LA man accused of fraudulently getting $23M in homeless funds – NBC Los Angeles

A Westwood man was charged on Friday for fraudulently acquiring $23 million in homeless funds and spending the cash meant for his charity to assist his lavish life-style, which included the acquisition of a trip property in Greece and buying sprees at Chanel and Hermes, federal and Los Angeles authorities collectively introduced Friday.

Alexander Soofer, 42, was anticipated to seem in federal court docket Friday as he confronted the fees of wire fraud, the U.S. Department of Justice (DOJ) stated.

Authorities stated Soofer’s charity Abundant Blessings is contracted with the Los Angeles Homeless Services Authority (LAHSA) to supply housing, three dietary meals a day and different providers to over 600 folks experiencing homelessness, based on the DOJ.

Instead, Soofer lied about how the general public cash was getting used to assist the homeless, together with these affected by psychological well being points and battling dependancy, and misappropriated tens of millions of {dollars} by fabricating financial institution statements and paperwork, based on federal investigators. 

Among greater than $23 million Soofer allegedly siphoned, $5 million got here instantly from LAHSA whereas over $17 million got here by way of a nonprofit known as Special Service for Groups Inc..

Soofer allegedly pocketed no less than $10 million — utilizing the general public cash for a down cost on his Westwood residence and tens of millions of {dollars} of upgrades, non-public education for his children, journeys to Las Vegas, non-public jet journey, and stays at luxurious resorts from Hawaii to Florida, prosecutors stated. Soofer additionally appeared to make use of $475,000 to buy a trip property in Greece, sending the cash to a Greek property developer.

“He was living the high life while the people suffering homeless on the streets with no shelter, no food. They’re living out in the streets. People are literally dying,” First Assistant U.S. Attorney Bill Essayli stated throughout a information convention Friday. “Instead of providing three nutritious meals a deal, this is what he was providing: Ramen noodles and a microwave. And he was pocketing the rest of the money.”

Essayli additionally stated Soofer went on buying sprees at Chanel and Hermes outlets with the stolen funds, buying a $1.250 males’s loafers lined with calf pores and skin and a $2,450 jacket  for himself and a $910 goat pores and skin Hermes sandals for his spouse.

As federal authorities investigated Soofer, the LA County District Attorney’s Office ran a parallel investigation into the person, following two earlier probes by LAHSA and the LA City Controller’s workplace. LA District Attorney Nathan Hochman stated the LAHSA and the City Controller’s Office found “a whole draft of fraudulent documentation trying to legitimize the fraud that he had been conducting.”

“He ripped off the taxpayers of LA County, and sadly and tragically he ripped off the homeless,” Hochman stated. “Mr. Soofer called his company Abundant Blessings. But the only abundant blessings he gave were to himself. Call it abundant financial blessings to Mr. Soofer and his family.”

A 2024 state audit revealed that over $24 billion was spent on homelessness packages throughout California with none monitoring of effectiveness or outcomes.

At the Los Angeles City Council Friday, Councilmember Monica Rodriguez was the one member who talked about the arrest as she beforehand advocated for town to withdraw from LAHSA.

“Damn it. We need to have a real conversation on how homeless dollars are spent, the accountability of service provides that are making millions and millions of dollars without any accountability,” Rodriguez stated as she has argued that an excessive amount of tax cash was being wasted on homeless providers with little or nothing to point out for it.

A felony grievance filed towards Soofer in state court docket alleges battle of curiosity in 11 contracts, Hochman stated.

If convicted of the federal fraud cost, Soofer would withstand 20 years in federal jail, prosecutors famous. The state case carries a 17-year most jail sentence upon conviction, Hochman stated.