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alOptima, Orange County’s health plan for low‑income residents, discovered that a property transaction tied to a county vendor and former supervisor Andrew Do had cost the agency $460,000. The investigation began after Do, who once chaired CalOptima’s board, pleaded guilty to accepting bribes that redirected more than $10 million in county contracts during the COVID‑19 pandemic.

    In September 2024, CalOptima launched its own probe after a report surfaced that Do had manipulated a property sale. The agency hired Bird & Marella to examine the allegations. A year later, the firm found no evidence that Do had acted illegally. The report noted that the investigation lacked subpoena power and could not interview staff under oath, relying instead on eyewitness testimony from two to three years earlier. The lawyers also highlighted that CalOptima staff had ignored policies on disclosing closed‑door discussions and mishandled a multi‑million‑dollar property sale. While no criminal intent was proven, the report called for policy and compliance improvements, a matter for the board to address.

    The property in question was a Tustin building zoned for medical use. In 2021, a small LLC—whose sole agent was Cuong Nguyen—purchased the site for $18 million. Nguyen was the CEO of 360 Clinic, a county COVID‑19 testing vendor on a $5 million contract. Shortly after the purchase, 360 Clinic approached CalOptima to run a PACE program for elderly residents in the building. CalOptima staff toured the property and, in a closed‑door meeting, the board signed a letter of intent to buy in June 2022.

    However, the final sale agreement, signed exclusively by Do in August 2022, priced the property at $29.5 million—an $11 million jump in less than a year. The lawyers noted that CalOptima employees facilitated the purchase agreement without the required board approval, violating the agency’s real‑estate purchasing policy. Veronica Carpenter, one of Do’s former aides, and CEO Michael Hunn—hired while Do chaired the board—were involved in the deal. The report found no evidence that they or any other employee intended to violate policy, though it acknowledged that policy breaches had occurred.

    CalOptima had planned to invest an additional $18 million to renovate the building for PACE services. After Do signed the escrow paperwork, the project hit a snag: the building was not zoned for a PACE center, and the county’s Tustin Planning Commission denied the necessary approvals. Over a year of appeals, CalOptima continued to pay non‑refundable deposits and escrow extension fees, totaling $460,000. Ultimately, the agency withdrew from the deal, and the building sold earlier this year for $19 million—$10 million less than CalOptima’s offer.

    The report did not examine Do’s other activities at CalOptima, which have long attracted scrutiny. Do resigned from the board in 2023 after a $12,000 fine for pay‑to‑play politics and a state audit that highlighted the agency’s $1.2 billion cash reserve. County supervisors have commissioned an audit of over $4 billion spent while Do served on the board; the audit’s scope includes the original $5 million 360 Clinic contract. Supervisor Vicente Sarmiento, a CalOptima board member, said the findings should prompt policy changes and noted that improvements had already begun. Supervisor Janet Nguyen, who succeeded Do in the 2024 election, stated she was reviewing the report and would comment further.

    Noah Biesiada, Voice of OC reporter, can be reached at [email protected].