Star witness in ex-Oakland mayor’s trial details fake contracts, ‘no-show’ job

Mario Juarez testified that former Oakland Mayor Sheng Thao partner's only role in a purported bribery scheme was to funnel money from him and his business partners to the mayor.OAKLAND, Calif. (CN) — A defense attorney grilled a government informant Tuesday over his role facilitating a false position for former Oakland mayor Sheng Thao’s romantic partner in his company, as part of what prosecutors say is a corruption scheme.On his fifth day of testimony in a criminal jury trial against Thao, her partner Andre Jones, and two others facing charges of bribery, conspiracy and fraud, Oakland businessman and political operative Mario Juarez haltingly answered questions about the beginning of his modular home business, Evolutionary Homes.The company was co-founded with co-defendant Andy Duong and funded by his father, David Duong, who also owns Oakland waste management company, California Waste Solutions.Juarez claims he and the Duongs tried to influence Thao into receiving bribes, promising future lucrative city contracts for Evolutionary Homes and California Waste Solutions.Juarez’s past testimony claimed Jones’ had a “no-show” job for the business, and his only role was to funnel bribe payments from Juarez and the Duongs to Thao, often cashing checks for various amounts between December 2022 and April 2023.Juarez, wearing a dark blazer and a blue button up shirt, testified he didn’t remember a lot of the discussions between him and Jones about Jones’ work with Evolutionary Homes.Shawn Halbert, Jones’ attorney, tried to poke holes in Juarez’s characterization of Jones’ role and Juarez’s feeling about Jones’ involvement.She showed the 14-person jury an August 2022 text message from Juarez to Jones during the early days of the company, and before Thao’s mayoral win.“I am proud to partner with you on this particular project because it means that after we are long gone, we will leave our mark,” the text read.“I don’t regret saying this,” Juarez said on the stand.Halbert then referenced a text message between Juarez and Andy Duong, after Jones had tried to go directly to David Duong for a contract solidifying his position with Evolutionary Homes.“Stupid Black shit, don’t think how things get done,” Juarez wrote in the text complaining that Jones was only supposed to have contact with Juarez.In the courtroom, with a hand to his mouth, Jones was mostly nonreactive to Juarez’s commentary on his race.U.S. Assistant Attorney Abraham Fine objected to a large amount of Halbert’s questioning based on its usefulness to the trial.All four defendants have pleaded not guilty. Thao faces a maximum sentence of 95 years in prison if convicted on all charges.Juarez has pleaded guilty to conspiracy to commit a bribe in exchange for his cooperation with the prosecution and a more lenient sentence.In cross-examination, Andy Duong’s attorney, Douglas Sprague focused on Juarez’s cooperation with the government and his interviews with the FBI.Sprague asked Juarez if he knew that Andy Duong was in high school when Juarez started his 2008 Oakland city council campaign, with Andy helping him finance his campaign by “tapping his network of donors.” Juarez acknowledged he was working with a teenager.Chief U.S. District Judge Yvonne Gonzalez Rogers reigned in some of Juarez’s colloquies Tuesday, creating a more sober environment in the courtroom than in previous days of Juarez’s testimony.The Barack Obama appointee made sure Halbert and Juarez kept to straight-forward questions and answers — yet at one point during his testimony Juarez said that Halbert should ask her client or Thao to say whether they received money in exchange for a city contract for 300 container homes.After the jury left the courtroom for a break, Jeff Tsai, Thao’s defense attorney, protested the comment, saying it “constitutes improper burdenship" by referencing the defendants potentially testifying, even though it’s part of their constitutional right not to. Tsai asked Rogers for an additional curative instruction to the jury.In a heated back-and-forth between Rogers and Tsai, the judge told Tsai the “appellate record is padded” after his comments, saying he could file for a mistrial and the jury wouldn’t go against her instructions.When Juarez was brought back in the courtroom to continue his testimony, Rogers admonished him harshly.“It is problematic that in any way shape or form you suggest that the defendants need to testify,” she said.“It’s not appropriate,” Rogers said. “Now I have to clean up this mess.”Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads