Nonprofit leaders accused of diverting millions meant for the vulnerable

Public officials and nonprofit leaders who claimed to support vulnerable communities are facing charges in a series of nonprofit fund embezzlement cases. As a result, concerns are mounting over how public money is monitored and distributed.

Several organizations received substantial taxpayer funding to aid homeless residents and low-income communities. However, prosecutors allege that some leaders diverted those funds for personal use. Therefore, public trust in nonprofit oversight has come under renewed scrutiny.

The National Review Journal reported on February 24 that Gwendolyn Westbrook, 71, former chief executive of United Council of Human Services (UCHS) in San Francisco, faces nine felony counts. Prosecutors allege she embezzled more than $1.2 million in public funds.

According to prosecutors, Westbrook increased her salary without board approval between 2019 and 2023. In addition, she allegedly withdrew cash for personal use and obtained fraudulent reimbursements. Authorities also accuse her of separately stealing $91,000 in cash.

The organization previously faced audit findings. Those reports cited improper housing placements, rent calculation errors and hiring process violations. Consequently, the charges have intensified questions about financial oversight.

In Los Angeles, allegations have also emerged involving a nonprofit arts organization serving low-income communities. Judy Baca, 79, a prominent public artist, has come under scrutiny over the use of a $5 million grant from the Andrew W. Mellon Foundation.

The funds supported projects run through SPARC (Social and Public Art Resource Center). However, 10 former employees claim Baca used nonprofit resources and staff for work related to a personal for-profit entity. They also allege she benefited privately from the sale of murals to the Lucas Museum.

Baca and the SPARC board deny wrongdoing. They state that grant funds complied with regulations and that her artist compensation followed a lawful structure. Nevertheless, critics point to her salary rising above $200,000 after receiving the grant. In addition, they question arrangements allowing board members and relatives to use nonprofit-owned property.

SPARC operates community-based public art programs, including “The Great Wall of Los Angeles.” The project promotes the history of women, immigrants and minority communities. Accordingly, it has received funding to support underserved populations.

Meanwhile, another nonprofit fund embezzlement case surfaced in South Los Angeles. Alexander Soofer, 42, head of Abundant Blessings, was arrested last month.

Federal prosecutors allege Soofer misused at least $10 million of $23 million in public grants. Authorities said he spent the money on luxury homes, private jet travel and high-end purchases. Therefore, the case has further intensified concerns about public fund accountability.

As investigations continue, officials and community members are calling for stricter oversight to prevent future nonprofit fund embezzlement and restore confidence in public funding systems.

BY HANKIL KANG  [kang.hankil@koreadaily.com]