LA’s Homeless Funds Fuel Luxury Jets

Tents and belongings set up along sidewalk.

A nonprofit executive pocketed $23 million meant for LA’s homeless, buying mansions and luxury jets while clients got ramen noodles.

Story Snapshot

Alexander Soofer, 42, arrested for federal wire fraud and 18 state felonies after diverting over $23 million in taxpayer funds.
Soofer spent at least $10 million on a $7 million Westwood home, $125,000 Range Rover, Hermes jacket, private jets, and Hawaii resorts.
Abundant Blessings provided substandard services like canned beans to 600+ South LA homeless clients instead of promised housing and meals.
LAHSA terminated contracts in October 2024 after audits; Soofer released on $1.5 million bond, faces up to 20 years.
Case exposes oversight failures in California’s homelessness programs amid political clashes between federal prosecutors and Gov. Newsom.

Alexander Soofer’s Arrest Shocks South Los Angeles

Federal agents arrested Alexander Soofer, 42, at his $7 million Westwood home in late January 2026. FBI and IRS teams executed search warrants without incident. Soofer faces federal wire fraud charges carrying a maximum 20-year sentence and 18 state felonies including 11 conflict-of-interest counts, two false evidence charges, and five forgeries. Prosecutors released him on $1.5 million bond. His federal arraignment schedules for February 26, 2026; state proceedings remain pending.

Fraud Scheme Exploits Homeless Funds from 2018 to 2025

Abundant Blessings, a Hyde Park nonprofit, received over $23 million between 2018 and 2025. LAHSA provided $5 million directly; Special Service for Groups Inc. funneled more than $17 million. Contracts covered housing and three daily meals for over 600 homeless participants across South LA sites by July 2023. Soofer allegedly falsified invoices, invented vendors, and created a fake oversight board. He rented his own properties to the nonprofit at inflated rates.

Lavish Lifestyle Funded by Taxpayer Dollars

Soofer diverted at least $10 million for personal luxuries. Purchases included a $7 million Westwood home, $125,000 Range Rover, $2,450 Hermes jacket, private jet travel, and stays at the Four Seasons in Hawaii—site of HBO’s “White Lotus.” He also bought a Greece vacation home and paid private school tuition. Homeless clients received canned beans and ramen instead of fresh meals and proper shelter. Soofer claimed hotel services that never materialized.

LAHSA Audits Uncover Reckless Spending Patterns

LAHSA terminated Abundant Blessings contracts in October 2024 after identifying issues. March 2025 audits revealed reckless, non-transparent spending of hundreds of millions across LAHSA programs, prompting LA County to seize control. Soofer’s operation exploited subcontracting vulnerabilities without robust verification. Funds never came directly from the state, flowing through intermediaries. This case aligns with broader audit findings but scales personal theft to unprecedented levels.

Prosecutors and Politicians Clash Over Blame

First Assistant U.S. Attorney Bill Essayli announced charges, stating Soofer exploited LA’s homelessness crisis for a lavish lifestyle while depriving recipients. LA County DA Nathan Hochman filed state felonies. LAHSA confirmed it investigated, terminated contracts, and referred the matter. Gov. Newsom’s office claimed the case proves state-pushed accountability. Essayli countered by blaming state oversight failures—a view aligning with conservative demands for fiscal responsibility and common-sense audits.

Impacts Ripple Through Homeless Services and Taxpayers

Over 600 South LA homeless individuals lost promised services; LA’s 72,000 unsheltered residents face delayed aid. Taxpayers lost more than $23 million. Short-term effects erode nonprofit trust and tighten LAHSA audits on $100 million-plus budgets. Long-term, reforms may curb subcontracting and invite federal scrutiny of California programs. Political fallout fuels critiques of governance, highlighting how weak controls waste crisis funds.