A second audit of imprisoned ex-Orange County Supervisor Andrew Do’s tenure on the CalOptima Health board found no evidence of fraud, but uncovered multiple instances in which Do may have failed to declare a conflict of interest, including two for which he was fined $12,000 by state regulators.
CalOptima’s anti-conflict policies have since been tightened according to recommendations in the eight-page report by Ankura Consulting, released late Wednesday, Feb. 18. CalOptima is the county’s publicly funded insurer for low-income residents.
“The investigation confirmed that Andrew committed no fraud, which has been our position from the outset, and that there was no violation of policy as it existed at that time,” said Do’s attorney, Paul Meyer.
Do is serving a five-year federal prison sentence for accepting more than $800,000 in bribes to divert $10 million in pandemic relief to certain charities while serving on the county Board of Supervisors.
He had directed contracts to Viet America Society and Hand-to-Hand Relief Organization Inc., the former of which kicked money back to Do through payments to his daughter, Rhiannon Do.
Much of the money came from the supervisor’s First District discretionary funds. Of the $9.3 million allocated by Do to Viet America Society, meant to provide meals for the elderly and people with disabilities, only $1.4 million was spent on the program, according to Do’s plea agreement.
Do served on the CalOptima board from 2015 to 2023 as one of the county’s supervisorial delegates. His conviction in 2024 sparked one audit by CalOptima that found no evidence of wrongdoing by Do or his staff in a $29.5 million property deal that went sour. CalOptima, however, lost $460,000 in escrow money in that deal.
This Ankura audit targeted grants and contracts in which Do was involved in the selection process and had a relationship with the vendors involved.
“Ankura did not identify instances where Do improperly directed CalOptima funds to specific organizations,” the report said. “We also did not identify situations where intended services were not provided or where funds were expended for Do’s exclusive benefit.”
The report concluded Do may not have properly disclosed his potential conflicts. This includes contracts with campaign donors cited in a “pay-to-play” complaint by the state Fair Political Practices Commission against Do in 2022. The regulatory agency found Do influenced lobbying contracts in 2016 and 2017 with campaign donors Jim McConnell and Christopher Townsend.
The Ankura report also noted, however, that Do did properly recuse himself from the voting on some occasions. The report did not identify the vendors that may have had a relationship with Do or the amount of the contracts at issue.
The previous audit on the bad property deal found no evidence that Do received payments to acquire a site in Tustin for a recuperative care and comprehensive senior center. There also was no indication that CalOptima CEO Michael Hunn “acquiesced” to any kickback deal, the report said.
While no wrongdoing was found, the probe noted CalOptima policy violations in the deal to purchase land on Yorba Street and Myrtle Avenue. CalOptima lost $460,000 in escrow money to the seller, Yorba Myrtle LLC, when the deal fell through because the city of Tustin denied the permits needed for the center.
Investigators noted their inquiry was limited by the voluntary nature of the interviews, as they were unable to subpoena documents or have witnesses testify under oath.