Orange County District 1 Supervisor Accused of Misappropriating Federal Relief Funds, Colleagues Respond

Orange County Board of Supervisors Chair did not ask District 1 Supervisor Andrew Do to resign from his elected position during the Board meeting on the morning of August 27. However, two other supervisors had previously issued statements, calling for Do’s resignation due to his alleged involvement in misappropriation of federal relief funds.

In response to inquiries regarding Andrew Do’s involvement, Board of Supervisors Chair and Third District Supervisor Donald Wagner’s office released a press release on August 26, stating that a motion will be presented at the next meeting to remove Do from all his positions within the Board, with other supervisors stepping in to take over his current responsibilities.

“I have heard the calls for Do to resign and I hope he seriously considers the future in elected office, particularly for the constituents of District 1,” the press release read. “As the case progresses, Do is entitled to legal protection. I urge against rushing to judgment, as I have done in all legal proceedings; I have confidence in our legal system and will abide by the results of the investigation and the court’s ruling.”

Wagner also stated that no additional discretionary funds for District 1 would be approved by the Board until a thorough review of all proposed expenditures is conducted.

According to KTLA, IRS Criminal Investigation agents searched a residence in Tustin, Orange County last Thursday, August 22. Neighbor Larry Thomas reported hearing significant activity during the search, and as far as he knew, the house had not been occupied since its sale in July of last year.

FBI spokesperson Laura Eimiller informed reporters from “LAist” that a search warrant was being executed at the location; the affidavit related to the search and arrest warrant had been sealed by the court and no comments could be made. There are currently no plans for any arrests.

Reports indicate that the owner of the house, purchased for $1.035 million by Andrew Do’s 23-year-old daughter Rhiannon Do, allegedly misused federal funds intended for providing food and assistance to vulnerable elderly during the COVID pandemic.

Last Thursday, the nonprofit organization Vietnamese American Society (VAS) was sued by Orange County and demanded to repay millions of dollars in federal funds. The lawsuit stated that VAS did not use the funds for nutrition and meal services for the elderly and disabled as intended, but instead misappropriated funds to purchase five houses in Tustin worth approximately $1 million each, with some funds unaccounted for, and Rhiannon Do being one of the executives of VAS.

Andrew Do himself asserted that he had not engaged in any wrongdoing in distributing the funds.

As reported by LAist, attorney Mark Rosen, representing VAS, responded the day after the search, calling the County’s lawsuit against the organization a “disgrace” and more akin to creating political headlines.

LAist noted that they were the first to expose the case last year and that District 1 allocated over $13 million to VAS.

Rosen disputed the allegations in the lawsuit, such as VAS misappropriating funds meant for building a Vietnam War memorial at Mile Square Park in the Vietnamese community. In a statement, he said the monument had already been constructed. However, LAist mentioned that a spokesperson from the County Communications Office stated that the project was expected to be completed by the end of the year.

Rosen also mentioned that VAS provides necessary goods and services to the community, but initially had issues with record-keeping. “My clients (VAS) continue to provide food and delivery services to the poor and disabled today. People can come see their operations and they are now keeping good records.”

Second District Supervisor Vicente Sarmiento and Fifth District Supervisor Katrina Foley both called for Andrew Do’s resignation.

Foley’s office reviewed the events. On August 14, Foley and Sarmiento demanded the County Counsel’s Office take action to reclaim unaccounted public funds and urged county, state, and federal officials to investigate improper use of District 1 funds.

On August 15, at the request of the supervisors, Orange County filed lawsuits against VAS, Aloha Financial, and its executives; on August 19, the County sued Hand to Hand Relief Organization.

On August 22, Foley expressed support for the FBI’s search operation and stated, “I expect more evidence to be found by law enforcement proving these shameless criminal conspiracies where these individuals have allegedly stolen millions to enrich themselves instead of feeding hungry disabled and elderly people. Someone must be held accountable for this disrespect to the community.” She also called on Attorney General Bonta to remove Andrew Do from his position if he does not resign voluntarily.

Sarmiento also called for Do’s resignation, stating in a statement on August 14, “I have been advocating for an audit of all public funds used for VAS and H2H since the end of last year, even though most of the funds were allocated before I took office.” However, he did not request a review of every contract using federal funds under the American Rescue Plan Act in the County, unlike Foley.

Fourth District Supervisor Doug Chaffee urged colleagues to stop demanding Do’s resignation and to let the courts resolve the issue. “The Board is not a judge or jury, and upholding the principle of separation of powers is our constitutional duty,” Chaffee stated in a release. “This case is now in the hands of the court, and we must let the legal system proceed fairly and justly.”