Allegations of luxury spending while homeless residents lacked shelter and food
The CEO of a Los Angeles homeless services charity, Alexander Soofer, was arrested Friday and faces federal and state fraud charges, prosecutors said.
Prosecutors alleged Soofer lived a luxury lifestyle that included lavish vacations and designer clothes paid for with $23 million in public money meant to keep people off the streets, according to authorities and a federal prosecutor cited by the AP. First Assistant U.S. Attorney Bill Essayli said Soofer was arrested at his $7 million home.
Charges include wire fraud and multiple state felonies
Soofer faces federal wire fraud charges, as well as state counts that prosecutors described as involving conflict of interest, offering false evidence and forgery.
Prosecutors said Soofer falsified invoices to claim he was serving fresh meals and renting out rooms while homeless people were instead fed canned beans and bulk packs of microwaveable ramen noodles. Investigators also said Soofer falsified records to cover up what prosecutors described as payments to himself to “rent” properties for homeless people that he already owned.
Prosecutors described Range Rover, designer clothing and travel
At a Friday news conference, prosecutors cited items they said were bought using funds intended for homeless services. They said Soofer purchased a $125,000 Range Rover and a $2,450 Hermes jacket. Prosecutors also said he had a vacation home in Greece and traveled to Hawaii, staying at the Four Seasons hotel, referenced by prosecutors as the setting for the HBO series “The White Lotus.”
Essayli said during the news conference: “He was living the high life while the people suffering, the homeless, lived on the streets with no shelter, no food,”
Contract details: shelter and meals for more than 600 residents
The charity was contracted with the Los Angeles Homeless Services Authority, a county agency, to use taxpayer money to find shelter and provide three meals a day for more than 600 homeless residents, prosecutors said.
Essayli said that if Soofer is convicted as charged, he could receive a sentence of up to 20 years in prison.
Court appearance and next steps
Soofer appeared in court Friday but did not enter a plea and was released on $1.5 million bond, according to the AP. He is scheduled to be arraigned in federal court on Feb. 26, while his arraignment on state charges was not yet scheduled.
An email was sent Monday seeking comment from Soofer’s attorney, Hilary Potashner, the AP reported.
Dispute over homelessness spending expands beyond the courtroom
Prosecutors’ presentation also fed into a broader dispute between President Donald Trump’s administration and California Gov. Gavin Newsom over homelessness oversight and accountability, the AP said.
After a conservative commentator placed blame for the fraud on Newsom, the governor’s press office pushed back, saying: “This case was uncovered by local investigators working with law enforcement — exactly the kind of accountability and oversight the state has pushed for,”
Essayli responded by blaming Newsom and the California legislature, saying on social media: “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,”
Prosecutors cite homelessness totals and prior audits
Prosecutors pointed to an annual homeless count released last July showing the number of homeless residents across Los Angeles County dropped 4% last year, with an estimate that some 72,000 people were living in shelters or in sidewalk encampments countywide.
They also referenced actions by Los Angeles County officials last March to take control of hundreds of millions of dollars in spending after two audits found that the homeless services authority spent the money recklessly and without transparency.