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The arrest of a Los Angeles charity CEO accused of stealing millions that was earmarked to help the homeless has sparked a social media clash between California Gov. Gavin Newsom’s media team and the Department of JusticeOn January 23, 2026, the arrest of Alexander Soofer, CEO of the South Los Angeles charity Abundant Blessings, triggered a public social media confrontation between the California Governor’s office and federal prosecutors. The Arrest and AllegationsCharges: Alexander Soofer, 42, was arrested on federal wire fraud charges for allegedly stealing $23 million in public funds intended to provide housing and meals for the homeless.Lavish Lifestyle: Prosecutors allege Soofer pocketed at least $10 million to fund a luxury lifestyle, including a $7 million Westwood mansion, a vacation home in Greece, private jet travel, and stays at luxury resorts.Substandard Care: While receiving millions, Soofer allegedly provided homeless residents with "ramen and a microwave" instead of the three healthy daily meals required by his contracts. The Social Media ClashThe arrest sparked a sharp exchange on X (formerly Twitter) between Governor Gavin Newsom’s team and First Assistant U.S. Attorney Bill Essayli, who helped lead the investigation: DOJ Allegations: Essayli claimed that Governor Newsom and the state legislature "facilitated this fraud" by providing billions in funding with "zero vetting and zero state oversight". He asserted that California failed to bring any meaningful prosecutions until the federal government intervened under the new administration.Governor’s Response: Newsom’s media team fired back, defending the state's oversight efforts and clashing over whether state leaders had enabled the alleged misuse of taxpayer dollars. Political ContextThis conflict occurs amid a broader federal investigation into California's homelessness spending. Earlier in January 2026, U.S. Treasury Secretary Scott Bessent and President Trump confirmed a federal probe into approximately $24 billion in California homelessness funds that were allegedly not properly tracked. Additionally, in late 2025, Newsom’s former chief of staff, Dana Williamson, was indicted on unrelated federal corruption and fraud charges.