Fraudulent Scheme Exposed: CEO of Palm Springs Nonprofit Charged with Stealing Over $940,000 in Public Funds
Indictment and Charges
Riverside County prosecutors have charged the CEO of Queer Works, a Palm Springs-based nonprofit, with 53 felony counts, including fraudulent claims, grand theft, misappropriation of public funds, insurance fraud, perjury, and money laundering. The indictment also includes an aggravated white-collar crime enhancement due to the significant economic loss of the scheme.
Nonprofit’s Mission and Funding
Queer Works was founded in 2018 with the mission to provide accessible mental health services and promote health equity within the transgender and gender non-binary (TGI) community. The nonprofit received grant funding from Riverside County and the city of Palm Springs in 2021 and 2022, respectively, to support programs aimed at assisting homeless individuals and victims of domestic violence.
Fraudulent Activities
County officials discovered discrepancies in Queer Works’ expenses during financial reviews, including altered documents submitted by CEO Jacob Joseph Aaron Rostovsky. Investigators found at least 89 instances of Rostovsky making false statements and submitting forged documents to obtain over $840,000. The funds were intended to support individuals in need, but Rostovsky used a portion of the money for personal expenses, including purchases at Disney, Burberry, and the Beverly Garland Hotel.
Additional Charges and Allegations
Rostovsky also collected an additional $90,000 by impersonating a Queer Works client and filing a fraudulent insurance claim against the nonprofit. The charges also show that Rostovsky engaged in multiple acts of money laundering with the allegedly ill-gotten funds.
Arrest and Bail
Rostovsky surrendered at the DA’s office on October 17 and posted bail in the amount of $944,000.
Conclusion
The indictment of Queer Works’ CEO serves as a reminder of the importance of transparency and accountability in the nonprofit sector. The alleged fraudulent activities have caused significant harm to the community and undermine the good work of organizations like Queer Works.
Frequently Asked Questions
Q: What is the nature of the fraud scheme?
A: The scheme involves the theft of over $940,000 in public funds intended for programs supporting homeless individuals and victims of domestic violence.
Q: What were the funds intended for?
A: The funds were intended to support programs aimed at assisting homeless individuals and victims of domestic violence.
Q: What was the CEO’s role in the scheme?
A: The CEO, Jacob Joseph Aaron Rostovsky, was charged with 53 felony counts, including fraudulent claims, grand theft, misappropriation of public funds, insurance fraud, perjury, and money laundering.
Q: What is the current status of the CEO?
A: Rostovsky surrendered at the DA’s office on October 17 and posted bail in the amount of $944,000.
