Los Angeles affordable housing developer Shangri-La Industries is accusing its former CFO of embezzling millions, forging signatures and documents, altering bank statements, and creating fake lending companies, which the developer says is to blame for its failure to make payments on the properties under its management.
Shangri-La was granted millions in public funds for seven property renovations under Project Homekey—a state initiative to convert hotels and motels into housing for the homeless—but has defaulted on its loans and faces foreclosures on all seven properties, according to court documents filed in Los Angeles Superior Court. The properties are in Salinas, San Bernardino, King City, Thousand Oaks, San Ysidro, Redlands, and Los Angeles.
