Two Los Angeles-area men faced federal charges in separate criminal cases as they are both accused of fraudulently acquiring public funds that were allocated to address homelessness and build affordable housing, the Department of Justice (DOJ) announced Thursday.
Cody Holmes of Beverly Hills was in custody as of Thursday after he allegedly used fake bank records to receive nearly $26 million from the California Department of Housing and Community Development (HCD) for Shangri-La Industries LLC, for which he previously served as a CFO.
The money from Project Homekey was supposed to be used to build affordable housing in Thousand Oaks, but instead, Holmes, 31, spent the money to pay credit card bills and purchase good at luxury retailers, the DOJ alleged.
“Even though the developer received all the money from the state, the developer did not complete the construction of the Thousand Oaks project,” Acting U.S. Attorney Bill Essayli said during a news conference Thursday. “Essentially, he stole the money.”
In a separate case, Steven Taylor, a developer and real state agent, of Brentwood was released on a $3.6 million bond, the DOJ said, after he was charged with bank fraud, identity theft and money laundering.
Federal investigators said Taylor also used fake bank records to obtain loans and lines of credit. The 44-year-old is accused of using the fraudulently obtained funds to flip a Cheviot Hills home and selling it to a homeless housing developer for more than double his original purchase.
“Taylor had contracted to sell the property, which he acquired for only $11 million, fraudulently, to Weingart, a homeless housing developer, that purchased the property for a whopping $27 million in a transaction that was hidden from the victim lender and others,” Essayli added.
Akil Davis, FBI’s assistant director in charge of the Los Angeles Field Office. said Taylor also tried to enrich his business in high-end neighborhoods of Los Angeles.
“Taylor’s actions not only misled banks, but also took advantage of the city and state’s efforts to combat the homelessness crisis, Davis said.
Hellbound and Down 