News Summary
Two men from Los Angeles have been charged separately for fraud schemes that misused public funds intended for homelessness assistance and affordable housing. Cody Holmes, a former CFO, is accused of submitting fraudulent records to secure $26 million in state funds, diverting over $2 million for personal expenses. Meanwhile, Steven Taylor faces charges for bank fraud and identity theft, allegedly using false documents to acquire multimillion-dollar real estate loans. Both cases highlight concerns around the management of state funds meant to aid vulnerable populations.
Los Angeles – Two men from Los Angeles have been charged with separate multimillion-dollar fraud schemes that allegedly exploited public funds meant for homeless assistance and affordable housing initiatives. Federal prosecutors announced on Monday that Cody Holmes, 31, of Beverly Hills, and Steven Taylor, 44, of Brentwood, misused millions in state and bank loans.
Cody Holmes has been arrested on a federal complaint charging him with mail fraud while he was the chief financial officer for Shangri-La Industries. He is accused of submitting fraudulent financial records in order to secure nearly $26 million in state grant funds from California’s “Homekey” program, which is designed to provide permanent housing for homeless residents. Holmes allegedly fabricated bank statements and balance sheets to falsely claim that Shangri-La had over $160 million in assets, when no such accounts existed. Following the release of these state funds, he is reported to have diverted over $2 million for personal expenses, including payments for American Express bills and lavish shopping splurges. If convicted, Holmes faces a potential sentence of up to 20 years in federal prison, and he is expected to appear in U.S. District Court in Los Angeles.
In a separate incident, Steven Taylor has been charged with seven counts of bank fraud, one count of aggravated identity theft, and one count of money laundering. Taylor, who is currently out on a $3.6 million bond, is accused of defrauding multiple lenders by submitting fictitious bank statements and misrepresenting the purpose of multimillion-dollar loans for real estate properties. From 2019 to 2025, Taylor is alleged to have used falsified documents to acquire loans for properties in various neighborhoods, including Silver Lake, Los Feliz, Westlake, and Cheviot Hills. He falsely claimed that he intended to occupy one Cheviot Hills property while planning to sell it to a homeless housing developer for $27.3 million, which is more than double his purchase price of $11.2 million, funded through fraudulent loans. Taylor is also accused of forging email communications to conceal an existing $1 million credit line while applying for additional loans. If convicted on all charges, he could face up to 30 years in prison for each bank fraud count.
The FBI and IRS Criminal Investigation are currently conducting investigations into both cases, with assistance from the Federal Housing Finance Agency Office of Inspector General. The U.S. Attorney’s office has reiterated that the defendants are presumed innocent until proven guilty.
These allegations of fraud come during a broader federal investigation into potential fraudulent activities surrounding state homelessness funding, reportedly involving billions of dollars. Mayor Karen Bass has publicly articulated the city’s commitment to a zero-tolerance policy towards corruption and ensuring accountability regarding the fraudulent use of public funds.
This situation highlights ongoing concerns regarding the management of funds designated for combating homelessness, drawing attention to the urgent need for transparency and integrity in financial dealings involving public resources. Authorities remain vigilant in their efforts to investigate and address these issues as they continue to seek justice for the misuse of funds intended to support vulnerable populations.
As investigations unfold, the outcomes of these cases may set significant precedents regarding the treatment of fraud involving public assistance funds and could lead to additional reforms in the oversight of state funding programs designed to aid the homeless and low-income communities.
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Additional Resources
- ABC7 News
- Wikipedia: Homelessness in the United States
- NBC Los Angeles
- Google Search: homelessness funding fraud
- The National Desk
- Encyclopedia Britannica: Fraud
- Westside Current
- Google News: homeless funding fraud California
- CBS News Los Angeles
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
