Developers Accused Of Financial Crimes And Of Misusing Project Homekey Grants
BEVERLY HILLS—On Monday, October 13, Federal prosecutors announced that charges would be brought against two men living in the Westside of Los Angeles for engaging in financial crimes and misuse of public funds. That includes misusing grants that are available through California’s Homekey program to create housing for homeless residents.
Cody Holmes, who lives in Beverly Hills, was arrested by federal agents on charges of submitting fake financial records when he was the chief financial officer of Shangri-La Industries. This company builds affordable housing projects in downtown Los Angeles. In addition, it has been alleged that he submitted fake bank balance sheets and bank records, enabling the company to receive 26 million dollars from the California Department of Housing and Community Development through the Homekey Program. Furthermore, these records claim Shangri-La Industries possessed over $160 million in assets, but the federal agents allege none of them existed.
By Daniel Diquinzio