A man who allegedly helped broker a multimillion-dollar deal between Oakland's former mayor and a local waste management company took the witness stand Friday, offering prosecutors a firsthand account of the alleged bribery scheme.
Mario Juarez, a key figure in the alleged bribery arrangement involving former Oakland Mayor Sheng Thao, took the witness stand Friday in the federal corruption trial of Thao and three co-defendants, as ABC 7 reports. Juarez, who pleaded guilty to one count of conspiracy to commit bribery and agreed to testify for the prosecution, made an unexpected appearance at Oakland Federal Court Thursday, a day earlier than prosecutors had indicated he would be called.
Juarez played an essential role in Evolutionary Homes, a venture he established with California Waste Solutions executives David and Andy Duong to manufacture homes for unhoused people using converted shipping containers in Mexico. Prosecutors allege the company was part of a pay-to-play arrangement in which Thao would help secure a multimillion-dollar contract for the housing units in exchange for financial support for her 2022 mayoral campaign.
Prosecutors introduced recordings secretly obtained during Evolutionary Homes board meetings, which they say show Juarez acting as the primary contact with Thao and her partner, Andre Jones. According to ABC 7, one recording captured Juarez recounting a phone call in which Jones allegedly requested another $20,000 on top of the $85,000 he had already received.
"David is not going to be happy to hear that you were asking for more money, especially when nothing has come about," Juarez said in the recording.
The recordings, made by former California Waste Solutions employee Cecilia Mendez, were played for jurors earlier this week, as SFist reported Wednesday. Roughly 40 minutes of audio from the company's board meetings reportedly revealed discussions about the alleged arrangement, including Juarez expressing frustration that Thao was not following through on her promises.
"I think it's disappointing she's not keeping promises. Will be problem for her re-election," Juarez said in another recording. He also warned that there would be consequences for failing to honor the alleged agreement.
The defense has sought to undermine the credibility of both Juarez and Mendez, pointing to their criminal histories and their arrangements with federal prosecutors. Mendez received immunity for making the secret recordings and testified that she was convicted in 2019 of grand theft, identity theft, and acting as a real estate agent without a license, as previously reported. Juarez, meanwhile, is cooperating with prosecutors in exchange for the possibility of a more lenient sentence.
Juarez was already a controversial figure when the FBI investigation first became public in 2024. As SFist reported at the time, he had been accused of bouncing $50,000 in checks intended to pay for campaign attack mailers targeting Thao's mayoral opponent Loren Taylor. He was also under a separate Alameda County District Attorney's Office investigation into allegations that he defrauded investors out of $4.25 million in unrelated business deals, though he was not charged in that investigation.
ABC 7 reports that Thursday's proceedings also included testimony from former Oakland City Manager Jestin Johnson, who said Thao directed him to meet with David Duong and tour the Evolutionary Homes showroom at California Waste Solutions headquarters.
Former Assistant City Administrator LaTonda Simmons also testified about a text message Thao sent after seeing the modular homes.
"I saw them, they look amazing. I think we should pilot a site with these," Thao wrote.
Prosecutors previously presented photographs of Thao touring the showroom, along with evidence of her communications with Andy Duong about California Waste Solutions' recycling contract. According to ABC 7, Simmons testified that Thao advised Duong on how to respond to allegations that the company had overcharged customers, despite the matter being discussed in a closed-door City Council meeting. Simmons said city employees and elected officials were prohibited from sharing details of those meetings with outsiders.
Earlier in the trial, prosecutors also introduced what appeared to be notes from Andy Duong's iPhone outlining campaign assistance and several favors the company allegedly expected in return. Those included extending California Waste Solutions' 10-year recycling contract, helping the company secure Port of Oakland land for a recycling facility, and purchasing 300 modular housing units at $300,000 apiece, as previously reported.
The prosecution's earlier witnesses included Leigh Hanson, who served as chief of staff under several Oakland mayors, including Thao. Hanson testified about concerns over Jones's involvement in City Hall business despite having no official position with the city, as well as Thao's relationship with the Duong family.
Thao, Jones, David Duong, and Andy Duong face federal bribery, conspiracy, and fraud charges. All four have pleaded not guilty.
Previously: Prosecutors Reveal Secret Recordings In Sheng Thao Corruption Trial
