LA Real Estate Execs Accused of Defrauding Homeless Housing Program

Homekey Program Fraud Allegations

• 🎯 Two LA-area real estate executives have been federally charged with defrauding California's Homekey Program.
• 💡 The Homekey Program is designed to use state funding to convert existing buildings, like motels or senior homes, into housing for the homeless.

Accusations Against Cody Holmes

• 💰 Cody Holmes of Beverly Hills is accused of misappropriating over $25 million in Homekey funds intended for homeless housing in Thousand Oaks.
• 💳 Prosecutors allege that at least $2.2 million was diverted to pay Holmes's personal American Express bill, including purchases at luxury retailers.

Charges Against Steven Taylor

• 🏦 Steven Taylor has been charged with bank fraud and money laundering in connection with a property in Chevad Hills.
• 📈 Prosecutors claim Taylor used fake bank statements to secure a loan for the property and then sold it for a $16 million profit.

Ongoing Investigation and Scope

• 🔍 Journalist Jamie Paige noted that the property's price tag doubled in a nine-day period, raising red flags.
• ⚖️ Acting US Attorney Billy states this is just the beginning, with billions of dollars in question and more investigations underway.
• ⚠️ The investigation is looking into others potentially involved in the sale and purchase of this and other properties in the region.