Homelessness Fraud Task Force Announced in L.A. by U.S. Attorney Bill Essayli
U.S. Attorney Bill Essayli on Tuesday announced the formation of a new federal task force to root out fraud, corruption, and misuse of funds intended to address homelessness in seven Southern California counties.
Essayli, a former Republican State Assemblyman from the 63d District in Riverside County, was the state legislator behind AB 844, the bill that would have overturned a 2013 law that allows California students to use locker rooms and play on sports teams that reflect their gender identity, which failed in committee after such MAGA figures as Matt Walsh came to California to testify in favor of it. The former assemblyman accepted President Donald Trump’s appointment on April 1.
The Homelessness Fraud and Corruption Task Force will focus on investigating alleged abuse and misappropriation of taxpayer dollars and private donations tied to homelessness programs within the Central District of California. This region includes Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura counties and has approximately 20 million residents.
The multi-agency task force will include federal prosecutors from the U.S. Attorney’s Office’s Major Frauds Section, Public Corruption and Civil Rights Section, and Civil Fraud Section. It will work in partnership with the FBI, the Department of Housing and Urban Development Office of Inspector General (HUD-OIG), and IRS Criminal Investigation.
“California has spent more than $24 billion over the past five years to address homelessness,” Essayli said in a statement. “But officials have been unable to account for all the expenditures and outcomes, and the homeless crisis has only gotten worse. Taxpayers deserve answers for where and how their money has been spent.”
The announcement follows a court-ordered audit last month, which criticized homelessness services in Los Angeles County as “disjointed,” citing poor data quality, inadequate integration, and lax financial oversight of service contracts.
Los Angeles County alone has more than 75,000 unhoused individuals, including over 45,000 within the city of Los Angeles. The total homeless population across the remaining six counties exceeds 20,000, underscoring the scale of the crisis and the need for accountability.
During the COVID-19 pandemic, Los Angeles County received $100 million in federal emergency aid for homelessness. More recently, HUD awarded more than $200 million in additional funding to combat homelessness in the area.
Essayli said the task force would prioritize investigations into federally funded state and local programs and fraud schemes targeting private donations meant to support homeless services. “If we discover any federal laws were violated, we will make arrests,” Essayli said. “If state and local officials cannot provide proper oversight and accountability, we will do it for them.”
“Any exploitation of the homelessness crisis via the theft of funds intended to improve conditions cannot and will not be tolerated,” said Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office.
“This collaboration reflects our shared commitment to protecting vulnerable communities,” said Robert Lawler, Special Agent in Charge at HUD-OIG.
“IRS Criminal Investigation is uniquely poised to track any funds granted through various federal programs,” added Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation in Los Angeles.
