LA charity head accused of stealing $23 million in pubic funds

The director of a Los Angeles homelessness charity allegedly siphoned thousands and thousands in taxpayer money meant to fight homelessness — and used it to fund a lavish way of life that included a keep on the White Lotus Hotel in Hawaii, the feds stated Friday.

Alexander Soofer, 42, boss of Abundant Blessings, was accused of pocketing $23 million in public funds, lining his pockets with at the least $10 million of it, in accordance with federal prosecutors.

He allegedly used the money to purchase a $7 million mansion in Westwood, a $125,000 Range Rover and to cowl his youngsters’ personal college tuition, personal jet journey and stays at luxurious resorts, the US Attorney’s Office stated.

“California is the poster child of rampant fraud, waste, and abuse of tax dollars,” charged First Assistant US Attorney Bill Essayli. “The state has facilitated the spending of billions of dollars to combat homelessness, with little to show for it and almost no oversight.”

Soofer has been charged with wire fraud for his alleged misappropriation of the cash — of which $17 million got here immediately from Los Angeles Homeless Services Authority, the feds stated.

The charity bigwig is accused of mendacity to LAHSA about how he was utilizing the funds and of fabricating funds to distributors for homeless housing providers when he was truly diverting the cash to his personal checking account, the feds stated.

“The only abundant blessings he gave were to himself,” Los Angeles District Attorney Nathan Hochman stated throughout a press convention.

Soofer allegedly billed the town for the providers he failed to supply — whereas he was residing it up in luxurious resorts throughout the nation utilizing personal jets from Hawaii to Florida.

He purchased a pair of $1,250 males’s loafers lined with sheep pores and skin and sported a $2,450 Hermes trotting jacket.

Soofer even appeared to purchase a $475,000 trip property in Greece and used stolen capital to make dwelling enhancements to his multi-million greenback pad in Westwood, authorities stated.

All whereas, Soofer group touted its noble mission as, “to provide the best crisis housing facilities to homeless and low-income families in L.A.”

“We seek to employ the most qualified staff available,” a web page on the web site Charity Navigator states, whereas additionally giving the nonprofit a one star ranking for “Accountability and Finance.”

“Soofer allegedly prioritized his own greed over decency and respect for the laws of our country,” stated Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office.

In sure contracts, Soofer agreed to pay resorts and motels to place up these in want, and in others, he stated he would supply housing at websites he personally managed.

The alleged scheme included leasing properties for homeless housing from landlords at a market-rate after which paying himself above market charge for a similar housing, the feds stated.

Soofer additionally stated he’d present three wholesome meals a day that had been “balanced, and met participants nutritional needs,” in accordance with the feds.

But after hotline complaints trickled in, investigators discovered that he was as a substitute serving up Ramen noodles, canned beans and breakfast bars to these in want.

Essayli stated the federal authorities was auditing California’s spending and that the case in opposition to Soofer was “only one instance of how fraudsters have swindled thousands and thousands of {dollars} from taxpayers.

“This money should have gone to those in need,” he stated.

The multi-millions that Soofer re-purposed had been a part of Measure H, which voters supported and handed in 2017 that raised gross sales tax by a quarter-cent to fund homelessness providers, psychological healthcare and prevention applications. The measure generates round $355 million every year for such applications.

A latest submit on the Abundant Blessings Instagram web page states: “Who are we as human beings if we ignore the suffering of others?”

“Enjoy prison Alexander Soofer,” a remark underneath the submit learn.

Another commenter stated, “when placed in housing they put me in a worse situation then what I started.”

Authorities cuffed Soofer at his $7 million dwelling on Friday morning with out incident.

If convicted of each the federal and state costs he additionally faces, Soofer might get locked up for a complete 37 years.

“Mr. Soofer will not be unhoused. He actually will receive housing, a good room in a state prison and a federal prison,” stated Hochman.