FBI raids homes of Orange County Supervisor Andrew Do and his daughter
Federal agents on Thursday raided the homes of Orange County Supervisor Andrew Do and his daughter, as well as several other properties, in an investigation into the alleged improper use of taxpayer money.
At least five locations, including several homes and a restaurant, were searched in connection with allegations made against the local nonprofit Viet America Society in a lawsuit brought by Orange County last week. In the lawsuit, the county alleges that the nonprofit misused money it was awarded to feed the elderly and needy during the pandemic, instead spending the funds on “lavish purchases.â€
Officials with the FBI, Department of Justice and Orange County district attorney’s office confirmed they were involved in the searches but declined to elaborate on what investigators were looking for because the investigation was ongoing and the warrants were under seal.
The lawsuit accuses executives of the nonprofit, including Chief Executive Peter Ahn Pham, Secretary Dinh Mai, and Do’s daughter, 23-year-old Rhiannon Do, of pocketing more than $10 million in contracts and using the funds to purchase homes in Garden Grove, Buena Park, Santa Ana, Fountain Valley and Tustin.
Among the homes searched was a property in the Tustin area that, according to the lawsuit, was purchased by the county supervisor’s daughter on July 23, 2023. According to the real estate site Redfin, the home was bought for $1,035,000.
IRS agents were seen leaving the yellow single-story home with boxes, carrying them past rosebushes and a lemon tree to waiting federal vehicles.
Supervisor Do’s home in North Tustin was also searched as part of the probe, according to sources with knowledge of the investigation who were not authorized to speak publicly.
Some of Do’s fellow county supervisors encouraged the investigation.
“Federal investigators answered our call to investigate the potential criminal activities by VAS and their principals,†Supervisor Katrina Foley said in a statement. “The concerns raised by our County staff were clearly warranted, and I stand in support of all efforts to bring forward justice to our taxpayers.â€
Supervisor Vicente Sarmiento said in a statement that it was “encouraging that investigative agencies are working to get to the bottom of this.â€
Supervisor Do did not immediately return requests for comment.
Mark S. Rosen, an attorney representing Pham, Rhiannon Do and Viet America Society, said he was informed early Thursday by an FBI agent about the search warrants. Soon afterward, he learned agents were standing outside the nonprofit chief executive’s Garden Grove home around 9 a.m., waiting for the warrants to be approved.
FBI agents “were at his front door,†Rosen said. “They were waiting for the search warrants so they could go in.â€
Agents also searched a restaurant that Pham owns a stake in, Perfume River Restaurant & Lounge in Westminster, Rosen said. The restaurant was handling some of the food preparation and distribution as part of the county contracts, Pham said.
A man inside the restaurant, which specializes in Vietnamese food and is inside the Asian Garden Mall in Little Saigon, said agents were there for about an hour in the morning. The business has been open for three or four years, the man said.
Agents at the various locations searched Thursday seized documents and electronic devices, including Pham’s cellphone, Rosen said. He added that neither he nor his clients had been informed about the nature of the investigation. No arrests were made.
“They wanted to tell me as little as possible,†he said.
In an interview with The Times after the searches, Pham said that the situation was a “misunderstanding†and that agents had taken his cellphone and documents from his home.
“I didn’t do anything wrong,†Pham said.
He added that his nonprofit had fulfilled what the county had asked them to do: feed needy residents. He also said he opened a wellness center in Huntington Beach to serve members of the community, many of whom were struggling during the pandemic. But the county told him he couldn’t use the funds for that purpose, he said.
Before Orange County sued Viet America Society last week, the county had demanded the nonprofit return millions of dollars after the organization allegedly failed to show that it had done the work that it was contracted to do.
In July, the nonprofit fired an outside firm hired to audit its spending after the firm told the county VAS “lacked internal controls, did not follow federal uniform guidelines†and did not have the necessary records to conduct an audit trail. Calls for the organization to return the funds came soon after.
LAist was the first to report that Do directed or voted to direct as much as $13.5 million to the nonprofit beginning in 2020 and that he failed to disclose that his daughter Rhiannon was connected to the group.
The scandal has prompted legislation that would require elected officials to disclose or abstain from voting in contracts that involve relatives.
State Senate Bill 1111, authored by Sen. Dave Min (D-Irvine), is awaiting Gov. Gavin Newsom’s signature after being approved by the Legislature.
“It is absolutely unacceptable for elected officials to lie, cheat and steal taxpayer money,†Min said in a statement. “I’m glad the FBI is investigating these serious allegations of public corruption, and I hope that this news will provide further motivation for the Governor to sign my anti-corruption legislation into law.â€
Rhiannon Do had been listed as an officer of VAS in government filings, but officials and attorneys for the organization have since downplayed her role, saying she held no leadership position at the nonprofit. Do has since left VAS.
But in the county’s lawsuit, officials accused Pham and Rhiannon Do of funneling money from the nonprofit to “their own personal bank accounts†and “brazenly plunder[ing] these funds for their own personal gain.â€
Rosen called Thursday’s raids “penny-wise and pound-foolish†and said, “The county is putting the existing contract in danger.â€
Rosen said VAS was continuing to feed homeless, elderly and needy residents under its contract with the county, despite the lawsuit and apparent criminal probe, but said it was more difficult.
“It’s interfering with VAS’ ability to service the needy population,†he said.
Local officials had been urging the district attorney’s office, the California attorney general’s office, and the Department of Justice to step in and investigate for several days.
On Aug. 14, U.S. Rep. Lou Correa (D-Santa Ana) wrote a letter to U.S. Atty. Gen. Merrick Garland urging federal investigators to step in.
“I ask that your Department investigate this matter in order to determine whether any federal laws were broken or any federal funds misappropriated,†he wrote. “These allegations of improper oversight and questionable, and possibly illegal, use of federal funds meant for vulnerable persons must be taken seriously and dealt with swiftly.â€
On Friday, Supervisor Foley and her staff also approached California Atty. Gen. Rob Bonta at an event, asking whether the state agency would investigate, Alyssa Napuri, a spokesperson for Foley, told The Times.
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