A federal grand jury has indicted the director of a Los Angeles-based nonprofit organization, alleging the misappropriation of approximately $23 million in funds intended for homeless services to finance a lavish personal lifestyle, according to the U.S. Department of Justice.
DOJ Alleges Misuse of Public Funds
The Department of Justice announced on Thursday that the charity’s executive director, identified as 64-year-old Shirley Raines, faces charges of wire fraud, money laundering, and tax evasion. Prosecutors allege that Raines redirected millions of dollars in government grants and charitable donations, which were earmarked for programs supporting individuals experiencing homelessness, to cover personal expenses including luxury vehicles, real estate, and high-end travel.
Details of the Alleged Scheme
According to the indictment, Raines operated the nonprofit between 2016 and 2022, during which time she is accused of transferring organization funds to her personal accounts. The DOJ alleges that these funds were then used to purchase multiple luxury cars, pay for private jet charters, and acquire expensive jewelry. Authorities state that Raines also used nonprofit resources to make mortgage payments on properties in Los Angeles and Orange counties.
Prosecutors Outline Financial Transactions
Federal investigators claim that Raines concealed the transactions by falsifying financial records and submitting misleading reports to government agencies and donors. The indictment further alleges that she failed to report the diverted funds as personal income on her federal tax returns.
Potential Penalties and Next Steps
If convicted, Raines could face up to 20 years in federal prison for each count of wire fraud and money laundering, and up to five years for each count of tax evasion. The Department of Justice stated that the case remains under investigation and that additional charges may be filed.
Nonprofit’s Status and Community Impact
The nonprofit organization, which has not been named in the indictment, reportedly provided housing assistance, job training, and other services to individuals experiencing homelessness in the Los Angeles area. Authorities have not disclosed whether the charity will continue operations or if its assets have been frozen pending the outcome of the case.
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