News Summary
Orange County has initiated legal action against the Viet America Society (VAS) for allegedly misusing over $13 million intended for COVID-19 relief. The lawsuit claims VAS misappropriated funds that were supposed to support vulnerable community members. Officials express concern over the nonprofit’s failure to deliver promised aid, with accusations of personal financial gain linked to the funds. The case has raised conflict of interest questions, particularly involving family ties to county officials. As the situation unfolds, a court date is set for January 2025, with significant implications for the community.
Orange County Takes Legal Action Against Huntington Beach Nonprofit Over COVID Funds
In a surprising turn of events, the Orange County government has decided to take legal action against a nonprofit organization based in Huntington Beach called the Viet America Society (VAS). The lawsuit centers around allegations that VAS misused a staggering over $13 million meant for COVID-19 relief funds, which were intended to support vulnerable community members.
Misused Funds Intended for the Vulnerable
According to county officials, the funds in question were allocated to help those most in need during the pandemic, specifically targeting residents who were food insecure. County Supervisor Katrina Foley expressed her disappointment and concern over the alleged misuse of funds that were meant for the community’s most vulnerable members. Instead of helping deliver critical meals to elderly and disabled residents, it appears that VAS failed to provide any proof of appropriate use of the funds they received.
A Brazen Allegation
The lawsuit does not hold back in its accusations, claiming that VAS and its associates “brazenly plundered” the COVID relief funds from 2020 to 2023 for personal gain. The documentation outlines shocking claims, suggesting that the misappropriated money went towards the purchase of various properties, including a home in Tustin and five others in Fountain Valley, Santa Ana, Garden Grove, and Buena Park, rather than aiding the community as intended.
Conflict of Interest Concerns
Adding another layer of complexity to the situation is the involvement of Rhiannon Do, the daughter of Supervisor Andrew Do, who is named in the lawsuit. This raises eyebrows regarding potential conflicts of interest given her father’s role in fund allocation. Supervisor Vicente Sarmiento has called out the actions as “egregious” and indicated that Supervisor Do should reflect on his position if the allegations are substantiated.
Eyewitness News sought to get comments from Supervisor Do, but he opted to leave the scene without providing any statements, which only adds to the swirling questions surrounding this case.
How the Funds Were Handled
VAS entered into a formal agreement with the county to design, construct, and maintain a Vietnam War memorial at Mile Square Park, for which they received an impressive $1 million. However, reports suggest that the project remains uncompleted, leaving many to wonder about the fate of the funds. The lawsuit filed in Orange County Superior Court details several claims, including breach of contract, unfair business practices, and filing false claims, with expected damages totaling at least $10.4 million.
Financial records indicate that a notable portion of the allocated funds in 2021 and 2022 was redirected to a Westminster restaurant named Perfume River, which has been linked to various financial inconsistencies.
Questionable Financial Practices
Rhiannon Do, though denying holding significant leadership roles, is documented as an officer in VAS and received a monthly salary from the organization. Interestingly, while balancing her studies, she reportedly purchased a home valued at around $1 million, all while being a part-time VAS employee collecting an income of $4,600 monthly. Questions about how such a feat was possible are certainly being raised.
Additionally, Peter Pham, a founder of VAS, allegedly utilized county funds to make improvements to his home in Buena Park, adding further complications to the case.
The County’s Response
County officials have noted that prior attempts to resolve these issues without resorting to litigation have been unsuccessful, with the nonprofit changing lawyers and accountants while providing little compliance. Consequently, they have now requested that the Orange County District Attorney’s Office investigate for any possible criminal activity related to these alarming allegations.
This legal battle comes on the heels of a recent investigation that unveiled discrepancies in how COVID relief funds were distributed. As the lawsuit unfolds, a case management conference is already set for January 28, 2025, marking a significant date to watch in this unfolding drama.
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Additional Resources
- ABC7: Orange County Sues Viet America Society
- New York Times: Orange County Leader Faces Scrutiny
- Orange County Business Journal: Think Together HQ Conversion
- WFTV: Orange County Cracks Down on Free Ticket Donations
- LAist: Orange County Announces Lawsuit Against Nonprofit
- Wikipedia: Orange County, California
