Discern Report Federal investigators have unveiled a multimillion-dollar fraud scheme tied to California’s beleaguered homeless housing initiatives. Acting United States Attorney Bill Essayli announced charges against two real estate developers who allegedly siphoned off taxpayer dollars meant to combat the homelessness crisis. Funds from California’s Homekey program—fueled by billions in federal and state money—were diverted for personal gain, leaving the homeless on the streets while insiders lined their pockets.
The announcement came during a press conference in Los Angeles, where Essayli pulled no punches: “Accountability for the misuse of billions of tax dollars intended to combat homelessness starts today. The two criminal cases announced is only the tip of the iceberg and we intend to aggressively pursue all leads and hold anyone who broke any federal laws criminally liable.”
Flanked by representatives from the FBI and IRS Criminal Investigation, Essayli detailed two separate but equally egregious cases of fraud, exposing the utter lack of oversight in Governor Gavin Newsom’s administration.
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