Authorities in California have apprehended a man accused of redirecting millions of taxpayer dollars, intended for homeless aid, to support his extravagant lifestyle, according to information obtained by Fox News.

The arrest occurred in a pre-dawn operation at the suspect’s opulent Los Angeles mansion. Federal agents claim he used the misappropriated funds for luxurious home upgrades and subsequently confiscated his Range Rover.

A cluster of tents housing homeless individuals is visible on a Los Angeles sidewalk during rainfall on January 3, 2026. (Photo by Qian Weizhong/VCG via Getty Images)

This arrest follows a warning from independent journalist Nick Shirley, who previously uncovered a fraud scandal in Minnesota. Shirley informed Congress that the situation in California could potentially be more severe. He was responding to a query from Representative Kevin Kiley, R-Calif., regarding the presence of fraud signs similar to those identified in Minnesota.

“The fraud situation in California might surpass that of Minnesota,” Shirley stated. When pressed for details, he cited the unaccounted $24 billion intended for homeless initiatives, alongside other projects and issues that he believes indicate fraudulent activity.

Governor Gavin Newsom speaks during a press conference about ‘New Funding for Homelessness and Mental Health Efforts’ and criticized President Trump that ICE agents movement over immigrants and citizens’, in San Francisco, Calif., on Jan. 16, 2026.  (Tayfun Coskun/Anadolu via Getty Images)

Earlier this month, First Assistant U.S. Attorney for the Central District of California Bill Essayli dubbed Gov. Gavin Newsom the “king of fraud.”

“California has spent $24 billion in the last five years on homelessness, and no one can account for where that money has really gone,” Essayli told “Fox & Friends” earlier this month.

Richard Lopez, left, a Help of Southern Nevada Homeless Response Team lead, Rayvonte Toliver, center, and Zabrena Quinn, both of a Help of Southern Nevada outreach workers, check out homeless encampment at Mountain Vista Street and Russel Road wash, on Tuesday, July 9, 2024, in Las Vegas.  (Bizuayehu Tesfaye/Las Vegas Review-Journal/Tribune News Service via Getty Images)

In April, Essayli launched a task force to investigate corruption in California, with a focus on homeless services. The task force has already resulted in federal charges against two men accused of using real estate projects to exploit the state’s homelessness system for personal profit.

Essayli said those cases, which involve millions of dollars in alleged fraud, are only the “tip of the iceberg.”