Viet America Society attorney responds to OC lawsuit

The attorney representing Viet America Society (VAS), the nonprofit at the center of a long-running LAist investigation that Orange County is suing for alleged fraud, responded to the filing Friday, calling the county’s action a smear job.

“This lawsuit is a disgrace,” Mark Rosen said in a statement.

He told LAist in an interview that he believes it's more of a political statement meant to generate headlines, rather than a legal statement.

The lawsuit filed Thursday alleges that county money meant to feed vulnerable residents was illegally diverted by O.C. Supervisor Andrew Do’s daughter and others to purchase five homes valued around $1 million each. The suit also alleges a “voluminous” amount of funds were converted into cash through ATM withdrawals that have gone “unaccounted for.”

The county suit names the nonprofit, its key officers and associated businesses. Among those included is Rhiannon Do, Supervisor Do’s 23 year-old daughter, along with three other people. She had leading roles at VAS on and off during the time her father directed more than $13 million to the group, according to public records uncovered by LAist.

Supervisor Do did not publicly disclose the family connection, including during public votes related to some of the funds. Awarding the money without disclosing the relationship is not illegal, but ethics experts say it raises major concerns.

A former attorney for VAS and Rhiannon Do have previously told LAist that she did not hold those positions.

The lawsuit filed in Orange County Superior Court lists more than a dozen counts that include breach of contract, unfair business practices, and filing false claims. It alleges damages to the county are "in no event less than $10.4 million dollars."

Rhiannon Do in a YouTube video posted in August 2021 by the Steinberg Institute where she was an intern.

(

Screenshot via YouTube

)

LAist was the first to uncover millions in taxpayer money granted to VAS by Supervisor Do, largely outside of public view. LAist’s reporting on Supervisor Do’s actions has prompted legislation to ban state and local officials across California from awarding taxpayer contracts to their children.

Details from Rosen

Rosen also disputed the county lawsuit’s claims that the nonprofit misused funding intended to build a Vietnam War Memorial at Mile Square Park. Rosen told LAist in a written statement it’s been built, and the work was done.

A spokesperson for the county’s communications office told LAist on Friday that the project is expected to be completed before the end of the year.

When LAist asked for photos of the completed memorial, Rosen replied that he’ll “have to get that next week.”

He also disputed that one of the five homes cited in the lawsuit is owned by Peter Pham, the current head of VAS, and his wife, as alleged in the lawsuit. Rosen said in an interview and a statement that Pham isn’t married, he does not know the woman named, and doesn’t own any property in Buena Park.

According to Rosen, VAS provided all the goods and services, but did not “in the beginning, keep great records.”

“My client continues to provide food and delivery for the poor and the disabled today,” he said in a statement. “You are all invited to come and see it in action. And they are keeping excellent records today.”

The last of the county-funded meal contracts stated it would terminate “on June 30, 2024, or when all the Parties’ obligations under this Agreement are fully satisfied, whichever occurs earlier.” The Vietnam War Memorial contract had the same language.

Response from O.C. officials

Supervisor Vicente Sarmiento said in a statement to LAist on Friday that if the lawsuit allegations are true, Supervisor Do should consider stepping down.

“County residents deserve answers,” he said in the statement.

Supervisor Katrina Foley in a statement to LAist that the lawsuit highlights “rampant” abuse of taxpayer funds.

“These allegations show blatant deception and greed by individuals motivated solely to enrich themselves," she said in a statement.

Supervisor Doug Chaffee said in a statement that he’s deeply disturbed and outraged by the recent revelations about Viet America Society.

“This is an unconscionable breach of trust and a gross misuse of public resources, depriving some of our most vulnerable community members of the care and support they desperately need and deserve,” Chaffee said.

And Supervisor Don Wagner said in a statement to LAist that the county doesn’t take this action lightly.

“It comes after all prior efforts have failed,” Wagner said. “We have seen changing lawyers and changing accountants, rather than contract compliance.”

Supervisor Do has not responded to LAist’s request for comment over the last nine months, including on Friday. In the past, Supervisor Do has denied any wrongdoing in interviews with other media.

County representatives told LAist the county does not comment on litigation matters. 

What the candidates running to replace Supervisor Do say

Both candidates running to replace Supervisor Do in November, state Sen. Janet Nguyen and Frances Marquez, a city council member in Cypress, have weighed in on the lawsuit. Supervisor Do cannot run because he’s termed out.

Marquez said in a statement to LAist that the culture of corruption at the Board of Supervisors is not new.

“The revolving door of the same old corrupt politicians has to stop,” she said. “We need to restore the focus to protecting taxpayer dollars and delivering services to residents.”

Nguyen said on social media that she’s “outraged” by the level of deception that is being played against Orange County taxpayers.

“What we’re seeing in this lawsuit is criminal,” Nguyen wrote on X. “It is time to hold Supervisor Andrew Do and these defendants accountable to the fullest extent of the law.”

What happens next with the lawsuit?

Once defendants are served they typically have 30 days to file a response with the court.

A meeting between both sides of the suit and the judge — known as a case management conference — is scheduled for Jan. 28, 2025.

If the case is handled similarly to one last year where Supervisor Do was a witness, it could be transferred out of Orange County as one of the defendants, Rhiannon Do, is the daughter of the second highest-ranking judge at Orange County Superior Court.

Catch up on the investigation

In November 2023, LAist began investigating how millions in public taxpayer dollars were spent. In total, LAist has uncovered over $13 million in public money was approved to a little-known nonprofit that records state was led on and off by Rhiannon Do, the now 23-year-old daughter of O.C. Supervisor Andrew Do. Most of that money was directed to the group by Supervisor Do outside of the public’s view and never appeared on public meeting agendas. He did not publicly disclose his family ties.

Much of the known funding came from federal coronavirus relief money.

• Read the story that launched the investigation here.
• Since we started reporting, we’ve also uncovered the group was two years overdue in completing a required audit into whether the meal funds were spent appropriately.
• And we found the amount of taxpayer money directed to the nonprofit was much larger than initially known. It totals at least $13.5 million in county funding — tallied from government records obtained and published by LAist. 
• After our reporting, O.C. officials wrote demand letters to the nonprofit saying millions in funding were unaccounted for. They warned it could be forced to repay the funds.
• And, we found the nonprofit missed a deadline set by county officials to provide proof about how funding for meals were spent.
• On Aug. 2, LAist reported O.C. officials were demanding the refund of more than $3 million in public funds awarded by Do to VAS and another nonprofit, Hand to Hand.
• Six days later, LAist reported Orange County officials had expanded demands for refunds of millions in tax dollars from the nonprofits and threatened legal action.

How to watchdog local government

One of the best things you can do to hold officials accountable is pay attention.

Your city council, board of supervisors, school board and more all hold public meetings that anybody can attend. These are times you can talk to your elected officials directly and hear about the policies they’re voting on that affect your community.

• Read tips on how to get involved.
• The next regular meeting of the board is Tuesday, Aug. 27 (a closed session is on the calendar for next Tuesday). You can check out the O.C. Board of Supervisors full calendar here.
• Learn how to submit a public comment to the O.C. Board of Supervisors.