LOS ANGELES
Federal prosecutors announced Thursday two criminal cases targeting fraud in California’s public homelessness programs.
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Cody Holmes, 31, of Beverly Hills, former CFO of Shangri-La Industries, was arrested on charges of mail fraud. Prosecutors allege Holmes submitted fake bank records and balance sheets to secure $25.9 million in state “Homekey” grant funds intended for homeless housing in Thousand Oaks. Investigators say he diverted at least $2.2 million for personal credit card bills and luxury purchases. Mail fraud carries a maximum 20-year federal prison sentence.
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Steven Taylor, 44, of Brentwood, was indicted on seven counts of bank fraud, aggravated identity theft, and money laundering. From 2019 to 2025, Taylor allegedly used fake bank statements and false claims about cash holdings to obtain millions in loans and credit lines. He bought and flipped properties across Los Angeles, including a Cheviot Hills home he purchased with fraudulent financing for $11.2 million and resold to a homeless housing developer for $27.3 million. If convicted, he faces up to 30 years per bank fraud count, plus additional time for money laundering and identity theft.
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Both men are presumed innocent until proven guilty.
Authorities say both schemes siphoned funds meant for housing California’s homeless population. “This is only the tip of the iceberg,” said Acting U.S. Attorney Bill Essayli, pledging aggressive pursuit of fraud tied to homelessness programs.
The FBI, IRS Criminal Investigation, and the Federal Housing Finance Agency Office of Inspector General are investigating the cases.