Federal investigators are investigating a claim that California business owner used a karaoke-bar-turned-brothel to funnel thousands of dollars in campaign donations to embattled Oakland’s Democratic Mayor Sheng Thao and other members of the city’s political class.
Andy Duong, whose family works as Oakland’s curbside recycling contractor, is accused of having surrogates shell out $18,000 to various political candidates from 2016 to 2018, according to court documents obtained by various Bay Area news outlets.
An undercover raid at the brothel back in 2018 led to three arrests over accusations of drug and human trafficking. A former manager arrested at the front business is one of the suspected “straw donors” in Duong’s alleged Democratic fundraising scheme.
Duong’s home was raided by federal agents on June 20, as were the homes of Mayor Thao and Duong’s father, David, who founded the recycling business California Waste Solutions.
Despite these new allegations, a spokesperson for the Duong family said in a statement that the family are “good citizens who always obey the law.”
But according to Oakland law, city contractors are prohibited from giving money to political campaigns.
Investigators said former Music Cafe manager Charlie Ngo, who was arrested during the crackdown on the brothel, made over $5,000 in donations to local political campaigns despite not having enough money in his bank account.
Filings from the Fair Political Practices Commission said Ngo only had $50 to his name when he made a $700 donation to one candidate, and only had $5 in his bank account when he made an $800 contribution to a now former councilmember.
Investigators also said Ngo “made a large cash deposit just before or after writing his check.”
Ngo gave $800 to Thao’s city council campaign in 2018. She received $2,400 from people linked to the now-shuttered cafe while she was running for city council, records show.
According to a report from The Washington Times, while authorities are no longer seeking to subpoena Ngo, the criminal investigation into Duong remains active
This latest news adds more to the wave of political turmoil that has rocked Mayor Thao and the Democrat-run city of Oakland.
A rising star in California’s Democratic Party, Thao has been under investigation for corruption and money laundering since 2020, according to local newspaper Oaklandside.
Thao, who is facing a motivated recall effort, defended herself from any suspected illegal behavior and that she would be cleared of any wrongdoing in the federal investigation last week during a press conference.
“I want to be crystal clear: I have done nothing wrong,” Thao said. “I can tell you with confidence that this investigation is not about me. I have not been charged with a crime, and I am confident that I will not be charged with a crime because I am innocent.”
But local Democrats in the Bay Area continue to distance themselves from Thao.
The local chapter of the NAACP, a Democrat-aligned non-profit, immediately called for Thao to resign after the recent raid on her home.
“The City of Oakland has a cloud hanging over it today. The world watched as Oakland Mayor Sheng Thao’s home was raided by the FBI. While the public should refrain from a rush to judgment, the leadership of the NAACP and its members are calling on Mayor Sheng Thao to resign immediately and spare the city the cost of a recall,” NAACP Oakland President Cynthia Adams said after the raid.