The Brief

A string of businesses owned or backed by brothers with extensive real estate and healthcare holdings earned millions through contracts with government entities in Orange County under the supervision of disgraced former Supervisor Andrew Do. Those government contracts with Larry and Gary Nguyen’s businesses have raised questions and concerns from a range of public and private entities — including the Board of Supervisors, the county’s health plan for the poor, an insurance company and a whistleblower — an LAist investigation has learned.

One multimillion dollar contract — with the firm 360 Clinic to carry out COVID-19 testing during the pandemic — is the focus of a former employee’s whistleblower lawsuit that alleges executives engaged in billing fraud.

Another concerns a property deal in Tustin between the county’s low-income health plan, CalOptima, and one of the Nguyen brother’s companies, Yorba Myrtle LLC. Under an agreement signed by Do as CalOptima’s chair, the agency had been set to buy the property for $29.5 million — 60% more than the company paid less than a year earlier — when the deal fell apart.

There are at least two probes underway into these and more than a thousand of other contracts handled by Do at county agencies over the years:

• CalOptima has hired an outside firm to audit transactions approved while Do was on their board, including the Tustin property deal. 

• The Orange County Board of Supervisors is also preparing to conduct a widespread forensic audit focused on contracts that awarded pandemic relief funds, including the COVID-19 testing contract with 360 Clinic. They expect to release a request for proposals by the end of May, the first step in hiring an outside firm to do the work.

Do pleaded guilty to a federal bribery charge and is currently awaiting sentencing for accepting kickbacks from contracts intended to feed seniors during the pandemic.

Stuart Pfeifer, a spokesperson for several of the Nguyen brothers’ businesses, declined to discuss LAist’s questions in detail but said there has been “full compliance” in 360 Clinic’s business interactions with the county.

David Tang, Gary Nguyen’s business partner in Yorba Myrtle LLC, did not respond to LAist’s requests for comment left at his office and by email. Pfeifer did not respond to LAist’s questions about the Tustin property deal.

Paul Meyer, a lawyer for former Supervisor Do, told LAist “it’s inappropriate to comment at this time.”

Here’s what LAist has learned about the transactions through interviews and public records:

The COVID-19 testing supersites

In-mid 2020, politically polarized Orange County was engulfed in a fierce debate over how serious of a risk the pandemic posed and how to address it.

At a Board of Supervisors meeting that summer, Do — one of two supervisors on an ad hoc committee formed to try to ramp up COVID-19 testing — announced a public-private partnership with a brand new company. The partnership would provide free, drive-through COVID-19 testing at the Anaheim Convention Center and the OC Fairgrounds. The plan was to test up to 5,000 people per day, which health officials said was a key step to reduce the virus’s spread and get back to normal life.

The company chosen to carry out the testing, 360 Clinic, had been formed just five days before that announcement, according to state business records.

There was no competitive bidding for the work, the full Board of Supervisors never voted on it, and the payment details were never revealed in a public meeting. Instead, the company’s contract was rushed through under a pandemic-era emergency rule.

The true cost to taxpayers

The COVID-19 testing contract with 360 Clinic was supposed to cost Orange County taxpayers nothing. State and federal rules required private insurance companies to cover COVID-19 testing. And the cost for testing uninsured people was covered under a federal program to reimburse testing providers.

Two months after the initial agreement between the county and 360 Clinic, the parties agreed to change the contract — and put the county on the hook for uncollectible claims.

Tamarra Jones, who managed the county Health Care Agency’s Health Promotion and Community Planning division at the time, oversaw the 360 Clinic testing operation for the county. She said the contract change making the county the “payer of last resort” was one of many details of the testing contract that concerned her.

“It seemed as if they were getting paid lots of money for services I could not verify,” Jones told LAist.

 She added, referring to the 360 Clinic contract and others granted to private firms during the pandemic: ”It seemed as if friends of friends were getting contracts,” bypassing normal channels.

Jones, who is now director of public health for San Mateo County, said when she raised concerns about payments to 360 Clinic, she was told by Health Care Agency leaders to “just pay it.”

Internal emails obtained by LAist through a Public Records Act request show that the insurance company Blue Shield of California also had concerns.

In 2021, the health insurance giant was investigating billing by 360 Clinic, records show. O.C. Health Care Agency spokesperson Ellen Guevara confirmed that Blue Shield was investigating, but said her agency wasn’t informed of an outcome despite efforts to follow up. Mark Seelig, a spokesperson for the insurer, wrote in a statement to LAist: “Blue Shield of California does not comment on investigations or litigation.”

Guevara told LAist in an email that Blue Shield denied payment on claims submitted by 360 Clinic and that “the County ultimately stepped in as the payer of last resort to ensure continued access to testing and vaccination services for our communities during the public health emergency.”

While the investigation was ongoing, emails between Health Care Agency leaders show that the question of whether to pay 360 Clinic for claims Blue Shield had denied got kicked up to the highest level — Supervisor Do.

“Just talked to Sup Do,” Clayton Chau, then the Health Care Agency director, texted to Margaret Bredehoft, the chief of public health services at the time, in October 2021. “We should pay 360 to fulfill our contractual obligation.”

The final bill

In the end, the county paid 360 Clinic just over $3.4 million to cover testing the company said it couldn’t collect insurance on, according to Guevara, the Health Care Agency spokesperson. Public records obtained by LAist show that among the reasons 360 Clinic leaders claimed for being unable to collect insurance was that a high number of uninsured people were showing up at testing sites, and that employees were often unable to verify their basic information to receive reimbursement from the federal government’s COVID-19 fund for uninsured individuals.

The county’s multimillion dollar payout stands in contrast to another large COVID-19 testing contract in Orange County that LAist reported on last year. That contract, for weekly testing of students and staff at the Santa Ana Unified School District during the pandemic, cost the school district nothing because the firm directly billed private insurance or the federal government for all costs of the testing.

Pfeifer, the spokesperson for the Nguyen brothers’ firms, wrote in a statement that 360 Clinic had undergone a “comprehensive, independent audit” over the past three months “ordered by legal counsel and led by a former FBI Special Agent.” He said the audit included insurance claims submitted by the company and had “found full compliance across all areas.” Pfeifer did not respond to LAist’s request for a copy of the audit.

County audit and whistleblower lawsuit

A former senior employee at 360 Clinic filed a whistleblower lawsuit alleging she was abruptly fired after voicing opposition to what she claims was billing fraud by top executives at 360 Clinic. Those allegations helped derail a deal for another of the Nguyen brothers’ businesses: CalOptima’s board unanimously voted this past February to back away from a plan to run a senior health center for Vietnamese-speaking elders in Little Saigon.

The Tustin property deal

A second business deal being scrutinized, by CalOptima, involves a property in Irvine.

One of the Nguyen brothers, Gary, formed Yorba Myrtle LLC and purchased a former rehabilitation hospital in Tustin for $18 million in November 2021.

The exterior of the Tustin property that was almost purchased by CalOptima.

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Yusra Farzan

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LAist

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Five months later, in March 2022, the county’s chief real estate officer signed a letter of intent to buy it for $22.5 million. Ultimately, the county was unable to secure the state funding it would have needed to purchase the building, and the deal collapsed.

That’s when CalOptima stepped in with an even higher offer — at first, $27 million, and then a few days later, $29.5 million, a 60% increase in the property value compared to when Yorba Myrtle bought it less than a year prior. No permits for improving the property were filed with the city of Tustin between the time Yorba Myrtle LLC bought the property and then struck a deal with CalOptima to purchase it, according to the Tustin city clerk’s office.

An appraisal report prepared for CalOptima later that year concluded that the steep price increase was justified because it “reflects a willing buyer and seller. Considering these conditions, the current purchase price is a strong indicator of market value,” the report, which was prepared by the prominent commercial real estate firm CBRE Inc., states. A spokesperson for CBRE said they could not discuss the appraisal.

Do, then CalOptima’s board chair, signed the purchase agreement on Aug. 2, 2022. It’s unclear whether CalOptima’s board approved the purchase agreement, which is legally binding, and the price was never reported in a public meeting. Two days after Do signed the agreement, materials for the board’s Aug. 4, 2022 meeting state that “the price and terms of purchase” of the Tustin property “will be considered by the Board at a future meeting contingent on receiving the necessary approvals from the City of Tustin.”

In response to LAist’s emailed questions about whether and how board members voted on the purchase agreement, Deanne Thompson, a spokesperson for CalOptima, wrote that the agreement “was never final and included diligence and zoning contingencies that could have impacted price and terms. Had the purchase agreement become final it would have required a public vote.”

In response to further questions about the purchase price and price change from $27 million to $29.5 million, Thompson wrote that she couldn’t discuss the issue because the property deal is part of “an active internal investigation.”

Ultimately, the city rejected the proposed facility and the property deal fell through.

Still, Yorba Myrtle LLC collected $450,000 in forfeited funds that CalOptima had put into escrow, according to figures provided by Thompson.

What became of the Tustin building?

The Tustin hospital property ultimately sold earlier this year to another health care company. The price was $19 million — $10.5 million less than CalOptima had offered. LAist spoke with Tom Jurbala, director of business development for Generations Healthcare, which bought the property and plans to open a skilled nursing facility there. Jurbala said his company had considered bidding on the property when Nguyen first put it up for sale, but decided it wasn’t the right time for the company.

Asked whether he thought it was unusual that CalOptima had planned to buy it for so much more than he paid for it, Jurbala said “no.”

“They have their own parameters, I’m sure,” he said before adding: “I wouldn’t buy it for $29 million, I can tell you that.”

Senior Reporter Ted Rohrlich contributed to this report.

Caption on lead photo: Gary Nguyen, left, co-founder of 360 Clinic, along with 360 Clinic Dr. Dung Trinh, center and 360 Clinic CEO Dr. Venessa Ho attend the opening of the new COVID-19 testing clinic at Anaheim Convention Center, in July 2020

This story first appeared on The LA Local.

Since 1977, Richard Santillan has been to every Opening Day game at Dodger Stadium. 

“The tradition goes from my father, to me, to my children and grandchildren. Some of my best memories are with my father and children here at Dodger Stadium,” Santillan told The LA Local, smiling under the shade of palm trees near the entrance to the ballpark Wednesday morning. He was there to protest the team less than 24 hours before Opening Day.

Santillan, like countless other loyal Dodgers fans, is grappling with his fan identity over the team’s decision to accept an invitation to the White House and owner Mark Walter’s ties to ICE detention facilities.

More than 30 people joined Santillan on Wednesday morning for a press conference held near 1000 Vin Scully Drive to convey a message directly to the team. 

“We are demanding the Dodgers stop participating in funding of inhumane treatment of families and do not go to the White House to celebrate with the criminal in chief,” Evelyn Escatiola told the crowd. “Together, we have the power to make a change.”

Escatiola, a former dean of East Los Angeles College and longtime community organizer, urged fans to flex their economic power by “letting the Dodgers know that we do not support repression.”

Jorge “Coqui” Rodriguez, a lifelong Dodgers fan, spoke to the crowd and called on Dodgers ownership to divest from immigration detention centers owned and operated by GEO Group and CoreCivic.

Jorge Coqui H Rodriguez speaks at a press conference outside Dodger Stadium on March 25, 2026, to demand the Dodgers not to visit the White House following their 2025 World Series win.

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J.W. Hendricks

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The LA Local

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In a phone interview a day before the protest, Rodriguez told The LA Local he did not want the Dodgers using his “cheve” or beer money to fund detention centers. 

“They can’t take our parking money, our cacahuate money, our cheve money, our Dodger Dog money and invest those funds into corporations that are imprisoning people. It’s wrong,” Rodriguez said. 

Rodriguez considers the Dodgers one of the most racially diverse teams and said the players need to support fans at a time when heightened immigration enforcement has become more common across L.A.

The team’s 2025’s visit to the White House drew ire from the largely Latino fan base, citing the Trump administration’s ongoing attacks on immigrants. 

In June, the team came under further scrutiny when rumors swirled online that federal immigration agents were using the stadium’s parking, which immigration authorities later denied in statements posted on social media accounts.

The team again came under fire after not releasing a statement on the impacts of ICE raids on its mostly Latino fan base at the height of immigration enforcement last summer. The team later agreed to invest $1 million to support families affected by immigration enforcement.

When he learned the Dodgers were pledging only $1 million to families in need, Rodriguez called the amount a  “slap in the face.” 

“These guys just bought the Lakers for billions of dollars and they give a million dollars to fight for legal services? That’s a joke,” Rodriguez said. “They need to have a moral backbone and not be investing in those companies.”

According to reporting from the Los Angeles Times, former Dodgers pitcher Clayton Kershawsaid last week that he is looking forward to the trip.

“I went when President [Joe] Biden was in office. I’m going to go when President [Donald] Trump is in office,” Kershaw said. “To me, it’s just about getting to go to the White House. You don’t get that opportunity every day, so I’m excited to go.”

The Dodgers have yet to announce when their planned visit will take place. 

Santillan sometimes laments his decision to give up his season tickets in protest of the team. His connection to the stadium and the memories he has made there with family and friends will last a lifetime, he said. On Thursday, he will uphold his tradition and be there for the first pitch of the season, but with a heavy heart.

“It’s a family tradition, but the Dodgers have a lot of work to do,” he said.

A local favorite mom-and-pop bookshop in Eagle Rock is facing displacement due to a steep rent hike. The owners say theirs is just one of several small businesses along Eagle Rock Boulevard struggling to keep up with lease increases.

Over the past 19 years, many in the neighborhood have come to love READ Books for its eclectic collection of used titles and shop dog Florence.

Co-owner Jeremy Kaplan said it’s been a delight to grow with the community over the years.

“Like seeing kids come back in, who were in grade school and now they’re in college,” Kaplan said.

But the building where Kaplan and wife Debbie rent was recently sold, and the rent increased by more than 130% to $2,805 a month, Kaplan said. He told LAist it was an increase his small business simply could not absorb.

Kaplan said he originally was given 30 days notice of the rent increase. After some research, assistance from Councilmember Ysabel Jurado’s office and some pro-bono legal help, Kaplan said he pushed back and got the 90-day notice he’s afforded by state law.

California Senate Bill 1103 requires landlords to give businesses with five or less employees 90 days’ notice for rent increases exceeding 10%, among other protections.

Systems Real Estate, the property management company, did not immediately respond to LAist’s request for comment.

What can small businesses do? 

Nadia Segura, directing attorney of the Small Business Program at pro bono legal aid non-profit Bet Tzedek said California law does not currently allow for rent control for commercial tenancies.

Outside of the protections under SB 1103, Segura said small businesses like READ Books don’t have much other recourse. And even then, commercial landlords are not required to inform their tenants of their protections under the law.

“There’s still a lot of people that don’t know about SB 1103. And then it’s very sad that they tell them they have these rent increases and within a month they have to leave,” Segura said.

She said her group is seeing steep rent hikes like this for commercial tenants across the city.

“We are seeing this even more with the World Cup coming up, the Olympics coming up. And I will say it was very sad to see that also after the wildfires,” Segura said.

Part of Bet Tzedek’s ongoing work is to advocate for small businesses, working with landlords who are increasing rents to see if they are willing to give business owners longer leases that lock in rents.

What’s next 

After READ Books posted about their situation on social media, commenters chimed in to express their outrage and love for the little shop.

While he looks for a new spot, Kaplan says he’s forming a coalition of local businesses and activist groups to see what can be done to help other small businesses facing similar displacement. He wants to address the displacement issue for businesses like his, which have made Eagle Rock the distinctive neighborhood that it is today.

Owl Talk, a longtime Eagle Rock staple selling clothing and accessories in a unit in the same building as READ Books, is facing a “more than double” rent increase, according to a post on their Instagram account.

Kaplan said he’s been in touch with the office of state Assemblywoman Jessica Caloza and wants to explore the possibility of introducing legislation to set up protections for small businesses like his, including rent-control measures or a vacancy tax for landlords. Kaplan said he also reached out to the office of state Sen. Maria Durazo.

By his count, Kaplan said there are about a dozen businesses within surrounding blocks that are at risk of closing their doors or have shuttered due to rent increases or other struggles.

When READ Books was founded during the Great Recession, Kaplan said he knew it was a longshot to open a bookstore at the same time so many were struggling to stay in business.

“It was kind of interesting to be doing something that neighborhoods needed. That was important to me growing up, that was important to my children, that was important to my wife growing up,” Kaplan said.

“And then somebody comes in and says, ‘We’re gonna over double your rent.”

Topline:

Frozen budget: Most of the city’s Bureau of Street Lighting budget comes from an assessment that people who own property illuminated by lights pay on their county property tax bill. The amount people pay depends on the kind of property they own and how much they benefit from lighting. A typical single-family home currently pays $53 annually, and in total, the assessments bring in about $45 million annually for the city to repair and maintain streetlights. Changing the amount the Bureau of Street Lighting gets from the assessment requires a vote among property owners who benefit from the lights.

Ballots: L.A. City Council’s vote gives city staff the green light to prepare and send out those ballots. Miguel Sangalang, who oversees the bureau, said at a committee meeting earlier this month that he expects to send out ballots by April 17. Notices about the ballots will be sent out prior to the ballots themselves.

Near unanimous vote: L.A. City Councilmember Monica Rodriguez was the only “No” vote Tuesday, saying she wanted to see a more current strategic plan for the bureau. Sangalang said the bureau developed a plan in 2022 that lays out how money will be spent. Councilmember Imelda Padilla was absent for the vote.

Vote count: Votes will be weighted according to the assessment amount. Basically, the more you’re asked to pay yearly to maintain streetlights, the more your vote will count. Ballots received before June 2 will be tabulated by the L.A. City Clerk.

How much more money: According to a report, the amount needed in assessments from property owners to meet the repair and maintenance needs of the city’s streetlighting in the next fiscal year is nearly $112 million.

Use of the money: Sangalang said at a March 11 committee meeting that the extra funds would be used to double the number of staff to handle repairs and procure solar streetlights, which don’t face the threat of copper wire theft. That would all potentially reduce the time it takes to repair simple fixes down to a week. Currently, city residents wait for months to see broken streetlights repaired. The assessment would come with a three-year auditing mechanism.