DOJ and State Prosecutors Target Progressive Corruption Network: SPLC, Oakland Mayor, and Hawaii Democrats Indicted
- Rex Ballard
- 17 hours ago
- 4 min read
Federal and state authorities have secured multiple high-profile indictments against progressive Democratic politicians and a leading left-wing activist organization for corruption, bribery, and fraud schemes involving donor funds, campaign contributions, and government contracts. The cases—centered on the Southern Poverty Law Center (SPLC), former Oakland Mayor Sheng Thao, and Hawaii Lt. Gov. Sylvia Luke—reveal patterns of alleged pay-to-play politics and deception of the public and donors. Co-conspirators have been clearly identified in charging documents.
These developments come amid broader scrutiny of progressive governance failures, from crime and homelessness in Democrat-run cities to opaque nonprofit funding. Shasta Unfiltered examines the facts from official DOJ releases, court records, and contemporaneous reporting.
Southern Poverty Law Center: Donor Fraud and Payments to Extremists
In April 2026, a federal grand jury in the Middle District of Alabama returned an 11-count indictment against the Southern Poverty Law Center charging wire fraud, false statements to a federally insured bank, and conspiracy to commit concealment money laundering. Prosecutors allege that between 2014 and 2023 (with roots earlier), the progressive civil rights group secretly funneled more than $3 million—later detailed as approximately $4.1 million—in tax-exempt donor funds to paid informants (“field sources”) tied to violent extremist organizations including the Ku Klux Klan, United Klans of America, National Alliance, National Socialist Movement, Aryan Nations affiliates, and Unite the Right participants.
The SPLC allegedly raised money by representing that funds would dismantle hate groups while using fictitious entities and shell bank accounts (with names such as Fox Photography and Tech Writers Group) to disguise payments. Officials said the scheme misled donors and, in some instances, enabled further criminal activity by the recipients.
Identified co-conspirators and key figures: Former SPLC executive and Intelligence Project/CFO Heidi Beirich was charged in an August 2026 superseding indictment with conspiracy to commit wire fraud, conspiracy to submit false statements to a bank, and conspiracy to commit money laundering. Prosecutors allege Beirich helped open fictitious accounts, oversaw payments, and shared a romantic relationship and joint bank accounts with one informant (identified as F-9), through which donor money flowed for personal expenses. Other unnamed SPLC employees (referred to in filings as Employee-1 and Employee-2, who rose to CFO and Director of the Intelligence Project roles) are described as central to creating the covert payment network starting around 2008.
Oakland: Former Progressive Mayor Sheng Thao and Business Partners
In January 2025, the U.S. Attorney’s Office for the Northern District of California unsealed an eight-count federal indictment charging former Oakland Mayor Sheng Thao (Democrat, progressive on housing, tenants’ rights, and related issues), her longtime romantic partner Andre Jones, and businessmen David Trung Duong and Andy Hung Duong with conspiracy to commit bribery, bribery concerning programs receiving federal funds, conspiracy to commit honest services mail and wire fraud, honest services mail fraud, and honest services wire fraud. Andy Duong faces an additional false-statements count.
Prosecutors allege that around the 2022 mayoral election and after Thao took office in January 2023, she promised official acts benefiting the Duongs’ companies—California Waste Solutions (Oakland’s recycling contractor) and a related modular/prefab housing firm (Evolutionary Homes). These included extending city contracts, committing Oakland to purchase housing units, and appointing preferred city officials. In exchange, the Duongs allegedly funded a $75,000 negative campaign mailer against Thao’s opponents and funneled approximately $95,000 (with promises up to $300,000) to Jones via a “no-show” job, benefits intended for Thao and Jones. Concealment tactics such as false invoices and nondisclosure on ethics forms were alleged.
Thao was recalled by voters in November 2024. The case continues, with a key related figure having pleaded guilty and trial preparations underway (jury selection targeted for October 2026 in some filings).
Identified co-conspirators: Sheng Thao, Andre Jones, David Trung Duong (president/CEO of the recycling company and co-owner of the housing firm), and Andy Hung Duong (David’s son, employee/co-owner). An unnamed local businessman co-conspirator is referenced in connection with the housing and appointment aspects.
Hawaii: Lt. Gov. Sylvia Luke and Legislative Circle
In July 2026, an Oahu grand jury returned a 12-count state indictment (Hawaii Attorney General’s office) charging Democratic Lt. Gov. Sylvia Luke with criminal conspiracy to commit bribery, bribery, and falsifying candidate committee reports. The probe grew from evidence shared by federal prosecutors/FBI stemming from an earlier federal corruption investigation involving informant and former lawmaker Ty Cullen.
Allegations center on Luke (then House Finance Committee chair) agreeing to help advance funding for a COVID-19 testing contract linked to lobbyist/businessman Tobi Solidum in exchange for campaign contributions (promised up to $70,000, including acknowledged $5,000 checks). Related charges involve cash and check payments.
Identified co-conspirators:
Former state Rep. Ryan Yamane (also former DHS director) – conspiracy and bribery (allegedly accepted at least $7,000).
Ford Fuchigami (airports administrator, DOT) – conspiracy, bribery, false statements, obstruction.
Leo Asuncion Jr. (former PUC chair and Luke campaign treasurer) – falsifying reports, false statements, obstruction.
Tobi Solidum (lobbyist/businessman tied to National Kidney Foundation of Hawaii testing contracts) – multiple counts of conspiracy to commit bribery and bribery. Solidum faces a no-bail warrant after reportedly liquidating assets and leaving for the Philippines; he is also under separate federal scrutiny over alleged multimillion-dollar testing-fund issues.
Defendants have pleaded not guilty. Gov. Josh Green has called for Luke’s resignation. FEMA has reviewed related COVID funding.
Broader Pattern
These cases join other recent federal actions against Democratic officeholders, including former NYC Mayor Eric Adams (2024 bribery and foreign-contribution charges, later dismissed) and Rep. Sheila Cherfilus-McCormick (FEMA funds fraud indictment). While some matters remain pending or have political dimensions, the charging documents identify specific co-conspirators and concrete schemes involving public money, contracts, and influence.
Corruption erodes public trust regardless of party. Shasta Unfiltered will continue monitoring these cases for accountability, transparency, and any local California or national implications. All defendants are presumed innocent until proven guilty in a court of law.
Primary sources: U.S. Department of Justice press releases (Middle District of Alabama and Northern District of California); Hawaii Attorney General announcements; federal and state court dockets; contemporaneous reporting from DOJ, AP, local outlets.
