Federal prosecutors recently released new details in their corruption and bribery case against former Oakland Mayor Sheng Thao — including the alleged existence of embarrassing blackmail videos of Bay Area politicos.
Thao, who was recalled from office amid rising crime rates, and her boyfriend Andre Jones have been accused of accepting bribes from David Duong and his son Andy Duong of California Waste Solutions, a major Bay Area waste management company.
They have all pleaded not guilty — but new details released by prosecutors have fueled rumors about who else could be ensnared in the sprawling corruption case, which involves alleged bribes, mortifying party pics, fake jobs and even a sex-fueled jaunt to Vietnam.
The new information was made public Friday in response to the defendants seeking to exclude evidence from the trial that their attorneys claim are unrelated to the charges.
Potential bombshell evidence could come from Andy Duong’s phone, which was seized in June 2024 and contains dozens of videos “showing various public officials dancing at clubs, drinking alcohol, or engaging in party-like behavior,” prosecutors said.
Prosecutors allege that Andy Duong “filmed/recorded city employees and officials as part of the conspiracy, with the hopes of using the recordings for potential blackmail.”
The feds have cited only one example of blackmail material, involving Larry Gallegos, who was a project manager for the Economic and Workforce Development Department. The material allegedly depicts him at a karaoke bar “with scantily clad women in the background.”
The Duongs allegedly asked Thao to appoint Gallegos to a high-ranking position in the housing department to help pave the way for the awarding of a contract to Evolutionary Homes, a business partnership between the Duongs and local businessman Mario Juarez.
Juarez once texted Duong asked for a good date to [t]ake Larry Gallegos to party – he is a devoted Christian – think of his sins while he parties,” per prosecutors.
Gallegos is not accused of any wrongdoing, according to prosecutors, and is expected to testify that Duong took photos of him with “scantily clad” women at a club.
Juarez, who has already pleaded guilty, will also testify that Andy Duong told him “he regularly took surreptitious photos and videos of politicians in compromising positions for potential use against them,” the feds said.
Duong’s alleged blackmail trove may also include incriminating snaps from a notorious August 2023 junket in Vietnam, which Thao and other local pols attended.
Afterwards, a local reporter began inquiring about members of the junket delegation “engaging in relations with prostitutes.” And authorities later discovered a video on Duong that shows him and ex-San Leandro Councilmember Bryan Azevedo “discussing sexual interactions from the previous evening,” according to filings.
Azevedo has pleaded guilty and will testify in the case.
The evidence tease has many in the public and on social media clamoring for more as speculation runs rampant about who else in the California political world may be caught up in the alleged blackmail attempts.
State Assemblymember Ash Kalra, who has not been accused of wrongdoing, has been linked to a karaoke bar called Music Cafe, which the Duongs have been accused of using to illegally funnel political contributions. The club was later busted for selling ketamine and sex to guests.
Text messages show Kalra was invited to visit the bar by Andy Duong. Kalra’s office had said the shared text messages shows he cooperated fully with state investigators.
“Other than a handful of text messages and a single lunch 6 years ago as referenced in the filings, the assemblymember did not have a relationship with Mr. Duong and has not returned to his establishments or interacted with him since,” Kalra’s office said in a statement.
Another name linked to the Duongs is California Attorney General Rob Bonta. Juarez allegedly sent a May 2024 letter to Bonta claiming there was a compromising video of him, ABC7 reported.
Bonta’s ties to the Duongs have been heavily scrutinized. Bonta’s office told ABC7 that he is not concerned about that report of a compromising video, saying Juarez wrote that letter as “a desperate guy at a desperate moment with walls closing in.”
Other potential evidence that the feds detailed on Friday include recordings that shed light on communications between the Duongs and the ex-mayor and the creation of a fake job for Jones to obtain a lease.
