A charity executive in Los Angeles is facing federal charges accusing him of fraudulently obtaining more than $23 million in public funds meant to fight homelessness, the Department of Justice announced.
Alexander Soofer, 42, the executive director of Abundant Blessings, was taken into custody Friday morning and was expected to appear in U.S. District Court in Santa Ana later in the day on a wire fraud charge, the DOJ said in a news release. Prosecutors allege he siphoned at least $10 million of the funds for personal use.
"California is the poster child of rampant fraud, waste, and abuse of tax dollars," said Bill Essayli, first assistant U.S. attorney for the Central District of California. "The state has facilitated the spending of billions of dollars to combat homelessness, with little to show for it and almost no oversight.
"Thankfully, the federal government has begun auditing California's spending and today's is just one example of how fraudsters have swindled millions of dollars from taxpayers. This money should have gone to those in need, instead [it] lines the pockets of individuals subsidizing their lavish lifestyle."
Federal authorities allege that Abundant Blessings entered into multiple contracts with the Los Angeles Homeless Services Authority and other entities to provide housing and meals for people experiencing homelessness and those at risk between 2018 and 2025.
Prosecutors allege Soofer falsely reported spending and service delivery to conceal the fraud.
Instead of delivering services, the complaint alleges Soofer diverted millions for personal use, including the down payment and upgrades on a $7 million home in Westwood, a $125,000 Range Rover, private school tuition for his children, private jet travel, and stays at luxury resorts in Hawaii and Florida, investigators said. He also allegedly funneled about $475,000 toward a vacation property in Greece.
Officials contend Soofer fabricated invoices using stolen business names and logos to make payments appear legitimate. They also say he lied about leasing properties from third-party landlords, instead paying inflated amounts to himself.
Investigators said they found that some purported board members of the charity either did not exist or had no knowledge of Abundant Blessings’ operations. In one instance, city and county investigators discovered participants were being served only packaged items instead of the balanced daily meals required under the contracts.
If convicted, Soofer faces up to 20 years in federal prison.
"Soofer allegedly prioritized his own greed over decency and respect for the laws of our country," said Akil Davis, assistant director in charge of the FBI's Los Angeles field office. "The FBI and our law enforcement partners remain dedicated to investigating and holding accountable those, like Soofer, who we contend flagrantly disregarded our laws by seeking to enrich himself at the public's expense."
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