. — Federal prosecutors’ star witness took the stand Friday in the sweeping corruption trial of ex-Oakland Mayor Sheng Thao, describing years of illicit payoffs by the city’s recycling contractor to Oakland city councilmembers, and how that habit culminated in a sprawling bribery scheme at the core of the federal government’s case.

“I conspired to commit bribery,” said Mario Juarez, long known only in court records as “co-conspirator 1.” “I did intend to bribe a public official. Her name is Sheng Thao.”

Juarez’s highly-anticipated testimony delved into the heart of federal prosecutors’ case against Thao and her three co-defendants, as the longtime political operative and two-time failed City Council candidate began describing his role in the alleged five-person scheme that has rocked the East Bay’s political scene.

Wearing a dark suit jacket and a white shirt with no tie, Juarez greeted the jury by saying “good morning” and then began recounting his role in an alleged scheme to lift Thao into the mayor’s office and funnel $300,000 in illicit payments to her romantic partner, Andre Jones. In exchange, prosecutors say, Thao promised broad influence within City Hall for the father-son business duo of David and Andy Duong — replete with hand-picked appointments and staff hires directed by the family — along with millions of dollars in new and renewed city contracts for their companies.

Among the companies that stood to benefit was Evolutionary Homes, a fledgling outfit founded by Juarez and the Duongs in October 2022 that sold shipping containers retrofitted as homes for mothers and children living on Oakland’s streets, according to prosecutors. In addition, they say, Thao promised the renewal of a 10-year city contract for the Duongs’ recycling business, California Waste Solutions.

Within minutes of taking the stand, Juarez accused the Duongs of under-the-table payoffs stretching back more than a decade.

Back in 2014, Juarez said David Duong instructed him to help hand out a gym bags stuffed with $300,000 and $50,000 cash — one of which went to a sitting Oakland city councilmember, and another went to a representative of another sitting councilmember. The payoffs came the day after Oakland’s City Council approved its contract with the Duongs’ company, California Waste Solutions, for the city’s recycling needs.

“Some were thankful, some were not so happy for the amount of money they got,” said Juarez, recounting the reactions of the people who got the payments at CWS’ Oakland waterfront offices. “One in particular was very upset.”

The identities of the councilmembers were not aired in open court. Thao had yet to be elected to the council at that time.

Juarez said he didn’t want any of the cash himself. Rather, he recalled larger ambitions with David Duong, because Juarez saw him as someone “who could help in the future.”

“I wanted something else, to do business with him,” Juarez recalled. “Frankly I didn’t think I needed cash at that point in my life. I think it was more valuable to have friendship.”

The two sides stayed close, and “whenever they had an issue political in nature, they could call me,” Juarez said.

At one point, Juarez recalled interfering with an effort by one of CWS’ rivals, Waste Management, and the company’s bid to overturn the City Council’s contract decision through a voter initiative. That effort involved physically standing between signature gatherers for that potential initiative, at one point leading to a physical skirmish. He said that work impressed David Duong.

“He reacted with pride that someone would stand up for him,” Juarez said. “He’s someone who rewards people who are loyal. He values loyalty.”

Years later Juarez said he and Andy Duong began working together on the idea for Evolutionary Homes, a company that aimed to provide housing for homeless woman and children.

Juarez formally pitched the idea to David Duong of transforming shipping containers into houses in June 2026. And the business incorporated on Oct. 5, 2022.

A discussion at the time was how to get local governments to buy housing units from the new company. David Duong appeared unbothered by how to get support by local elected officials, Juarez testified, as the businessman claimed “we could get the votes on the city council if it came to it.”

“David would like to say we know how to count to five – if we could count to five, we could pass anything,” Juarez said.

The question is: Will jurors believe Juarez?

Juarez’s credibility is the focus of each defendant’s case. Defense attorneys castigated him from the trial’s opening day, labeling him “the master of half-truths,” “a sophisticated political operator” and “a consummate hustler,” all while suggesting he lied to prosecutors in order to secure a more lenient sentence for his own crimes.

More than a year ago, Juarez pleaded guilty to a lesser conspiracy charge for his role in the alleged scheme that carries a maximum sentence of five years in prison. He is among two people known to take plea deals in exchange for their testimony — the other being former San Leandro City Councilman Bryan Azevedo, who was accused of accepting a $2,000 bribe from the Duongs.

Juarez’s plea — made in secret, in a case that was sealed from public view for nearly two years — came in early January 2025, a week before federal prosecutors unveiled grand jury indictments against Thao and his three other alleged partners in crime. As Thao walked into a federal courtroom for her arraignment that day, Juarez struck a breezy tone on social media and posted pictures of himself on a large motorboat, alongside the words, “no stress, just vibes.”

Even now, he commands a singular focus both inside and beyond the courtroom.

Throughout this month’s trial, picketers have waved signs outside the courtroom emblazoned with pictures of his face, alongside the words “Expose Mario’s fraud,” and “Mario scammed over 200 people.” Those same people stridently support the Duongs, routinely marching with him David and Andy Duong as they exit the courthouse while holding signs proclaiming “We believe in you!” and “Evidence not accusations.”

Judge Yvonne Gonzalez Rogers went so far as to address the daily frenzy ahead of Thursday’s testimony, admonishing jurors to ignore the scene and focus only on evidence presented in her courtroom.

In testimony on Friday, Juarez testified that Thao was ultimately selected as the politician to target for support in the Evolutionary Homes scheme; Juarez met with her two days after the company was formed in early October 2022. At that meeting at his East Oakland office, Juarez said he’d work to get Thao elected, if she was willing to buy housing units from the company.

That’s when Thao threw a “curve ball” – demanding $300,000, adding she didn’t want her name attached to it, and “we’re going to use Andre and we’re going to put the money under Andre’s name.”

A few days later, during a campaign event at the Seabreeze restaurant, Thao and Juarez met with Andy Duong and they each reviewed the terms of the deal. Then Juarez met with the Duongs, during which David gave his blessing to pay Thao $300,000 and help her politically, Juarez said.

“He said ‘If this is real, then we can move forward,’” Juarez recalled.

On Friday, prosecutors honed in on texts that Juarez exchanged with Andy Duong as the November 2022 election results became official. In those texts, Juarez joked that they would be going to jail, but they’d also soon be rich. Andy Duong laughed in response, saying “Money buys everything.”

There was no hidden meaning in those texts, Juarez said.

“I was making light to the fact that we just committed a crime,” Juarez said.

_____