A depiction of the ongoing investigation into COVID-relief fraud in Santa Ana.
Federal authorities have indicted two nonprofit leaders from Santa Ana over COVID-relief fund fraud, including allegations of conspiracy, wire fraud, and money laundering. Peter Pham and Thanh Huong Nguyen face serious charges involving misappropriation of $12 million intended for vulnerable community members. As investigations unfold, a former county supervisor is also implicated in the scandal, raising questions about corruption within local nonprofits. The community is now grappling with the shocking breach of trust as local officials work to recover misused funds.
Santa Ana is buzzing with news today as federal authorities announce serious accusations against two nonprofit leaders in what is shaping up to be a shocking COVID-relief fund fraud case. Peter Pham, founder and president of the Viet America Society, and Thanh Huong Nguyen, who is associated with the Hand-to-Hand Relief Organization Inc., have both been indicted on multiple federal charges that are raising eyebrows across the community.
The U.S. Attorney’s office pulled back the curtain on these indictments that were initially sealed following a grand jury return. Pham, aged 65, stands accused of conspiring to commit wired fraud, engaging in honest services wire fraud, and laundering the hefty sum of $12 million in COVID-relief funds given by Orange County. Meanwhile, 61-year-old Nguyen is facing charges that include conspiracy to commit wire fraud and concealment money laundering.
The plot thickens as Pham is currently on the lam, while Nguyen is set to make her first court appearance in Santa Ana this coming Monday. The whole ordeal has sent shockwaves through local nonprofit circles — especially given how these organizations were supposed to help those hardest hit by the pandemic.
In a twist that seems straight out of a crime drama, former Orange County Supervisor Andrew Do, who resigned last October after entering a plea agreement related to bribery charges, is also being dragged into this controversy. It’s alleged that Do received several bribes from Pham, including payments made to his daughters. An unsettling pattern seems to emerge here, with Do purportedly directing millions in pandemic funding to Pham’s nonprofit for an elder meal program.
Among the contracts of note is a staggering $5 million worth of initial funding from June 2020 aimed at providing meals for the elderly and people with disabilities. However, the allegations suggest that funds which were meant to feed those in need were instead misused, with Pham and Nguyen allegedly misrepresenting their financial plans to artificially inflate their reimbursements to the county.
Investigators, including the FBI, the Orange County District Attorney’s Office, and the IRS Criminal Investigation division, believe that instead of using the funds for their intended purpose, Pham and Nguyen funneled the money into personal expenses and real estate purchases. This misuse of government aid has prompted Orange County officials to emphasize that accountability will be pursued vigorously.
It gets murkier! The indictment hints at additional, unnamed individuals possibly involved in the fraud. Do’s role in voting on contracts while serving as an advocate for these two organizations raises significant ethical concerns. Beyond this immediate scandal, even other businesses connected to the Nguyen brothers are reportedly under scrutiny for potentially dodgy government contracts.
In the fallout, Orange County is seeking to retrieve funds from the Viet America Society, claiming improper use of the COVID-19 relief funds. The stakes are high, and many community members are left wondering how such a breach of trust could occur in organizations that were meant to aid the most vulnerable.
Licenses are being pulled, and federal agents have already executed search warrants at Pham’s home and the home of Do’s daughter, digging deeper into these disturbing allegations. As more information unfolds, the community is left grappling with hard questions about the integrity of the nonprofit sector during one of the most challenging times in recent history.
As we await further developments in this unfolding case, the residents of Santa Ana are eager to see justice served, and just how far this alleged fraud has reached.
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