Nonprofit Executive Charged in $23M Fraud Case

A Westwood man was arrested on a federal criminal complaint charging him with fraudulently obtaining $23 million in public money intended to combat homelessness and pocketing at least $10 million of it, including using it for a $7 million house in Westwood, $125,000 Range Rover, private school tuition for his children, private jet travel, and stays at luxury resorts.

Alexander Soofer, 42, is charged with wire fraud. He was arrested Jan. 23 and was expected to make his initial appearance that afternoon in United States District Court in Santa Ana.

“California is the poster child of rampant fraud, waste, and abuse of tax dollars,” said First Assistant United States Attorney Bill Essayli. “The state has facilitated the spending of billions of dollars to combat homelessness, with little to show for it and almost no oversight. Thankfully, 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 taxpayers. This money should have gone to those in need, instead in lines the pockets of individuals subsidizing their lavish lifestyle.”

“Soofer allegedly prioritized his own greed over decency and respect for the laws of our country,” said Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our law enforcement partners remain dedicated to investigating and holding accountable those, like Soofer, who we contend flagrantly disregarded our laws by seeking to enrich himself at the public’s expense.”

According to an affidavit filed with the complaint, Soofer is the executive director of Abundant Blessings, a Hyde Park-based charity. Through this charity, Soofer contracted with the Los Angeles Homeless Services Authority (LAHSA) to provide housing for people who were homeless or were at risk of becoming homeless. 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.

In total, between 2018 and 2025, Soofer received more than $23 million in homeless housing funding. Of that, more than $5 million came directly from LAHSA and more than $17 million came through a downtown Los Angeles-based non-profit called Special Service for Groups Inc.

In some contracts, Soofer agreed to house participants at sites he managed. In other contracts, he committed to pay third parties, including hotels or motels, to provide this housing. And regardless of where participants were housed, Soofer committed to provide participants with three meals a day, which the contracts defined as meals that were healthy, balanced, and met participants’ nutritional needs.

But Soofer lied to LAHSA about how he was using the taxpayer money his charity received, falsely stating he used it exclusively to combat the homelessness crisis in Los Angeles, when he was misappropriating millions of dollars for himself. He also lied about payments supposedly being made to third party vendors for homeless housing services and took steps to conceal that he was diverting the money to his personal bank accounts.

He also made it falsely appear he was leasing properties for homeless housing from third-party landlords at a market rate, when he was instead paying himself above market rate and again misappropriating money that could have been used to help alleviate the homeless housing crisis.

To cover up the fraud, Soofer fabricated fake and misleading invoices – at times stealing the names, addresses, and logos of real companies – to make it appear that the vendor and rent payments were legitimate.

When a LAHSA investigator asked Soofer if his charity’s board knew how he was spending money, he said they did, but the investigator later learned that the board was fake – some of the people did not exist, and others had never heard of Abundant Blessings or Soofer.

Soofer further failed to appropriately shelter and feed the homeless housing participants at his sites. After receiving hotline complaints and noticing discrepancies in Soofer’s billing and services, city and county investigators conducted site visits and found the only food items being served at these sites were things such as Ramen noodles, canned beans, and breakfast bars – which was in contrast to the three-meal-a-day commitment Soofer had made and for which the City of Los Angeles had paid.

Rather than providing the services for which he billed these public entities, Soofer pocketed at least $10 million. He used that public money for a down payment on his $7 million Westwood home, millions of dollars of upgrades to that home, private schooling for his children, lavish spending in Las Vegas, private jet travel, and stays at luxury resorts across the United States – from Hawaii to Florida. Soofer also appeared to use $475,000 to purchase a vacation property in Greece, sending this money to a Greek property developer.

“Alexander Soofer is alleged to have stolen millions of dollars designated to combat homelessness in Los Angeles,” said Special Agent in Charge Tyler Hatcher of IRS Criminal Investigation, Los Angeles Field Office. “These funds were intended to support the city’s most vulnerable residents. IRS Criminal Investigation is committed to pursuing those who exploit public programs for personal gain. Today’s action demonstrates our determination to hold accountable individuals who misuse taxpayer dollars for self-enrichment.”

“Soofer is charged with embezzling funds designated to provide services for homeless individuals – some of the most vulnerable, struggling members of our community,” said Acting Special Agent in Charge Aaron McCullough with the United States Department of Housing and Urban Development Office of Inspector General (HUD-OIG). “HUD-OIG remains committed to working alongside our partners on the Homelessness Fraud and Corruption Joint Task Force to aggressively pursue individuals who compromise the integrity of HUD programs and exploit communities in need.”

A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty beyond a reasonable doubt in court.        

If convicted, Soofer would face a statutory maximum sentence of 20 years in federal prison.

The FBI, IRS Criminal Investigation, and the United States Department of Housing and Urban Development Office of Inspector General are investigating this matter.

Assistant United States Attorneys Kerry L. Quinn and Kevin B. Reidy of the Major Frauds Section are prosecuting this case.

Source: U.S. Department of Justice

The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.