Homelessness Charity Chief Accused of $23 Million Fraud

The executive director of a South Los Angeles-based homeless services nonprofit was arrested on federal charges alleging he stole roughly $23 million in public funds that were allocated to house and feed unhoused residents.

A criminal complaint filed in U.S. District Court in Los Angeles accuses Alexander Soofer of facilitating a scheme to divert government money into luxury personal spending and real estate investments.

Download the criminal complaint HERE.

“These funds were intended to support the city’s most vulnerable residents,” Los Angeles Field Office special agent in charge of the Internal Revenue Service (IRS) Criminal Investigation Tyler Hatcher said.

Soofer was taken into custody and charged with a felony for wire fraud. If convicted, he faces a statutory maximum sentence of 20 years in federal prison.

United States v. Alexander Soofer was filed on Jan. 21 in the Central District of California and Soofer initially appeared in the U.S. District Court in Santa Ana on Jan. 23.

“He was taken to Santa Ana because the Los Angeles federal courthouse was closed that week due to a power outage,” IRS Los Angles Field Office public information office special agent Leia Bellis told OrangeCountyLawyers.com.

Soofer is accused of pocketing some $10 million of the funds, according to an IRS press release, and allegedly using it to acquire a $7 million residence at 919 Hills Avenue in Westwood, a Range Rover valued at $125,000, private school tuition for his children, private jet travel, and luxury resorts.

“IRS Criminal Investigation is committed to pursuing those who exploit public programs for personal gain,” Hatcher said on Jan. 23. “Today’s action demonstrates our determination to hold accountable individuals who misuse taxpayer dollars for self-enrichment.”

Soofer is the executive director of the Hyde Park-based charity Abundant Blessings.

“The IRS Criminal Investigation Division is one of the most sophisticated financial law-enforcement units in the country. It combines deep expertise in accounting, tax law, and forensic analysis with broad investigative authority and extensive data access” Los Angeles tax attorney Paul Vargas at Moskowitz, LLP said. “For that reason, an investigation by IRS Criminal Investigation is rarely casual or speculative. That level of scrutiny, time, and technical precision is why few individuals or businesses would ever want to find themselves on its radar” he continued.

Through this charity, prosecutors said Soofer contracted with the Los Angeles Homeless Services Authority (LAHSA) to provide and maintain safe housing and services for people experiencing homelessness or at risk of becoming homeless.

However prosecutors said Soofer funneled millions through entities he managed, including a company called DKG Development, by moving money into related companies and personal transactions that had little or no connection to legitimate program expenses.​

California’s Spending Being Audited by the IRS

“The federal government has begun auditing California’s spending and today’s is just one example of how fraudsters have swindled millions of dollars from tax papers,” first assistant United States Attorney Bill Essayli said in the IRS press release. “This money should have gone to those in need, instead of lining the pockets of individuals subsidizing their lavish lifestyle.”

Conditions at some of the housing sites Abundant Blessings operated were substandard, according to the filing.

Photographs attached as exhibits show ovens caked with old food, a soiled microwave and large stacks of inexpensive instant noodles and other bulk food items in cramped storage areas.

By July 2023, Soofer had multiple contracts with LAHSA to provide housing and supportive services to more than 600 homeless program participants at multiple sites across South Los Angeles.

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Government contracts and pass‑through funds from local agencies were intended to cover costs such as property purchases, repairs, utilities, staffing and supportive services.

But the complaint states that Soofer used his control over those accounts to move money into related companies and personal transactions that had little or no connection to legitimate program expenses.​

Other luxury items investigators say were purchased with taxpayer dollars include $910 women’s Chypre sandals with goat lining, a $1,250 men’s Faconné tie, $1,250 men’s Paris calf‑skin loafers, a $455 men’s Chevaux en Symetrie tie and a $2,450 men’s trotting jacket.

The complaint also highlights alleged expenditures in Greece and at upscale properties like the Wynn resort in Las Vegas.

*Photo Credit: USAO Central District of California Press Release on YouTube