News Summary
Federal charges have been filed against two individuals in Los Angeles for allegedly committing fraud involving public funds meant for homelessness initiatives. Steven Taylor faces multiple counts of bank fraud and money laundering, while Cody Holmes is accused of submitting false documents to secure $26 million for a housing project, which was not used as intended. The investigation points to a broader scrutiny of homelessness-related funds in the city, prompting calls for increased transparency and accountability.
Los Angeles – Federal charges have been filed against two men in connection with fraud involving public funds intended for homelessness initiatives. Steven Taylor, a 54-year-old resident of Brentwood, and Cody Holmes, a 31-year-old former CFO of Shangri-La Industries, are facing serious allegations that threaten the integrity of the city’s efforts to combat homelessness.
Steven Taylor is charged with seven counts of bank fraud, one count of aggravated identity theft, and one count of money laundering. Prosecutors allege that Taylor engaged in fraudulent activities by using fake bank statements to secure loans for various real estate transactions. Notably, he is accused of flipping properties for profit, including one that was sold to a homeless housing developer at an inflated price.
Cody Holmes faces charges for reportedly submitting false financial documents to obtain close to $26 million intended for a homelessness housing project. Instead of utilizing the funds for construction as intended, it is alleged that Holmes used the money for personal expenses, including paying luxury credit card bills. Federal prosecutors have indicated that Holmes and Shangri-La Industries exaggerated their financial conditions to access state funds.
The charges come amidst ongoing scrutiny of Los Angeles’ homelessness programs. City Controller Kenneth Mejia has been investigating these programs for nearly three years and encountered challenges while monitoring Mayor Karen Bass’ Inside Safe program, which is designed to transition unhoused individuals into hotels and motels.
Mejia proposed a court-ordered audit to gain a clearer understanding of these programs, which was eventually awarded to a private firm at a cost nearing $3 million to taxpayers. Nevertheless, Mejia has yet to deliver a promised focused audit pertaining specifically to the Inside Safe program.
In a further effort to ensure compliance with legal commitments to clear encampments and provide adequate homeless beds, U.S. District Judge David O. Carter appointed attorney Daniel Garrie as a third-party monitor. Mejia was designated by Judge Carter to act as a liaison between Garrie and the city, praised for his familiarity with homelessness funding.
Mayor Karen Bass’ office claims that she collaborates effectively with Mejia, despite ongoing concerns regarding his access to auditing city programs. Bass has assured the public that there is ample oversight for the Inside Safe initiative and referenced multiple existing assessments aimed at evaluating the program.
As part of his efforts to strengthen his authority, Mejia is advocating for amendments to the city’s Charter Reform Commission to clarify his auditing powers over programs managed by other elected officials, suggesting a need for greater transparency within the city’s homelessness initiatives.
In light of the recent federal charges against Taylor and Holmes, Los Angeles Mayor Karen Bass has affirmed her administration’s commitment to a “zero tolerance for corruption” policy, emphasizing collaboration with federal authorities to ensure accountability for any misuse of homelessness funds. The FBI and U.S. Attorney’s Office have also expanded their investigations into homelessness-related fraud across Southern California, identifying billions of dollars of public money that may have been misappropriated.
The charges against Taylor and Holmes signify a broader investigation aimed at curbing the misuse of funds established to address homelessness and holding those responsible accountable for their actions. As Los Angeles grapples with its homelessness crisis, the outcomes of these cases may carry significant implications for the future of the city’s housing initiatives.
Deeper Dive: News & Info About This Topic
HERE Resources
Los Angeles Takes Action Against Homelessness Fraud
Los Angeles Forms Task Force to Tackle Homelessness Fraud
Additional Resources
- Los Angeles Times
- Wikipedia: Homelessness in the United States
- NBC LA
- Google Search: Los Angeles homelessness fraud
- LAist
- Google Scholar: homelessness funding fraud
- ABC7
- Encyclopedia Britannica: Homelessness
- FOX LA
- Google News: homelessness fraud Los Angeles
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
