According to a notice from the Central District of California U.S. Attorney’s Office, a man in Westwood, Los Angeles was arrested on January 23 on federal criminal charges. He is accused of embezzling tens of millions of dollars in public funds meant to address homelessness through fraudulent means, using the money to purchase luxury homes, cars, pay for his children’s private school tuition, and various extravagant expenses.
The 42-year-old Alexander Soofer is charged with wire fraud. According to an affidavit submitted along with the indictment, Soofer served as the CEO of the charity organization “Abundant Blessings” located in Hyde Park, South Los Angeles.
The organization had a contract with the Los Angeles Homeless Services Authority (LAHSA) to provide shelter and support services for homeless individuals or those at risk of homelessness. By July 2023, Soofer had signed multiple contracts with LAHSA to service over 600 individuals participating in homelessness placement and support programs at various locations in South Los Angeles.
Between 2018 and 2025, Soofer received over $23 million in homeless housing funds, with over $5 million directly from LAHSA and over $17 million from “Special Service for Groups Inc.,” a nonprofit organization based in downtown Los Angeles.
Prosecutors allege that Soofer embezzled at least $10 million, failing to deliver the promised services but instead using the funds for a down payment on a $7 million luxury home in Westwood, millions in home upgrades, purchasing a $125,000 Land Rover, paying for his children’s private school tuition, luxurious expenses in Las Vegas, private jet travels, stays at high-end resorts across the U.S. from Hawaii to Florida, and allegedly buying a vacation property in Greece for $475,000.
If convicted, Soofer could face up to 20 years in federal prison. It is noted in the notice that Soofer misrepresented the use of funds to LAHSA, claiming the money was solely intended to address the homeless crisis in Los Angeles. Furthermore, he falsely reported housing service payments to third-party vendors, diverting funds into personal bank accounts.
Prosecutors also claim that Soofer created a false impression of leasing third-party properties at market rates for homeless placement while paying himself above-market fees, further diverting funds meant for alleviating the homeless housing crisis.
To cover up the fraud, Soofer allegedly forged false and misleading invoices, sometimes using the names, addresses, and logos of legitimate companies to make rentals and payments appear legitimate.
When LAHSA investigators inquired whether the charity’s board was aware of the fund usage, Soofer claimed that the board was informed. However, investigators later discovered that the board itself was fictitious, with some members non-existent and others having no knowledge of Abundant Blessings or Soofer.
Additionally, prosecutors accuse Soofer of failing to properly house and care for beneficiaries of the homeless projects. After receiving hotline complaints and finding discrepancies between the accounts and services provided, city and county investigators conducted on-site visits and found shelters offering only simple food such as instant noodles, canned beans, and energy bars which significantly deviated from the promised three daily nutritious meals funded by the city of Los Angeles.
“California is a prime example of blatant waste and abuse of taxpayer funds. The state has poured billions into homeless assistance with little to show for it and almost no oversight,” said U.S. Assistant Chief Prosecutor Bill Essayli. “Fortunately, the federal government has begun auditing California’s expenditures, and this case is just one of many where swindlers have defrauded taxpayers of millions. This money should have been used to help those in need but instead was utilized by individuals to live extravagantly.”
Assistant Special Agent in Charge Akil Davis of the Federal Bureau of Investigation (FBI) Los Angeles Field Office stated, “The FBI will investigate and hold accountable individuals like Soofer who blatantly disregard the law and seek personal gain.”