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LA Nonprofit CEO Arrested Accused Of Using $23M In Homeless Funds To Finance Lavish Lifestyle

LA Nonprofit CEO Arrested Accused Of Using $23M In Homeless Funds To Finance Lavish Lifestyle
FILE - Homeless people wait in line for dinner outside the Midnight Mission in the Skid Row area of Los Angeles, Oct. 25, 2023. (AP Photo/Jae C. Hong, File)(ASSOCIATED PRESS)

Alexander Soofer, CEO of the Los Angeles nonprofit Abundant Blessings, was arrested and charged with allegedly siphoning more than $23 million in public homeless-housing funds to finance luxury purchases and vacations. Prosecutors say he bought high-end goods and properties while falsifying invoices that claimed the charity provided fresh meals and rented rooms for clients who instead received canned food and instant ramen. Soofer faces federal wire-fraud charges and multiple state felonies, was released on $1.5 million bond, and is scheduled for federal arraignment on Feb. 26. The case has intensified criticism over oversight of billions spent to address homelessness in Los Angeles County.

Alexander Soofer, 42, the chief executive of Los Angeles nonprofit Abundant Blessings, was arrested Friday and charged by federal and state prosecutors with diverting more than $23 million in public homeless-housing funds to support a luxury lifestyle, authorities said.

Investigators arrested Soofer at a home they estimate is worth $7 million, which prosecutors say was paid for with money meant to keep people off the streets. First Assistant U.S. Attorney Bill Essayli said the nonprofit had been contracted through the Los Angeles Homeless Services Authority (LAHSA) to provide shelter and three meals a day to more than 600 homeless residents.

According to the federal indictment, Soofer used contract funds to buy high-end items and travel — including a $125,000 Range Rover, a $2,450 Hermès jacket, a vacation home in Greece and a stay at a Four Seasons resort in Hawaii — while clients were allegedly fed canned beans and bulk packs of microwavable ramen instead of fresh meals.

LA Nonprofit CEO Arrested Accused Of Using $23M In Homeless Funds To Finance Lavish Lifestyle
FILE - A tarp covers a portion of a homeless person's tent on a bridge overlooking the 101 Freeway in Los Angeles, Feb. 2, 2023. (AP Photo/Jae C. Hong, File)(ASSOCIATED PRESS)

Prosecutors say Soofer falsified invoices and records to hide the scheme: paperwork claimed the charity served fresh meals and rented hotel rooms, and it listed rentals of properties Soofer actually owned while he paid himself rental fees. Between 2018 and 2025, Soofer’s organization received more than $23 million in homeless-housing funding — about $5 million directly from LAHSA and more than $17 million routed through a nonprofit called Special Service for Groups Inc., the U.S. Attorney’s Office said.

“He was living the high life while the people suffering, the homeless, lived on the streets with no shelter, no food,” First Assistant U.S. Attorney Bill Essayli said at a news conference with Los Angeles County District Attorney Nathan Hochman.

Soofer faces federal wire-fraud charges and multiple state felony counts, including 11 counts of conflict of interest, two counts of offering false evidence and five counts of forgery. If convicted on the federal charge, he could face up to 20 years in prison. Soofer appeared in court Friday, did not enter a plea, and was released on $1.5 million bond; his federal arraignment is set for Feb. 26, and no state arraignment date has been announced.

The arrest has renewed scrutiny of how billions in public money are overseen in Los Angeles County’s efforts to combat homelessness. County officials moved last March to take control of hundreds of millions in homeless-services spending after audits described reckless and nontransparent practices at LAHSA. The case also prompted a political exchange: Gov. Gavin Newsom’s office said local investigators uncovered the alleged fraud, while prosecutors and others blamed inadequate state-level oversight and vetting of nonprofit contractors.

An email seeking comment was sent to Soofer’s attorney, Hilary Potashner, the U.S. Attorney’s Office said.

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