LA charity boss charged with scamming $23M in taxpayer cash to live in luxury: Would give homeless instant ramen and then stay at ‘White Lotus’

Soofer's arrest on January 23 marks the third case brought by a federal task force investigating fraud in California's homelessness spending, according to the U.S. Department of Justice [1]. Officials say more than two dozen investigations remain ongoing. For donors and taxpayers alike, the case offers a cold, hard lesson in how charity fraud happens and what red flags to watch for.

How Soofer’s scheme allegedly worked

Prosecutors say Soofer used a playbook of deception to siphon public funds between 2018 and 2025.

He allegedly fabricated invoices using the names, logos, and addresses of real companies to make vendor and rent payments appear legitimate. When a LAHSA investigator asked if his charity's board knew how he was spending money, Soofer said yes — but investigators later discovered the board was fake. Some members didn't exist, and others had never heard of Abundant Blessings.

Soofer also allegedly owned the buildings where his charity placed homeless residents, but told the Los Angeles Homeless Services Authority he was leasing them from third-party landlords, collecting above-market rent from taxpayers for properties he already controlled.

"He ripped off the taxpayers of LA County, and sadly and tragically he ripped off the homeless," LA County District Attorney Nathan Hochman said at a Friday press conference [2]. "Mr. Soofer called his company Abundant Blessings. But the only abundant blessings he gave were to himself."

The DA's office has filed parallel state charges: 11 felony counts of conflict of interest, two counts of offering false evidence, and five counts of forgery.

Where the taxpayer's money allegedly went

Prosecutors laid out a detailed inventory of Soofer's alleged spending:

The $23 million in public funds allegedly paid for a $7 million Westwood home with major renovations, $475,000 wired to a Greek property developer for a vacation home, a $125,000 Range Rover seized during his arrest, private jet flights and luxury resort stays in Maui, Las Vegas, and Florida, and private school tuition for his children.

Then there was the shopping. Hochman itemized some purchases: "$1,250 men's loafers lined with calfskin. For his wife, he bought for $910 from Hermès sandals lined with goatskin, and for $2,450 he bought from Hermès a men's trotting jacket."

"He was living the high life while the people suffering homeless on the streets with no shelter, no food... People are literally dying," First Assistant U.S. Attorney Bill Essayli said. "And this guy is out vacationing, buying homes, buying Range Rovers and going shopping."

What ‘beneficiaries’ actually received

Soofer's contracts required three nutritious meals daily for more than 600 people experiencing homelessness — many battling mental health issues and addiction.

What investigators found: ramen noodles, canned beans, and breakfast bars.

"Instead of providing three nutritious meals a day, this is what he was providing: ramen noodles and a microwave," Essayli said. "And he was pocketing the rest of the money."

LA City Controller Kenneth Mejia's office publicly flagged the problem in July 2025 after a site visit, noting that the provider was serving instant ramen for "nearly every meal" [4].

A pattern of fraud centering around the homeless in LA

Soofer's case isn't isolated. It's the third arrest from the Homelessness Fraud and Corruption Task Force, a joint federal effort launched in April 2025 involving the FBI, IRS, and HUD's Office of Inspector General [5].

In October 2025, Cody Holmes, former CFO of Shangri-La Industries, was arrested for allegedly using fake bank statements to obtain $25.9 million in state Homekey grants meant for homeless housing that was never built. Prosecutors say he rented a $46,000-per-month Beverly Hills mansion [6]. That same month, Steven Taylor, a Brentwood real estate investor, was charged with flipping a property to a homeless housing developer for $27.3 million after purchasing it for $11.2 million [6].

"California is the poster child of rampant fraud, waste, and abuse of tax dollars," Essayli said. "The state has facilitated the spending of billions of dollars to combat homelessness, with little to show for it and almost no oversight."

The backdrop: A 2024 state audit found California spent more than $24 billion on homelessness programs over five years without tracking effectiveness or outcomes.

How to spot charity fraud before you donate

The Soofer case shows how even organizations receiving government contracts can operate with minimal oversight. For individual donors, experts recommend several steps before giving.

First, verify tax-exempt status using the IRS Tax-Exempt Organization Search tool to confirm an organization is a registered 501(c)(3), according to Charity Navigator [7]. Ask for the charity's Employer Identification Number—legitimate organizations will provide it.

Review Form 990 financial filings, which show where every dollar goes. Access them through the IRS tool or ProPublica's nonprofit database. Look for red flags, such as outsized spending on executive salaries or marketing relative to actual programs [8].

Check watchdog ratings from Charity Navigator, CharityWatch, or GuideStar, which evaluate nonprofits on financial health, accountability, and transparency. CharityWatch's top-rated charities allocate 75% or more of their budgets to programming.

And verify the board actually exists. In Soofer's case, that simple check would have revealed the deception.