Executive of Homeless Services Charity Accused of $10 Million Fraud Scheme
A federal investigation has uncovered allegations that the executive director of a Los Angeles-based charity misappropriated over $10 million in funds earmarked for homelessness services, spending the money on luxury items and personal expenses. The case highlights a disturbing betrayal of public trust and raises serious questions about oversight of organizations receiving public funding.
Alexander Soofer, 42, of Westwood, was arrested Thursday and charged with wire fraud, according to federal prosecutors. He is expected to appear in U.S. District Court in Santa Ana to face the charges.
Soofer served as the executive director of Abundant Blessings, a Hyde Park-based nonprofit that contracted with the Los Angeles Homeless Services Authority (LAHSA) to provide housing and supportive services to individuals experiencing or at risk of homelessness. By July 2023, the organization managed contracts to serve over 600 people across multiple locations in South Los Angeles.
Between 2018 and 2025, prosecutors allege Soofer secured more than $23 million in homeless-housing funding. This included over $5 million directly from LAHSA and an additional $17 million channeled through Special Service for Groups Inc., a downtown Los Angeles-based nonprofit.
The agreements stipulated that Abundant Blessings was responsible for providing lodging – either directly or through third-party providers like hotels and motels – and ensuring participants received three nutritious meals daily. However, authorities claim Soofer repeatedly misrepresented how these funds were utilized.
“Instead of using the money to help those experiencing homelessness, Soofer allegedly diverted millions of dollars for his own personal gain,” a senior official stated. Investigators found evidence suggesting Soofer falsely reported payments to vendors and concealed transfers into his personal bank accounts.
Prosecutors further allege that Soofer manipulated housing leases to appear as legitimate market-rate rentals, when in reality, the payments were directed back to himself at inflated rates. To further conceal the scheme, he allegedly created fraudulent invoices using the names, addresses, and logos of legitimate companies.
The alleged deception extended to the charity’s governance. When questioned by a LAHSA investigator about board awareness of his spending, Soofer claimed the board was informed. However, the investigator later discovered the board was largely nonexistent, with some listed members proving to be fictitious and others having no knowledge of Abundant Blessings or Soofer.
Conditions at several housing sites were also found to be substandard. Following complaints and billing discrepancies, investigators discovered participants were often provided with minimal food options – such as ramen noodles, canned beans, and breakfast bars – a stark contrast to the promised three daily meals.
The extent of Soofer’s alleged personal enrichment is staggering. Prosecutors claim he pocketed at least $10 million, using the funds for a down payment and renovations on a $7 million Westwood home, private school tuition for his children, lavish spending in Las Vegas, private jet travel, and stays at luxury resorts in Hawaii and Florida. He also allegedly wired approximately $475,000 to a Greek property developer to purchase a vacation home in Greece.
If convicted, Soofer faces a statutory maximum sentence of 20 years in federal prison.
The investigation is being conducted by the FBI, IRS Criminal Investigation, and the U.S. Department of Housing and Urban Development Office of Inspector General. Assistant U.S. Attorneys Kerry L. Quinn and Kevin B. Reidy of the Major Frauds Section are prosecuting the case. This case serves as a stark reminder of the need for rigorous oversight and accountability in the allocation of public funds intended to address critical social issues like homelessness.
