In a new lawsuit, Orange County alleges that officials of a nonprofit took millions of tax dollars meant to feed the elderly and needy during the pandemic, then kept more than $10 million of the money and bought homes for themselves.
Among the Vietnam America Society officials named in the lawsuit was Rhiannon Do, the daughter of Orange County Supervisor Andrew Do.
County officials Last week, the Vietnam America Society was asked to return $2.2 million The group abruptly fired auditors and failed to tell the county how it spent the money, which then delayed contract payments.
In the lawsuit filed Thursday, county officials went beyond accusing the nonprofit and its executives of failing to keep track of how the money was spent. Instead, they accused the organization’s officials of using taxpayer money as a “funding stream” for “their personal bank accounts.”
The lawsuit alleges that instead of providing meals to the elderly and needy during the pandemic as required by its contracts, the Vietnam America Society, or VAS, “brazenly plundered these funds for its own personal profit.”
“VAS cannot account for where the money went, when or where it was spent, and/or whether it was spent for the contracted purposes,” the lawsuit states. “Defendants engaged in widespread selfish behavior while embezzling local and federal funds.”
The lawsuit accuses VAS Chief Executive Officer Peter Ahn Pham, secretary Dinh Mai and other executives of breach of contract, intentional misrepresentation, fiduciary negligence, conspiracy and improper profit making, among other charges.
It also accuses Rhiannon Doo of benefiting from the alleged scheme and purchasing a million dollar home in the process.
LAist first reported Supervisor Doo directed or voted to direct the transfer of up to $13.5 million in funds to VAs without disclosing that his then-22-year-old daughter was connected to the group.
Former VAS attorney Sterling Scott Winchell previously downplayed Doe’s role at the nonprofit, telling the Times that she was not a leader at the organization and was “only there doing meal planning.”
However, the lawsuit names the county supervisor’s daughter as an officer of VAS, either as president or vice president. At one point, she presented herself as the nonprofit’s executive director and attended directors’ meetings, the lawsuit alleges.
“This lawsuit is a disgrace,” VAS attorney Mark S. Rosen said in a statement. “VAS provided all the goods and services but, to begin with, did not keep good records.”
In the statement, Rosen said the lawsuit was politically motivated, and insisted that VAs had fulfilled their duties under the contracts.
“My client continues to provide meals and deliveries to the poor and disabled to this day,” the statement said. “You are all invited to come and see it in action. And they continue to keep excellent records to this day.”
He also claimed the lawsuit contained numerous factual errors, such as an allegation that Pham purchased a home in Buena Park with his wife.
Rosen said Pham is not married, does not know the person named in the lawsuit as his wife, and does not own any property in Buena Park.
The allegations in the lawsuit have prompted other members of the Board of Supervisors to urge local, state and federal authorities to intervene and investigate.
“The lawsuit filed by the County of Orange exposes the massive misuse of taxpayer funds to enrich well-connected insiders instead of providing meals to vulnerable elderly people in the Vietnamese community,” Supervisor Katrina Foley said in a statement. “These allegations reflect the blatant deception and greed committed by individuals motivated only to enrich themselves.”
Supervisor Do declined to comment through his chief of staff, Chris Wangsaporn.
The lawsuit alleges that beginning in 2020, the county awarded more than $10 million in contracts to VAS to distribute meals during the pandemic.
When it came to accounting for how the money was spent, county officials alleged VAS submitted generic invoices such as “Services for County of Orange Nutritional Gap Program” that lacked any necessary details, such as when and how many meals were distributed.
VAS hired a company, Pun Group, to conduct the audit and provide it to the county. Then in July, Pun Group officials told the county that VAS had not provided enough information to complete the audit, the nonprofit lacked internal controls, and a forthcoming report would detail the difficulties Pun Group encountered in attempting to conduct the audit. The day after, VAS terminated its contract with Pun Group.
In a statement, Rosen said he submitted a letter to the county on Aug. 12 and an analysis from a certified public accounting firm — Buu D. Nguyen CPA — detailing VAS’ accounting.
Rosen said the report found VAS complied with its contractual obligations but lacked internal controls because of understaffing.
According to the letter, Buu D. Nguyen conducted a VAS financial analysis in January. This analysis is not mentioned in the lawsuit.
In a previous interview, Winchell said VAS hired a company, which he declined to name, to complete the audit after it terminated Pun Group in July. It is unclear if he was referring to Buu D. Nguyen CPA.
Winchell told the Times that as of Monday he is no longer representing VAS.
In a letter to the county, Rosen called the demand for the return of the money a “political conspiracy.”
Rosen also criticized how the county investigated whether the promised meals were delivered, saying the county’s review of 275 participants was too small. He questioned whether the county used bilingual investigators, and argued that many participants would not cooperate with investigators because of their past experience with the communist government in Vietnam.
The county alleges that officials of the nonprofit spent money at companies controlled by VAS executives or close associates.
For example, in April, May, June and July of 2021, a company called Aloha submitted invoices of $100,000 each to VAS. Around the same time, Perfume River Restaurant and Lounge also submitted 12 invoices totaling $108,000, according to the lawsuit.
However, the suit alleges that these companies did not provide the services stated in the invoices. It also alleges that VAS CEO Pham has a stake in Perfume River Restaurant & Lounge and that Aloha was also doing business under the name Perfume River Restaurant & Lounge.
Thinh Nguyen is listed as VAS’s chief financial officer in 2022 and 2024. In 2023, he was appointed Aloha’s chief executive and CFO.
The suit alleges that these companies were “used merely as a cover for the individual defendants’ wrongful conduct.”
The county alleges that between 2021 and 2024, VAS transferred some of its assets to Pham, Do and Mai, who then purchased properties in Garden Grove, Buena Park, Santa Ana, Fountain Valley and Tustin.
Among those purchases, Doe’s daughter reportedly bought a three-bedroom home in Tustin in July 2023. That home was purchased that same month for $1,035,000, according to real estate site Redfin.
