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Prosecutor Calls Newsom 'King of Fraud' for Oversight Failures

Federal charges target real estate executives for grant misuse amid claims $24 billion in homelessness funds lack proper accounting, says lead prosecutor.

  • Facing a statewide probe, Essayli told a national TV audience that California spent $24 billion on homelessness over five years and cannot account for those funds, with no comment from the DOJ.
  • Essayli launched a task force in April to investigate and described recent indictments as the `tip of the iceberg`, saying more charges are likely later this month amid federal fraud charges.
  • Federal filings show Cody Holmes, 31, Beverly Hills, former Shangri-La Industries CFO, was charged with mail fraud tied to Thousand Oaks grant money, and Steven Taylor, 44, Brentwood, faces multiple bank fraud counts.
  • With federal prosecutors involved, officials offered limited comment as Governor Gavin Newsom's press office claimed Newsom has `BLOCKED $125 billion in fraud`, while the U.S. Department of Justice had no additional comment.
  • Amid the controversy, Republican legislators in Sacramento argued for oversight on taxpayer-funded homelessness programs and said officials must be accountable and track spending results.
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Prosecutor calls Newsom 'king of fraud' for oversight failures

(The Center Square) – U.S. First Assistant Attorney Bill Essayli Thursday called California Gov. Gavin Newsom “the king of fraud,” accusing him of a lack of oversight on spending to

·Calhoun, United States
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Fox News broke the news in New York, United States on Thursday, January 8, 2026.
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