U.S. Atty Bill Essayli Busts California Homeless Fraudster
‘California is the epicenter of Fraud’
By Katy Grimes, January 23, 2026 4:39 pm
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
A California native and Navy mom, Katy lives in Sacramento, CA.
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This is excellent news. Love how the Gov’s Press Box Theater Kids “took umbrage.” That’s all they DO is take umbrage. Especially when something actually productive and good and just happens. That REALLY gets their goat. Also appreciated Bill Essayli’s reply, which nailed it, by mapping out exactly HOW all roads lead to the governor; that is, his responsibility, or rather lack of it.
And there’s more to come! Good! It’ll be a BIG iceberg for sure, but now we’re getting somewhere.
Oh, wow, this update is a wonderful thing. These guys in the Trump Admin such as Vance and Bessent and others really have it together. Look how the latest news of these investigations is being coordinated on the fly, rolled out one after another, and presented in interviews by the officials themselves to a justice-starved American public. Such a boost to hear Vance. Crack that iceberg!
““TOTALLY FALSE to imply the Governor was responsible for this fraud! Fraud is unacceptable”
I must be mistaken. Which Governor are talking about. I thought Girly Gavin Newsom was the Governor and ran this state. He tells everyone he is running the state.
EXACTLY!
Gavin’s in charge of the state. This happened on his watch, stop defending people stealing our money.
Did you misunderstand? No one is defending Gavin here, that’s for sure. Never have.
All roads should lead to AG Rob Bonta, who is nowhere to be found, while filing 52 lawsuits against the Trump administration. He also “missed” on the fraudster right in Newsom’s office, as Newsom’s former chief of staff was arrested by the Feds, and he has never been able to find any voter fraud in California.
He is not a real attorney general.
How scumbag newscum have time for a pod cast when he’s so busy fight crime at night !! Oh that’s right he’s at the French laundry!!!
Gavin chickens are coming home to hopefully arrest his lying arse!!
Let’s see if auntie stock trader Pelosi is on the list too!!
To be fair I won’t hold my breathe w Bondi as she has arrested no one to date and done absolutely nothing in my eyes!!
Bonta running for AG? Something smells here!
Soros and DiNiro money in play or voter ballot manipulation?
Newsom and Bonta should be but will never be put in jail.
The good news is that this draining of the swamp is what I voted for!
Newsome and Bonta aside, and I agree with everyone that has commented. I am wondering what character flaws does it take to let a person sleep at night..knowing that the money you have in the bank was embezzled and could have helped a lot of people. It never ceases to amaze me. The thief should go away for along time. But you’re right. ALL roads lead to NEWSUM and BONTA. DADS HOME!!