Orange County Files Lawsuit Against Huntington Beach Nonprofit Over Misuse of COVID-19 Relief Funds
Orange County has taken legal action against a Huntington Beach nonprofit, alleging that it misappropriated millions of dollars intended for COVID-19 relief. The county claims that the Viet America Society misused over $13 million in funds that were awarded to provide meals for elderly and disabled residents during the pandemic.
Orange County Supervisor Katrina Foley expressed her outrage, stating, “I just think that’s outrageous,” emphasizing the need for taxpayer money to be returned. Foley highlighted the importance of ensuring that vulnerable residents, particularly those facing food insecurity, received the assistance they desperately needed.
The lawsuit asserts that the nonprofit failed to utilize the funds for their intended purpose and could not provide evidence to substantiate their claims. According to the allegations, the Viet America Society and its associates “brazenly plundered these funds for their own personal gain” from 2020 to 2023.
Among the claims, the organization is accused of using relief funds to purchase a home in Tustin and five additional properties in Fountain Valley, Santa Ana, Garden Grove, and Buena Park. This has raised serious questions about the integrity of the nonprofit and its leadership.
Several individuals are named in the lawsuit, including Rhiannon Do, the daughter of Supervisor Andrew Do, who represents the district where the funds were meant to be allocated. Supervisor Foley remarked, “The public trusts us with millions of dollars of their hard-earned taxes, and we need to be good stewards of those dollars.”
Supervisor Vicente Sarmiento echoed these sentiments, stating, “That is about as egregious as you can get with misusing public funds.” He further suggested that if the allegations are proven true, Supervisor Do should contemplate stepping down, as county residents deserve transparency and accountability.
When approached for comment, Supervisor Do declined to respond, stating “no comment” before leaving the scene. This lack of transparency has only fueled public concern regarding the handling of taxpayer funds.
In addition to the allegations of misappropriation, the lawsuit notes that on September 27, 2023, the Viet America Society entered into an agreement with the county to design, construct, and maintain a Vietnam War memorial at Mile Square Park, for which they were paid $1 million. However, the suit claims that the organization failed to fulfill its contractual obligations regarding the memorial.
The lawsuit outlines that the defendants not only conspired to defraud the county based on nutritional services contracts but also egregiously breached their duties under all identified contracts. Foley remarked, “We need to make sure that nothing like this is happening in any of our other contracts,” highlighting the broader implications of this case for county governance.
The Orange County District Attorney’s Office is now tasked with determining whether any criminal activities occurred as a result of these allegations. The outcome of this investigation could set a significant precedent for how similar cases are handled in the future.
Implications for Nonprofits and Government Accountability
This case highlights a growing trend of scrutiny surrounding nonprofit organizations, particularly those receiving public funds. As government agencies allocate substantial resources for relief efforts, the need for transparency and accountability has never been more critical. The misuse of funds not only undermines public trust but also jeopardizes the support intended for vulnerable populations.
As communities continue to navigate the aftermath of the pandemic, it is essential for nonprofits to establish robust governance structures and financial oversight mechanisms. This incident serves as a reminder of the importance of ethical practices in the nonprofit sector, particularly when dealing with taxpayer dollars.
Moving forward, there may be increased calls for stricter regulations and oversight of nonprofit organizations, especially those involved in public health and welfare initiatives. Stakeholders, including government agencies and community members, will likely demand greater transparency in how funds are allocated and spent.
In conclusion, the implications of this lawsuit extend beyond the immediate parties involved. It signals a potential shift in how nonprofits operate and interact with government entities, emphasizing the need for integrity and accountability in all dealings. As the landscape of nonprofit funding evolves, organizations must adapt to these changing expectations to maintain public trust and fulfill their missions effectively.
