The Los Angeles Homeless Services Authority (LAHSA) laundered more than $75 million for charlatans, cheaters, and thieves, at least one of whom used more than $1 million of the more than $110 million in homeless funds he received to open a nightclub.
And it’s no wonder that Los Angeles Mayor Karen Bass, who’s running for reelection, smelled trouble and quit her membership in and control over LAHSA before the feds announced indictments on Wednesday.
Karen Bass suddenly stepped down from LAHSA a few days ago. Today, HUD Secretary Turner just revealed that $75M of fraud was laundered through LAHSA.
Probably nothing! pic.twitter.com/u3TfwvVfpl https://t.co/13SsIa94XT
— Spencer Pratt (@spencerpratt) September 16, 2026
Nearly a year ago, the guy who should be the U.S. attorney in the Central District of California but isn’t thanks to Sen. John Thune (R-S.D.) announced indictments against some major players in a massive fraud against taxpayers who have funded the dysfunctional homeless industrial complex in the city of Los Angeles.
Here’s what Bill Essayli said at the time at a presser announcing the indictments of two people who worked with Los Angeles-approved homeless nongovernmental organizations (NGOs):
[W]e will be seeking charges against anyone who steals this money or misrepresents how it’s being used. This also includes public officials who may have enriched themselves at taxpayers expenses contributing to the fraud that we’re seeing. We’re looking at everyone. If you steal money or allow it to be stolen, we will find you and we will prosecute you [emphasis added].
Well, folks, it looks like it’s getting a little hot in here at the old Los Angeles Homeless Services Authority (LAHSA), which coordinates housing and social services for the homeless in Los Angeles County. Though LAHSA is a countywide agency, Karen Bass has nearly full control over its board and appoints its chair.
Allow me to amend and extend my remarks.
Karen Bass used to have nearly full control over the members and chairman. Karen quit the other day when she undoubtedly caught wind of another set of indictments dropping like a dumb bomb on her buddies in the Los Angeles homeless industrial complex.
You’ll recall the failed mayor, who has the audacity to run for reelection, helped Gov. Gavin Newsom (D-Calif.) load $24 billion into a wind machine and point it in the general direction of the state’s favored homeless NGOs. It was liar’s poker time, and nobody at the city and county apparently ever called the cheaters to make them show their hands. Now people are indicted and likely are going to federal prison.
On Wednesday, the aforementioned Essayli; the U.S. Department of Justice’s (DOJ) chief lawman in charge of fighting fraud, Colin McDonald; representatives from the U.S. Department of Housing and Urban Development (HUD), Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS), and DOJ; and local District Attorney Nathan Hochman gathered in L.A. to announce the names of the latest three people who’ve been caught stealing other people’s money. One dude had the gonads to use more than $1 million of homeless funds to open a nightclub … and a bingo hall.
Yes, well, we know there’s no accounting going on over at the L.A. homeless industrial complex, and there’s no accounting for taste, either.
However, what you should know is that the three people indicted on Wednesday stole more than $118 million between them, and LAHSA laundered $75 million of it.
Every felon needs a banker.
Honestly, it’s a jump ball as to who should be punished harder: the woman who allegedly took bribes and kickbacks from another arrestee, who appears to have dropped a dime on the rest of them, while working for an organization allegedly vetting these charlatans, or the dude who opened the club.
We’ll go with the guy who is alleged to have bilked the taxpayers of $110 million to go toward homeless housing and opened the Six Seven Five Lounge, where every week the taxpayers provide a place to have Soul Food Sunday and Noche Latina Thursdays. Aren’t we generous?
