LA Homeless Program Manager Charged with $10M Fraud

Federal authorities have charged the manager of a Los Angeles homeless housing program with wire fraud for allegedly diverting millions of dollars in public funds for personal use. The case centers on Alexander Soofer, who managed the organization Abundant Blessing.

According to a federal complaint, Soofer is accused of a years-long scheme to defraud the City and County of Los Angeles and other public entities. The investigation reveals a stark contrast between the $10 million allegedly pocketed for personal expenses and the minimal resources provided to residents in the housing program.

The Federal Bureau of Investigation has accused Alexander Soofer of orchestrating a complex fraud involving $23 million in public funding. The complaint alleges 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 claim Soofer funneled at least $10 million through bank accounts associated with businesses in his and his wife's names. While residents at his housing sites were reportedly fed "ramen noodles, canned beans, and breakfast bars," and staff were paid "minimal wages," Soofer allegedly used the stolen funds for extravagant personal purchases.

The complaint details a pattern of financial misconduct that spanned several years. Authorities believe the scheme was carefully structured to avoid detection while systematically draining resources intended for homeless services.

"a years-long scheme to defraud the City and County of Los Angeles and other public entities providing funding for homeless housing"

Investigators have traced millions of dollars in misappropriated funds to luxury purchases and personal expenses. The spending pattern reveals a focus on high-end retail, home furnishings, and entertainment.

Key expenditures identified in the investigation include:

• $47,000 in luxury home purchases from stores like Restoration Hardware
• $15,000 spent at Hermès
• $15,000 spent at Chanel
• $1,000 for cosmetic dermatology
• $4,500 for a four-night stay at the Wynn Las Vegas

At Hermès, Soofer allegedly purchased 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. Authorities have not yet determined what was purchased at Chanel.

Beyond retail spending, the investigation uncovered a significant international asset. A $475,000 check issued from an Abundant Blessings bank account was linked to a property in Greece, demonstrating how public funds intended for California's homeless population were diverted overseas.

This case emerges amid growing scrutiny of California's $13.7 billion investment in homelessness programs. According to the Public Policy Institute of California, the state had over 187,000 homeless individuals as of 2024, representing approximately 24% of the nation's total homeless population.

A 2024 report by State Auditor Grant Parks raised serious concerns about program effectiveness. When his department analyzed five housing programs that received approximately $13.7 billion in combined funding, only two were deemed "likely cost-effective."

"California cities lacked reliable data to track cost efficiency and outcomes needed to fully understand why the problem didn't improve"

The audit further revealed that between fiscal years 2018-2023, California cities lacked reliable data to track cost efficiency and outcomes. This data gap makes it difficult to understand why the homelessness crisis has persisted despite billions spent by more than 30 housing programs. The Soofer case illustrates potential vulnerabilities in oversight mechanisms.

The case against Alexander Soofer was filed in the Central District of California. The complaint outlines charges of wire fraud and the misappropriation of public funds.

The attorney's office for the Central District of California has referred inquiries to an official press release and declined further comment. An attorney for Soofer and the Governor's office did not immediately respond to requests for comment.

The investigation remains ongoing as authorities work to determine the full scope of the financial misconduct. The case represents one of the most significant fraud allegations involving homeless services funding in recent years.

The charges against Alexander Soofer highlight critical vulnerabilities in the oversight of public funds allocated for homeless services. As the legal process unfolds, the case may prompt reforms in how homeless housing programs are monitored and audited.

For Los Angeles and California at large, this incident underscores the urgent need for transparent tracking systems and stronger accountability measures. With homelessness remaining a persistent crisis, ensuring that public funds reach their intended recipients is paramount.

The outcome of this case could influence future policy decisions and funding allocations for homeless services across the state. Stakeholders will be watching closely to see how this high-profile prosecution impacts public trust and program oversight.