LA Homeless Charity CEO Misused $23M of Public Money to Fund Lavish Lifestyle

The CEO of the Los Angeles-based nonprofit Abundant Blessings, Alexander Soofer, was arrested last week at his $7 million (£5.1 million) residence on federal and state fraud charges. Prosecutors allege that Soofer lived a lavish lifestyle funded by approximately $23 million (£16.8 million) of public money that was intended to support homeless individuals in the city.

First Assistant US Attorney Bill Essayli stated that Soofer even purchased his home using these funds, which were designated for the Los Angeles homeless services. The non-profit was contracted with the LA Homeless Services Authority (LAHSA) to utilise taxpayer money for providing shelter and three meals a day to over 600 homeless residents.

Luxury Cars, Designer Clothes, Lavish Vacations

Prosecutors claim that Soofer diverted non-profit funds to buy a $125,000 (£91,443) Range Rover, a $2,450 (£1,792) Hermes jacket, and a holiday property in Greece. Additionally, he reportedly used the money to finance a trip to Hawaii, where he stayed at the Four Seasons hotel—famous as the setting for the HBO series The White Lotus.

During a news conference, LA County District Attorney Nathan Hochman condemned Soofer's conduct, stating, 'He was living the high life while the people suffering, the homeless, lived on the streets with no shelter, no food.' Prosecutors allege Soofer forged invoices to falsely claim he was providing fresh meals and renting out rooms. In reality, homeless individuals were only offered canned beans and microwavable ramen noodles.

Further, Soofer falsified records to conceal payments he made to himself for rent on properties he already owned, claiming these were for homeless housing. Hochman remarked, 'Mr. Soofer called his company Abundant Blessings, but the only abundant blessings were the blessings he gave himself.'

Between 2018 and 2025, Soofer allegedly received over $23 million in homeless housing funding, with around $5 million (£3.6 million) coming from the county's homeless services authority and more than $17 million (£12.4 million) from an LA-based nonprofit called Special Service for Groups.

Soofer Faces Up to Two Decades in Prison

He faces federal charges of wire fraud, along with multiple state counts, including 11 felony counts of conflict of interest, two counts of presenting false evidence, and five counts of forgery. Soofer did not enter a plea during his court appearance and was released on a $1.5 million (£1 million) bond.

His arraignment in federal court is scheduled for 26th February, with the date for his state court arraignment yet to be set. If convicted on all charges, Soofer could face up to 20 years in prison.

During the press conference, prosecutors highlighted that despite billions spent on tackling homelessness, many efforts have failed to significantly reduce the number of people living on the streets. In 2025, the homeless population in Los Angeles County declined by only 4%, with an estimated 72,000 residents living in shelters or encampments across the county.

In response to concerns about transparency, LA County officials decided to take direct control of homeless funds after audits revealed that the Los Angeles Homeless Services Authority had spent the money without proper oversight. This case has intensified the ongoing political debate, with some critics blaming the fraud on California Governor Gavin Newsom.

When a conservative commentator suggested that Newsom was responsible, his press office pushed back, stating, 'This case was uncovered by local investigators working with law enforcement—exactly the kind of accountability and oversight the state has pushed for.'

In a social media post, Assistant US Attorney Bill Essayli responded, 'You and the California legislature facilitated this fraud by handing out billions in tax dollars to these nonprofits with zero vetting and zero state oversight.'

This case underscores ongoing concerns about the effectiveness of oversight and accountability in managing funds allocated for vulnerable populations, particularly in a city where homelessness remains a pressing issue.