A Westwood man was charged on Friday for fraudulently obtaining $23 million in homeless funds and spending the money meant for his charity to support his lavish lifestyle, which included the purchase of a vacation property in Greece and shopping sprees at Chanel and Hermes, federal and Los Angeles authorities jointly announced Friday.
Alexander Soofer, 42, was expected to appear in federal court Friday as he faced the charges of wire fraud, the U.S. Department of Justice (DOJ) said.
Authorities said Soofer’s charity Abundant Blessings is contracted with the Los Angeles Homeless Services Authority (LAHSA) to provide housing, three nutritional meals a day and other services to over 600 people experiencing homelessness, according to the DOJ.
Instead, Soofer lied about how the public money was being used to help the homeless, including those suffering from mental health issues and battling addiction, and misappropriated millions of dollars by fabricating bank statements and documents, according to federal investigators.
Among more than $23 million Soofer allegedly siphoned, $5 million came directly from LAHSA while over $17 million came through a nonprofit called Special Service for Groups Inc..
Soofer allegedly pocketed at least $10 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, prosecutors said. Soofer also appeared to use $475,000 to purchase a vacation property in Greece, sending the money to a Greek property developer.
“He was living the high life while the people suffering homeless on the streets with no shelter, no food. They’re living out in the streets. People are literally dying,” First Assistant U.S. Attorney Bill Essayli said during a news conference Friday. “Instead of providing three nutritious meals a deal, this is what he was providing: Ramen noodles and a microwave. And he was pocketing the rest of the money.”
Essayli also said Soofer went on shopping sprees at Chanel and Hermes shops with the stolen funds, purchasing a $1.250 men’s loafers lined with calf skin and a $2,450 jacket for himself and a $910 goat skin Hermes sandals for his wife.
As federal authorities investigated Soofer, the LA County District Attorney’s Office ran a parallel investigation into the man, following two previous probes by LAHSA and the LA City Controller’s office. LA District Attorney Nathan Hochman said the LAHSA and the City Controller’s Office discovered “a whole draft of fraudulent documentation trying to legitimize the fraud that he had been conducting.”
“He ripped off the taxpayers of LA County, and sadly and tragically he ripped off the homeless,” Hochman said. “Mr. Soofer called his company Abundant Blessings. But the only abundant blessings he gave were to himself. Call it abundant financial blessings to Mr. Soofer and his family.”
A criminal complaint filed against Soofer in state court alleges conflict of interest in 11 contracts, Hochman said.
If convicted of the federal fraud 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, Hochman said.
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