Orange County is poised to get back $3.7 million stolen by corrupt former Supervisor Andrew Do, but a debate is simmering over how the money should be spent.
Since the money was part of the $10 million in discretionary funds diverted by Do from the First Supervisorial District, his successor, Janet Nguyen, says it should automatically go back to her district.
Not so fast, say her colleagues on the Board of Supervisors.
They want to at least talk about potentially using the money for other pressing demands, such as the multimillion-dollar liability from the county-triggered Airport fire in 2024.
Nguyen says not giving the money to the district would be like robbing her constituents for the second time.
“Funds should not be stolen twice from the First District residents who were victims of Andrew Do’s greed,” Nguyen said.
The money originally was meant to feed elderly and disabled residents in the district, courtesy of federal pandemic-relief funds given to the county. Each district received $10 million to spend at its discretion. Some supervisors still have money left over.
Do is serving a five-year federal prison sentence for accepting more than $550,000 in bribes to direct his share of the COVID funds to certain charities, primarily one that employed his daughter, Rhiannon. Part of the relief money was funneled by an accomplice to buy a $1 million house in North Tustin for Rhiannon Do.
Most of the money went to the nonprofit Viet America Society for a meals program for seniors and the disabled, but only a fraction was spent for that purpose, according to Do’s plea agreement in 2024. The rest was spent on lavish items and real estate.
Federal authorities have determined that the county is eligible to receive up to $8.8 million in any assets seized from Do and his accomplices. So far, $3.7 million has been recovered from two bank accounts and the sale of the North Tustin property and another site.
“Before resigning in disgrace, (Do) spent everything and left the district with no money for our seniors, the needy or any other programs,” Nguyen said. “Meanwhile, other supervisors continue to spend their share of the funds, while we don’t have anything to provide in the First District.”
Nguyen’s district includes Cypress, Fountain Valley, Garden Grove, Huntington Beach, La Palma, Los Alamitos, Seal Beach and Westminster.
No one on the board is saying the First District should not get the funds. They just want to discuss it and take a vote, though none has been scheduled.
“It’s a little more complicated than (saying) it should go to the First District,” Supervisor Katrina Foley said. “There’s a lot of different opinions.”
For one thing, the First District boundaries have changed since Andrew Do started plundering the pandemic money. In 2022, Santa Ana was moved out of the First District and into the Second District now represented by Supervisor Vicente Sarmiento. So those Santa Ana constituents would be cheated out of services if the money remained solely in the First District.
Sarmiento said another issue to consider is that the money was meant for COVID-related needs, which no longer exist.
“Our office will work to ensure any funds recovered are fairly distributed to relevant county departments or board offices, where they will best serve our residents,” he said. “We will consider what areas of the county were harmed by Do’s criminal acts, but we must also remember that the funds were intended for relief efforts during the COVID-19 pandemic, a threat we are no longer facing.”
Supervisors Doug Chaffee and Don Wagner said they are looking forward to discussing the issue as a board.
“I am thankful the Department of Justice determined that the recovered funds will go to Orange County. The Board will consider all options of how the restitution will be allocated,” Chaffee said.
Added Wagner: “There’s a really strong claim it should go back to the First District. The counter argument is our budget situation is different than it was back then. … Our budget is going to be a lot tighter than it was two or three years ago.”
The county’s budget for the fiscal year ending June 30 is $10.8 billion, of which $5.4 billion is in the general fund.
Wagner also mentioned the liability from the Airport fire, with the county paying $89 million so far to resolve at least 400 claims from the blaze that was started by a work crew moving boulders. The fire destroyed more than 160 structures and charred 25,000 acres in Orange and Riverside counties. Cal Fire also has sued to recover $32 million in firefighting costs.
The COVID money was seized from Do and his co-conspirators by federal authorities with the aid of the Orange County District Attorney’s Office.
District Attorney Todd Spitzer sided with Nguyen, that her district should get all the recovered funds.
“Janet Nguyen’s district is the true victim and they did not get the benefit,” Spitzer said. “It should go back to her district.”