Los Angeles Homeless Services CEO Charged with Defrauding Taxpayers
By CHRISTOPHER WEBER
LOS ANGELES (AP) — Alexander Soofer, CEO of a Los Angeles homeless services nonprofit, has been charged with federal and state fraud, accused of using $23 million in public funds intended for homeless services to finance a luxurious lifestyle. His extravagant expenditures included lavish vacations and high-end fashion, according to prosecutors.
The 42-year-old Soofer was arrested Friday at his opulent $7 million residence, believed to have been funded in part by money meant to support his charity, Abundant Blessings. The organization was tasked with helping the homeless population via contracts with the Los Angeles Homeless Services Authority (LAHSA).
Instead of fulfilling its mission of providing shelter and meals for over 600 homeless individuals, investigators allege that Soofer engaged in fraudulent activities, including purchasing a $125,000 Range Rover and a vacation home in Greece, while misleadingly reporting service provision.
Prosecutors claimed that while Soofer misrepresented services, he supplied subpar meals like canned beans and ramen noodles instead of fresh options he billed for. Furthermore, he created fake invoices to cover up that he was “renting” properties he owned to homeless individuals.
“He was living the high life while the people suffering, the homeless, lived on the streets with no shelter, no food,” stated First Assistant U.S. Attorney Bill Essayli during a press conference alongside Los Angeles County District Attorney Nathan Hochman.
If convicted, Soofer faces up to 20 years in prison. He has been released on a $1.5 million bond and is scheduled for federal arraignment on February 26. His state court arraignment is pending.
This scandal highlights ongoing concerns regarding the management of billions allocated to combat homelessness in Los Angeles, where the number of homeless individuals saw only a 4% decrease last year. Reports from local audits indicate a pattern of reckless spending within the LAHSA, prompting officials to call for stricter oversight on funding.
The case has stirred political tensions, with blame being attributed to California Governor Gavin Newsom by critics, countered by Newsom’s office, which stressed that local investigators uncovered the fraud worked in line with accountability measures the state has been advocating.
Soofer is facing multiple charges: federal charges of wire fraud and state felony counts including conflict of interest, offering false evidence, and forgery.
