Federal Authorities Charge LA Developers in Misuse of Homelessness Funds

Arrests and Charges in Homelessness Fund Misuse

• 🚨 Federal authorities have arrested and filed criminal charges against two Los Angeles-area real estate developers for alleged fraud and misuse of public funds designated for homelessness.
• 💰 U.S. Attorney Bill Astley announced that 31-year-old Cody Holmes was arrested for allegedly siphoning public funds intended for the Project Homekey initiative.
• 💳 Holmes is accused of making a $2.2 million payment to his personal credit card using these funds, among other offenses.

Separate Case: Steven Taylor Indictment

• 📈 In a separate case, a grand jury indicted 44-year-old real estate developer Steven Taylor.
• 🏦 Taylor is accused of lying to banks to obtain loans and inflating the value of properties sold to Project Homekey developers.

Ongoing Investigations and Public Funds

• 🔍 U.S. Attorney Astley stated that these investigations are just the beginning, with authorities tracking billions of dollars in public money within their seven-county district.
• ⚠️ He emphasized that these funds are intended to address homelessness but are too often wasted, mismanaged, or outright stolen.