Introduction to the Alleged Fraud

A man accused of fleecing L.A.’s homeless services bureaucracy for $23 million was arrested at his Westwood home early Friday morning as part of an ongoing multiagency probe into the county’s multibillion-dollar efforts to tamp down encampments and bring more people in off the streets.

The Allegations Against Alexander Soofer

“There was no vetting process, there was no accounting going on,” said Bill Essayli, who leads the U.S. attorney’s office in Los Angeles. “We will find out where every dollar went. We want to get to the bottom of the fraud.” Alexander Soofer, 42, of Westwood was charged with wire fraud amid allegations he used his Hyde Park-based program Abundant Blessings to line the pockets of his $2,450 Hermes trotting jacket with millions in taxpayer dollars from Inside Safe and Measure H.

The Charges and Court Appearance

Soofer appeared in court Friday but did not enter a plea. His attorney, Hilary Potashner, declined to comment. He was released on $1.5 million bond and is scheduled to be arraigned on Feb. 26. According to the indictment against him, Soofer charged L.A. agencies to feed and house more than 600 people, then funneled the cash into a $7-million home in Westwood, private school tuition, “White Lotus”-style vacations, a second home in Greece and pricey Hermes goodies.

The Method of Fraud

To backstop his spending, officials say, Soofer falsified invoices to claim he was serving fresh meals and renting out rooms while his clients were left with breakfast bars, canned beans and bulk packs of ramen noodles to prepare in a microwave oven. When confronted about the lack of food by a county monitoring team, the indictment alleged, Soofer “ran to a McDonald’s fast-food restaurant and came back with bags of food to give participants for lunch.”

Reaction from Officials

“We have provided literally billions of dollars, trusting that LAHSA would find contractors that would provide meals and rooms for the homeless,” said Los Angeles County Dist. Atty. Nathan Hochman, who unveiled related state charges from a parallel, independent investigation. “Rather than do his job, [Soofer] ripped off the voters of L.A. County, he ripped off the taxpayers of L.A. County, and sadly and tragically he ripped off the homeless.” “Mr. Soofer called his company Abundant Blessings, but the only abundant blessings were the blessings he gave himself,” Hochman said.

Ongoing Investigations and Previous Concerns

The criminal case is the third to emerge from a task force Essayli announced last spring to investigate potential fraud and corruption involving local homelessness funds. In October, federal prosecutors brought their first cases, charging two real estate executives with misappropriating millions. Even before the task force’s launch, there was growing concern from the public and some elected officials that the billions spent to combat homelessness hasn’t meaningfully shrunk the number of people sleeping on the street.

Homelessness Statistics and Efforts

The number of homeless people across L.A. County dropped 4% last year, according to the annual count released in July. An estimated 72,308 people were living in shelters or on the streets in the county, including 43,699 people in the city of L.A. Last year, the L.A. County Board of Supervisors voted to remove county funds from the Los Angeles Homeless Services Authority and set up its own department. The move followed two critical audits that found LAHSA, a joint city-county agency, failed to properly track its funds and programs, leaving them vulnerable to waste and fraud.

Conclusion

The case against Alexander Soofer highlights the need for greater oversight and accountability in the management of funds intended to combat homelessness. As officials continue their investigations, it remains to be seen how this case will impact the broader efforts to address homelessness in Los Angeles. “My administration has zero tolerance for fraud — period,” Mayor Karen Bass said in a statement. The public awaits the outcome of these investigations and the measures that will be taken to prevent such fraud in the future.

FAQs

• Q: How much money is alleged to have been misappropriated by Alexander Soofer?
  A: $23 million
• Q: What was the purpose of the funds that Soofer allegedly misused?
  A: The funds were intended for homeless services, including feeding and housing individuals.
• Q: What are the potential penalties if Soofer is convicted?
  A: Soofer could face up to 20 years in federal prison and as many as 17 years in state lockup.
• Q: Is this an isolated incident or part of a larger investigation?
  A: This case is part of a larger, ongoing investigation into potential fraud and corruption involving local homelessness funds.
• Q: What steps are being taken to prevent similar instances of fraud in the future?
  A: Officials have announced a task force to investigate potential fraud and are emphasizing the need for greater oversight and accountability in the management of homelessness funds.