Former Shangri-La exec accused of embezzlement; bought luxury cars, vacations, jewelry
THOUSAND OAKS, Calif. - Millions of dollars meant to house the homeless were allegedly embezzled and spent on luxury vacations, exotic cars, and a Beverly Hills mansion.
Those are the allegations in a new lawsuit filed by Shangri-La Industries. The company alleges its former CFO Cody Holmes and his ex-girlfriend swindled millions to live a lavish lifestyle.
Attorney Brian Sun who represents Shangri-La says no one at the company knew what Holmes was up to until it was too late.
SUGGESTED:
- 900 homeless deaths reported across city last year, LA City Controller says
- California minimum wage increase effective April 1: Here's who gets it
- Bombshell Diddy lawsuit: Yung Miami, Stevie J, Cuba Gooding Jr. named in complaint
- 2 charged with murder of man shot dead in LA Live restaurant
"He was a highly trusted key figure in the company due to his position as a CFO. As a consequence, he was in the position to create false documentation and manipulate funding between entities," Sun said.
The money that was allegedly embezzled was from Project Homekey. In 2020, Shangri-La received $114 million from the state to convert motels into supportive housing in Northern California, Thousand Oaks, Redlands, and San Bernardino. Now, some of those projects are in limbo.
In addition, the California Department of Housing and Community Development is suing Shangri-La.