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January 7, 2026 at 6:20 pm

Federal Prosecutor Warns More Arrests Coming After ‘Massive’ Fraud Found in California Homeless Services: ‘We followed the money’…

California_homeless_tents_seen_skid_row
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by Annie Gaus at New York Post

A federal prosecutor probing corruption in California’s homeless services promised that more arrests are coming after two real estate executives were busted for allegedly bilking taxpayers out of millions.

First Assistant US Attorney Bill Essayli told The Post a coalition of federal agencies has uncovered wrongdoing on a staggering scale as he blasted Democrats as “colossal failures” for letting corruption fester for years.

“We followed the money and very quickly we uncovered massive amounts of fraud,” Essayli said.

Homeless tents are seen in the Skid Row district of Los Angeles.
A large homeless encampment in LA. Ringo Chiu for NY Post

The recent indictments of housing executives Cody Holmes and Steven Taylor were just the tip of the iceberg, as the duo face accusations that they pocketed state funds intended for homeless housing, the prosecutor said.

“That’s just beginning to scratch the surface,” Essayli said. “We have dozens of other investigations ongoing and we expect to bring more charges this year, and perhaps this month.”…

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