Investigators allege at least $10 million was spent on personal luxuries while contracts promised beds and meals for unhoused residents.
LOS ANGELES, CA — Federal authorities have arrested Alexander Soofer, 42, the executive director of the South Los Angeles nonprofit Abundant Blessings, on allegations he orchestrated a multimillion-dollar fraud that siphoned public money intended for homeless services, officials announced Friday, Jan. 23.
Prosecutors say Abundant Blessings won roughly $23 million in government-backed contracts between 2018 and 2025 to provide housing and meal services, then diverted large sums to finance a lavish lifestyle for its chief. The case is part of a broader state and local push to police homelessness spending as California confronts the nation’s largest unhoused population and demands for oversight grow. Separate state charges were also filed. The federal complaint marks one of the most sweeping cases yet by a regional task force created to examine possible fraud and waste in programs designed to move people off the street.
According to charging documents announced by the U.S. attorney’s office, agents arrested Soofer at his Westwood home on Friday morning. He was expected to make an initial appearance the same afternoon in U.S. District Court in Santa Ana on a wire fraud complaint. Authorities allege Abundant Blessings submitted falsified records to obtain payments while shortchanging services the group had promised to deliver at sites in South Los Angeles and elsewhere. In remarks announcing the case, a senior federal prosecutor said investigators intend to follow the money trail in full and recover what they can. “We will find out where every dollar went,” the prosecutor said.
Officials said at least $10 million of the public money was spent on personal expenses, including designer goods, luxury travel and real estate abroad, while some shelter residents were served cut-rate meals and staff were paid low wages. Contracts cited by investigators include awards routed through the Los Angeles Homeless Services Authority and through a larger nonprofit grantee. Prosecutors also pointed to spending on a Westside residence and a separate property in Greece. The criminal complaint describes what investigators called doctored invoices and fabricated reports to justify reimbursements. How much money, if any, can be clawed back remains unknown, and authorities did not identify all vendors who handled the transactions.
The arrest follows months of joint work by federal investigators, county prosecutors and auditors reviewing homelessness programs launched in recent years, including initiatives funded by county sales-tax revenue and city emergency efforts. The task force pursuing this case was formed last spring to examine potential fraud tied to Los Angeles homelessness spending and has brought several cases. Statewide audits in 2024 criticized the lack of consistent data and oversight across agencies, a gap that allowed questionable billing to persist undetected. Homelessness in California has remained stubbornly high, adding pressure on officials to show that dollars are reaching people promised beds, case management and pathways to permanent housing.
Alongside the federal complaint, the Los Angeles County District Attorney’s Office filed 18 felony counts alleging theft and fraud against Soofer tied to invoices and reimbursements from 2022 to 2024. County leaders said their case will run on a separate track from the federal proceeding. No plea was entered Friday. If convicted in federal court, Soofer faces a potential sentence measured in years; the county charges carry additional exposure. A detention decision will be made after his first appearance, and prosecutors said they will seek to preserve assets linked to the alleged scheme. A preliminary hearing date in county court is expected to be set in the coming weeks, and federal prosecutors said a grand jury may consider an indictment.
Outside a South Los Angeles program site Friday afternoon, residents and workers described confusion and frustration. A night manager said staff “kept the doors open even when supplies ran thin,” adding that many employees learned about the arrest from the news. A neighborhood resident who has volunteered with outreach teams said she worried promised meals and motel placements would stall. In a brief statement, a spokesperson for the Los Angeles Homeless Services Authority said the agency is cooperating with investigators and reviewing Abundant Blessings’ remaining contracts for compliance. Attorneys for Soofer did not respond to requests for comment. No board members from the charity appeared in public after the arrest.
As of Saturday morning, Soofer remained charged in federal court on the wire fraud complaint while county prosecutors prepared their parallel case. Federal officials said they will outline next steps after his initial appearance in Santa Ana. The county case is expected to return to court in late February. Authorities said additional arrests are possible as the financial review widens.
Author note: Last updated January 25, 2026.