Independent investigators hired by CalOptima Health found no wrongdoing by disgraced former Orange County Supervisor Andrew Do in a $29.5 million property deal that went sour during his tenure on the agency’s board of directors.
In response to allegations of potential kickbacks in the deal, CalOptima, the county’s publicly funded insurer for low-income residents, released the audit of the property purchase on Thursday, Oct. 30, noting there was no evidence that Do received payments in the defunct deal to acquire a site in Tustin for a comprehensive senior center. There also was no indication that CalOptima CEO Michael Hunn “acquiesced” to any kickback deal.
Investigators noted their inquiry was limited by the voluntary nature of the interviews.
The audit was completed in August, and the board voted Oct. 16 to make the results public, saying it would first notify those affected by the report. The board waived its attorney-client privilege to authorize the release of the investigation prepared by Los Angeles-based law firm Bird Marella.
While no wrongdoing was found, the probe noted CalOptima policy violations in the deal to purchase land at 14851 Yorba St. and 165 Myrtle Ave. 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 senior center.
County Supervisor Vicente Sarmiento, who sits on the CallOptima board, said the discovery of the violations “provides an opportunity for improvements, some of which already have been implemented.”
Sarmiento added that the probe shows the CalOptima board’s desire to “investigate complaints fully.”
CalOptima is one of the state’s largest Medi-Cal plans, managing an annual budget of $4 billion. The insurer serves nearly 1 million residents in Orange County, about a third of its population. Do served on the CalOptima board from 2015 to 2023.
Do is serving a five-year sentence in federal prison after pleading guilty in 2024 to accepting $800,000 in bribes to steer more than $10 million in county-administered COVID relief funds to two nonprofits.
Most of the money given to Viet America Society and Hand to Hand Relief Organization was intended to feed older adults and people with disabilities, but authorities have said only $1.4 million went to food programs. Federal prosecutors allege that charity leaders used the rest of the funds for their own personal purchases, including real estate and lavish dinners.
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