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n Oct. 16, 2025, the U.S. Department of Justice announced that two Los Angeles‑area real‑estate leaders are accused of siphoning funds from California’s Homekey Program, which is meant to finance housing for the homeless. Acting U.S. Attorney Bill Essayli disclosed the indictment on Thursday. Cody Holmes of Beverly Hills has been taken into custody. Prosecutors say his firm, Shangri‑La, received more than $25 million in Homekey money to develop and run a homeless facility in Thousand Oaks, a project never materialized. Investigation found that $2.2 million was redirected to pay Holmes’ American Express bill, covering luxury purchases. A second defendant, Steven Taylor, faces charges of bank fraud and money laundering tied to a Cheviot Hills property. Journalist Jamie Page highlighted a red flag: the property’s price jumped from $11 million to over $22 million in nine days. Prosecutors allege Taylor fabricated bank statements to secure a loan, then sold the building to developer Weingart for $27 million using city and state funds. Essayli warned that billions of dollars are risk mismanagement or theft across the seven‑county district. Los Angeles: Homeless Crisis, Crime, Public Safety today