“`html
Los Angeles Homeless Services CEO Accused of $23 Million Fraud Scheme to Fund Lavish Lifestyle
Los Angeles County’s efforts to combat homelessness have been dealt a severe blow as the CEO of a local nonprofit faces federal and state fraud charges,accused of diverting over $23 million in public funds to finance a life of luxury.Alexander Soofer, 42, was arrested Friday at his $7 million residence, with investigators alleging the property was purchased using funds intended to support his organization, Abundant Blessings.
The allegations center around a scheme to defraud taxpayers, with prosecutors claiming Soofer prioritized personal enrichment over the needs of the vulnerable population he was tasked with serving. Abundant Blessings had a contract with the Los Angeles Homeless Services Authority (LAHSA), a county agency, to provide shelter and meals to over 600 homeless individuals using taxpayer money.
Rather of fulfilling this mission, prosecutors allege Soofer spent the funds on extravagant personal purchases, including a $125,000 Range Rover, a $2,450 Hermes jacket, a vacation home in Greece, and a trip to Hawaii, complete with a stay at the Four Seasons hotel made famous by the HBO series “The White Lotus.” “He was living the high life while the people suffering, the homeless, lived on the streets with no shelter, no food,” stated a senior official during a Friday press conference alongside Los Angeles County district Attorney Nathan Hochman.
Soofer coudl face up to 20 years in prison if convicted. His attorney, Hilary Potashner, has yet to issue a comment, with an email sent Monday remaining unanswered. The indictment details a pattern of falsified invoices, claiming services were provided when, in reality, individuals were often given only canned beans and ramen noodles. Investigators also discovered Soofer allegedly paid himself to “rent” properties he already owned,further diverting funds from those in need.
“mr. Soofer called his company Abundant Blessings, but the only abundant blessings were the blessings he gave himself,” Hochman remarked, highlighting the alleged hypocrisy at the heart of the case.
The scandal has reignited concerns about the effectiveness of billions of dollars spent on addressing homelessness in Los Angeles County. Recent data indicates a mere 4% decrease in the homeless population last year,with an estimated 72,000 individuals living in shelters or encampments countywide as of July. This prompted Los Angeles County officials to take control of hundreds of millions of dollars in spending last March, following audits that revealed reckless and opaque spending practices by LAHSA.
Between 2018 and 2025, Soofer’s organization received over $23 million in homeless housing funding, with more than $5 million coming directly from the county and over $17 million channeled through a Los Angeles-based nonprofit, Special Service for Groups Inc. Notably, no funds originated directly from the state.
Soofer is currently charged with federal wire fraud, and also 11 felony counts of conflict of interest, two felony counts of offering false evidence, and five felony counts of forgery at the state level. He was released on $1.5 million bond following a court appearance Friday and is scheduled for arraignment in federal court on February 26. A date for his state arraignment has not yet been set.
The case has also become entangled in political rhetoric, with accusations flying between the Trump administration and California
