The arrest of a Los Angeles charity executive accused of stealing millions intended to help the homeless has ignited a public social media dispute between California Gov. Gavin Newsom’s communications team and the U.S. Department of Justice.
Federal prosecutors and Los Angeles County District Attorney Nathan Hochman allege that Alexander Soofer, 42, the CEO of Abundant Blessings, used taxpayer funds to finance an extravagant lifestyle. Authorities say the charity received $23 million to provide housing and meals for homeless individuals across Los Angeles County.
Prosecutors claim that while Abundant Blessings was contracted to serve three nutritious meals daily, clients instead received low-cost food such as ramen noodles, beans and breakfast bars. Investigators also allege Soofer owned the properties where homeless individuals were housed — a direct violation of the organization’s contract with the Los Angeles Homeless Services Authority.
The probe began in 2024 after the office of L.A. City Controller Kenneth Mejia received a hotline tip, officials said.
Alexander Soofer
Alexander Soofer, 42, is shown in a booking photo after prosecutors announced his arrest on wire fraud charges tied to an alleged homelessness funding scheme. (F.A. United States Attorney Bill Essayli via X)
Shortly after prosecutors announced the charges Friday, Newsom’s press office responded on X to claims from conservative journalist Eric Daugherty, who blamed the alleged fraud on the governor’s leadership.
“HOLY SMOKES. Gavin Newsom’s California just got CAUGHT in MASSIVE homelessness fraud, dishing tens of millions of dollars to a fraudster who used taxpayer funds to ‘live a luxurious life,’” Daugherty wrote.
Newsom’s communications team fired back:
“TOTALLY FALSE to imply the Governor was responsible for this fraud! Fraud is unacceptable — and unlike Donald Trump, who pardons fraudsters, Gavin Newsom demands anyone who steals taxpayer dollars be prosecuted to the fullest extent of the law. This case was uncovered by local investigators working with law enforcement — exactly the kind of accountability and oversight the state has pushed for.”
That response prompted a sharp rebuttal from First Assistant U.S. Attorney Bill Essayli, who helped announce the charges against Soofer.
Gov. Newsom’s office responded on X to accusations that he enabled alleged fraud by a homeless services charity CEO. Jan. 23, 2026. (X)
“WRONG. You and the California legislature facilitated this fraud by handing out billions in tax dollars to these nonprofits with zero vetting and zero state oversight,” Essayli wrote. “No one arrested this defendant until President Trump and Attorney General Pam Bondi appointed me to investigate and charge fraud offenses in California. California could have brought charges before our arrest today but did not. In fact, California has not brought any meaningful prosecutions for homeless fraud. All you have done is hand out money to fraudsters and illegal immigrants. Taxpaying citizens deserve better.”
Soofer is charged with 11 felony counts of conflict of interest, two felony counts of offering false evidence and five felony counts of forgery. If convicted on all charges, he could face up to 17 years and six months in prison.
Last year, Newsom established a task force and directed local governments to clear homeless encampments, citing public safety concerns. At that time, the governor said California had spent more than $24 billion addressing homelessness since he took office in 2019.