THOUSAND OAKS, Calif. – A former Shangri-La executive is facing allegations of embezzling millions of dollars from housing programs like Project Homekey, diverting funds meant for homeless housing to fund a lavish lifestyle, including luxury cars, diamond jewelry, and a mansion in Beverly Hills.

Allegations of Lavish Spending

The lawsuit, filed by Shangri-La Industries, claims that Cody Holmes, the former CFO, and his girlfriend used company funds for extravagant expenses, unbeknownst to the company until recently. Attorney Brian Sun, representing Shangri-La, highlighted Holmes’ trusted position within the company, allowing him to manipulate funding and fabricate documentation to cover his tracks.

Impact on Housing Projects

The embezzled funds were reportedly allocated from Project Homekey, a program aimed at converting motels into supportive housing. In 2020, Shangri-La received $114 million from the state for this initiative, with projects planned in Northern California, Thousand Oaks, Redlands, and San Bernardino. However, the alleged misappropriation has jeopardized the completion of several housing projects, leaving them in limbo.

Legal Ramifications

In response to the allegations, the California Department of Housing and Community Development has initiated legal action against Shangri-La, adding to the complexity of the situation.

Conclusion: Accountability and Oversight

The case highlights the importance of robust financial oversight and accountability, especially in organizations entrusted with public funds. As investigations unfold, the repercussions of this alleged embezzlement reverberate through both the company and the communities relying on the promised housing projects. For updates on this developing story and more local news, download The Local News App today.

Source