Los Angeles Charity CEO's Lavish Lifestyle Raises Questions About Homelessness Funding
A Los Angeles homeless services charity's CEO, Alexander Soofer, is facing federal and state fraud charges over his lavish lifestyle, which was allegedly funded by $23 million in public money meant to support homeless residents.
According to prosecutors, Soofer used the funds to buy a luxury Range Rover, designer clothes, including a $2,450 Hermes jacket, a vacation home in Greece, and a stay at the Four Seasons hotel in Hawaii. This is while thousands of people are struggling with homelessness in Los Angeles County.
The charity, Abundant Blessings, was contracted by the Los Angeles Homeless Services Authority to use taxpayer money to provide shelter and meals for homeless residents. However, instead of using the funds as intended, Soofer allegedly falsified invoices to claim that he was serving fresh meals and renting out rooms while homeless people were fed canned beans and bulk packs of microwavable ramen noodles.
Investigations found that Soofer had paid himself to "rent" properties for homeless people that he already owned. This is a case of conflict of interest, as the CEO was profiting from his own charity's funds.
The scandal has raised questions about the effectiveness of homelessness funding and how it is being used. Los Angeles County officials have been criticized for their handling of the program, with scathing audits finding that the homeless services authority spent its funds recklessly without transparency.
Soofer faces charges including wire fraud, conflict of interest, and forgery, and could receive up to 20 years in prison if convicted. The case has become a point of contention between President Donald Trump's administration and California Governor Gavin Newsom, with both sides blaming each other for the alleged scandal.
In a statement, Newsom's office pushed back against accusations that he had facilitated the fraud, pointing out that local investigators uncovered the case through their own efforts to ensure accountability and oversight. However, prosecutors argue that the state legislature's lack of vetting and oversight allowed the charity to operate with impunity.
A Los Angeles homeless services charity's CEO, Alexander Soofer, is facing federal and state fraud charges over his lavish lifestyle, which was allegedly funded by $23 million in public money meant to support homeless residents.
According to prosecutors, Soofer used the funds to buy a luxury Range Rover, designer clothes, including a $2,450 Hermes jacket, a vacation home in Greece, and a stay at the Four Seasons hotel in Hawaii. This is while thousands of people are struggling with homelessness in Los Angeles County.
The charity, Abundant Blessings, was contracted by the Los Angeles Homeless Services Authority to use taxpayer money to provide shelter and meals for homeless residents. However, instead of using the funds as intended, Soofer allegedly falsified invoices to claim that he was serving fresh meals and renting out rooms while homeless people were fed canned beans and bulk packs of microwavable ramen noodles.
Investigations found that Soofer had paid himself to "rent" properties for homeless people that he already owned. This is a case of conflict of interest, as the CEO was profiting from his own charity's funds.
The scandal has raised questions about the effectiveness of homelessness funding and how it is being used. Los Angeles County officials have been criticized for their handling of the program, with scathing audits finding that the homeless services authority spent its funds recklessly without transparency.
Soofer faces charges including wire fraud, conflict of interest, and forgery, and could receive up to 20 years in prison if convicted. The case has become a point of contention between President Donald Trump's administration and California Governor Gavin Newsom, with both sides blaming each other for the alleged scandal.
In a statement, Newsom's office pushed back against accusations that he had facilitated the fraud, pointing out that local investigators uncovered the case through their own efforts to ensure accountability and oversight. However, prosecutors argue that the state legislature's lack of vetting and oversight allowed the charity to operate with impunity.