Los Angeles Charity Boss Arrested In $23 Million Fraud

On a brisk Friday morning in January 2026, federal agents descended on a stately Westwood mansion, arresting Alexander Soofer, the sharply dressed head of a South Los Angeles charity accused of siphoning millions of dollars meant for the city’s most vulnerable. The arrest, announced by federal prosecutors and detailed by outlets including KTLA, Courthouse News, and Los Angeles Daily News, marks a dramatic turn in one of the largest alleged frauds to hit Los Angeles’ troubled homelessness response system in years.

Soofer, 42, ran Abundant Blessings, a nonprofit based in the Hyde Park neighborhood of South L.A. Between 2018 and 2025, the charity received over $23 million in government funding to provide shelter and meals for people experiencing homelessness. The money, according to prosecutors, was supposed to bring dignity and stability to hundreds who had nowhere else to go. Instead, authorities allege, Soofer diverted at least $10 million into a whirlwind of personal luxury—private jet trips, designer shopping sprees, a $7 million Westwood home, and a vacation property in Greece.

By July 2023, Abundant Blessings had contracts with the Los Angeles Homeless Services Authority (LAHSA) to house and support more than 600 people at multiple sites across South Los Angeles. The contracts required the charity to provide three healthy meals a day. But according to city investigators and complaints from residents, what was actually served fell far short: ramen noodles, canned beans, and breakfast bars, sometimes just heated in a microwave. In July 2025, Los Angeles City Controller Kenneth Mejia publicly criticized a contractor for serving mostly instant ramen to unhoused residents, a practice that, in hindsight, spotlighted the deeper rot in the system.

"California is the poster child of rampant fraud, waste, and abuse of tax dollars," First Assistant U.S. Attorney Bill Essayli declared at a news conference. "This money should have gone to those in need, instead it lines the pockets of individuals subsidizing their lavish lifestyle." Essayli’s words echoed the frustration of many in Los Angeles, where billions have been spent to combat homelessness with little visible progress and, as Essayli put it, "almost no oversight."

The details of the alleged fraud read like the script of a Hollywood drama. Federal officials say Soofer used more than $5 million directly from LAHSA and over $17 million funneled through another nonprofit, Special Service for Groups Inc. The funds, intended for housing and supportive services, instead funded extravagant spending. Prosecutors allege Soofer and his family enjoyed luxury travel—including stays at the Maui resort featured in HBO’s "The White Lotus"—private jet flights, private school tuition for his children, designer goods, and high-rolling nights at Las Vegas casinos. Authorities say Soofer wired roughly $475,000 to buy a vacation home in Greece, spent lavishly on home renovations, and purchased a $125,000 Range Rover, which was seized during his arrest.

To cover his tracks, prosecutors say, Soofer submitted fake and misleading invoices, sometimes using the names, logos, and addresses of real companies to create an appearance of legitimacy. He also claimed Abundant Blessings had a legitimate board of directors. In reality, some board members did not exist; others had never even heard of the organization. When a LAHSA investigator asked whether the board knew how funds were being spent, Soofer insisted they did—another claim prosecutors say was false. The house of cards began to wobble when hotline complaints and billing anomalies triggered city and federal probes. Tipsters reported subpar treatment, including being fed little more than canned beans and breakfast bars.

In a particularly human twist, Soofer’s bookkeeper—a Filipino immigrant who overstayed her student visa and was paid roughly minimum wage—was approached by the FBI about her boss’s alleged scheme. Meanwhile, Soofer and his wife reportedly paid themselves six-figure salaries atop the money they are accused of stealing, according to the federal indictment.

"Today’s action demonstrates our determination to hold accountable individuals who misuse taxpayer dollars for self-enrichment," said IRS Criminal Investigation Special Agent in Charge Tyler Hatcher. FBI Assistant Director Akil Davis was equally blunt: Soofer, he said, prioritized "his own greed over decency and respect for the laws of our country."

The fallout from Soofer’s arrest has been swift and wide-ranging. The Los Angeles District Attorney’s office has brought its own case, charging Soofer with 11 felony counts of conflict of interest, two felony counts of offering false evidence, and five felony counts of forgery in connection with the millions of dollars in contracts between LAHSA and Abundant Blessings. "The defendant allegedly betrayed the public trust, and I assure Mr. Soofer that unlike the homeless he allegedly stole from, he will have shelter and get three nutritious meals a day in prison," LA County District Attorney Nathan Hochman said pointedly in a statement reported by Courthouse News.

The case against Soofer is part of a broader crackdown. The Homelessness Fraud and Corruption Task Force—a joint effort by the FBI, IRS, and the Department of Housing and Urban Development’s Office of Inspector General—has already announced two other arrests in the last year for fraud in local and state homelessness programs. Prosecutors say more than two dozen additional investigations are ongoing, suggesting the Soofer case may be just the tip of the iceberg.

Yet the scandal also raises uncomfortable questions about oversight and accountability. Despite multiple complaints about substandard care, it remains unclear why the City of Los Angeles did not audit Abundant Blessings’ services more rigorously. Billions have flowed into the city’s homelessness response in recent years, but with stories like this emerging, many are asking: Who is watching the watchers?

As of now, Soofer has been charged with wire fraud and faces up to 20 years in federal prison if convicted, plus more than 17 years in state prison and county jail on related charges. He is expected to make his initial appearance in U.S. District Court in Santa Ana. Prosecutors emphasize that a criminal complaint contains only allegations, and Soofer is presumed innocent unless and until proven guilty in court. An attorney for Soofer did not immediately respond to requests for comment.

For a city grappling with an ever-worsening homelessness crisis, the Soofer case is a sobering reminder of how good intentions—and taxpayer dollars—can be hijacked by greed when oversight falters. As the investigation widens, many in Los Angeles are watching closely, hoping that justice for the city’s most vulnerable will finally become more than just a promise.