What to do with $3.7M recovered from Andrew Do scheme? OC leaders to discuss Tuesday

Orange County’s top elected leaders on Tuesday are set to discuss what to do with $3.7 million recovered from the Andrew Do corruption scheme.

Do is now serving a five-year sentence in federal prison after he admitted to accepting bribes in exchange for awarding millions in tax dollars meant to feed needy seniors and people with disabilities in his district.

As part of the plea deal, Do acknowledged taking more than $800,000 in bribes through his two daughters, including a down payment on the house his youngest daughter Rhiannon Do later forfeited to resolve the criminal case. The scheme was first uncovered by LAist.

Federal officials recovered money from seized bank accounts and two properties connected to Do’s scheme — including the Tustin house his daughter bought.

The county Board of Supervisors is expected to publicly discuss plans for the recovered funds as they make decisions on the overall county budget at their meeting Tuesday. Public comment will also be taken.

What to do with the money?

Ahead of Tuesday’s discussion, Do’s successor said the funds should support residents of his former district who were deprived by Do and his alleged co-conspirators.

“For the past five years, every other district in Orange County has benefitted from the same community funds to support their cities, nonprofits, civic projects which strengthens their communities,” Supervisor Janet Nguyen wrote in a mass email to constituents last week. “However, our district went without because Do stole what belonged to our residents.”

“This money was stolen from the First District, and it must come back to the First District,” Nguyen added.

Nguyen was Do’s mentor and former boss more than a decade ago, before the two had a bitter falling out by 2016.

She encouraged residents of her district to send letters to the board and to speak during public comments.

Several county supervisors told LAist they supported a similar approach, one in which the recovered money goes to support the original intended recipients: seniors and people with disabilities in Do’s former district. Some supervisors have since advocated a broader view of how they’d want to use the money, noting that it was meant to address disruptions caused by the pandemic. Now that years have passed since the initial COVID-19 outbreak and lockdowns, some supervisors argue community needs have changed.

“We are so many years on, and the problems that money originally was to address (mostly Covid impacts) are now behind us, that I think we should have a discussion about how and where to spend it,” Supervisor Don Wagner told LAist via text message in March. “The budget is so tight and the needs so great across the county.”

Supervisor Vicente Sarmiento said he’d work toward a fair distribution of the funds to best serve residents, with a focus on current needs.

“We will definitely consider what areas of the County were harmed by Do’s scheme, 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,” he said in March. “We also need to consider addressing the current needs of residents with any dollars returned to the county.”

Millions more haven’t been recovered, at least yet

The amount of taxpayer money recovered so far is less than half of the $7.9 million Andrew Do admitted was diverted from specific meal contracts.

In a lawsuit seeking to recover funds, the county alleges the total amount lost in the scheme was even larger: $13.25 million. The county’s suit — scheduled for trial in November 2027 — covers all of the money Do gave to two nonprofits accused in the scheme, Viet America Society and Hand to Hand Relief Organization.

That leaves more than $4 million — and possibly much more — not yet recovered.

A spokesperson for the U.S. Attorney’s Office noted they have an ongoing criminal case against Do’s alleged co-conspirator Peter Pham.

“Assuming we obtain a conviction in that matter, we would expect to seek restitution,” the spokesperson, Ciaran McEvoy, said.

Pham left the country on a flight to Taiwan in late 2024 and remains a fugitive, according to McEvoy. The case against him also includes charges against another alleged co-conspirator, Thanh Huong Nguyen, who led the Hand to Hand nonprofit.