Former Shangri-La exec accused of embezzlement; bought luxury cars, vacations, jewelry

Former Shangri-La exec accused of embezzling millions

A former Shangri-La executive is accused of embezzling millions of dollars from housing programs like Project Homekey. He and his girlfriend allegedly used the money to buy diamond jewelry, luxury cars and even a Beverly Hills mansion.

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.

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"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.