Government asks disgraced former Orange County supervisor to pay back nearly $900,000

The government wants former Orange County Supervisor Andrew Do to pay back nearly $900,000 in kickbacks he got from millions in county contracts meant to feed needy seniors. That’s according to a document filed Monday by U.S. Attorney Bill Essayli.

A federal judge will decide the final amount of restitution owed by Andrew Do at a hearing next month. That money will be returned to the county.

Ciaran McEvoy, a spokesperson for the U.S. Attorney’s Office, said the restitution amount would be in addition to property and bank account funds previously forfeited by Do, including Rhiannon Do’s home in unincorporated Tustin.

Do’s lawyers agreed on the total amount of bribes received by Do, but they’re asking the judge to reduce the amount he owes to $802,692 to account for work done by Do’s daughter, Rhiannon Do, for one of the organizations that received county funds. They wrote in their filing that while some of Rhiannon Do’s salary “may be seen as being in appreciation” of her father’s awarding of county contracts to the organization she worked for, nonetheless, “Rhiannon Do’s salary was earned — and by California law has to be credited to her for her work.”

The government wrote that this argument “defied reality,” questioning how much work Rhiannon Do actually did, noting that at the time she was getting paid, “she was a full-time law student, she had virtually no prior experience … and she was making a nearly-six-figure annual salary to run a company funded entirely by her father’s corruption.”

The backstory

Andrew Do was sentenced in June to five years in prison on a bribery charge for receiving kickbacks from several individuals and organizations. Do admitted to steering more than $10 million in county contracts to those organizations, money that was supposed to be used on meals for constituents isolated in their homes during the COVID-19 pandemic.

Federal prosecutors say that Viet America Society, often referred to as VAS, one of the organizations that allegedly conspired with Do, used just 15% ($1.4 million) of the taxpayer funds it received on meals for needy seniors.

“In addition to paying defendant bribes, VAS used County funds to buy a commercial property, pay co-conspirators, and transfer money to other companies affiliated with VAS and the co-conspirators,” the government’s most recent filing reads. “Co-conspirators also withdrew hundreds of thousands of dollars in cash.”

Peter Pham, the founder of VAS, was indicted in June on 15 counts, including bribery, concealment of money laundering and wire fraud. He is currently a fugitive, authorities say.

Supervisors react to proposed restitution

Orange County Supervisor Donald Wagner called the proposed restitution for Do “very low."

“The number should be much higher to make whole the people he stole from: the people of Orange County, and particularly District 1,” Wagner wrote in a text message to LAist. “I would ask for the full $10 million in restitution and let the defense prove some lesser number.”

Wagner also said he saw “no reason to discount for ‘work’ his daughter allegedly did as it was all, as I understand it, part of Do’s scheme.”

Supervisor Janet Nguyen, who replaced Do as the representative for District 1, said that the proposed restitution “is a fraction” of what prosecutors say Do stole.

“While I wish we could get every dime returned to the people, we’ll take what we can get,” she wrote in a text to LAist.

Supervisor Vicente Sarmiento wrote in an email to LAist: “County residents deserve to get every last dollar of the funds illegally taken. We can't forget the fact that these funds were taken from vulnerable seniors during a crisis, when they needed meals, and every penny should be returned, without excuses.”

Supervisor Katrina Foley wrote in a text to LAist that she was "very disappointed" that prosecutors "requested only a fraction of the amount" stolen from taxpayers. She said Do should have to pay restitution for the "full scope" of the damages caused, "including expenses related to the audits, investigations, and litigation," Foley said, referring to the county's multiple probes into spending during Do's time on the board and the county's civil lawsuit against Do and alleged co-conspirators.

Lawrence Rosenthal, a Chapman University law professor and former federal prosecutor, wrote in an email to LAist: "Under the law, Do is liable for the entire loss attributable to the conspiracy, and not just the lost he personally caused and/or received." However, he said, some prosecutors won't seek more than they think a defendant can pay.

So why isn't Do being asked to pay back the more than $10 million? "The co-conspirators got the $10 million. (We’ve indicted them),” McEvoy wrote to LAist. The government’s proposed restitution, exactly $878,230.80, “concerns the money Do got himself.”

What’s next?

Judge James Selna will hold a hearing on Aug. 11 to determine the final amount Do must pay.

Shortly afterward, by Aug. 15, Do is ordered to report to Lompoc, a low-security federal prison in Santa Barbara County, to begin his sentence.

According to Judge Selna’s sentencing order, Rhiannon Do is jointly liable for paying restitution in her father’s criminal case as a “co-participant.” She also still faces allegations of fraud in the county’s civil lawsuit.

It’s unclear whether Rhiannon Do, who recently graduated from the UC Irvine School of Law, will be allowed to practice law in California.

The county’s civil suit against Rhiannon Do, Andrew Do and his alleged co-conspirators is also pending.

It’s unclear whether Peter Pham, one of Do’s alleged principal co-conspirators, will be brought to justice. Pham left the U.S. on a one-way ticket to Taipei, Taiwan, in December, according to McEvoy.

LAist watchdog correspondent Nick Gerda contributed to this report.