A federal grand jury has indicted Oakland’s recalled Mayor Sheng Thao, a source with knowledge of the investigation told the Bay Area News Group — a stunning development in a federal public corruption inquiry that touched the highest levels of East Bay’s political class.

Two months after she was recalled as Oakland mayor, Sheng Thao has reportedly been criminally indicted by a federal grand jury, a blow to a city whose voters have made it clear they are fed up with crime and government dysfunction.