This is an I-Heart podcast.

KFI AM-640.

You're listening to the John Cobalt podcast on the I-Heart Radio app.

Lou Penrose sitting in for Cobalt this week.

John will be back next week.

Well, what a story.

U.S. Attorney Billy Assailing has announced an arrest and criminal charges in two separate cases misuse of public funds

this is a good example of the good guys getting the bad guys but the fact that so much public

money was open for theft and fraud through the state's project home key is truly,

truly concerning.

KFI's Michael Monks was there at the press conference.

So what do we know about these individuals and how hard did they have to try to steal

this homeless money?

Apparently, Lou, they didn't have to try quite as hard

as the U.S. Attorney's Office would like to see. In fact, that was noted. I'll have a clip for you

here momentarily from one of the investigators at the IRS who points out that the system is sort of

designed, unfortunately, to be preyed upon. But what we know so far is that a couple of guys

now face charges over allegedly misusing public funds for their own personal benefit. And

one of those guys is Cody Holmes. We learned about this guy last year because the development

company where he served as chief financial officer sued him

over the misappropriation of funds. But it doesn't look like that development company is

completely off the hook themselves. They're called Shangri Law Industries. Cody Holmes lives

...