Federal authorities on Friday arrested the executive director of a South Los Angeles–based charity, alleging he fraudulently obtained more than $23 million in taxpayer funds intended to combat homelessness and diverted millions for personal use.
According to a federal criminal complaint unsealed by the U.S. Department of Justice, Alexander Soofer, 42, is charged with wire fraud in connection with a years-long scheme involving taxpayer-funded homelessness contracts in Los Angeles County. Prosecutors allege Soofer pocketed at least $10 million while failing to provide required housing and services to homeless individuals.
Soofer was arrested Friday morning and is expected to make his initial appearance in federal court in Santa Ana.
Alleged Scheme Exploited Homelessness Funding
Federal prosecutors say Soofer, through a nonprofit organization called Abundant Blessings, contracted with the Los Angeles Homeless Services Authority to provide housing and supportive services to more than 600 homeless or at-risk individuals across South Los Angeles.
Between 2018 and 2025, investigators allege Soofer received more than $23 million in homelessness funding, including more than $5 million directly from LAHSA and more than $17 million routed through another nonprofit intermediary.
In some contracts, Soofer agreed to house participants at properties he managed. In others, he committed to paying hotels or motels to provide housing. Regardless of location, the contracts required that participants receive three meals per day meeting basic nutritional standards, according to court filings.
Prosecutors allege Soofer falsely represented that the funds were being used as intended, while instead diverting millions into his personal bank accounts.
Fake Vendors, Fake Board, Minimal Services
According to the complaint, Soofer allegedly fabricated invoices and vendor records — sometimes using the names and logos of real companies — to conceal the diversion of funds. Investigators also allege Soofer misrepresented rental arrangements by paying himself inflated rent under the guise of third-party leases.
When questioned by investigators about oversight, Soofer allegedly claimed his charity had an active board of directors. Authorities later determined that some listed board members did not exist, while others had no knowledge of the organization.
Site inspections conducted after complaints revealed that homeless participants were allegedly being provided minimal food — such as ramen noodles, canned beans, and snack bars — despite public entities paying for three daily meals, according to prosecutors.
Lavish Personal Spending Alleged
Federal authorities say Soofer used homelessness funds to finance a $7 million home in Westwood, luxury renovations, private school tuition for his children, private jet travel, casino spending in Las Vegas, and stays at high-end resorts across the United States. Investigators also allege he wired approximately $475,000 to purchase a vacation property in Greece.
If convicted, Soofer faces a statutory maximum sentence of 20 years in federal prison.
Broader Scrutiny of Public Spending Programs
The case is being investigated by the FBI, IRS Criminal Investigation, and the Department of Housing and Urban Development Office of Inspector General. Federal officials emphasized that the charges reflect a growing focus on fraud in large taxpayer-funded social service programs.
The arrest comes as homelessness spending in major U.S. cities continues to grow, with increasing scrutiny over oversight, accountability, and measurable outcomes. Los Angeles has spent billions of dollars on homelessness initiatives over the past decade, even as unsheltered homelessness has continued to rise.
A criminal complaint contains allegations only. Soofer is presumed innocent unless and until proven guilty beyond a reasonable doubt.
