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County to Pay Community Organizations for Work Not Paid by Contractor in Wake of Fraud Investigation

May 6, 2026

San Diego County has decided to compensate six local organizations approximately $150,000 for work they completed as subcontractors for the Harm Reduction Coalition of San Diego, whose former Chief Operating Officer faces embezzlement charges. Although the county's contract technically made HRCSD responsible for paying its subcontractors, officials determined compensation was warranted given the unusual circumstances where services were provided but never billed to the county. The county terminated all agreements with HRCSD in June 2025 and has commissioned an independent audit of its contracting procedures.

Who is affected

  • Six local subcontractors of the Harm Reduction Coalition of San Diego (HRCSD)
  • The Harm Reduction Coalition of San Diego (HRCSD)
  • The former Chief Operating Officer of HRCSD (accused of embezzlement)
  • San Diego County
  • People who rely on naloxone and drug testing materials

What action is being taken

  • The County is issuing payment of nearly $150,000 to six subcontractors
  • An independent auditor is reviewing the County's overall contracting processes
  • The County's naloxone distribution efforts are continuing without interruption

Why it matters

  • This matters because it involves the misappropriation of public funds intended for critical harm reduction services, including life-saving overdose prevention medication. The situation highlights vulnerabilities in government contracting oversight that could allow fraud to occur, potentially affecting subcontractors' financial stability and public health programs. The County's response demonstrates accountability while ensuring that essential naloxone distribution services remain available to those at risk of overdose.

What's next

  • The independent auditor is expected to deliver a report with findings and recommendations by the end of May
  • Once the independent audit is complete, the County will evaluate the findings and determine additional steps needed to strengthen contracting practices and protect public resources
  • All HRCSD subcontractors may seek victim restitution for additional money they may be owed through the San Diego County District Attorney's criminal case

Read full article from source: The San Diego Voice & Viewpoint