Bass said her administration is working “to ensure that anyone who engages in fraud against the city will face the full force of the law”
Los Angeles Mayor Karen Bass pledged a “zero tolerance” stance on corruption in the city’s homelessness programs Friday, Oct. 17, 2025, in response to federal arrests and charges alleging the misuse of public funds for housing projects.
Bass’s statement came a day after authorities detained Cody Holmes, 31, of Beverly Hills, on a mail fraud charge tied to a $25.9 million state grant for homeless housing. Holmes, ex-CFO of downtown L.A.-based Shangri-La Industries LLC, allegedly submitted fake bank statements claiming $160 million in nonexistent accounts to secure the October 2022 Project Homekey funding for a Thousand Oaks motel conversion. Prosecutors say some funds were diverted to cover over $2 million in Holmes’ American Express bills, including luxury purchases, from November 2022 to May 2023. He faces up to 20 years in prison and is set for a downtown L.A. court appearance…