Executive director of South Los Angeles charity charged with wire fraud, DOJ says
The executive director of a charity in South Los Angeles aimed at helping individuals who are homeless has been federally charged with wire fraud, the Department of Justice said.
At a news conference on Friday morning, First Assistant United States Attorney Bill Essayli announced charges against 42-year-old Alexander Soofer. He is accused of fraudulently obtaining $23 million in public money that was intended to help combat homelessness.
Essayli said that Soofer, the executive director of Abundant Blessings, contracted with the Los Angeles Homeless Services Authority (LAHSA) to allegedly provide housing for individuals who were homeless or at risk of becoming homeless.
According to the federal criminal complaint, in some contracts, Soofer committed to paying third parties, including hotels and motels, to provide housing and to also provide individuals with three meals a day.
Essayli claimed that Soofer lied about how he used the money his charity received. According to the complaint, Soofer allegedly kept at least $10 million, including using $7 million for a house in Westwood and $125,000 for a Range Rover. Soofer allegedly fabricated misleading invoices to cover up his spending.
"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."
The city and county received hotline complaints about Soofer's sites. After conducting visits, investigators found that the only food items being served at the locations were things such as Ramen noodles, canned beans and breakfast bars, which were different from the commitment made in his contracts.
"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).
If convicted of all charges, Soofer could face a statutory maximum sentence of 20 years in federal prison.
