T
he Department of Justice’s new Homeless Fraud and Corruption Task Force has released its first findings on how California’s $24 billion homelessness budget was misappropriated. Two Los Angeles real‑estate developers face federal criminal charges for diverting roughly $50 million of federal, state and local money that was meant for housing the homeless.
FBI Los Angeles assistant director Akil Davis said the crime “is not victimless” and that the lost funds could have supported housing projects or other taxpayer‑funded priorities. The DOJ announced that 31‑year‑old Cody Holmes of Beverly Hills was arrested for federal felony fraud after receiving $25.9 million in grant money earmarked for a homeless‑housing project that never materialized. Court filings show the California Department of Housing and Community Development paid nearly $26 million to Shangri‑LA Industries LLC in October 2022 for a Thousand Oaks project. Prosecutors allege Holmes, then CFO of Shangri‑LA, submitted forged bank statements and balance sheets to secure the grant. He allegedly used part of the money to pay $2 million in American Express charges at luxury retailers. U.S. Attorney Bill Essayli warned that anyone who steals or allows theft of public funds will be prosecuted. Fox News has asked Shangri‑LA for comment.
In a separate indictment, 44‑year‑old Steven Taylor of Los Angeles was charged with seven counts of bank fraud, one count of aggravated identity theft and one count of money laundering. Prosecutors claim Taylor fabricated bank records to acquire properties across LA. In 2023, he allegedly used false documents to buy a Cheviot Hills property for $11 million, then resold it for $27 million. The building was a senior‑living facility at the time of purchase. Taylor claimed he would renovate and operate the property, but was already contracted to sell it. The DOJ says the buyer was the nonprofit Weingart, which used federal and local funds for the purchase. Weingart’s CEO, former California Democratic State Senator Kevin Murray, was not named in the indictment. Fox has reached out to Weingart and Murray for comment.
Mayor Karen Bass issued a statement condemning corruption and pledging cooperation with the U.S. Attorney’s office to hold fraudsters accountable. In April, Essayli announced the task force’s focus on the $24 billion spent between fiscal years 2018 and 2023, noting that state officials had failed to provide adequate oversight and answer public demands for accountability. The investigation now seeks to bring transparency to how homelessness funds were diverted.
