A recent report of X is making waves as it discloses that the City of Long Beach, California, terminated the nonprofit overseeing the bulk of its homeless shelters following a city audit with red flags for fraud. ‘First to Serve’ managed more than 400 shelter beds and had a contract that could pay it up to $14 million a year. The news prompted a discussion among netizens questioning the city’s checks and balances on homeless spending.
The City of Long Beach has fired the nonprofit running most of its homeless shelters after signs of fraud from a city audit“The company, a nonprofit called First to Serve, oversaw more than 400 shelter beds in Long Beach under a contract worth between $13-$14 million a year”… pic.twitter.com/Y9VYFD9lti
— Wall Street Apes (@WallStreetApes) April 6, 2026
The post appeared on X from the account @WallStreetApes and has drawn significant discussion online. According to the post, the City of Long Beach, California, terminated its contract with the nonprofit organization ‘First to Serve’, which had managed a majority of the city’s homeless shelters. The decision followed a city audit that reportedly revealed irregularities suggesting possible fraud in the nonprofit’s operations.
According to the post, ‘it’ Details ‘First to Serve’ managed a shelter bed contract of 400+ beds for roughly $13-$14 million annually. A temporary provider had been authorized to operate with no public debate, with officials committing to finding a long-term provider. The city has spent nearly $70 million on homeless services since the year 2020…