Federal prosecutors on Friday arrested a California charity director charged with wire fraud after he allegedly siphoned millions of dollars meant to combat homelessness in Los Angeles to bankroll his lavish personal life.
Alexander Soofer, 42, was arrested on a federal criminal complaint accusing him of fraudulently obtaining more than $23 million in taxpayer funds and pocketing at least $10 million.
Prosecutors in the U.S. Attorney’s office for the Central District of California said in a news release that Soofer used the money to purchase a $7 million home in Westwood, a $125,000 Range Rover, private school tuition for his children, private jet travel, and stays at luxury hotels domestically and abroad.
“California is the poster child of rampant fraud, waste, and abuse of tax dollars,” First Assistant U.S. Attorney Bill Essayli said. “The state has facilitated the spending of billions of dollars to combat homelessness, with little to show for it and almost no oversight.”
Essayli said in an X post that Soofer’s arrest marks the third by the office’s Homelessness Fraud and Corruption Task Force.
Vice President JD Vance recently said fraud in California is worse than in Minnesota, citing repeated high-dollar cases involving social services and homelessness spending. Vance alleged more than $7 billion in fraud throughout the Golden State, which he was alerted to by Small Business Administrator Kelly Loeffler.
Soofer was the executive director of Abundant Blessings, a charity contracted with the Los Angeles Homelessness Services Authority to provide resources to the homeless.
Of the money Soofer allegedly stole, $5 million came from LAHSA, and more than $17 million was funneled through a downtown Los Angeles-based nonprofit organization, Special Service for Groups Inc.
Instead of using the money for housing, meals, and supportive services, Soofer reportedly diverted funds into personal bank accounts, fabricated invoices, and falsely claimed to be paying third-party vendors and landlords.
Investigators also said Soofer created a fake charity board to conceal the scheme and charged above-market rent to properties he effectively paid to himself.
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Site visits later found that homeless participants were served only minimal food items such as ramen noodles and canned goods, which are far below the three daily nutritious meals required under the contracts.
Soofer is set to make his first court appearance on Friday afternoon and, if convicted, could face up to 20 years in federal prison.