Hamish Price, who has been acting as a spokesman for Chuang, confirmed Buckingham had provided a legal opinion in the matter.
Blackmail is punishable by up to 14 years in prison.
Meanwhile, a public relations expert said Palino could still be a future mayor of the SuperCity. Pead PR managing director Deborah Pead said no one had escaped the scandal unsullied but some of the leading players would in time be able to make a fresh bid for public office.
"I don't think you can write Palino off," said Pead. "He's not squeaky clean in all this but remember Luigi (Wewege) is definitely the scapegoat and probably deservedly so. If I were him I would pack up and go back to wherever he came from."
Pead said Chuang appeared to be misled and manipulated by Wewege.
"For someone with political aspirations she has huge naivety to think her past wouldn't be exposed."
Pead said she wouldn't be surprised if she tried to return to public office but "I can't see there would be many people who will really give her a chance."
- Additional reporting by Lynley Bilby
• Read the Herald on Sunday exclusive interview with Luigi Wewege here.