(The Center Square) — California’s new U.S. attorney announced Tuesday he is investigating billions of dollars of homeless spending for fraud and corruption, and promised to arrest individuals found to have violated federal law.
“California has spent more than $24 billion over the past five years to address homelessness,” said newly appointed U.S. Attorney Bill Essayli. “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 hard-earned money has been spent,” continued Essayli. “If state and local officials cannot provide proper oversight and accountability, we will do it for them. If we discover any federal laws were violated, we will make arrests.”
Essayli’s task force will include federal assistance from the FBI, the IRS, and the Department of Housing and Urban Development.
Essayli’s announcement cited a court-ordered audit of the Los Angeles Homeless Services Agency that found the agency systematically paid out funds without verifying services had been provided, and that “insufficient financial accountability led to an inability to trace substantial funds.” Essayli was pictured with the judge who ordered the audit — U.S. District Judge David Carter — touring LA’s infamous Skid Row before the announcement.
Los Angeles County has since voted to defund LAHSA, in a move that was strongly opposed by Los Angeles Mayor Karen Bass, who downplayed the audit and is facing a recall effort for her wildfire response and what critics call her poor city management.
Essayli’s investigation will cover the seven counties of California’s Central District, which includes the counties of Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara and Ventura.
Los Angeles County contains more than 75,000 homeless individuals, including more than 45,000 in the city of Los Angeles. The other six counties have over 20,000 homeless individuals, meaning the investigation covers roughly half of the homeless individuals in California, or about one in eight of the nation’s homeless.
