Nonprofit Boss Steals $23M From Homeless

A nonprofit executive pocketed $23 million in taxpayer funds meant to shelter LA’s homeless, splurging on luxury homes and jets while residents ate ramen in squalor.

Story Highlights

Alexander Soofer arrested January 23, 2026, for federal wire fraud after diverting over $23 million from homeless programs to personal luxuries.
Funds from LAHSA and pass-through nonprofits bought a $7 million Westwood home, $125,000 Range Rover, private jets, and high-end jewelry.
Site inspections revealed substandard conditions: soiled appliances, bulk instant noodles served as meals for 600+ participants.
Federal investigators from IRS, HUD-OIG, and FBI exposed fabricated invoices and self-dealing through shell entities.
Soofer faces up to 20 years; case underscores need for accountability in government-funded nonprofits.

Arrest Details and Charges

Alexander Soofer, 42-year-old executive director of South Los Angeles nonprofit Abundant Blessings, surrendered to authorities on January 23, 2026. Federal prosecutors in U.S. District Court, Los Angeles, charged him with wire fraud. Investigators allege he siphoned over $23 million in public funds from 2018 to 2025. These included more than $5 million directly from Los Angeles Homeless Services Authority (LAHSA) and $17 million via Special Service for Groups Inc. Soofer controlled the contracts promising housing and services for over 600 homeless individuals.

Luxury Purchases from Homeless Funds

Soofer allegedly converted public money into personal wealth exceeding $10 million. Purchases included a $7 million home in Westwood, a $125,000 Range Rover, private jet travel, stays at luxury resorts, and high-end items like $910 Chypre sandals and designer clothing. He funneled funds through entities like DKG Development into his accounts. Above-market rents paid to his own properties enriched him further. Fabricated invoices using real company logos hid the scheme. This betrayal diverted resources from LA’s severe homelessness crisis.

Substandard Conditions Exposed

Hotline complaints triggered site visits revealing dire conditions at Abundant Blessings facilities in Hyde Park. Investigators found soiled appliances, bulk instant noodles stocked as the primary food source, and no evidence of promised three balanced daily meals. Contracts required proper shelter and nutrition for vulnerable residents. Instead, funds vanished into Soofer’s lifestyle. Abundant Blessings, tax-exempt since 2019, reported only $3.17 million in 2024 revenue on Form 990, with Soofer earning $145,000 salary—dwarfed by the multi-year fraud scale.

IRS Criminal Investigation agent Tyler Hatcher led the probe, stating Soofer exploited public programs for self-enrichment. HUD-OIG’s Aaron McCullough noted the embezzlement compromised aid for the vulnerable. The case aligns with HUD-OIG’s Homelessness Fraud and Corruption Task Force efforts. Soofer remains in custody as the investigation continues with FBI involvement. U.S. Attorneys Kerry L. Quinn and Kevin B. Reidy from the Major Frauds Section prosecute.

Impacts on Taxpayers and Homeless

The fraud disrupts services for over 600 participants, prompting potential LAHSA contract reviews. Taxpayers lose $23 million meant to combat LA’s homelessness epidemic. South LA communities suffer from eroded trust in nonprofits handling public dollars. Long-term, expect stricter oversight on pass-through funding and homeless programs. This incident highlights government overreach risks when unaccountable bureaucrats and nonprofits control vast sums without transparency. President Trump’s administration prioritizes such accountability to protect American taxpayers from waste and abuse.