Former San Francisco homeless services CEO charged with misspending $1.2 million in public funds

Former San Francisco Homeless Charity CEO Faces Felony Charges for $1.2 Million Theft

A 71-year-old former executive who once led a prominent homeless services organization in San Francisco will appear in court Tuesday to face nine felony charges stemming from the alleged misappropriation of over $1.2 million in public funds intended to help the city’s homeless population.

Gwendolyn Westbrook, who served as CEO of the United Council for Human Services, allegedly exploited her position of “near-exclusive financial control” over the nonprofit to systematically divert taxpayer money for personal use, according to a statement released Monday by the San Francisco District Attorney’s Office.

Prosecutors claim that between 2019 and 2023, Westbrook engaged in a pattern of unauthorized self-payments, improper cash withdrawals, and fraudulent reimbursement practices. Court documents reveal she allegedly used the organization’s funds to purchase luxury vehicles and make substantial purchases from high-end retailers including Louis Vuitton and Neiman Marcus.

The charges against Westbrook include misappropriation of public funds, grand theft, and filing false California tax returns. Her arraignment is scheduled for Tuesday afternoon.

This case represents a significant breach of trust in San Francisco’s homeless services network, which relies heavily on nonprofit organizations to implement the city’s strategies for addressing its persistent homelessness crisis. The United Council for Human Services operated a soup kitchen and managed multiple city contracts worth millions of dollars to provide shelter services to the unhoused.

Westbrook led the organization for nearly two decades before her dismissal in 2023. The San Francisco Chronicle reports this is not her first encounter with financial impropriety allegations. In 1997, she was accused of stealing thousands of dollars from a cash box at a San Francisco Port parking lot where she worked. Additionally, in 2015, regulators discovered unsanctioned blackjack tables operating in the back of a charity bingo hall run by her nonprofit.

The charges come amid increasing scrutiny of how public funds designated for homeless services are being managed across California. Homelessness remains one of the state’s most pressing social issues, with cities like San Francisco allocating hundreds of millions of dollars annually to address the crisis.

In a parallel case highlighting concerns about oversight of homeless service providers, Los Angeles has seen its own scandal unfold. Alexander Soofer, CEO of homeless services charity Abundant Blessings, faces both federal and state fraud charges for allegedly misusing $23 million in taxpayer funds. Federal prosecutors contend Soofer diverted money intended for homeless services to purchase a $7 million Los Angeles home, a vacation property in Greece, and a $125,000 Range Rover.

Soofer has been charged federally with wire fraud and faces additional state charges including conflict of interest, offering false evidence, and forgery.

These cases underscore growing calls for greater transparency and accountability in the nonprofit sector, particularly among organizations receiving substantial public funding to address critical social issues. Advocates for homeless services reform argue that while these alleged violations represent extreme examples, they highlight the need for robust oversight mechanisms to ensure taxpayer dollars reach their intended beneficiaries.

Neither Westbrook nor representatives from the United Council for Human Services have responded to requests for comment on the charges. No attorney information for Westbrook was immediately available.

As San Francisco continues to grapple with its homelessness crisis, this case raises troubling questions about the effectiveness of the city’s contracting processes and oversight mechanisms for service providers entrusted with millions in public funds to assist its most vulnerable residents.