Orange County has filed a lawsuit accusing its main mental health partner, Mind OC, of squandering more than $60 million in public funds.
Specifically, the county says the nonprofit group, commonly known as Be Well OC:
- Fraudulently billed millions for services it didn’t provide.
- Jacked up rental rates for county-funded behavioral health providers.
- Routinely put its own financial interests ahead of the vulnerable populations it was supposed to protect.
Why it matters
The allegations came Tuesday in a cross-complaint filed against Mind OC in a bitter legal dispute over what was supposed to be a model public-private mental health campus in the city of Orange.
LAist reached out to Mind OC for a response. A representative said they were not surprised by the lawsuit, and were reviewing it carefully. They also called the county’s counter-complaint “reactionary,” and said it was the county who breached its agreement with Mind OC at the Orange health campus, causing the nonprofit “significant damages.”
In all, the county is seeking the return of up to $64.5 million in public funds and property it says it entrusted to the organization, according to the complaint. The county also wants to wrest control of the Orange campus from the nonprofit.
The background
Mind OC, which does business as Be Well OC, was launched in 2017 with the goal of creating a world class mental health system in Orange County, including two campuses where, they hoped, patients using public services and those with private insurance would both seek care.
The Be Well OC initiative had strong support from the O.C. Board of Supervisors, including disgraced former Supervisor Andrew Do, who was a member of the board's ad hoc committee on mental health services at the time.
The first campus opened in Orange in 2021. The initial agreement between Mind OC and the county called for granting the organization a 60-year lease for $1 per year in exchange for Mind OC designing and overseeing construction of the mental health campus in Orange. (The actual cost of construction was covered by the county, private hospitals, and the county’s Medi-Cal provider, CalOptima.)
But the relationship soon soured. The county claimed in 2024 that Mind OC was in default, and then canceled the organization’s lease in February 2025. In the middle of the two actions, Mind OC sued.
A second Be Well OC campus was scheduled to open in Irvine last year, but has been held up, largely stemming from the disputes between Mind OC and the county.
On Tuesday afternoon, just hours after the county filed its complaint, Irvine held a special meeting where the City Council voted 5 to 2 to support the immediate opening of the Irvine Be Well campus — with Mind OC as the operator.
The nonprofit took in $50 million in revenue last year from providing mental health services in Orange County, and has $182 million in assets, according to its latest tax filing.
The legal allegations
Here are some of the major allegations in the county’s complaint:
The county alleges that Mind OC fraudulently billed the county $7.4 million for services it didn’t fully deliver.
The county gave Mind OC a $7.7 million no-bid contract in 2019 to design an innovative mental health system. In the county’s complaint, it says Mind OC didn’t document its work, properly maintain records, or justify its invoices on the project. The county also alleged that Mind OC sought to turn in, as its primary deliverable, a document authored by county staff. Ultimately, the county paid Mind OC $7.4 million of the contract.
The county also alleges that Mind OC charged excessive rents to the county’s service providers at the Be Well campus in Orange in violation of its lease agreement.
The county claims that Mind OC misused taxpayer funds by charging the county’s service providers on the campus rent that equated to “approximately double Mind OC’s operating expenses and well beyond market rate.”
Mind OC said in its prior legal complaint that the county “approved the subleases it now complains about.”
The county claims there was a conflict of interest when Mind OC subcontracted with a person with ties to Do.
Mind OC subcontracted in 2020 with the then-girlfriend of Do’s chief of staff, Chris Wangsaporn. She failed to deliver, as previously reported by LAist. In its complaint, the county said the contract with Josie Batres, who is now married to Wangsaporn, was “emblematic of conflicts of interest that cloud the venture from its inception.”
Batres was paid $275,000 over two years to run community listening sessions and submit reports to help the county increase access to publicly-funded mental health services. County officials say the work was never turned in.
After LAist’s reporting on the matter, the county demanded a refund, which Mind OC paid in November 2024.
In its complaint this week, the county said “Mind OC promised an investigation into the misappropriation, a promise that, to date, has gone unfulfilled.”
Other complaints laid out in the lawsuit against Mind OC include allegations that the nonprofit violated patient privacy on the Orange health campus by installing cameras in service provider areas and having property management staff check in patients and screen phone calls.
The county also said Mind OC failed to meet a major goal of the Be Well campus — to have a quarter of all patients served come with their own private insurance, according to the lawsuit and a 2024 audit.
“Mind OC, a non-profit, took positions designed to maximize its profits at the expense of County taxpayers and residents in dire need of affordable mental health services,” a county spokesperson wrote in a news release.
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