At a Glance
- Alexander Soofer, a Westwood resident, faces federal wire fraud charges after diverting $23 million meant for the homeless.
- The charity Abundant Blessings was contracted by LAHSA to serve over 600 people but failed to provide promised services.
- The case highlights the risk of public fund misappropriation and the need for stronger oversight.
Why it matters: It shows how vulnerable public programs can be exploited, endangering those they aim to help.
Alexander Soofer, a Westwood resident, has been charged with wire fraud after diverting $23 million meant for the homeless to luxury purchases, including a Greek vacation home and high-end fashion items. The charges were announced Friday by federal and Los Angeles authorities.
The Fraudulent Scheme
Abundant Blessings, Soofer’s charity, was contracted with the Los Angeles Homeless Services Authority (LAHSA) to provide housing, three meals a day, and other services to over 600 people.
Investigators say the nonprofit misrepresented how funds were used, fabricating bank statements and documents. The scheme siphoned more than $23 million, with $5 million coming directly from LAHSA.
Another $17 million was routed through Special Service for Groups Inc., a nonprofit that was also found to be part of the fraud.
Soofer allegedly used at least $10 million for personal expenses, including a down payment on his Westwood home, upgrades, private schooling, Las Vegas trips, private jets, and luxury resorts.
He also spent $475,000 on a vacation property in Greece and purchased high-end items from Chanel and Hermes, such as $1,250 loafers, a $2,450 jacket, and $910 sandals.
The pattern shows a deliberate diversion of public money for personal indulgence while the homeless were left without promised services.
Soofer faces a federal fraud charge that could carry up to 20 years in prison if convicted.
A state criminal complaint adds a potential 17-year maximum sentence, citing conflict of interest in 11 contracts.
If found guilty, he would be removed from his charity and face significant financial penalties.
First Assistant U.S. Attorney Bill Essayli described the case at a news conference, saying, “He was living the high life while the homeless suffered.”
Essayli added that the charity failed to provide three nutritious meals a day, instead offering “ramen noodles and a microwave.”
LA County District Attorney Nathan Hochman said, “He ripped off the taxpayers of LA County and the homeless.” He highlighted fraudulent documentation found by LAHSA and the City Controller.
Both prosecutors emphasized the seriousness of the fraud and the need to protect public funds.
The case underscores the vulnerability of public programs to abuse, especially those serving marginalized populations.
LAHSA’s contract with Abundant Blessings was meant to improve housing stability for over 600 individuals, but the misappropriation undermined that goal.
The investigation has prompted a review of oversight procedures for nonprofit contracts across Los Angeles.
Officials say they will continue to pursue all individuals involved and strengthen safeguards.
The story serves as a cautionary tale about the importance of transparency and accountability in charitable work.
LAHSA’s mandate includes securing safe housing for the homeless, delivering daily meals, and offering mental health and addiction support.
Abundant Blessings was selected for its promise to meet these needs for more than 600 individuals, a significant portion of LAHSA’s client base.
The charity’s failure to provide three nutritious meals a day was highlighted by the First Assistant U.S. Attorney, who called the provision “ramen noodles and a microwave.”
Investigators uncovered fabricated bank statements that claimed the money was used for program expenses, but audit trails showed the funds were transferred to Soofer’s personal accounts.
The $10 million used for personal upgrades included renovations to a Westwood residence, private school tuition for his children, and extravagant travel.
Soofer also financed trips to Las Vegas, private jet charters, and stays at luxury resorts across Hawaii and Florida, all funded by the diverted public money.
The $475,000 purchase of a Greek vacation home was made through a developer, further illustrating the misuse of funds.
High-end fashion purchases from Chanel and Hermes, such as a $1,250 loafers, a $2,450 jacket, and $910 sandals for his wife, were also financed with the stolen money.
The state criminal complaint alleges a conflict of interest in 11 contracts, suggesting Soofer used his position to secure favorable terms for his organization.
The LA County District Attorney’s office, along with the LA City Controller’s office, conducted parallel investigations, uncovering a “whole draft of fraudulent documentation” that aimed to legitimize the fraud.
The parallel investigations emphasize the multi-agency effort to hold the individual accountable and to prevent similar abuses in the future.
If convicted, the federal charge could result up to 20 years in prison, while the state charge carries a 17-year maximum, according to prosecutors.
Both sentences reflect the seriousness of diverting public funds meant for vulnerable populations.
The case has prompted LAHSA to review its oversight procedures for nonprofit contracts, aiming to strengthen safeguards and ensure accountability.
Officials are also examining the role of Special Service for Groups Inc., a nonprofit that funneled $17 million into the scheme.
The investigation’s findings will be used to inform policy changes and improve transparency across Los Angeles public programs.
Public reaction to the case has highlighted concerns over the misuse of charitable donations and the need for stricter monitoring.
Law enforcement agencies emphasize that this case serves as a warning to other nonprofit leaders about the legal consequences of fraud.
The next steps involve court hearings, asset forfeiture proceedings, and potential restitution to the homeless services program.
The story underscores the importance of transparency, accountability, and robust oversight in the administration of public funds.
