$3.7M has been recovered from the Andrew Do taxpayer corruption scheme. What will happen to it?

It’s now official: $3.73 million in taxpayer money has been recovered from the Andrew Do corruption scheme that LAist first uncovered.

That’s the amount now in a federal forfeiture account, after officials seized bank accounts and sold two properties purchased as part of the scheme involving the former Orange County supervisor — including a Tustin house his daughter bought.

Do is now serving a five-year sentence in federal prison. He admitted to taking bribes as part of a scheme to divert nearly $8 million from feeding needy seniors out of money he awarded.

As part of the plea deal, he also acknowledged taking over $800,000 in bribes through his two daughters, including a down payment on the house later he and his youngest daughter Rhiannon Do later forfeited to resolve the criminal case.

The criminal investigation was launched in response to LAist uncovering that millions of dollars had gone unaccounted for that Andrew Do had quietly awarded to a group that Rhiannon Do, then a 22-year-old law student, held a leadership role at.

What will happen with the money?

Federal authorities say a decision is expected in the coming days on whether to give it to the county government, which officially is the victim in the case. Federal prosecutors previously said they planned to recommend to the federal Justice Department’s forfeiture office that the money go to the county.

If the recovered taxpayer money does go to the county, it will be up to Andrew Do’s former colleagues on the O.C. Board of Supervisors to decide how to spend it.

Several county supervisors previously told LAist they'd want it to support people who were deprived by Andrew Do’s scheme. That would be seniors and people with disabilities in his former district, which included Little Saigon and — during the early part of the scheme — Santa Ana.

When asked about it Friday, some supervisors took a broader view of how they’d want to use the money — noting that it’s been a long time since the coronavirus pandemic that the money was originally meant to address, and that community needs have changed.

“I’d like the money to be used for improving the quality of life for residents in our cities and I will work with them to determine the best use,” said Supervisor Janet Nguyen, who now represents Andrew Do’s district and was his boss more than a decade and a half ago.

The money could go toward municipal repairs, law enforcement and programs for seniors directly impacted by these crimes, Nguyen said in her written response.

Supervisor Don Wagner told LAist his earlier thoughts were that it should go to Andrew Do’s former district, since it was originally meant for residents there.

“But 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,” Wagner said in his written response.

“The budget is so tight and the needs so great across the county that I believe a conversation would be appropriate now.”

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 a statement.

“We also need to consider addressing the current needs of residents with any dollars returned to the county.”

The two other supervisors — Katrina Foley and Doug Chaffee — did not provide comment.

What was recovered?

Here’s how the $3.73 million recovered through forfeiture breaks down, according to court records:

• $1,702,630.86 from a bank account of Viet America Society, the nonprofit at the center of the corruption  scheme.
• $724,749.10 from a bank account of Aloha Financial Investment, Inc., a real estate company that Andrew Do admitted was used to route meal funds into bribes through his two daughters.
• $911,410.63 from authorities selling a commercial property in Santa Ana that Aloha Financial Investment purchased in an apparent all-cash transaction in 2023.
• $395,299.07 from authorities selling a house in unincorporated Tustin that Rhiannon Do purchased using $385,000 from Aloha Financial Investment.

What about the rest of the taxpayer money?

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 covers all of the money Andrew Do directly gave to two nonprofits, Viet America Society and Hand to Hand Relief Organization.

A spokesperson for the federal prosecution office that led the case declined to answer if authorities are pursuing recovery of additional dollars beyond the $3.7 million already recovered.

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

The county’s lawsuit to recover funds has been paused by a judge while a criminal case proceeds against one of the defendants. The judge decided Friday to lift the pause and resume the case, while keeping the case paused for the charged defendant.

Andrew Do also was ordered to pay $878,230.80 in restitution to the county, about $250,000 of which was required to have been paid so far. Going forward, he’s required to pay $25 per quarter while in prison, according to the judge’s order. After leaving prison, he has to pay $1,000 per month or 10% of his income — whichever is more.

He continues to collect about $6,700 per month from his county pension, including while in prison. As a result of his conviction, his pension was reduced by 4% and he was refunded the money he had paid toward his pension after his crime began in mid-2020. The refund amount he received is confidential, according to the pension system.

Where are they now?

Andrew Do is in federal prison near Tuscon, Arizona, set to be released in September 2029.

His daughter Rhiannon Do admitted to violating four criminal laws around the home purchase, including mortgage fraud and perjury. The deal she made with prosecutors avoided criminal charges but included requirements that she continue attending school and studying for the state bar exam to become an attorney.

She went on to graduate from law school, and passed the bar exam last year. The next, and final step, for her to become an attorney would be passing a moral character review, which examines past history of fraud, among other things.

That review is confidential, so the current status is unknown. If Rhiannon Do were to pass the character review and become an attorney, her name would show up publicly in a search of attorneys on the State Bar’s website. A search of her name on that website on Friday showed no results.