Federal authorities arrested a charity director from California on Friday, charging him with wire fraud for allegedly diverting millions of dollars designated for homelessness relief in Los Angeles to fund his extravagant lifestyle.
Alexander Soofer, 42, faces accusations of fraudulently acquiring over $23 million in taxpayer money, of which he reportedly pocketed at least $10 million.
According to a news release from the U.S. Attorney’s office for the Central District of California, Soofer used the misappropriated funds to purchase a $7 million residence in Westwood, a $125,000 Range Rover, cover private school tuition for his children, travel by private jet, and stay at luxury hotels both domestically and internationally.
“California is the poster child of rampant fraud, waste, and abuse of tax dollars,” stated First Assistant U.S. 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.”
Essayli also noted in a post on X that Soofer’s arrest is the third made by the office’s Homelessness Fraud and Corruption Task Force.
https://x.com/USAttyEssayli/status/2014763210780393795?s=20
Vice President JD Vance remarked that fraud in California surpasses that in Minnesota, citing several high-profile cases related to social services and homelessness expenditures. He alleged that over $7 billion in fraud has occurred throughout the state, as highlighted by Small Business Administrator Kelly Loeffler.
Soofer served as the executive director of Abundant Blessings, a charity that had a contract with the Los Angeles Homelessness Services Authority to assist the homeless population.
Of the funds Soofer is accused of misappropriating, $5 million originated from LAHSA, while more than $17 million was channeled through a downtown Los Angeles nonprofit, Special Service for Groups Inc.
Instead of utilizing the funds for housing, meals, and support services, Soofer allegedly transferred the money into personal bank accounts, created fake invoices, and falsely claimed to have payments made to third-party vendors and landlords.
Investigators revealed that Soofer established a fictitious charity board to hide his scheme and charged above-market rents for properties that he effectively rented to himself.
Subsequent site visits discovered that homeless individuals received only minimal food items, such as ramen noodles and canned goods, which fell significantly short of the three daily nutritious meals required under the contracts.
Soofer is scheduled for his initial court appearance on Friday afternoon and could face up to 20 years in federal prison if convicted.
