(NewsNation) — Federal officials have discovered an alleged multimillion-dollar scheme where fraudsters in Los Angeles misused funds allocated to help the homeless, NewsNation has learned.
According to U.S. Attorney Bill Essayli, taxpayer funds provided to nonprofits and developers to address homelessness in the city were instead spent on luxury vacations, vehicles, homes and nightclub expenses.
“One guy opened a nightclub in Inglewood,” Essayli told NewsNation’s Brian Entin. “Yeah, the nightclub.”
Alleged fraudsters sold properties back to the city for double the price: Feds
In Los Angeles’ Cheviot Hills neighborhood, real estate developer Steven Taylor purchased a property for $11 million before quickly reselling it to the City of Los Angeles for $27 million. The property was supposed to be homeless housing; instead, it’s still empty and under construction…