News Summary
Cody Holmes and Steven Taylor face federal charges over alleged mail fraud and misappropriation of homelessness funds in Los Angeles. Holmes is accused of securing $25.9 million in fraudulent grants intended for a housing project, while Taylor faces multiple charges related to bank fraud. Their actions raise concerns about the integrity and management of public funds designated for homelessness relief in California.
Los Angeles Developers Charged with Fraud and Misappropriation of Homelessness Funds
Los Angeles – Cody Holmes, 31, the former Chief Financial Officer of Shangri-La Industries, has been arrested on charges of mail fraud for allegedly defrauding the California Department of Housing and Community Development. Holmes purportedly submitted fake bank records to unlawfully secure $25.9 million in grant money intended for a homeless housing project in Thousand Oaks.
This grant was part of the state’s Homekey initiative, designed to convert various properties into affordable housing solutions for the growing homeless population. Prosecutors have claimed that the bank accounts associated with the reported $160 million in assets that Holmes and his company, Shangri-La, supposedly held did not exist. Furthermore, Holmes and Shangri-La allegedly produced fraudulent balance sheets indicating they possessed millions of dollars in cash and other assets.
Following the acquisition of the grant, it is alleged that Holmes misappropriated over $2 million to pay off personal credit card bills through American Express, which included expenditures at high-end retail stores. In 2022, he reportedly transferred more than $2.2 million from a corporate account to a personal account before settling his credit card balances.
In connection with Holmes’s case, Steven Taylor, 44, of Brentwood, has also faced several serious charges, including seven counts of bank fraud, aggravated identity theft, and money laundering. Taylor is accused of manipulating false bank statements and cash representations to acquire loans and lines of credit aimed at funding his real estate dealings.
One of Taylor’s fraudulent schemes involved the purchase of a property in Cheviot Hills for $11.2 million, which he later sold to the nonprofit Weingart Center for $27.3 million. Prosecutors assert that Taylor misled lenders about the intended use of the properties and concealed a contract to resell the Cheviot Hills property through a double-escrow transaction.
Possible Consequences and Investigative Details
If convicted, both Holmes and Taylor could face decades in federal prison. The ramifications of their alleged actions highlight the ongoing challenges faced by authorities in combating fraud surrounding public funds allocated for homelessness assistance.
Los Angeles Mayor Karen Bass has reiterated the administration’s zero tolerance for corruption, emphasizing a commitment to accountability in the management of public funds meant for addressing homelessness. The investigations into the fraudulent activities of Holmes and Taylor are part of a larger task force aimed at uncovering fraud related to California’s homelessness funding, which has totaled over $24 billion over recent years.
Acting U.S. Attorney Bill Essayli has expressed that these cases are merely the beginning stages of an extensive investigation into potential misuse of funds designated for homelessness relief. The FBI’s Los Angeles bureau has also pledged to continue its pursuit of cases involving fraud and corruption related to public funds intended for assisting the homeless community.
As investigations continue, the city is under heightened scrutiny, aiming to restore public trust in the allocation and management of vital resources intended to support vulnerable populations. The developments surrounding Holmes and Taylor serve as a stark reminder of the accountability required to ensure that the financial resources dedicated to combating homelessness are not exploited for personal gain.
Deeper Dive: News & Info About This Topic
HERE Resources
Los Angeles Executives Charged in Homelessness Fraud Scheme
Additional Resources
- Fox Business
- NBC Los Angeles
- ABC7
- Los Angeles Times
- CBS News
- Wikipedia: Homelessness in the United States
- Google Search: California homelessness funding fraud
- Google Scholar: Homelessness funding fraud
- Encyclopedia Britannica: Homelessness
- Google News: California homelessness
Author: STAFF HERE LOS ANGELES WRITER
The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
