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

May 13, 2026

San Diego County has decided to compensate six local subcontractors with approximately $150,000 after they performed services but never received payment from the Harm Reduction Coalition of San Diego, whose former Chief Operating Officer faces embezzlement charges. Although the County's original contract made HRCSD solely responsible for paying subcontractors, officials determined compensation was warranted given the unusual circumstances, even though HRCSD never billed the County for these services. The County terminated all agreements with HRCSD in June 2025 and has commissioned an independent audit of its contracting procedures to prevent similar situations.

Who is affected

Six local subcontractors of the Harm Reduction Coalition of San Diego who were not paid for their services
The Harm Reduction Coalition of San Diego (HRCSD), whose contracts were terminated
The former Chief Operating Officer of HRCSD who is accused of embezzlement
San Diego County taxpayers providing the compensation funds
Community members who rely on naloxone and drug testing materials

What action is being taken

The County is issuing payment of nearly $150,000 to the six subcontractors
The County is working with an independent auditor to review overall contracting processes
Naloxone distribution efforts are continuing without interruption through alternative means

Why it matters

This situation matters because it exposes vulnerabilities in government contracting oversight that allowed subcontractors to go unpaid while potential embezzlement occurred. The case highlights the importance of accountability mechanisms in public resource management and the need for robust auditing procedures. Most critically, it affects access to life-saving naloxone medication during an ongoing overdose crisis, making the continuation of these services essential to public health.

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
HRCSD subcontractors may seek victim restitution for additional money owed through the San Diego County District Attorney's criminal case

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