Overview
- Cody Holmes, former CFO of Shangri-La Industries, was arrested on a mail fraud charge alleging fake bank records were used to obtain $25.9 million for a Thousand Oaks Homekey project that was never completed.
- Federal filings say more than $2.2 million moved from a Shangri-La account to a Holmes-controlled account and over $2 million was paid toward American Express cards with purchases at luxury retailers.
- Steven Taylor was indicted on seven counts of bank fraud, aggravated identity theft and money laundering, with prosecutors alleging he used fake bank statements to secure loans and secretly resold a Cheviot Hills property for $27.3 million to the Weingart Center using public funds.
- Authorities said Taylor is free on a $3.6 million bond as a superseding indictment broadened earlier charges, and search warrants tied to the investigations were executed in Beverly Hills and Century City.
- Acting U.S. Attorney Bill Essayli said the cases are "just the beginning" of a task-force probe into billions in homelessness funding, and prosecutors are examining what the city and Weingart knew about the Cheviot Hills transaction.