U.S. Atty Bill Essayli Busts California Homeless Fraudster

BREAKING: “California is the epicenter of Fraud, and the federal government under the leadership of @AGPamBondi has begun providing accountability to taxpaying citizens. More to come!,” Bill Essayli, First Assistant U.S. Attorney for the Central District of California announced on X today.

Fox News is reporting that Officials seized a man’s $125,000 Range Rover and Los Angeles mansion, after he was arrested for allegedly stealing millions in taxpayer funds meant to house and feed the homeless in Los Angeles. Alexander Soofer has been charged with wire fraud.

Soofer stole approximately $23 million, Fox reported.

Soofer was contracted with the city and county of Los Angeles, to house and feed up to 600 homeless people. But instead, spent millions on a luxurious life.

Eric Daugherty posted to X:

“Governor 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.’ HE IS NOT THE ONLY ONE. MORE fraud investigations are ongoing. The Trump DOJ confirms he spent the money on: – $125K Land Rover – Mansion – Second home in Greece – Luxury vacations – Designer clothes – Private schools – California is the fraud capital of America. We need mass audits and arrests.”

🚨 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"

HE IS NOT THE ONLY ONE. MORE fraud investigations are ongoing.

The Trump DOJ confirms… pic.twitter.com/KlIcdqqJuA

— Eric Daugherty (@EricLDaugh) January 23, 2026

Shortly after that was posted to X, Governor Newsom’s Press Office took umbrage:

“TOTALLY FALSE to imply the Governor was responsible for this fraud! Fraud is unacceptable — and unlike Donald Trump, who pardons fraudsters, @CAGovernor 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.”

TOTALLY FALSE to imply the Governor was responsible for this fraud!

Fraud is unacceptable — and unlike Donald Trump, who pardons fraudsters, @CAGovernor Gavin Newsom demands anyone who steals taxpayer dollars be prosecuted to the fullest extent of the law.

This case was… https://t.co/ZnmGrLa0Lv

— Governor Newsom Press Office (@GovPressOffice) January 23, 2026

And then, First Assistant U.S. Attorney Bill Essayli let Gov. Newsom and his press flaks have it:

“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. No one arrested this defendant until President Trump and @AGPamBondi 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.”

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.

No one arrested this defendant until President Trump and @AGPamBondi appointed me to investigate and charge… https://t.co/17F09fnvqp

— F.A. United States Attorney Bill Essayli (@USAttyEssayli) January 23, 2026

As the Globe has reported numerous times, “Remember, Gov. Gavin Newsom has spent (blown) $37 billion on homelessness since 2019, according to the California Legislative Analyst’s Office.”

As governor, Newsom spent $37 billion and increased the state’s homeless population by 24%, and raise violent crime to 31% over national average, Michael Shellenberger shared in May.

Gavin Newsom is the first Governor to make homelessness a way of life… and not just for those living on the streets. Newsom has allowed homeless drug addicts live on the streets since 2019, where they in fact “languish outdoors without shelter or support.”

And very likely, many of those assigned and paid to feed and house them, helped themselves to the abundant taxpayer funding.

This is the tip of the iceberg here in California.

Vice President JD Vance thinks so:

Vice President JD Vance says about $7,000,000,000 of fraud has been discovered in the state of California “How many more arrests do we think we’re going to see nationwide?” “I think we have a fraud problem that is much worse in California than it is in Minnesota.” “I was talking actually to our small business administrator. I think she’s found probably half a billion dollars of fraud in Minneapolis and the broader Minnesota area.” “I think she’s found $7 billion with the fraud in California…”

FAFO, indeed.

NEW: Vice President JD Vance says about $7,000,000,000 of fraud has been discovered in the state of California

“How many more arrests do we think we're going to see nationwide?”

“I think we have a fraud problem that is much worse in California than it is in Minnesota.”

“I was… pic.twitter.com/6eoASBkDDp

— Collin Rugg (@CollinRugg) January 23, 2026