Published on: January 24, 2026, 01:00h.
Updated on: January 24, 2026, 01:00h.
- A man leading a $23 million scheme involving taxpayer funds designated for homelessness reportedly squandered some of these funds in elite Las Vegas casinos.
- The Department of Justice (DOJ) and various media outlets have not disclosed the names of the casinos involved.
Alexander Soofer, the California individual accused of orchestrating a $23 million fraud centered around taxpayer assistance meant for the homeless, is claimed to have funneled portions of these illicit earnings into extravagant Las Vegas casino resorts.
Soofer, aged 42, hailing from the affluent Los Angeles neighborhood of Westwood, was apprehended on Friday facing charges of wire fraud. According to the DOJ, his charity, Abundant Blessings, was a front that siphoned off $23 million in taxpayer money aimed at aiding the homeless in Los Angeles. The Justice Department indicated that he misappropriated at least $10 million for personal use, which funded an opulent lifestyle, including stays at unidentified luxury hotels in Las Vegas.
“Soofer allegedly prioritized his personal greed over genuine respect for the law,” stated Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI, alongside our law enforcement partners, is committed to investigating and ensuring accountability for individuals like Soofer, who blatantly flouted our laws for personal gain at the expense of the public.”
The individual’s financial misconduct extended to utilizing some of the $10 million he allegedly misappropriated for a down payment on a $7 million property in Westwood, extensive upgrades to that home, private air travel, private education for his children, and the acquisition of a $475,000 vacation home in Greece, as noted by the DOJ.
California’s Fraud Epidemic, Per AUSA
The allegations against Soofer surface amidst heightened discussions about California’s struggles to monitor $24 billion in homelessness-related expenditures, coinciding with inquiries in Minnesota concerning a potential multi-billion dollar fraud involving dubious daycare and healthcare facilities.
In light of the Minnesota issue, there has been speculation that this state is merely the “tip of the iceberg” in taxpayer fund mismanagement, raising concerns that similar situations might be more severe in California. While state officials deny these claims and attempt to credit their efforts for uncovering Soofer’s actions, the DOJ disagrees.
“California has become synonymous with rampant fraud, waste, and misuse of taxpayer dollars,” remarked First Assistant United States Attorney Bill Essayli. “The state has funneled billions towards addressing homelessness, yielding minimal results and scant oversight. Thankfully, federal audits into California’s expenditures have commenced, and today’s case exemplifies how fraudsters have embezzled millions from taxpayers—funds that should have benefitted those in dire need instead lined the pockets of individuals living lavishly.”
Reports from the DOJ indicate that Soofer even purchased a $125,000 Range Rover with the misappropriated funds. If convicted, he could face a maximum sentence of 20 years in prison.
Where Did Soofer Wager and Stay in Las Vegas?
The specifics remain uncertain. Currently, the DOJ is withholding this information, but it can be reasonably assumed that only a select few Las Vegas Strip casino hotels would have met Soofer’s luxurious standards.
This situation implies that he may be just another addition to the growing list of California fraudsters who have funneled their ill-gotten gains into Las Vegas.