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CalOptima audits Andrew Do’s tenure with the agency following corruption plea

November 16, 2024

CalOptima Health, the multibillion-dollar health provider for Orange County’s low-income residents, has hired an outside auditor to review disgraced former county Supervisor Andrew Do’s tenure on the agency’s board of directors.

CalOptima spokesperson Janis Rizzuto would not provide any details, but a source with the agency who requested anonymity said the independent audit is likely to be completed in January.

Do, 62, pleaded guilty last month to a federal bribery charge for his role in an embezzlement scheme involving millions of dollars in COVID-relief funds following an investigation by the FBI, Orange County District Attorney’s Office, IRS and other federal agencies. The charge carries a maximum sentence of five years in federal prison.

As part of his plea deal, Do also resigned from the county Board of Supervisors and agreed to forfeit any pension accrued since the start of the scheme and properties purchased with the funds. He confessed to accepting at least $550,000 in bribes.

Do directed, through his First District discretionary fund, about $9.3 million in federal pandemic relief funds to the upstart charity, Viet America Society, to provide meals to the elderly and people with disabilities. Of that, only an estimated $1.4 million was actually spent on the meals, according to the plea agreement. Another $1 million in taxpayer money was awarded to the group to build a Vietnam War memorial that has not been completed.

In his plea agreement, Do admitted he received kickbacks totaling more than $550,000 beginning in 2020 to direct millions in COVID-related funds to Viet America Society, which later employed Do’s daughter as a leader of the organization. Part of the money Rhiannon Do received was used to buy a $1,035,000 house in North Tustin, the agreement said. His other daughter, Irene, received $100,000, Do admitted.

Rhiannon Do, a 23-year-old, third-year student at UC Irvine School of Law, was given court diversion, meaning she will not be criminally charged but must undergo three years of probation, provide restitution and continue her education.

An investigation is continuing into leaders and associates of Viet America Society.

Andrew Do served on the CalOptima board from 2015 to 2023, a period marked by controversy.

In 2022, the California Fair Political Practices Commission found that Do used his leadership role at CalOptima to steer contracts to lobbyists who previously donated to his campaigns. The commission ordered Do to pay an administrative penalty of $12,000. The FPPC also concluded that Do failed to issue timely reports related to campaign donors who gave money toward building statues at Mile Square Park. The commission said those donations could be used to win political favor with Do.

In February 2023, Do resigned from his role as chairman of CalOptima after a state investigation questioned his pay practices. He previously had been criticized for supporting huge salary hikes for some CalOptima executives and for hiring one of his aides, Veronica Carpenter, to a newly created, $282,000-a-year job as CalOptima chief of staff. That move raised questions, in part, because Carpenter had less than a year of experience in hospital administration.

Under Do’s board chairmanship, CalOptima CEO Michael Hunn’s pay was increased by about 50% in 2022 to $841,500 a year.

Responding to the state investigation, CalOptima adopted “anti-corruption” reforms and introduced a one-year cooling-off period for any board member seeking employment at the agency. Additionally, CalOptima — in keeping with a new state law inspired by Do — is prohibiting board members from voting on contracts that could benefit their adult children.

Orange County Register

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CalOptima audits Andrew Do’s tenure with the agency following corruption plea

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