The head of a Palm Springs nonprofit catering to the transgender community accused of stealing more than $900,000 in funds provided by government entities and intended for the benefit of members pleaded not guilty Wednesday to more than four dozen felony charges.
Jacob Joseph Aaaron Rostovsky, 33, was indicted last week for allegedly masterminding a two-year theft scheme that involved pocketing money that was designated for Queer Works’ programs.
The indictment, unsealed Wednesday, alleges 22 counts of filing fraudulent claims, 16 counts of perjury, seven counts of money laundering, three counts of grand theft, and one count each of embezzlement, misappropriation of funds, filing a false insurance loss claim, providing false details in support of a fake insurance claim, forgery and a sentence-enhancing allegation of perpetrating multiple felonies that netted losses in excess of $500,000.
Rostovsky was arraigned before Riverside County Superior Court Judge Gail O’Rane, who scheduled a trial-setting conference for Jan. 23 at the Riverside Hall of Justice. The defendant is free on a $944,000 bond.
“It is simply unacceptable that public funds are handed out with the lack of due diligence or oversight that is alleged in this case,” District Attorney Mike Hestrin said. “The people of Riverside County deserve better from their public officials, who have a duty to act as responsible stewards of taxpayer dollars.”
Hestrin asked for a county Civil Grand Jury investigation into the decision-making involved in doling out the roughly $944,000 that Rostovsky allegedly filched for personal pleasure. According to the District Attorney’s Office, an estimated $700,000 originated from the Palm Springs City Council, in the form of grants for financial assistance to transgender and nonbinary people.
The remainder of the money was distributed by the county, and the Executive Office confirmed to City News Service that those funds were part of the set-aside from the nearly $500 million in federal Coronavirus Aid, Relief & Economic Security Act disbursals received by the county in 2020 and 2021.
The city’s end of it stemmed from the council’s support for a “universal basic income pilot program” touted by Queer Works, according to the D.A.’s office.
“The program was supposed to provide 180 participants monthly stipends of $800,” the agency stated. “Financial reviews by Riverside County Housing & Workforce Solutions into the Riverside County grants revealed discrepancies in expenses reported by Queer Works and showed Rostovsky altered financial documents submitted to the county. Additionally, checks issued by the Riverside County Office of the Treasurer were deposited into Rostovsky’s personal checking account.”
The matter was first referred to the Office of the Auditor-Controller for scrutiny, but it soon became apparent there were possible white collar crimes perpetrated, leading to a wider investigation by D.A.’s office personnel.
“The investigation …. revealed Rostovsky engaged in a longstanding pattern of fraud, including 89 separate instances of making false statements and submitting forged documents to the county and city,” according to the D.A.’s office. “Rostovsky used a portion of these funds, intended for individuals in need of assistance, on personal expenses, including purchases at Disney, Burberry and the Beverly Garland Hotel.”
The defendant has no documented prior felony convictions in Riverside County.