Federal investigators have uncovered a scheme in Oakland where a business owner used a karaoke bar, which was later converted into a brothel, to funnel campaign donations to Mayor Sheng Thao and other political figures.
Andy Duong, linked to Oakland's recycling contractor California Waste Solutions, is accused of orchestrating the scheme between 2016 and 2018.
The scheme was revealed through an undercover sting, leading to several arrests.
Duong's residence and those of others involved were raided, but Mayor Thao has denied any wrongdoing.
The investigation continues amidst a growing recall effort against Thao, who is accused of contributing to Oakland's crime wave and economic issues.