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Two individuals accused of defrauding taxpayers out of millions of dollars intended to fight homelessness in Los Angeles are being indicted on federal charges. Acting U.S. Attorney Bill Essayli says real estate developer Cody Holmes defrauded Project Homekey out of millions of dollars to convert old hotels into homeless housing. But none of the projects were started.
Essayli says two-point-two-million dollars was diverted to pay Holmes’ American Express bill, which includes purchases at luxury retailers. A second party, Steven Taylor, is accused of providing fake bank statements to secure grants and loans to purchase high-end properties in Los Angeles.
Essayli says California has spent over 24 billion dollars over the past five years to fight homelessness with little to show for it and little or no accountability for where that money went. He adds that anyone, including public officials, who misused or stole tax dollars, or allowed it to happen, will face federal charges.
