Copyright The Mercury News
OAKLAND — San Leandro City Councilman Bryan Azevedo pleaded not guilty Wednesday to federal charges claiming he accepted a $2,000 bribe from a fledgling housing housing company, then lied about the alleged scheme to investigators. Wearing a dark grey suit and red tie, Azevedo said little during his first courtroom appearance on charges of conspiracy to commit wire fraud, as well as lying to a government agency. He faces up to 20 years in prison if convicted of the most serious charge. A U.S. district judge allowed him to remain free on a $25,000 bond while the case is prosecuted. He is next scheduled to appear in court again on Jan. 8. The hearing comes just days after federal prosecutors signaled that a plea deal for the two-term councilman may be in the works. Azevedo is “close to reaching a resolution of his case,” meaning there likely there “won’t be any substantive hearings until a potential change of plea or sentencing hearing,” federal prosecutors wrote in a court filing earlier this month. On Wednesday, U.S. Assistant Attorney Abraham Fine reiterated that stance, saying he was “very close” to resolving Azevedo’s case. Any potential plea deal could have significant implications for a related federal corruption case against former Oakland Mayor Sheng Thao, as well as her romantic partner, Andre Jones, and the father-and-son business duo of David and Andy Duong. Both of the cases are widely believed to center around alleged bribery schemes involving Evolutionary Homes, a business co-founded by David Duong. On Wednesday, both cases were assigned to the same federal judge. Azevedo — a sheet-metal foreman by trade who won a second City Council term by fewer than 500 votes last year — declined multiple requests for comment by media ahead of his arraignment Wednesday. He was represented by Steven Kalar, a private attorney appointed by the court. Federal prosecutors claim affiliates of a housing company allegedly paid a $2,000 cash bribe in November 2023 to Azevedo, allegedly hoping he’d use his influence on the City Council to help them get a contract. By that time, Azevedo appeared to have already taken the advice of the housing company’s leaders by creating a limited liability company in his wife’s name and opening a bank account tied to it, all to accept bribes, according to court records. Prosecutors say Azevedo expected to later receive a percentage of the price from any housing units the city ultimately purchased from the business, though no such deal appears to have happened. The case against Azevedo bears numerous similarities to the ongoing Oakland federal case. In that matter, prosecutors say Thao accepted bribes from the Duongs in the form of political favors and a $95,000 no-show job for Jones. In return, authorities claim Thao promised to secure a contract for Evolutionary Homes, as well as a renewed city contract for the Duongs’ recycling, California Waste Solutions. Check back for updates to this developing story. Jakob Rodgers is a senior breaking news reporter. Call, text or send him an encrypted message via Signal at 510-390-2351, or email him at jrodgers@bayareanewsgroup.com.
