A local Westwood man was taken into custody today, facing charges of wire fraud connected to an alleged scheme that swindled approximately $23 million from funds dedicated to tackling homelessness, the U.S. Attorney’s Office reported. Alexander Soofer, 42, the executive director of the South L.A.-based charity Abundant Blessings, is accused of diverting at least $10 million of this publicly allocated money for personal indulgences, including a multi-million dollar Westwood residence, luxury vehicles, and expensive vacations.
According to a statement released, the funds were intended to support Los Angeles's intense struggle against homelessness, yet Soofer allegedly pocketed the majority for his private enjoyment, which included purchasing a $125,000 Range Rover, private school tuition for his children, and extravagances such as private jet travel and stays at opulent resorts around the country. "California is the poster child of rampant fraud, waste, and abuse of tax dollars," said First Assistant United States Attorney Bill Essayli. The federal government has commenced audits on California’s homelessness funds spending, unveiling examples of how such funds have been misused.
Soofer's organization, which had contracted with the Los Angeles Homeless Services Authority (LAHSA) to provide housing and supportive services to those in need, is now under scrutiny for alleged deceit. Specifically, he is accused of falsely claiming to LAHSA that taxpayer money received by his charity was being used exclusively for fighting the homelessness crisis while actually funneling it to his own accounts. Hotline complaints and follow-up investigations by city and county officials led to disturbing findings at the sites managed by Soofer's charity: individuals were being supplied with meager food options like Ramen noodles instead of the committed three nutritiously balanced meals per day.
Further investigation revealed that Soofer fabricated invoices and maintained a fictitious charity board to cover his tracks, according to the FBI. "Soofer allegedly prioritized his own greed over decency and respect for the laws of our country," Assistant Director in Charge of the FBI’s Los Angeles Field Office Akil Davis stated, emphasizing the dedication of law enforcement to holding accountable people like Soofer, who purportedly abused public trust and funds. The complaint reveals Soofer's actions included a misuse of $475,000 for a vacation home in Greece, among other personal expenditures.
A complaint merely consists of allegations, and Soofer, like all defendants, is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law. If convicted, however, he could face up to 20 years in federal prison. The investigation continues, spearheaded by a collaboration between the FBI, IRS Criminal Investigation, and the United States Department of Housing and Urban Development Office of Inspector General, with Assistant United States Attorneys Kerry L. Quinn and Kevin B. Reidy of the Major Frauds Section prosecuting the case.
