Nightclub, Tahiti trip and ‘ghost’ clients: Feds charge three in LA homelessness-fraud crackdown
A Culver City nonprofit founder is accused of diverting more than $7.5 million meant for homeless housing through sham vendors. His arraignment is set for Oct. 22, and prosecutors say more cases are coming. LOS ANGELES — Federal prosecutors on Wednesday, Sept. 16, charged three people tied to Los Angeles-area homelessness nonprofits with fraud and bribery, alleging that money meant to house unhoused people paid instead for a nightclub, luxury travel, a vintage car restoration and video games. First Assistant U.S. Attorney Bill Essayli, HUD Secretary Scott Turner and District Attorney Nathan Hochman were among the officials at the downtown announcement. “Nobody was minding the shop. There's no vetting. There's no auditing. There's no accounting. It was just a rush to push as much money out the door. First Assistant U.S. Attorney Bill Essayli, responding to a question from LAist All defendants are presumed innocent unless proven guilty; the charges are allegations. ...