Oakland Bribery Case: Thao, others accused of trying to kill story of alleged sexual misconduct

OAKLAND, Calif. (KGO) -- A federal judge has ruled that jurors may hear allegations that former Oakland Mayor Sheng Thao and others sought to prevent publication of a story about alleged misconduct by an East Bay politician during a 2023 trade mission to Vietnam, according to court records.

The ruling came after attorneys for the four defendants attempted to block the bribery allegation from being introduced at trial, which is scheduled to begin next month.

The allegation centers on reporting by political journalist Steve Tavares, who publishes the East Bay Insiders newsletter and hosts a podcast of the same name.

By December 2023, Tavares was investigating the trade mission to Vietnam that took place that summer and was sponsored by David Duong, owner of California Waste Solutions and Evolutionary Homes. Tavares said he was pursuing information about San Leandro Councilmember Bryan Azevedo's conduct during the trip.

MORE: San Leandro council member Bryan Azevedo 1st to plead guilty in Oakland's federal corruption case

"I'm really snooping around, and I was coming hard with every source I've ever known and back and forth and finding this. I wanted to know what was going on here," Tavares said.

According to court filings, tips focused on whether Azevedo "had engaged in sexual conduct with prostitutes during the trip."

"All I'm looking for is what did this guy, Brian Azevedo, what sort of hijinks and possible criminal activity did he do in Vietnam? That's all I cared about," Tavares said.

Federal prosecutors wrote that "when Thao learned about the reporting, she became irate, concerned that Azevedo's behavior on a trip she was prominently associated with would reflect badly on her and harm her politically."

Court records state that Thao called Duong and, according to staff members who overheard the conversation, "Thao said something along the lines of 'if this stuff happens, I can't work with you anymore' or 'I can't f*** with you anymore.'"

MORE: Court to unseal sensitive documents in ex-Oakland Mayor Sheng Thao corruption case

Prosecutors have also alleged a broader quid pro quo arrangement involving Thao, Duong and others.

According to court filings, Thao agreed to help California Waste Solutions receive a 10-year contract extension, allow Duong to influence certain political appointments and "use her position" to purchase 100 units from Evolutionary Homes. In exchange, prosecutors allege Thao's partner, Andre Jones, would receive a $300,000 no-show job with the company.

The court documents further state that "the parties discussed" increasing Jones' salary "up to $3-million" if Oakland purchased 300 housing units and that he would "earn a bonus of $10-thousand per unit sold."

According to prosecutors, concerns that reporting about the Vietnam trip could expose the alleged arrangement led to efforts to stop the story from being published.

Shawn Wilson, who served as chief of staff to Alameda County Supervisors President David Haubert and frequently appeared on Tavares' podcast, met with Duong, his son Andy Duong and business partner Mario Juarez at a Livermore taqueria, according to the court record and interviews conducted by ABC7 Eyewitness News.

Wilson said he accepted $10,000 from the Duongs to provide public relations advice and produced a contract documenting the arrangement. Prosecutors contend the "$10,000 check (was) for the purpose of preventing the story about the Vietnam trip from coming out."

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Wilson said Juarez later raised concerns about Tavares' reporting.

"Mario did tell me that he was afraid that Steven was going to have a story. He did tell me that I had to stop it. And I told Mario, I don't tell Steve what to write. Never have," Wilson said.

When asked whether Wilson explicitly offered money in exchange for suppressing the story, Tavares said, "No, it wasn't that direct. ... He does tell me, like, hey, because this is before Christmas 2023, like, hey, this will be a nice little, little present. $2,000 a month. You know, a little nice little Christmas gift."

Tavares said he did not accept the offer.

"If I had no integrity and took his -- we're done. My career is done, I am done. I'm a laughing stock. I am a crook. I didn't get to 51 years to start being a crook at year 51, right?" he said.

Court filings also show that following the taqueria meeting, Andy Duong allegedly told Azevedo by phone that the article would not be published because of Andy Duong's actions.

MORE: Ex-Oakland mayor, co-defendants in court seeking to suppress evidence in federal corruption case

Azevedo, who was later arrested on charges of conspiracy and making false statements, denied allegations involving prostitutes during an interview with ABC7 Eyewitness News conducted after an FBI raid on his home and before his arrest.

"They're saying we had prostitutes, all this stuff. Yeah, we got massages. That doesn't mean they're prostitutes. We had people serving drinks or whatever," Azevedo said.

When asked whether any sexual acts were exchanged, Azevedo responded, "No."

Court records also reference a video that prosecutors say Andy Duong recorded in a vehicle during the Vietnam trip. According to the filings, the video shows Duong, Azevedo and others "discussing sexual interactions from the previous evening" at "a massage parlor."

Additional evidence in the case includes text messages between Wilson and David Duong, according to court filings. Azevedo and Juarez have reached plea agreements and are expected to testify for the prosecution when the trial begins next month.