Prosecutors Say Millions Meant For The Homeless Were Diverted To Luxury Real Estate, Vehicles, Private Travel, & Personal Expenses

Friday, January 23, 2026, 3:30 P.M. ET. 4 Minute Read, By Art Flertcher: Englebrook Independent News,

LOS ANGELES, CA.- Federal prosecutors announced Friday that a Westwood, California, man was taken into custody and charged in connection with an alleged years-long scheme to steal tens of millions of dollars intended to combat homelessness across Los Angeles.

     First Assistant U.S. Attorney Bill Essayli reported that Alexander Soofer, 42, executive director of Abundant Blessings, was arrested Friday at his Westwood mansion following the filing of a federal criminal complaint charging him with wire fraud.

     According to the complaint and a supporting affidavit, Soofer allegedly stole approximately $23 million in public and nonprofit homeless housing funds between 2018 and 2025, personally pocketing at least $10 million while failing to provide contracted services to hundreds of vulnerable individuals.

Contracts With LAHSA And Scope of Funding;

     Federal investigators state that through Abundant Blessings, Soofer contracted with the Los Angeles Homeless Services Authority (LAHSA) to provide housing and supportive services for individuals who were homeless or at risk of becoming homeless.

     By July 2023, Soofer reportedly held multiple active contracts with LAHSA to provide housing and services to more than 600 program participants across multiple sites in South Los Angeles.

     In total, prosecutors allege Soofer received more than $23 million in homeless housing funding, including:

• More than $5 million directly from LAHSA
• More than $17 million was routed through a downtown Los Angeles–based nonprofit, Special Service for Groups Inc.

False Claims And Misuse Of Funds;

     Under various contracts, Soofer agreed either to house participants at properties he managed or to pay third-party vendors, such as hotels and motels, to provide housing. In all cases, he also committed to providing three meals per day, as defined in the contracts, which were healthy, balanced, and nutritionally adequate.

     Federal prosecutors allege Soofer lied to LAHSA and other funding entities, falsely certifying that all taxpayer money was used exclusively to address the homelessness crisis. Instead, investigators say he diverted millions of dollars into his personal bank accounts.

     The complaint further alleges that Soofer falsely claimed payments were being made to third-party vendors for housing services, while taking deliberate steps to conceal the diversion of funds for personal use.

     In some instances, Soofer allegedly made it appear that his charity was leasing properties from independent landlords at market rates. Investigators say he was instead paying himself above-market rent, again misappropriating money that could have been used to house homeless individuals.

Fabricated Invoices And Fake Board Members;

     To conceal the alleged fraud, Soofer is accused of fabricating invoices and financial records, at times using the names, addresses, and logos of real companies to make vendor and rent payments appear legitimate.

When questioned by an LAHSA investigator about whether his charity’s board of directors was aware of how funds were being spent, Soofer claimed that they were. Investigators later determined that the board itself was entirely fictitious; some listed individuals did not exist, while others had never heard of Abundant Blessings or Soofer.

Failure To Feed And House Participants;

     In addition to financial misconduct, the affidavit alleges Soofer failed to properly shelter and feed program participants.

     Following hotline complaints and billing discrepancies, city and county investigators conducted site visits at properties operated by Soofer. They found that the only food items being provided were Ramen noodles, canned beans, and breakfast bars, a stark contrast to the three-meal-per-day commitment paid for by the City of Los Angeles.

Lavish Personal Spending;

     Rather than providing contracted services, prosecutors allege Soofer used public funds for personal enrichment, including:

• A down payment and millions in upgrades on a $7 million Westwood mansion
• Private school tuition for his children
• Lavish spending in Las Vegas
• Private jet travel
• Luxury resort stays across the United States, from Hawaii to Florida
• Approximately $475,000 sent to a Greek property developer to purchase a vacation property in Greece

Arrest And Court Proceedings;

     Soofer was taken into custody on Friday at his Westwood residence and was expected to make his initial appearance later today in the U.S. District Court for the Central District of California. The court will address detention status, potential bail, and the next stages of the prosecution.

     Federal officials emphasized that the investigation remains ongoing and that additional charges or defendants may be added as it progresses.

Editor’s Note:

This article was written by Art Fletcher, Executive Editor, and is based on charging information provided by the U.S. Attorney’s Office for the Central District of California. Englebrook Independent News will continue to follow this developing case and will provide updates on Alexander Soofer’s custody status, court proceedings, and any additional federal filings as they become available.

“The rules of the federal court require us to include a statement that states: The charges outlined in this publication are merely accusations, and the defendant and or defendants are presumed innocent unless and until proven guilty beyond reasonable doubt.”