“The Big Money Show” panel discusses President Donald Trump’s efforts to crack down on homeless encampments across the United States.
As part of a special federal task force investigating where California’s $24 billion for homeless people went, the Justice Department revealed its preliminary findings Thursday, announcing new criminal charges against two Los Angeles-area real estate developers who the federal government says misused about $50 million, a combination of federal, state and local dollars intended for homelessness.
“This is not a victimless crime,” said Akil Davis, assistant director in charge of the FBI in Los Angeles. “Because the millions of dollars lost could have been used to house the homeless or other local priorities funded by California taxpayers.”
Cody Holmes, 31, of Beverly Hills, was arrested and charged with federal fraud Thursday morning for allegedly receiving $25.9 million in grant money intended for a homeless housing project that was never built.
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A person walks amid large piles of trash and a large homeless encampment as business owners continue to complain about the large and growing trash piles near E. 14th Street in downtown Los Angeles on September 25, 2025. (Allen J. Schaben/Los Angeles Times via Getty Images)
According to court documents, the California Department of Housing and Community Development paid Shangri-LA Industries LLC nearly $26 million in October 2022 to purchase, build and operate homeless housing in Thousand Oaks, California.
The government alleges that Holmes, then Shangri-LA’s chief financial officer, submitted false banking documents and balance sheets to gain approval for the grant. Prosecutors say Holmes lived a lavish lifestyle and used some of the homeless funding to pay for $2 million in American Express cards that included purchases at “well-known luxury retailers.”
“If you steal money or allow it to be stolen, we will find you and we will prosecute you,” said Bill Essayli, Acting U.S. Attorney for the Central District of California.
Fox News has contacted Shangri-LA for comment.
In another case, federal investigators arrested Steven Taylor, 44, of Los Angeles, and charged him with seven counts of bank fraud, one count of aggravated identity theft and one count of money laundering.
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The indictment alleges that Taylor provided false bank statements and records to obtain properties throughout Los Angeles. Most recently, prosecutors said he was involved in a 2023 scheme in which he provided false documents to purchase property in the Cheviot Hills neighborhood of Los Angeles for $11 million. He then quickly resold the property for $27 million.
Tents for homeless people are seen on August 6, 2023 on a sidewalk on Skid Row in Los Angeles, California. (FREDERIC J. BROWN/AFP via Getty Images)
At the time of purchase, the building was used as a senior residence. Federal prosecutors allege that Taylor “falsely represented” that he intended to renovate and operate the Cheviot Hills property himself, but was already “under contract to sell the Shelby property.”
The DOJ says the buyer of the property is a well-known nonprofit organization in Los Angeles called “Weingart,” which used federal and local funds to make the purchase. Essayli says Weingart is part of the investigation.
Weingart’s longtime CEO is former Democratic California state senator Kevin Murray. Murray was not directly named or charged. Fox has contacted Weingart and Murray for comment.
After the charges were announced, Los Angeles Mayor Karen Bass issued a statement saying in part: “My administration has zero tolerance for corruption – period. We are 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.
Karen Bass, Mayor of Los Angeles. (Robert Gauthier/Los Angeles Times via Getty Images)
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In April of this year, Essayli announced the launch of a Homeless Fraud and Corruption Task Force, aimed at investigating how the state spent $24 billion between fiscal years 2018 and 2023.
“California state officials have failed to provide meaningful oversight over who received most of these funds, and they have had little to no response to the public’s demand for accountability. Well, that accountability starts today,” Essayli said.
