Federal law enforcement has taken a decisive stance against the misuse of public funds intended to help the homeless, announcing the arrest of Cody Holmes, 31, of Beverly Hills, and charges against a Brentwood man in separate cases.
Holmes, the former CFO of Shangri-La Industries LLC, is accused of mail fraud involving nearly $26 million allocated for the ‘Homekey’ project. He allegedly submitted fake bank records to the California Department of Housing and Community Development (HCD) to falsely claim control over $160 million.
Acting United States Attorney Bill Essayli declared, ‘Accountability for the misuse of billions of tax dollars intended to combat homelessness starts today.’ Holmes faces up to 20 years in federal prison if convicted.
In a separate case, an investigation into property flipping and fraud in public homelessness funds led to the charging of a Brentwood man, whose illegal activities included selling a Cheviot Hills home to a homeless housing developer for more than double its original purchase price.
Akil Davis, Assistant Director of the FBI’s Los Angeles Field Office, emphasized the agency’s commitment to the Homelessness Fraud & Corruption Task Force. ‘The charges we’re announcing today send a message to others who may be contemplating similar criminal behavior,’ he said.
Special Agent in Charge Tyler Hatcher of IRS Criminal Investigation’s Los Angeles Field Office highlighted the IRS-CI’s role as an inaugural member of the task force, ensuring funds intended for California’s homeless population are used as intended.
RELATED: Beverly Hills CFO Faces 20 Years for $160M Homelessness Fraud
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Public Corruption|White Collar Crime
- Source: Official Source ↗
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