The former head of a South Los Angeles program that received funds for homeless housing is expected to be arraigned Thursday on a federal charge alleging he defrauded the Los Angeles Homeless Services Authority of more than $23 million, including $8 million that prosecutors say went towards designer clothing, luxury vacations and properties in Westwood and Greece.
Alexander Soofer, 42, of Westwood, is charged with a single federal count of wire fraud.
He also faces separate charges in state court, including 11 felony counts of conflict of interest, and multiple counts of forgery and offering false evidence in connection with millions of dollars in contracts between LAHSA and Abundant Blessings, the Hyde Park-based program he ran. A preliminary hearing is scheduled to be set next month in that case.
The missing LAHSA funds were earmarked for Youth Homelessness, Bridge Housing, Winter Shelter, Home Safe, Inside Safe and other programs designed to help combat the homelessness crisis, court papers show.
Soofer is accused of providing fake subcontractor invoices to LAHSA with the names of real companies.
Abundant Blessings contracted with LAHSA to provide housing and meals for people who were homeless or were at risk of becoming homeless.
“The only abundant blessings he gave were to himself,” L.A. County District Attorney Nathan Hochman said in a statement after state charges were filed against Soofer.
Federal prosecutors allege that in some contracts, Soofer agreed to house participants at sites he managed. In others, he expressed plans to house people at hotels or motels, while everyone being sheltered would be provided with three nutritional meals a day, according to the U.S. Attorney’s Office.
But, prosecutors contend, Soofer lied to LAHSA about how he was using the money his charity received, and instead misappropriated millions of dollars for himself.
He also allegedly lied about payments supposedly being made to third-party vendors for housing services, while the money was actually being diverted to his personal bank accounts. Prosecutors contend Soofer claimed to be leasing properties for homeless housing from third-party landlords at a market rate, when he was instead paying himself above market rate, according to papers filed in Los Angeles federal court.
In response to complaints and discrepancies in Soofer’s billing documents, city and county investigators conducted site visits and found the only food being served at the sites were such items as Ramen noodles, canned beans, and breakfast bars — not the nutritious meals he had agreed to provide, the U.S. Attorney’s Office said.
Soofer allegedly pocketed at least $8 million — using the public money for a down payment on his Westwood home and millions of dollars of upgrades, private schooling for his kids, trips to Las Vegas, private jet travel, and stays at luxury resorts from Hawaii to Florida, federal prosecutors said.
The U.S. Attorney’s Office alleges that Soofer appeared to use $475,000 to purchase a vacation property in Greece, sending the money to a Greek property developer.
If convicted of the federal charge, Soofer would face up to 20 years in federal prison, prosecutors noted. The state case carries a 17-year maximum prison sentence upon conviction, according to Hochman.
Los Angeles Mayor Karen Bass reacted to news of the arrest last month, saying in a statement her administration “has zero tolerance for fraud — period.”
“It’s despicable that Mr. Soofer lied to the city and LAHSA for his personal gain and he took advantage of tax-payer funds meant to help unhoused Angelenos across South Los Angeles,” Bass said.