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'Vengeful' testimony? Motivations of government's star witness under scrutiny in trial of former Oakland Mayor Sheng Thao

Jakob Rodgers, The Mercury News on

Published in News & Features

OAKLAND — Two days before his first extended interview with federal investigators, Mario Juarez sent a longtime associate a blunt message: “I need to f— the Duongs.”

Defense attorneys highlighted that text Monday in the federal corruption trial of former Oakland Mayor Sheng Thao, pressing the government’s star witness about whether his cooperation was driven by revenge against the business family accused of helping bribe her.

Under a second full day of cross-examination, Juarez again struck a defiant and combative tone as attorneys questioned his reasons for taking the stand against Thao, her romantic partner Andre Jones and the father-son business duo of David and Andy Duong. The four defendants are accused of partnering with Juarez on an elaborate scheme to trade access to City Hall for thousands of dollars in bribes from late 2022 through early 2024. All four have pleaded not guilty.

Ed Swanson, an attorney for David Duong, also pressed Juarez about an email he sent several Duong family members shortly before their May 2024 falling out. In it, Juarez threatened to report the alleged bribery scheme to authorities, potentially causing deep financial harm to the Duongs’ recycling business, California Waste Solutions.

“You wanted to hurt California Waste Solutions, isn’t that true?” Swanson asked.

“As I sit here, hurting CWS is not my purpose,” Juarez countered. “If the prosecution wins or loses is not my deal. I don’t win or lose anything.”

“They don’t get to convict me,” added Juarez, before gesturing toward Judge Yvonne Gonzalez Rogers sitting to his left. “I only get punished by her.”

Defense attorneys had previously elicited testimony that Juarez sought numerous conditions from federal authorities in exchange for his cooperation — including a provision that any guilty plea he entered would stand only if prosecutors also secured convictions against David Duong, his son Andy Duong, his sister Kristina Duong and another son, Johnny Duong. Juarez also acknowledged asking to walk away without any conviction on his record.

Juarez ultimately entered into an agreement with federal prosecutors that saw him plead guilty in January 2025 to a conspiracy charge carrying a maximum sentence of five years in prison. By contrast, Thao and her three co-defendants face up to 20 years behind bars on their most serious charges; all of them have pleaded not guilty.

The exchanges capped about seven hours of cross-examination by Swanson, which often touched on the dramatic collapse of a yearslong partnership between Juarez and the Duong family. Much of that testimony revolved around the failure of their shared company, Evolutionary Homes, which imploded in May 2024.

Prosecutors say the company formed a key component of the alleged corruption scheme, with Thao allegedly promising a city contract to procure up to 300 units from the business. In exchange, Thao sought lucrative under-the-table kickbacks from the company — first in the form of a $300,000 “no-show” job for Jones, then via a different funding mechanism that could have seen Jones earn up to $3 million, according to court testimony.

 

The company crumbled after the Duongs began questioning Juarez about his spending habits. Repeatedly in early 2024, a representative for the Duongs emailed Juarez seeking detailed financial documents and receipts showing how he had been spending the family’s money. Juarez testified that he refused to answer each request, citing a concern that the family was gearing up to sue him, among other reasons.

Those spending habits have garnered increasing scrutiny during Juarez’s cross-examination. On Monday, Swanson highlighted seven expense reports Juarez submitted to the Duong family for airline tickets. Each time, the amount he requested was $100 more than he paid for the airfare, according to bank records shown to the jury.

“So it’s true, is it not, that time and time and time again you padded your bills and lied about how much things cost when you asked for reimbursement?” Swanson asked.

Juarez dismissed the issue as a mere “discrepancy.”

“That’s a discrepancy in your mind?” Swanson asked.

Last week, Juarez accused some Duong family members of ordering henchmen to assault him in May 2024 outside the waterfront offices of California Waste Solutions and Evolutionary Homes. He also acknowledged a desire for vengeance, telling prosecutors: “When people don’t keep their promises to me, I’ll go after them.”

On Monday, Shawn Halbert, an attorney for Jones, returned to that admission.

“You’re vengeful, right? You testified to that?” Halbert asked.

“I admitted to being vengeful,” Juarez said. “I don’t think I’m in that position today. I’ve been humbled now.”

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