The case highlights concerns about oversight of billions spent to address homelessness in Los Angeles, where the population has declined only 4% in recent years despite substantial investments.

Alexander Soofer, the 42-year-old CEO of Abundant Blessings, a Los Angeles nonprofit contracted to house and feed homeless residents, was arrested Friday at his $7 million home on federal and state fraud charges. Prosecutors allege he diverted approximately $23 million in public funds intended for more than 600 homeless residents to finance a luxury lifestyle including a $125,000 Range Rover, a $2,450 Hermès jacket, and vacations to Greece and Hawaii.

The case raises concerns about oversight of billions spent to address homelessness in Los Angeles, where the population has declined only 4% in recent years despite substantial investments. Soofer served as CEO of Abundant Blessings, which the Los Angeles Homeless Services Authority had contracted to provide shelter and three meals daily for more than 600 residents. Between 2018 and 2025, Abundant Blessings received more than $23 million in homeless housing funding, with more than $5 million from the county authority and more than $17 million through Special Service for Groups Inc., a Los Angeles-based nonprofit.

How the Fraud Worked

The indictment alleges that Soofer falsified invoices to the county authority claiming he was serving fresh meals while residents actually received canned beans and bulk packages of microwaveable ramen noodles. Investigators also found that he paid himself to “rent” properties to the nonprofit that he already owned, allowing him to collect rental payments on buildings he controlled.

“He was living the high life while the people suffering, the homeless, lived on the streets with no shelter, no food,” said Bill Essayli, First Assistant U.S. Attorney.

He was released on $1.5 million bond pending federal arraignment on February 26.

If convicted as charged, Soofer faces up to 20 years in federal prison on wire fraud charges. The state case includes 11 felony counts of conflict of interest, two counts of offering false evidence, and five counts of forgery. His state arraignment date has not yet been scheduled.

Oversight in Los Angeles

The homeless population in Los Angeles County declined only 4% last year, with approximately 72,000 people living in shelters or sidewalk encampments. County officials assumed direct control of homeless services authority spending in March 2025 after audits found the agency had spent money “recklessly and without transparency.”

“Mr. Soofer called his company Abundant Blessings, but the only abundant blessings were the blessings he gave himself,” said Nathan Hochman, Los Angeles County District Attorney.

Political Fallout

The prosecution emerged as a point of contention between the Trump administration and California Gov. Gavin Newsom over homelessness policy. After a conservative commentator attributed the fraud to Newsom’s governance, the governor’s office responded that the case “was uncovered by local investigators working with law enforcement—exactly the kind of accountability and oversight the state has pushed for.”

Essayli responded on social media, stating: “You and the California legislature facilitated this fraud by handing out billions in tax dollars to these nonprofits with zero vetting and zero state oversight.”

Soofer’s attorney, Hilary Potashner, did not respond to a request for comment.