News Summary
Two Los Angeles developers are facing serious fraud charges for misusing millions intended for homeless assistance. Cody Holmes, the former CFO of Shangri-La Industries, is accused of misappropriating $25.9 million earmarked for the Project Homekey initiative. Steven Taylor faces multiple charges including bank fraud and money laundering for securing loans through deception. Both face decades in prison if convicted, highlighting a broader initiative to combat fraud in homelessness funding.
Los Angeles – Two developers from Los Angeles have been charged with fraud for allegedly misusing millions in funds that were meant to assist the homeless population in California. Cody Holmes, 31, a former CFO of Shangri-La Industries, has been arrested on a mail fraud charge involving the misuse of $25.9 million earmarked for California’s Project Homekey initiative. Additionally, Steven Taylor, 44, has been charged with multiple counts including bank fraud and aggravated identity theft.
Holmes, who served as CFO of Shangri-La Industries, a developer focused on affordable housing in downtown Los Angeles, is accused of improperly handling funds intended for a homeless housing project located in Thousand Oaks, Ventura County. Prosecutors allege that he submitted falsified bank records to the California Department of Housing and Community Development. These records inaccurately claimed that Shangri-La had access to $160 million in bank accounts that did not exist, thereby misleading authorities about the company’s financial standing.
The fraudulent activities included the submission of false balance sheets to the state, which claimed millions of dollars in cash reserves. As a direct result of these misrepresentations, the state transferred additional grant money to Shangri-La for a project that was not even completed. Furthermore, investigators found that some of the misappropriated funds were allegedly diverted for Holme’s personal expenses, including over $2 million in luxury items charged to credit cards.
In a separate but equally troubling case, Steven Taylor is facing seven counts of bank fraud, one count of aggravated identity theft, and one count of money laundering. He is accused of using fabricated bank statements to secure loans and lines of credit for his own real estate business. Notably, it is alleged that Taylor misrepresented his intended use of properties in various neighborhoods within Los Angeles, including Silver Lake, Los Feliz, and Cheviot Hills.
In one instance, following a fraudulent loan acquisition, Taylor purchased a Cheviot Hills property for $11.2 million and later resold it to a nonprofit housing developer, Weingart Center, for a staggering $27.3 million. This transaction reportedly occurred without disclosing the resale to the lender, further underscoring the depth of the alleged fraud. Throughout these fraudulent activities, Taylor is reported to have secured nearly $4 million in unsecured credit from two different lenders, using deceptive practices.
The acting U.S. Attorney for the region highlighted that these prosecutions are part of a broader initiative aimed at combatting fraud in funding related to homelessness initiatives. Officials have indicated that accountability for such misconduct is a top priority, with ongoing efforts to investigate other possible offenders involved in the misuse of homeless assistance funds.
Both defendants face potential decades in federal prison if found guilty of the charges leveled against them. Local officials, including Mayor Karen Bass, have reiterated a steadfast commitment to maintaining integrity in government programs, emphasizing a zero-tolerance policy for corruption and fraud. The investigations are currently ongoing, and authorities are actively seeking additional information from the public regarding any other potential misuses of funds related to homeless assistance programs.
As this situation unfolds, both the local community and state officials await further developments while reinforcing their commitment to combating fraud and ensuring that assistance for the homeless population is used as intended.
Deeper Dive: News & Info About This Topic
HERE Resources
Los Angeles Developers Charged with Fraud in Homelessness Funds Case
Los Angeles Executives Charged in Homelessness Fraud Scheme
Additional Resources
- NBC Los Angeles
- Wikipedia: Homelessness in the United States
- Los Angeles Times
- Google Search: Homeless Assistance Fraud
- Fox Business
- Google Scholar: Homeless Funding Fraud
- CBS News Los Angeles
- Encyclopedia Britannica: Homelessness
- KTLA
- Google News: Homeless Funds Misuse
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
