April 10, 2025 • 29 mins
The John Kobylt Show Hour 3 (04/10) - US Attorney Bill Essayli comes on the show to talk about his new task force that is going to investigate LA's wasteful spending on the homeless problem. More on how problematic the wasteful spending on the homeless problem in LA has been. More on the leaders of a Long Beach food bank that are being accused of misusing funds for personal use. The Trump administration is revoking the temporary protective status for people that the Biden administration considered legal migrants when they are actually illegal migrants.
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Speaker 1 (00:00):
Posted after four o'clock, same as the radio show, and
you can get on that on the iHeart app as well.
Bill Saley you know him if you've been listening to
the show for a long enough time. Bill most recently
was an assemblyman from the End of an Empire, and
now he's US Attorney for the Los Angeles District and
(00:23):
Trump has appointed him to that post. He's going to
be confirmed by the Senate, but he's already coming out blazing.
He announced the launch of a Homelessness, Fraud and Corruption
Task Force to go after the homeless industry here in
Los Angeles City and County.
Speaker 2 (00:41):
Do you know?
Speaker 1 (00:42):
The county and the city and other cities in the
area will spend more than two billion dollars this year
on about seventy thousand vagrants. Two billion dollars in tax
money on seventy thousand vagrants. And as you know, the
problem general gets worse every year. So let's get BILLI
sale on.
Speaker 3 (01:03):
Hey, John, how are you?
Speaker 1 (01:05):
I'm good? This is your first major announcement since you
took over. Why did you side to target homelessness the agency?
Speaker 2 (01:13):
First?
Speaker 3 (01:14):
Well, look, this is something that's been on all our
radars for several years now. Even when I was in Sacramento,
we'd have hearings on homelessness and we would ask over
and over again, what happened to the money that we
already spent. Twenty four billion dollars of tax dollars over
the last five years has been allocated to homelessness in
the state of California. A large portion of that has
(01:35):
gone right here in southern California, and the homelessness issue
has only gotten worse. On Sunday, I went in towards
skid Row with Judge Carter. He walked me through it.
It is like a different world down there. There are
no government services being offered there john. Most of the
services being offered, whether it was you know, medical attention
(01:56):
or food, were from private donors. The only evidence I
saw of tax money being spent in down there was
a black jeep. And I'm not kidding. I saw this firsthand.
There's a black jeep that doesn't have doors on it
driving around handing out drug kits so the homeless can
safely shoot up down there on skid Row. They're handing
(02:17):
crack pipes, turn of kits, little things to burn the
drugs on needles. That's the only that's the only tax
dollars I saw being spent there tax dollars.
Speaker 1 (02:28):
This was a government funded jeep with government employees in
it handing out drug paraphernalia.
Speaker 3 (02:34):
Yes, that's correct, And so you know, looking at the issue,
looking at the crisis, looking at the audit that was
conducted at the request of Judge Carter down in Orange County.
The auditors are beside themselves. They audited the programs and
they are missing two billion dollars. Cannot account for two
billion dollars. That's with a B and as I've said,
(02:56):
that's not a rounding error, and that's not a little
bit of money. That's a lot of money. So I
was asked, how does two billion dollars go missing? Well,
it doesn't. It's somewhere and we're going to find it.
And so over the weekend I put together this task force.
I think taxpayers deserve to know where their money is,
what happened to their money, who benefit, and whether there's
any wrongdoing. I'm not going to prejudge the investigation. I
(03:19):
don't know who and what will be involved, but we
are going to do a thorough investigation and if laws
were violated, we will arrest and prosecute.
Speaker 1 (03:28):
Did you get any tips, not just the audit inspiring
you to do this, but maybe some somebody calling and
giving you a roadmap.
Speaker 3 (03:38):
Let me just say, since we've said this, we have
been inundated with people calling and emailing us. And actually,
let me say this right now. If you have information,
please call the FBI at one eight hundred Call FBI.
That's one eight hundred call FBI. That is the best
place to send the information. That is the clearinghouse for information.
You can also go to tips dot FBI gov. But
(04:01):
we are being inundated by the public on this issue. John,
I can tell you whether they're credible, whether it going
to lead to anything too soon to tell. I can't
tell you that, And I'm not going to be able
to really talk to you much about this investigation as
it moves on until we're ready to make a move.
And that's to protect innocent people that might be No.
Speaker 1 (04:21):
No, I understand you're getting investigators and prosecutors from various
federal agencies. Can you talk about which agencies are going
to be helping you out on this?
Speaker 3 (04:31):
Yeah, my office will be leading this. I have mind you,
this is the largest federal prosecutor's office in the country.
We oversee twenty million people. We have over three hundred
lawyers here. We are a large office. We know what
we're doing. You can look at the cases down at
La City Hall. You can look at the sheriff's cases.
We know what we're doing. I put my top prosecutors
from the Public Corruption Section and the Major Fraud Section
(04:53):
on this. I'm also putting the Civil Division on this.
And then we have agents from the FBI, the IRS,
and the Office of inspect General for Housing and Urban
Development because there were some federal funds that were given
out to these agencies as well. So this is a
robust task force. We had a meeting today in my
office and everyone's everyone's ready to get to work, and
(05:13):
so to the extent the public has information. Again one
eight hundred call FBI.
Speaker 1 (05:18):
Do you think it's a coincidence that LASA is suddenly
being pulled into pieces? The county is backing out and defunding,
the city is going to defund as well. The leader
of LASA, Valicia Adams Kellam, has resigned. It's because they
heard footsteps or why do you think you know?
Speaker 3 (05:38):
I have no idea. I don't know these people. I've
never talked to these people. I know Judge Carter has
been putting a lot of pressure on them and for answers.
I understand that the county voted to defund them, So
you know, maybe she, I don't know, maybe she thought
she's not going to get the money she needs anymore.
I have no idea, but we're going to look at
everything and everyone. That's what I can tell you.
Speaker 1 (06:01):
One more issue, high speed rail. That's seventeen billion that
has disappeared in seventeen years with no track and no
possibility that anything significant is going to be built anytime soon.
Something's wrong there as well.
Speaker 3 (06:18):
Yeah, I believe the Department of Transportation has already announced
an investigation into high speed rail.
Speaker 4 (06:24):
I know.
Speaker 3 (06:25):
I believe Congress has also said they're no longer funding this.
I am the first US attorney appointed by Trump in
the state of California. We have four federal districts in
the state. High speed rail will probably fall under one
of the other districts, probably the Eastern District or the
Northern District, which covers central California where a lot of
this work has happened. So once those US attorneys get appointed,
(06:48):
I suspect there'll be much more activity in this area
on that case.
Speaker 1 (06:53):
Coming back to homelessness just for a minute, this is
just my opinion. I've got to believe that everybody in
government knows what's going on. I can't believe the supervisors,
the city council people, the mayor, all these directors, heads
of agencies don't know what's really going on with this
two billion that evaporated.
Speaker 3 (07:13):
Well, we're going to find out and we're going to
get to the bottom of it. And we have a
lot of tools at our disposal, John, So we don't
necessarily need people, you know, we don't need people to
comply voluntarily. We've got a lot of tools to get
information and get to the bottom of this, and we're
going to use every tool at our disposal because the
public deserves answers and they deserve to have trust in
(07:33):
their public institutions. When voters vote and taxpayers pay, and
then money says it's going to be used for a cause,
it needs to be used for that cause. And if
it's not used for that cause, then people need to
be held accountable and responsible. And what's been most disturbing
to me in this whole case is that the elected officials,
the people responsible for administering this programs, have sort of
just put their hands up and said, we don't know
where the money is and let's stop talking about it,
(07:56):
let's move forward. Well we're not moving forward. The American
focus on moving forward, but we're looking at the past
and we need to know what happened to the money
before we can before we can move forward.
Speaker 1 (08:06):
Well, that's what makes me crazy. None of them have
ever stood up and gotten angry about this. You have
an audit revealing there's over two billion dollars missing, and
nobody has anything to say. You think they'd be holding
hearings investigations themselves saying hey.
Speaker 2 (08:18):
You guys blew two billion dollars in tax money.
Speaker 1 (08:20):
What's going on? Nothing, which makes me think they're not upset,
And makes me think they're not upset because they know
what's been going on all this time. It makes me
think some of them are involved.
Speaker 3 (08:32):
Well, and it's our job to find evidence improve it.
And so that's what we'll be doing, John, And look,
that is our role. I mean, really, the federal government
is uniquely positioned for cases just like this, when you
have the county and the state and locals all involved
in this. You can't really expect them to be objective
and to police themselves. So that is one of the
(08:53):
critical roles of the federal government. We provide that needed oversight,
that check over the state, whether it comes to civil
rights issue or public corruption issues. That is our role
as the federal prosecutors here in the state of California.
And that's what we're going to do. And I don't
answer to any of them. I answer to the Attorney
General and the President of the United States.
Speaker 1 (09:11):
Well, Bill, I am so glad you have the position
you do. Really, this is exciting times here, and good luck.
And if you need anything from us to help publicize
and to help look for more witnesses and evidence, and
just let us know.
Speaker 3 (09:26):
Thank you, John. Yeah, just let just you can repeat
that number whenever you cover this. It's one eight hundred
call FBI and to extend anyone out there has details
or information. We'd love to talk to you.
Speaker 1 (09:35):
All right, Bill, talk again soon, Thanks very much, thank you, John.
Speaker 2 (09:39):
All Right.
Speaker 1 (09:39):
The US Attorney for the Los Angeles District Bill Assailing,
and he has a multi agency task force that's investigating
the fraud and corruption in the homelessness industry here in
La County. We have told you for years, it just
can't be that. There's no way you spend billions of
dollars every year homelessness gets worse. At first, it seemed
(10:02):
like a joke. It's not a joke. There's people stealing
the money right in front of us, and all the
people in power who've been silent, and you know, we're
going to be publicizing the names of those who are silent.
What was the progressive call a few years ago, Silence
is violence. Silence indicates corruption. Public officials who are silent
(10:23):
on what's going on with homelessness in La County may
be part of the corruption. And Bill's job is to
find the proof of it. But I have the suspicions
We've got more coming up. Thomas Buckley, who's a journalist,
writes on substack he had a good column I just
found a few minutes ago, and all this I want
to run a few numbers behind you, and it's staggering
(10:43):
how much money has been spent, absolutely staggering on relatively
few people who are all still living in the streets.
That's next.
Speaker 4 (10:52):
You're listening to John Cobelt on demand from KFI AM
six forty.
Speaker 1 (10:58):
We just had mil Saley on the US attorney just
appointed by Trump, just took over in the past week
and his first major investigation, first target. He's put together
the Homelessness Fraud and Corruption Task Force. He's getting prosecutors,
investigators from the FBI, the IRS, the Department of Housing
(11:19):
and Urban Development. And top item on the agenda two
point three billion dollars unaccounted for in the Los Angeles homeless.
Speaker 2 (11:32):
Home it's called Losa.
Speaker 5 (11:34):
I was from Los Angeles Homeless Services.
Speaker 1 (11:37):
Los Angeles Homeless Services Authority. The county is defunding it.
The city is going to defund it. That's most of
the money it gets. The head of it is Valicia
Adams Kellum. We threw in the dumpster Friday, her body
was still warm, and she resigned twenty minutes later, Los
Angeles Homeless Services Authority. It's not going to be around
(12:00):
much longer. Bill Saley took a tour with took a
walk with the judge along skid Row, David o'carter, who's
overseeing a lawsuit which which led to the audit, which
led to an obvious truth. Now we just have to
detail the proof there's people in these homeless agencies. Maybe
(12:23):
the politicians themselves, the nonprofits involved, they're stealing the money.
That's no other way to explain two point three billion
dollars disappearing and the homelessness gets worse and worse. Thomas Buckley,
who's a journalist. He has a column on Substack called
(12:45):
The Point. I just want to read a few paragraphs
because he encapsulated this so well. In its effort to
combat homelessness, Los Angeles County and the city and other
cities in the county will spend more than two billion
dollars this year on seventy thousand or so vagrants. That
works out to be about thirty thousand dollars per drooping head,
(13:10):
he writes, And that doesn't include the states funding of
homelessness programs food Stamps, Medicaid, medical direct cash, social Security, disability,
other benefits that total up to another twenty four thousand
dollars a year per person, so now were up to
(13:31):
fifty four thousand dollars that taxpayers and donors are paying.
That does not include the value of the free rent
provided to hundreds of people in these permanent supportive housing facilities,
including those that have been built recently at a cost
of between seven hundred thousand dollars and one million dollars.
In Santa Monica, they spent a million dollars per six
(13:54):
hundred square foot studio apartment unit, a million dollars for
you're a homeless person for his own apartment. Thomas Buckley writes, amazingly,
in LA and throughout the state, spending on solving homelessness
has more than doubled over the past decade or so.
What else, pretty much doubled while this money was being
(14:16):
spent the homeless population. We doubled the spending. We doubled
the homeless. Obviously, no real dent has been made in
the problem. The number of homeless people has only increased,
and still three or four homeless people die on the
streets of LA every day. The industry is made up
(14:40):
of catastrophically almost comically inept theoretical nonprofits that continue to
fail miserably but pay their staff very well, political cronies,
actual relatives of government officials, dolling out the money they've
done very well off the suffering of others. They might
(15:01):
finally be put under the microscope because of the audit
of LARSA and because of this now investigation that Bill
Sale is gonna lead. No wonder the county pulled out,
don't wonder the city's pulling out.
Speaker 2 (15:17):
No wonder.
Speaker 1 (15:18):
Valicia Adams Kellum quit twenty minutes after she was dumpster.
If you, if you drive around, you might hear in
the distance the soft sound of humming. That's a lot
of paper shredders going off. And does it make any
noise when people start mass deleting all the records in
their computers, does that make does it make any kind
(15:38):
of a sound.
Speaker 5 (15:41):
But yet we voted for another tax.
Speaker 1 (15:44):
In Yes, yes, we voted for another tax increase.
Speaker 5 (15:48):
Where's that money going to?
Speaker 1 (15:51):
It's going in these same criminals they got to pay raise.
Which leads me to the other story which I want
to I want to discuss again for those of you
who haven't heard, they have just cracked a big racket
in Long Beach where a food bank. The executives and
(16:11):
the directors all ran off, and the board members ran
off with eleven million dollars of tax money and donations
eleven million. They've been doing this for a decade. Wait
tea hear what they spend it on. This is the
corruption capital of America tell you more about it coming up.
Speaker 4 (16:33):
You're listening to John Cobel's on Demand from KFI AM
six forty.
Speaker 1 (16:39):
I want purp walks. I want politicians. I want to
see their husbands, their wives, their their uncles and aunts,
their kids, anybody involved in this homeless scam that's been
going on for all these years. They built billions of
dollars and these are nonprofits and they are staffed by
(17:00):
people who pay themselves. I said this so many times.
People probably thought I was a conspiracy theory nut. But
you just had to look at the homeless numbers doubling
over the last ten years. Well, the spending doubled over
the last ten years. It's like, what do you think
is going on? These aren't failed programs. There aren't any programs. Well,
(17:24):
like Bill Saley, who's now the US Attorney, He said
he walked along skid Row with Judge Carter. He could
not find any social services for the homeless unskided Row.
More homeless people per square foot on skid Row than
anywhere else in the county. The only presence of government
(17:47):
was a black jeep that was handing out drug paraphernalia.
Speaker 2 (17:51):
Now, remember four or.
Speaker 1 (17:53):
Five people die every day of drug overdoses in the county,
in the city. And they got the government handing out
taxpayer paid bags of drug paraphernalia so they can quickly
kill themselves off, more quickly kill themselves off. And here's
more corruption. And this when I read the details of
(18:15):
the story, this is like a template. This happens to
be a food bank, but I imagine a lot of
homeless people use the food bank.
Speaker 2 (18:21):
Right.
Speaker 1 (18:23):
The food bank is called food Bank of Southern California,
a nonprofit, and now the state Department of Social Services
has filed a lawsuit that a dozen of its leaders.
Speaker 2 (18:36):
These are.
Speaker 1 (18:39):
People in management, directors, board members, executives. A dozen stole
the money spent it on themselves. Listen to this case.
This nonprofit has been around since nineteen seventy five. It's
supposed to feed poor people, but it's diverted eleven million
of state and federal funds to themselves. The food banks officers, directors,
(19:04):
and vendors diverted millions of dollars into their own pockets.
That's what it says in the complaint by the state attorney.
They eventually closed the bank. Well, they started investigating in
June of last year. They closed it in October. Eleven
million dollars two hundred thousand dollars went to pay for
(19:28):
Walmart gift cards four thousand, fifty dollars Walmart gift cards,
but there's no record of where the gift cards went.
There's no record that they were ever given to households.
It looks like the directors and the employees ran off
with the gift cards. Those are very difficult to trace.
(19:50):
They've had two CEO's recently, and one of them is
Gene Cooper, and then Brian Weaver took over last year
because of Cooper getting investigated. And then there were twelve
members of the Food Bank board, including Dion Rambo, a
(20:11):
woman named sweet Alice Harris who's ninety years old, and
Michael Barrett Cooper former CEO. Her husband Lamar Ramsey also
a defendant, and he didn't even work for the nonprofit.
They say that Cooper, Jeane Cooper, and the husband, Lamar
Ramsey used the Food Bank's money to pay for personal expenses,
(20:33):
home renovations, lawn services, even an artificial Christmas tree. They
used the nonprofit's corporate accounts and credit cards and spent
two hundred and twenty eight thousand dollars at Best Buy
Home Depot, Low's Office depot.
Speaker 2 (20:49):
And at and T.
Speaker 1 (20:52):
They say Gene Cooper sent almost five thousand dollars to
her sister in law for transportation, seven thousand dollars to
her husband, Lamar Ramsey for repairs that were never made
at the Food Bank, twenty six hundred dollars to Ramsey's
company to decorate business trucks. The Food Bank also gifted
(21:14):
Lamar Ramsey a ten thousand dollars box truck. Guess who
authorized that His wife, Geene Cooper, you know, like Valicia
Adams Callum authorized a two million dollar payment to her
husband's homeless nonprofit, Upward Bound Felicia running a LASA, same thing.
(21:35):
I told you. They make hundreds of thousands of dollars
and then they send thousands of dollars to their wives,
husband's friends, relatives, and a lot of these people are
connected to See. The reason they get funding is they're
connected to the politicians. They're connected to city council people, supervisors, mayors.
(21:59):
That's how they get the money. They get the inside
I mean, any has anybody ever come to you to
open up a nonprofit? All right, So I told you
there were two CEOs. There was Cooper, then Brian Weaver
takes over, and he said I took over because we
suspected fraud with Cooper. But Weaver is accused of taking
(22:24):
twenty thousand dollars and a cashier's check and not documenting
what it was used for. They claim he also bought
a tesla for himself, and then he hired his family members.
His family members were the project manager in the accountant.
So both CEOs were giving money and positions to family members.
(22:45):
Now let's go to the board here. Dion Rambo. The
state's accusing him of getting two hundred and seventy nine
thousand dollars from another company. Well, no, he paid two
hundred and seventy nine thousand dollars to another another company
called the Southwest Group that never provided any services, and
the state thinks Rambo pocketed the money and used it
(23:08):
for himself. Did you have this Michael Barrett, and he
was the board secretary. He paid his own company five
thousand dollars every quarter for a billboard over his church.
Barrett is the pastor of the do Rite Christian Church.
(23:31):
And he used the state tax money that was given
to the food Bank to make direct payments to his
church and to pay for the billboard over his church.
There's a thousand of these stories here in La County,
(23:54):
a thousand of them. And Assie is going to find
out what's going on. That judge is going to find
out what's going on. That's why the county supervisors pulled funding.
That's why the city council wants to pull funding. That's
why Thelicia Adams Cullum resigned. There's more coming. This is
(24:16):
going to be a big, fat, juicy scandal that's going
to last quite some time. It's gonna take a little
while to get the proof.
Speaker 5 (24:22):
Then I think automatically that sales tax that I keep
talking about should be repealed, because why are we paying
more money to go towards the homeless when this has.
Speaker 1 (24:32):
Happened all that, all this should get defunded, and everybody
on the streets should be told go somewhere else, or
we're sending you to jail, or we're going to force
you into mental treatment, mental health treatment, or we're going
to force you into a drug treatment, or you just go,
you just get out of town.
Speaker 2 (24:48):
But no more money.
Speaker 1 (24:50):
Money's being cut off ten years billions of dollars of theft.
And if you see any more taxes on the ballot
for homelessness, would please just once vote no. No, you
want to pay, fine, I don't want to pay anymore.
All right, more coming up.
Speaker 4 (25:09):
You're listening to John Cobels on demand from KFI Am
sixty Conway.
Speaker 1 (25:16):
Coming in here in just a minute. News coming out
this afternoon, the Trump administration is revoking temporary legal status
to hundreds of thousands immigrants of immigrants who are allowed
into the country under Biden. Remember, they could fill out
a form on an app on their smartphone. It was
(25:37):
called CBP one. They filled out a form and they
were pre approved for entry, so the Biden crowd would
count them as legal entrance, not illegal entrants. And Trump's
people blocked that app. Now you get a message suggesting
you deport. And now they're getting there. They're getting their
(26:00):
status revoked. It was like temporary protective status. They're getting revoked,
and they're canceling, uh, their social Security numbers that they
had obtained. See, if you get protected status to stay here,
you get a social Security number. They went and got one,
and now those are being revoked as well, all right,
(26:20):
conways here, Hey, now, hey, now you know my the
irs sent me a letter saying that my Social Security
number was stolen by somebody who's in this country illegally.
Speaker 2 (26:30):
Is that right? Yeah? So that's that would be a
lot of fun to have to deal with that crazy.
Speaker 1 (26:37):
This guy's going to get into more trouble than you
will do.
Speaker 2 (26:39):
I got a lot of feedback. You had the US
attorney on today and Bill a Sale, Well you talked
to him. To me, I got a lot of fee
I got a lot of blowback though, when I said, hey,
is this a death penalty case? And he sort of
laughed and he said, no, it's not a death penalty case,
but I could make I could make a case for that.
It's been five years, okay, five years. Yeah. Seven people
(26:59):
die on the streets of Los Angeles County every night. Yeah,
so that's fourteen thousand deaths. If somebody came in and
killed fourteen thousand people in LA, you give them the
death penalty. Oh sure, yeah. So why aren't they getting
it downtown?
Speaker 1 (27:12):
Well they should, you're right, Yeah, Well, the government's handing
out the drug paraphernalia that is used to kill them.
Speaker 2 (27:18):
Right, that guy's actually in our waiting room right now.
Comes in every Thursday. Dean Sharp is coming on with us,
so we'll have that guy on. That guy is great. Also,
six confirmed dead in the helicopter in the Hudson. It's
horrible news. Three of them were children. But I know
a ton of people have taken that. You know that flight,
(27:39):
I bet you have to. I bet you know people
have done it. I don't go in helicopter. You don't
go to helicopter.
Speaker 1 (27:43):
No. I win two helicopter rides here, Cafi scare the
hell right over the fires oh years ago, one over
the earthquake, and then had a kid, and I sold everybody, no,
no more.
Speaker 2 (27:55):
They scare me. Yeah, well they say, it's like just
a big shaking bag of bolls.
Speaker 1 (28:00):
It's I understand airplanes, like I get the physics. I'm
not afraid of flying in an airplane. Helicopters, I don't understand.
It doesn't seem like there's any margin of area there
if the thing starts.
Speaker 2 (28:11):
I totally get it.
Speaker 3 (28:12):
Man.
Speaker 2 (28:13):
Yeah, these guys are you know, they're a different breed.
Yeah they can fly those things. No, and they should,
but I'll watch all right. And then we had a
tiny earthquake, nothing huge, out of a thousand pumps near India.
Thousand pumps. Yeah, I think all these little earthquakes are
a problem. What do you think the problem is. I
(28:33):
think it's a lead up to a major. Oh you
think a big one mac in the face. Yeah, it
could be. Sometimes that happens. Sometimes it trails off, sometimes
it ramps up. I know. But is it a little
relief here and there or is it the lead up
to the big one. And when we had doctor Lucy
Jones on, she said something so great. She said, when
the big one hits, nobody in California will say, hey,
(28:57):
is this the big one? Not one person? She's funny, Yeah,
she's all right.
Speaker 1 (29:05):
Hey, you've been listening to the John Cobalt Show podcast.
You can always hear the show live on KFI Am
six forty from one to four pm every Monday through Friday,
and of course, anytime on demand on the iHeartRadio app.
Posted after four o'clock, same as the radio show, and
you can get on that on the iHeart app as well.
Bill Saley you know him if you've been listening to
the show for a long enough time. Bill most recently
was an assemblyman from the End of an Empire, and
now he's US Attorney for the Los Angeles District and
(00:23):
Trump has appointed him to that post. He's going to
be confirmed by the Senate, but he's already coming out blazing.
He announced the launch of a Homelessness, Fraud and Corruption
Task Force to go after the homeless industry here in
Los Angeles City and County.
Speaker 2 (00:41):
Do you know?
Speaker 1 (00:42):
The county and the city and other cities in the
area will spend more than two billion dollars this year
on about seventy thousand vagrants. Two billion dollars in tax
money on seventy thousand vagrants. And as you know, the
problem general gets worse every year. So let's get BILLI
sale on.
Speaker 3 (01:03):
Hey, John, how are you?
Speaker 1 (01:05):
I'm good? This is your first major announcement since you
took over. Why did you side to target homelessness the agency?
Speaker 2 (01:13):
First?
Speaker 3 (01:14):
Well, look, this is something that's been on all our
radars for several years now. Even when I was in Sacramento,
we'd have hearings on homelessness and we would ask over
and over again, what happened to the money that we
already spent. Twenty four billion dollars of tax dollars over
the last five years has been allocated to homelessness in
the state of California. A large portion of that has
(01:35):
gone right here in southern California, and the homelessness issue
has only gotten worse. On Sunday, I went in towards
skid Row with Judge Carter. He walked me through it.
It is like a different world down there. There are
no government services being offered there john. Most of the
services being offered, whether it was you know, medical attention
(01:56):
or food, were from private donors. The only evidence I
saw of tax money being spent in down there was
a black jeep. And I'm not kidding. I saw this firsthand.
There's a black jeep that doesn't have doors on it
driving around handing out drug kits so the homeless can
safely shoot up down there on skid Row. They're handing
(02:17):
crack pipes, turn of kits, little things to burn the
drugs on needles. That's the only that's the only tax
dollars I saw being spent there tax dollars.
Speaker 1 (02:28):
This was a government funded jeep with government employees in
it handing out drug paraphernalia.
Speaker 3 (02:34):
Yes, that's correct, And so you know, looking at the issue,
looking at the crisis, looking at the audit that was
conducted at the request of Judge Carter down in Orange County.
The auditors are beside themselves. They audited the programs and
they are missing two billion dollars. Cannot account for two
billion dollars. That's with a B and as I've said,
(02:56):
that's not a rounding error, and that's not a little
bit of money. That's a lot of money. So I
was asked, how does two billion dollars go missing? Well,
it doesn't. It's somewhere and we're going to find it.
And so over the weekend I put together this task force.
I think taxpayers deserve to know where their money is,
what happened to their money, who benefit, and whether there's
any wrongdoing. I'm not going to prejudge the investigation. I
(03:19):
don't know who and what will be involved, but we
are going to do a thorough investigation and if laws
were violated, we will arrest and prosecute.
Speaker 1 (03:28):
Did you get any tips, not just the audit inspiring
you to do this, but maybe some somebody calling and
giving you a roadmap.
Speaker 3 (03:38):
Let me just say, since we've said this, we have
been inundated with people calling and emailing us. And actually,
let me say this right now. If you have information,
please call the FBI at one eight hundred Call FBI.
That's one eight hundred call FBI. That is the best
place to send the information. That is the clearinghouse for information.
You can also go to tips dot FBI gov. But
(04:01):
we are being inundated by the public on this issue. John,
I can tell you whether they're credible, whether it going
to lead to anything too soon to tell. I can't
tell you that, And I'm not going to be able
to really talk to you much about this investigation as
it moves on until we're ready to make a move.
And that's to protect innocent people that might be No.
Speaker 1 (04:21):
No, I understand you're getting investigators and prosecutors from various
federal agencies. Can you talk about which agencies are going
to be helping you out on this?
Speaker 3 (04:31):
Yeah, my office will be leading this. I have mind you,
this is the largest federal prosecutor's office in the country.
We oversee twenty million people. We have over three hundred
lawyers here. We are a large office. We know what
we're doing. You can look at the cases down at
La City Hall. You can look at the sheriff's cases.
We know what we're doing. I put my top prosecutors
from the Public Corruption Section and the Major Fraud Section
(04:53):
on this. I'm also putting the Civil Division on this.
And then we have agents from the FBI, the IRS,
and the Office of inspect General for Housing and Urban
Development because there were some federal funds that were given
out to these agencies as well. So this is a
robust task force. We had a meeting today in my
office and everyone's everyone's ready to get to work, and
(05:13):
so to the extent the public has information. Again one
eight hundred call FBI.
Speaker 1 (05:18):
Do you think it's a coincidence that LASA is suddenly
being pulled into pieces? The county is backing out and defunding,
the city is going to defund as well. The leader
of LASA, Valicia Adams Kellam, has resigned. It's because they
heard footsteps or why do you think you know?
Speaker 3 (05:38):
I have no idea. I don't know these people. I've
never talked to these people. I know Judge Carter has
been putting a lot of pressure on them and for answers.
I understand that the county voted to defund them, So
you know, maybe she, I don't know, maybe she thought
she's not going to get the money she needs anymore.
I have no idea, but we're going to look at
everything and everyone. That's what I can tell you.
Speaker 1 (06:01):
One more issue, high speed rail. That's seventeen billion that
has disappeared in seventeen years with no track and no
possibility that anything significant is going to be built anytime soon.
Something's wrong there as well.
Speaker 3 (06:18):
Yeah, I believe the Department of Transportation has already announced
an investigation into high speed rail.
Speaker 4 (06:24):
I know.
Speaker 3 (06:25):
I believe Congress has also said they're no longer funding this.
I am the first US attorney appointed by Trump in
the state of California. We have four federal districts in
the state. High speed rail will probably fall under one
of the other districts, probably the Eastern District or the
Northern District, which covers central California where a lot of
this work has happened. So once those US attorneys get appointed,
(06:48):
I suspect there'll be much more activity in this area
on that case.
Speaker 1 (06:53):
Coming back to homelessness just for a minute, this is
just my opinion. I've got to believe that everybody in
government knows what's going on. I can't believe the supervisors,
the city council people, the mayor, all these directors, heads
of agencies don't know what's really going on with this
two billion that evaporated.
Speaker 3 (07:13):
Well, we're going to find out and we're going to
get to the bottom of it. And we have a
lot of tools at our disposal, John, So we don't
necessarily need people, you know, we don't need people to
comply voluntarily. We've got a lot of tools to get
information and get to the bottom of this, and we're
going to use every tool at our disposal because the
public deserves answers and they deserve to have trust in
(07:33):
their public institutions. When voters vote and taxpayers pay, and
then money says it's going to be used for a cause,
it needs to be used for that cause. And if
it's not used for that cause, then people need to
be held accountable and responsible. And what's been most disturbing
to me in this whole case is that the elected officials,
the people responsible for administering this programs, have sort of
just put their hands up and said, we don't know
where the money is and let's stop talking about it,
(07:56):
let's move forward. Well we're not moving forward. The American
focus on moving forward, but we're looking at the past
and we need to know what happened to the money
before we can before we can move forward.
Speaker 1 (08:06):
Well, that's what makes me crazy. None of them have
ever stood up and gotten angry about this. You have
an audit revealing there's over two billion dollars missing, and
nobody has anything to say. You think they'd be holding
hearings investigations themselves saying hey.
Speaker 2 (08:18):
You guys blew two billion dollars in tax money.
Speaker 1 (08:20):
What's going on? Nothing, which makes me think they're not upset,
And makes me think they're not upset because they know
what's been going on all this time. It makes me
think some of them are involved.
Speaker 3 (08:32):
Well, and it's our job to find evidence improve it.
And so that's what we'll be doing, John, And look,
that is our role. I mean, really, the federal government
is uniquely positioned for cases just like this, when you
have the county and the state and locals all involved
in this. You can't really expect them to be objective
and to police themselves. So that is one of the
(08:53):
critical roles of the federal government. We provide that needed oversight,
that check over the state, whether it comes to civil
rights issue or public corruption issues. That is our role
as the federal prosecutors here in the state of California.
And that's what we're going to do. And I don't
answer to any of them. I answer to the Attorney
General and the President of the United States.
Speaker 1 (09:11):
Well, Bill, I am so glad you have the position
you do. Really, this is exciting times here, and good luck.
And if you need anything from us to help publicize
and to help look for more witnesses and evidence, and
just let us know.
Speaker 3 (09:26):
Thank you, John. Yeah, just let just you can repeat
that number whenever you cover this. It's one eight hundred
call FBI and to extend anyone out there has details
or information. We'd love to talk to you.
Speaker 1 (09:35):
All right, Bill, talk again soon, Thanks very much, thank you, John.
Speaker 2 (09:39):
All Right.
Speaker 1 (09:39):
The US Attorney for the Los Angeles District Bill Assailing,
and he has a multi agency task force that's investigating
the fraud and corruption in the homelessness industry here in
La County. We have told you for years, it just
can't be that. There's no way you spend billions of
dollars every year homelessness gets worse. At first, it seemed
(10:02):
like a joke. It's not a joke. There's people stealing
the money right in front of us, and all the
people in power who've been silent, and you know, we're
going to be publicizing the names of those who are silent.
What was the progressive call a few years ago, Silence
is violence. Silence indicates corruption. Public officials who are silent
(10:23):
on what's going on with homelessness in La County may
be part of the corruption. And Bill's job is to
find the proof of it. But I have the suspicions
We've got more coming up. Thomas Buckley, who's a journalist,
writes on substack he had a good column I just
found a few minutes ago, and all this I want
to run a few numbers behind you, and it's staggering
(10:43):
how much money has been spent, absolutely staggering on relatively
few people who are all still living in the streets.
That's next.
Speaker 4 (10:52):
You're listening to John Cobelt on demand from KFI AM
six forty.
Speaker 1 (10:58):
We just had mil Saley on the US attorney just
appointed by Trump, just took over in the past week
and his first major investigation, first target. He's put together
the Homelessness Fraud and Corruption Task Force. He's getting prosecutors,
investigators from the FBI, the IRS, the Department of Housing
(11:19):
and Urban Development. And top item on the agenda two
point three billion dollars unaccounted for in the Los Angeles homeless.
Speaker 2 (11:32):
Home it's called Losa.
Speaker 5 (11:34):
I was from Los Angeles Homeless Services.
Speaker 1 (11:37):
Los Angeles Homeless Services Authority. The county is defunding it.
The city is going to defund it. That's most of
the money it gets. The head of it is Valicia
Adams Kellum. We threw in the dumpster Friday, her body
was still warm, and she resigned twenty minutes later, Los
Angeles Homeless Services Authority. It's not going to be around
(12:00):
much longer. Bill Saley took a tour with took a
walk with the judge along skid Row, David o'carter, who's
overseeing a lawsuit which which led to the audit, which
led to an obvious truth. Now we just have to
detail the proof there's people in these homeless agencies. Maybe
(12:23):
the politicians themselves, the nonprofits involved, they're stealing the money.
That's no other way to explain two point three billion
dollars disappearing and the homelessness gets worse and worse. Thomas Buckley,
who's a journalist. He has a column on Substack called
(12:45):
The Point. I just want to read a few paragraphs
because he encapsulated this so well. In its effort to
combat homelessness, Los Angeles County and the city and other
cities in the county will spend more than two billion
dollars this year on seventy thousand or so vagrants. That
works out to be about thirty thousand dollars per drooping head,
(13:10):
he writes, And that doesn't include the states funding of
homelessness programs food Stamps, Medicaid, medical direct cash, social Security, disability,
other benefits that total up to another twenty four thousand
dollars a year per person, so now were up to
(13:31):
fifty four thousand dollars that taxpayers and donors are paying.
That does not include the value of the free rent
provided to hundreds of people in these permanent supportive housing facilities,
including those that have been built recently at a cost
of between seven hundred thousand dollars and one million dollars.
In Santa Monica, they spent a million dollars per six
(13:54):
hundred square foot studio apartment unit, a million dollars for
you're a homeless person for his own apartment. Thomas Buckley writes, amazingly,
in LA and throughout the state, spending on solving homelessness
has more than doubled over the past decade or so.
What else, pretty much doubled while this money was being
(14:16):
spent the homeless population. We doubled the spending. We doubled
the homeless. Obviously, no real dent has been made in
the problem. The number of homeless people has only increased,
and still three or four homeless people die on the
streets of LA every day. The industry is made up
(14:40):
of catastrophically almost comically inept theoretical nonprofits that continue to
fail miserably but pay their staff very well, political cronies,
actual relatives of government officials, dolling out the money they've
done very well off the suffering of others. They might
(15:01):
finally be put under the microscope because of the audit
of LARSA and because of this now investigation that Bill
Sale is gonna lead. No wonder the county pulled out,
don't wonder the city's pulling out.
Speaker 2 (15:17):
No wonder.
Speaker 1 (15:18):
Valicia Adams Kellum quit twenty minutes after she was dumpster.
If you, if you drive around, you might hear in
the distance the soft sound of humming. That's a lot
of paper shredders going off. And does it make any
noise when people start mass deleting all the records in
their computers, does that make does it make any kind
(15:38):
of a sound.
Speaker 5 (15:41):
But yet we voted for another tax.
Speaker 1 (15:44):
In Yes, yes, we voted for another tax increase.
Speaker 5 (15:48):
Where's that money going to?
Speaker 1 (15:51):
It's going in these same criminals they got to pay raise.
Which leads me to the other story which I want
to I want to discuss again for those of you
who haven't heard, they have just cracked a big racket
in Long Beach where a food bank. The executives and
(16:11):
the directors all ran off, and the board members ran
off with eleven million dollars of tax money and donations
eleven million. They've been doing this for a decade. Wait
tea hear what they spend it on. This is the
corruption capital of America tell you more about it coming up.
Speaker 4 (16:33):
You're listening to John Cobel's on Demand from KFI AM
six forty.
Speaker 1 (16:39):
I want purp walks. I want politicians. I want to
see their husbands, their wives, their their uncles and aunts,
their kids, anybody involved in this homeless scam that's been
going on for all these years. They built billions of
dollars and these are nonprofits and they are staffed by
(17:00):
people who pay themselves. I said this so many times.
People probably thought I was a conspiracy theory nut. But
you just had to look at the homeless numbers doubling
over the last ten years. Well, the spending doubled over
the last ten years. It's like, what do you think
is going on? These aren't failed programs. There aren't any programs. Well,
(17:24):
like Bill Saley, who's now the US Attorney, He said
he walked along skid Row with Judge Carter. He could
not find any social services for the homeless unskided Row.
More homeless people per square foot on skid Row than
anywhere else in the county. The only presence of government
(17:47):
was a black jeep that was handing out drug paraphernalia.
Speaker 2 (17:51):
Now, remember four or.
Speaker 1 (17:53):
Five people die every day of drug overdoses in the county,
in the city. And they got the government handing out
taxpayer paid bags of drug paraphernalia so they can quickly
kill themselves off, more quickly kill themselves off. And here's
more corruption. And this when I read the details of
(18:15):
the story, this is like a template. This happens to
be a food bank, but I imagine a lot of
homeless people use the food bank.
Speaker 2 (18:21):
Right.
Speaker 1 (18:23):
The food bank is called food Bank of Southern California,
a nonprofit, and now the state Department of Social Services
has filed a lawsuit that a dozen of its leaders.
Speaker 2 (18:36):
These are.
Speaker 1 (18:39):
People in management, directors, board members, executives. A dozen stole
the money spent it on themselves. Listen to this case.
This nonprofit has been around since nineteen seventy five. It's
supposed to feed poor people, but it's diverted eleven million
of state and federal funds to themselves. The food banks officers, directors,
(19:04):
and vendors diverted millions of dollars into their own pockets.
That's what it says in the complaint by the state attorney.
They eventually closed the bank. Well, they started investigating in
June of last year. They closed it in October. Eleven
million dollars two hundred thousand dollars went to pay for
(19:28):
Walmart gift cards four thousand, fifty dollars Walmart gift cards,
but there's no record of where the gift cards went.
There's no record that they were ever given to households.
It looks like the directors and the employees ran off
with the gift cards. Those are very difficult to trace.
(19:50):
They've had two CEO's recently, and one of them is
Gene Cooper, and then Brian Weaver took over last year
because of Cooper getting investigated. And then there were twelve
members of the Food Bank board, including Dion Rambo, a
(20:11):
woman named sweet Alice Harris who's ninety years old, and
Michael Barrett Cooper former CEO. Her husband Lamar Ramsey also
a defendant, and he didn't even work for the nonprofit.
They say that Cooper, Jeane Cooper, and the husband, Lamar
Ramsey used the Food Bank's money to pay for personal expenses,
(20:33):
home renovations, lawn services, even an artificial Christmas tree. They
used the nonprofit's corporate accounts and credit cards and spent
two hundred and twenty eight thousand dollars at Best Buy
Home Depot, Low's Office depot.
Speaker 2 (20:49):
And at and T.
Speaker 1 (20:52):
They say Gene Cooper sent almost five thousand dollars to
her sister in law for transportation, seven thousand dollars to
her husband, Lamar Ramsey for repairs that were never made
at the Food Bank, twenty six hundred dollars to Ramsey's
company to decorate business trucks. The Food Bank also gifted
(21:14):
Lamar Ramsey a ten thousand dollars box truck. Guess who
authorized that His wife, Geene Cooper, you know, like Valicia
Adams Callum authorized a two million dollar payment to her
husband's homeless nonprofit, Upward Bound Felicia running a LASA, same thing.
(21:35):
I told you. They make hundreds of thousands of dollars
and then they send thousands of dollars to their wives,
husband's friends, relatives, and a lot of these people are
connected to See. The reason they get funding is they're
connected to the politicians. They're connected to city council people, supervisors, mayors.
(21:59):
That's how they get the money. They get the inside
I mean, any has anybody ever come to you to
open up a nonprofit? All right, So I told you
there were two CEOs. There was Cooper, then Brian Weaver
takes over, and he said I took over because we
suspected fraud with Cooper. But Weaver is accused of taking
(22:24):
twenty thousand dollars and a cashier's check and not documenting
what it was used for. They claim he also bought
a tesla for himself, and then he hired his family members.
His family members were the project manager in the accountant.
So both CEOs were giving money and positions to family members.
(22:45):
Now let's go to the board here. Dion Rambo. The
state's accusing him of getting two hundred and seventy nine
thousand dollars from another company. Well, no, he paid two
hundred and seventy nine thousand dollars to another another company
called the Southwest Group that never provided any services, and
the state thinks Rambo pocketed the money and used it
(23:08):
for himself. Did you have this Michael Barrett, and he
was the board secretary. He paid his own company five
thousand dollars every quarter for a billboard over his church.
Barrett is the pastor of the do Rite Christian Church.
(23:31):
And he used the state tax money that was given
to the food Bank to make direct payments to his
church and to pay for the billboard over his church.
There's a thousand of these stories here in La County,
(23:54):
a thousand of them. And Assie is going to find
out what's going on. That judge is going to find
out what's going on. That's why the county supervisors pulled funding.
That's why the city council wants to pull funding. That's
why Thelicia Adams Cullum resigned. There's more coming. This is
(24:16):
going to be a big, fat, juicy scandal that's going
to last quite some time. It's gonna take a little
while to get the proof.
Speaker 5 (24:22):
Then I think automatically that sales tax that I keep
talking about should be repealed, because why are we paying
more money to go towards the homeless when this has.
Speaker 1 (24:32):
Happened all that, all this should get defunded, and everybody
on the streets should be told go somewhere else, or
we're sending you to jail, or we're going to force
you into mental treatment, mental health treatment, or we're going
to force you into a drug treatment, or you just go,
you just get out of town.
Speaker 2 (24:48):
But no more money.
Speaker 1 (24:50):
Money's being cut off ten years billions of dollars of theft.
And if you see any more taxes on the ballot
for homelessness, would please just once vote no. No, you
want to pay, fine, I don't want to pay anymore.
All right, more coming up.
Speaker 4 (25:09):
You're listening to John Cobels on demand from KFI Am
sixty Conway.
Speaker 1 (25:16):
Coming in here in just a minute. News coming out
this afternoon, the Trump administration is revoking temporary legal status
to hundreds of thousands immigrants of immigrants who are allowed
into the country under Biden. Remember, they could fill out
a form on an app on their smartphone. It was
(25:37):
called CBP one. They filled out a form and they
were pre approved for entry, so the Biden crowd would
count them as legal entrance, not illegal entrants. And Trump's
people blocked that app. Now you get a message suggesting
you deport. And now they're getting there. They're getting their
(26:00):
status revoked. It was like temporary protective status. They're getting revoked,
and they're canceling, uh, their social Security numbers that they
had obtained. See, if you get protected status to stay here,
you get a social Security number. They went and got one,
and now those are being revoked as well, all right,
(26:20):
conways here, Hey, now, hey, now you know my the
irs sent me a letter saying that my Social Security
number was stolen by somebody who's in this country illegally.
Speaker 2 (26:30):
Is that right? Yeah? So that's that would be a
lot of fun to have to deal with that crazy.
Speaker 1 (26:37):
This guy's going to get into more trouble than you
will do.
Speaker 2 (26:39):
I got a lot of feedback. You had the US
attorney on today and Bill a Sale, Well you talked
to him. To me, I got a lot of fee
I got a lot of blowback though, when I said, hey,
is this a death penalty case? And he sort of
laughed and he said, no, it's not a death penalty case,
but I could make I could make a case for that.
It's been five years, okay, five years. Yeah. Seven people
(26:59):
die on the streets of Los Angeles County every night. Yeah,
so that's fourteen thousand deaths. If somebody came in and
killed fourteen thousand people in LA, you give them the
death penalty. Oh sure, yeah. So why aren't they getting
it downtown?
Speaker 1 (27:12):
Well they should, you're right, Yeah, Well, the government's handing
out the drug paraphernalia that is used to kill them.
Speaker 2 (27:18):
Right, that guy's actually in our waiting room right now.
Comes in every Thursday. Dean Sharp is coming on with us,
so we'll have that guy on. That guy is great. Also,
six confirmed dead in the helicopter in the Hudson. It's
horrible news. Three of them were children. But I know
a ton of people have taken that. You know that flight,
(27:39):
I bet you have to. I bet you know people
have done it. I don't go in helicopter. You don't
go to helicopter.
Speaker 1 (27:43):
No. I win two helicopter rides here, Cafi scare the
hell right over the fires oh years ago, one over
the earthquake, and then had a kid, and I sold everybody, no,
no more.
Speaker 2 (27:55):
They scare me. Yeah, well they say, it's like just
a big shaking bag of bolls.
Speaker 1 (28:00):
It's I understand airplanes, like I get the physics. I'm
not afraid of flying in an airplane. Helicopters, I don't understand.
It doesn't seem like there's any margin of area there
if the thing starts.
Speaker 2 (28:11):
I totally get it.
Speaker 3 (28:12):
Man.
Speaker 2 (28:13):
Yeah, these guys are you know, they're a different breed.
Yeah they can fly those things. No, and they should,
but I'll watch all right. And then we had a
tiny earthquake, nothing huge, out of a thousand pumps near India.
Thousand pumps. Yeah, I think all these little earthquakes are
a problem. What do you think the problem is. I
(28:33):
think it's a lead up to a major. Oh you
think a big one mac in the face. Yeah, it
could be. Sometimes that happens. Sometimes it trails off, sometimes
it ramps up. I know. But is it a little
relief here and there or is it the lead up
to the big one. And when we had doctor Lucy
Jones on, she said something so great. She said, when
the big one hits, nobody in California will say, hey,
(28:57):
is this the big one? Not one person? She's funny, Yeah,
she's all right.
Speaker 1 (29:05):
Hey, you've been listening to the John Cobalt Show podcast.
You can always hear the show live on KFI Am
six forty from one to four pm every Monday through Friday,
and of course, anytime on demand on the iHeartRadio app.
The John Kobylt Show News
Host
John Kobylt
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