Inside ‘Shangri-La’ homeless scam as taxpayer millions bankroll jets, mansions and luxury excess — and Newsom won’t cut ties

NY Post ^ | 2/07/26 | Susan Crabtree

[Libloather]

Borrowing from novelist James Hilton, who coined the word “Shangri-La” to describe a Tibetan utopia in a 1933 novel, Franklin Roosevelt gave that name to the peaceful retreat we know as Camp David.

For California Gov. Gavin Newsom and Los Angeles Democrats, Shangri-La hasn’t become synonymous with a place that connotes peace on earth. It stands for a hellish homeless housing nightmare, eye-popping alleged fraud, and the ease and scale with which alleged con-artists rip off taxpayers.

In October, federal agents arrested Cody Holmes, the 31-year-old former CFO of Shangri-La Industries, a downtown Los Angeles-based developer who was supposed to be providing housing for homeless people in Southern California. First Assistant U.S. Attorney Bill Essayli for the Central District of California, a Trump appointee, charged him with mail fraud.

Holmes, who pleaded not guilty, is accused of embezzling more than $2 million in taxpayer funds slated for homeless housing construction to host extravagant parties; a $46,000-per-month Beverly Hills mansion; private jet travel; leases of exotic cars; high-end handbags totaling $128,000; a $35,000 diamond watch; and 20 VIP passes for the 2023 Coachella Music and Arts Festival.

Meanwhile, Shangri-La Industries executives showered Newsom and Los Angeles County Democrats with political donations as they were applying for some $100 million in state contracts that the CFO later allegedly looted to fund his and his ex-girlfriend’s lavish lifestyle.

Even after federal prosecutors exposed the massive fraud, Newsom and L.A. Democrats haven’t severed ties with the embattled developer and have kept political donations from the firm’s executives. Newsom has also allowed the construction firm to continue to tout his endorsement on its social media.

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TOPICS: Business/Economy; Conspiracy; History; Local News
KEYWORDS: california; crime; democratdonors; embezzlement; fraud; homeless; jets; luxury; mansions; newscum; newscumfraud; newsom; newsomdoners; scam; shangrilaindustries; theft

[Libloather]

It doesn't seem to stop.

[Ronaldus Magnus III]

To the democRATS/DemoKKKrats, ALL MONEY BELONGS TO THE GOVERNMENT. They will decide who gets what. Rules, regulations, laws and statutes are for “others.”

[jonrick46]

As tax dollars flush down the toilet of corrupt NGOs and politicians, California has to make up for the loss with increased taxes. Taxes have turned into a monster chasing the high earners out of the state. That’s why I call that monster, DemonKKKrats (the KKK denotes Génocidaires of blacks).

[neverbluffer]

Need to start arresting politicians. Can you say RICO

[jimtorr]

I’m sure Noisome got his cut.