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Nonprofit Leaders Indicted for Misappropriating COVID Relief Funds

Investigators gather in a courtroom for the indictment of nonprofit leaders in a COVID relief fraud case.

News Summary

Two nonprofit leaders, Peter Pham and Thanh Huong Nguyen, have been indicted on federal charges for allegedly misappropriating $12 million in COVID-relief funds. The charges include conspiracy, wire fraud, and money laundering. Pham, currently a fugitive, is accused of pocketing most of the funds, while Nguyen faces similar charges and is set for arraignment. The investigation also implicates former Orange County Supervisor Andrew Do, who has pleaded guilty to bribery. The case raises serious concerns about the misuse of public funds meant for pandemic relief.

Orange County – Two nonprofit leaders have been indicted on multiple federal charges related to the alleged misappropriation of $12 million in COVID-relief funds. The U.S. Attorney’s office announced the indictment on Friday, which was previously returned by a grand jury on Wednesday. The indicted parties are Peter Pham, 65, founder and president of Viet America Society, and Thanh Huong Nguyen, 61, associated with Hand-to-Hand Relief Organization Inc.

Pham is facing serious legal repercussions, including one count of conspiracy to commit wire fraud, one count of conspiracy to commit honest services wire fraud, six counts of wire fraud, six counts of concealment money laundering, and one count of bribery. He is currently a fugitive. In contrast, Nguyen is expected to appear for arraignment on Monday at a federal courthouse in Santa Ana. She faces one count each of conspiracy to commit wire fraud, wire fraud, and concealment money laundering.

The allegations against Pham and Nguyen suggest that they misappropriated a significant portion of the COVID-relief funds intended to aid economically struggling communities during the pandemic. Authorities claim that Pham pocketed most of the allocated funds and laundered the money to hide it from law enforcement.

Former Orange County Supervisor Andrew Do is also implicated in this case. He previously agreed to plead guilty to bribery charges, allegedly accepting over $550,000 in bribes. Do’s actions reportedly involved directing millions in pandemic funding to nonprofit organizations tied to himself and his family.

Between June 2020 and 2023, Do specifically allocated significant pandemic funding to Viet America Society to support a meals program for the elderly and disabled. However, prosecutors assert that Pham and Nguyen misrepresented their intended use of the funds, fraudulently claiming reimbursement for unspent funds, and diverted the money for personal expenses such as real estate and debt repayment.

Further investigations revealed that the duo concealed the misuse of funds by writing checks to a Westminster air conditioning company. This company allegedly redirected the funds back to them and to Do’s daughters, demonstrating a systematic effort to evade detection.

The legal actions against Pham and Nguyen are being supported by multiple federal authorities, including the Federal Bureau of Investigation (FBI), the Orange County District Attorney’s Office, and the IRS Criminal Investigation division. Additionally, Orange County has filed a civil lawsuit against Viet America Society, seeking to recover over $13 million in misused COVID relief funds. The lawsuit claims the nonprofit used the funds for personal gains, including acquiring multiple properties.

Local leaders, including Supervisor Katrina Foley, have expressed outrage over the exploitation of taxpayer funds that were meant to support vulnerable residents. The federal investigation has led to the seizure of approximately $2.4 million related to the case, and former Supervisor Andrew Do has agreed to forfeit his interests in two homes as part of his plea deal.

Reports suggest that only 15% of the $9 million funneled to Viet America Society was used as intended to feed the community, highlighting substantial shortcomings in service delivery. This misallocation underscores the severity of the charges and raises concerns regarding oversight and accountability for the distribution of COVID relief funds. As the case unfolds, the implications for all parties involved, particularly those intended to benefit from these funds, remain a critical concern for the Orange County community.