Authorities have found that some funding to combat homelessness in California has instead ended up in Greece.
The Federal Bureau of Investigation has accused Alexander Soofer, manager of LA-based housing organization Abundant Blessing, of “a years-long scheme to defraud the City and County of Los Angeles and other public entities providing funding for homeless housing.”
According to a complaint filed on Friday, while paying his staff “minimal wages” and feeding residents at his housing sites “ramen noodles, canned beans, and breakfast bars,” Soofer pocketed at least $10 million “through bank accounts associated with other businesses in his and his wife’s names” for personal expenses after “fraudulently obtaining” $23 million in public funding.
Federal officials said that between 2018 and 2025, Soofer’s organization received more than $5 million directly from the Los Angeles Homeless Services Authority and over $17 million through other nonprofits.
Investigators found Soofer’s misuse of funds includes $47,000 in luxury home purchases from stores like Restoration Hardware, $15,000 at Hermès, $15,000 at Chanel, $1,000 for cosmetic dermatology, and $4,500 for a four-night stay at the Wynn Las Vegas.
Authorities said they have yet to determine what Soofer bought at Chanel, but listed his purchases at Hermès as including a $1,250 pair of men’s Paris calf-skin loafers, a $910 pair of women’s Chypre sandals, a $455 Chevaux en Symetrie tie, and a $2,450 men’s trotting jacket.
In addition to luxury brands, the complaint said there is at least one property under his name associated with the misappropriated funds. That property in question is located in Greece and relates to “a $475,000 check issued from an Abundant Blessings bank account.”
The case against Soofer feeds into concerns that California’s efforts to combat homelessness may be ineffective and inconsistent despite large spending. According to the Public Policy Institute of California, as of 2024, the state had over 187,000 homeless people, representing about 24% of the nation’s total.
State Auditor Grant Parks wrote in a 2024 report to Gov. Gavin Newsom and lawmakers that, when his department analyzed five housing programs that received approximately $13.7 billion in combined funding, only two were “likely cost-effective.”
Parks also added in the report that, between fiscal years 2018-2023, California cities lacked reliable data to track cost efficiency and outcomes needed to fully understand why the problem didn’t improve, despite the billions spent by more than 30 housing programs.
The attorney’s office of the Central District of California referred Business Insider to the press release and did not comment further. An attorney for Soofer and the Governor’s office did not immediately respond to a request for comment.
Read the original article on Business Insider
The post Head of LA homeless nonprofit charged with pocketing millions, splurging on luxuries including a Hermès jacket and a trip to Vegas appeared first on Business Insider.
