US EditionFederal Investigation Leads to Arrest, Charges in Affordable Housing Funding Fraud in LA
Two men face federal charges for misusing $26 million in homelessness and affordable housing funds, with allegations including luxury spending and fraudulent real estate deals, officials said.
- On Thursday, federal prosecutors announced the arrest of Cody Holmes, 31, former CFO of a downtown Los Angeles-based affordable housing developer, on a mail fraud charge tied to $26 million from the California Department of Housing and Community Development.
- Project Homekey funds flowed after paperwork that prosecutors now allege was false, as court papers say state housing officials paid millions after documents claimed Shangri-La Industries and Cody Holmes could complete projects.
- Court papers say more than $2.2 million moved from Shangri-La to a Holmes-controlled account, and Steven Taylor obtained nearly $4 million in unsecured lines from two victim lenders to flip homes.
- Prosecutors warned the cases carry lengthy potential prison terms, with Taylor facing federal maximums, and Mayor Karen Bass said, `We’re working with the U.S. Attorney’s office to ensure that anyone who engages in fraud against the city will face the full force of the law and my administration’s unwavering commitment to accountability.`
- The charges leave several affordable-housing projects incomplete and under scrutiny, including the Thousand Oaks Homekey project; Acting U.S. Attorney Bill Essayli said prosecutors will aggressively pursue additional leads.
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2 LA County developers charged in fraud cases involving funds earmarked for homeless housing
Two L.A. County real estate developers who prosecutors say defrauded lenders are facing unrelated federal criminal cases for allegedly taking advantage of funds allocated to assist the homeless.
LA-area men charged in separate housing fraud cases
LOS ANGELES (KESQ) - The former chief financial officer for a downtown Los Angeles-based affordable housing developer and a Brentwood man who prosecutors say defrauded lenders are facing unrelated federal criminal cases for allegedly taking advantage of funds allocated to assist the homeless, officials announced today. Cody Holmes, 31, of Beverly Hills, was arrested
Beverly Hills Man Arrested, Brentwood Developer Charged in Homeless Housing Fraud
Federal authorities arrested a Beverly Hills man and charged a Brentwood developer in separate cases involving fraud in public homelessness funds, officials announced today. Cody Holmes, 31, former chief financial officer of downtown Los Angeles affordable housing developer Shangri-La Industries LLC, was arrested on mail fraud charges. Steven Taylor, 44, faces bank fraud, identity theft […] The post Beverly Hills Man Arrested, Brentwood Develope…
Beverly Hills Man Arrested, Brentwood Man Charged in Separate Criminal
Federal law enforcement today announced the arrest of the former chief financial officer at a downtown Los Angeles-based developer of affordable housing and criminal charges against a Brentwood man who defrauded lenders to aid his property-flipping business, including a Cheviot Hills home that he sold to a homeless housing developer for more than double his original purchase
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