CA Non-Profit Reportedly Linked to Massive Housing Fraud Scheme

In the latest tale of fraud and graft out of California (that would make for a book that would make "War and Peace" look like a dime novel), a former state senator may have been caught with his fingers in the cookie jar. The person in question? One Kevin Murray, who faces scrutiny after it was discovered his non-profit was reportedly linked to a supposed multi-million dollar scheme using taxpayer funds intended for housing for the homeless. At present, Mr. Murray faces no charges or accusations. But some of the people associated with his non-profit are in trouble.

Fox News' Matt Finn broke the news on X:

NEW: Feds just announced former CA Democratic state senator's non-profit is linked to an alleged $27m scheme using homeless housing funds.
Former state Senator Kevin Murray is the CEO of "Weingart" -- which the Feds say used $27 million in homeless dollars to purchase a…
— Matt Finn (@MattFinnFNC) October 16, 2025

The post continues:

Former state Senator Kevin Murray is the CEO of "Weingart" -- which the Feds say used $27 million in homeless dollars to purchase a building in 2023 from an alleged criminal developer who just bought it months prior for $11m. Feds say $16m inflation in the scheme. The seller, L.A. developer Steven Taylor, was arrested and indicted for fraudulently acquiring the building and selling it to Weingart in a scheme.
Murray was not charged or named but the Feds say the non-profit he's a CEO of is part of an active investigation.
We've reached out to Murray.

Murray hasn't been charged, at least not yet. Records indicate that two of his colleagues are facing charges: Steven Taylor, the developer mentioned by Matt Finn, was indicted on Wednesday on charges including fraudulently obtaining loans, and a criminal fraud complaint has also been filed against one Cody Holmes.

An emailed press release from Acting United States Attorney Bilal A. Essayli reads in part:
Steven Taylor, 44, of Brentwood, is charged with seven counts of bank fraud, one count of aggravated identity theft, and one count of money laundering.
Taylor, who is free on a $3.6 million bond, is expected to be arraigned on the superseding indictment in the coming weeks in United States District Court in downtown Los Angeles.
According to the indictment, from August 2019 to July 2025, Taylor used fake bank statements and false cash representations to obtain loans and lines of credit to operate his real estate business. Among other uses for the fraud proceeds, Taylor acquired or refinanced properties in the Los Angeles neighborhoods of Silver Lake, Los Feliz, Westlake, Del Rey, Pico-Union, and Cheviot Hills.
Taylor also is charged with lying to lenders about his intended use of the properties, including lying to the lender funding his purchase of the Cheviot Hills property, misleadingly telling the lender he intended to renovate and use the property himself. In fact, Taylor already had contracted to sell the property, which he originally acquired for $11.2 million (obtained with a loan via fake bank statements) to a homeless housing developer purchasing it with public funds from the City of Los Angeles and the State of California for $27.3 million in a double-escrow transaction hidden from the victim lender and others.

What is it with Democrats and real-estate shenanigans?

Whoa: Who Letitia James Has Living in Alleged Mortgage Fraud House Just Made Her Situation Much Worse

Now, Kevin Murray may not have known about any of this, although this kind of thing happening in a company of which he is the CEO makes that seem unlikely; a good CEO should certainly be aware of multi-million dollar deals being made by his organization, especially when government funds from the city of Los Angeles and the state of California are involved. That could change, of course; it wouldn't be the first time someone had rolled on another member of a group that was up to no good.

This bunch, at least, got caught. And for once, maybe the California taxpayers will get a break.

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