---

 [ LOS ANGELES ](https://mail.citywatchla.com/index.php?option=com_content&view=category&id=312)

#  Exposing L.A.'s Homeless Industrial Complex: A Call for Forensic Oversight

Written by Nick Patsaouras.

 ![](https://mail.citywatchla.com/images/stories/Mar-2025/021g.jpg)

March 13 2025

<a class="a2a_button_facebook"></a><a class="a2a_button_twitter"></a><a class="a2a_button_email"></a><a class="a2a_button_print"></a>[](https://www.addtoany.com/share)

 [Comments](#disqus_thread)

HOMELESS CRISIS - The recent blistering audit of the Los Angeles homeless problem was not only expected, but it was also anticipated, long before the examination was ordered by U.S. District Judge David O. Carter.

The facts have always been crystal clear. Without oversight and direction, homelessness not only turned bleak and unmanageable, but the program had fallen prey to the “Homeless Industrial Complex.”

Without delay the city must perform a forensic audit, in addition to the just released financial and performance assessment only audit, to find out the specific waste and abuse, and the possible fraud, all born out of the Homeless Industrial Complex and its manufactured revolving door, one in perpetual motion, which draws in money and returns little, if any, results.

We were stirred two years ago when Miguel Santana of the California Community Foundation told the Urban Land Institute, “We have created a system not for the homeless, but for the interests who benefit from that system.” It was an honest appraisal.

We knew that the antiquated and inefficient methods of data collection—and data not collected—and the poor referral processes significantly inhibited the efforts by the city to respond to the crisis with the urgency that it required.

When I was on the Board of the Los Angeles Department of Water and Power I had to resort to such a forensic audit regarding performance of an Owens Lake multimillion multiyear contract to discover that the department was defrauded over several years, although the subject contract had been audited before. LADWP sued and was able to recover $2.9 million of the ratepayers` money.

That CPA performed audit among other issues.

- Analyzed financial transactions: Reviewed invoices, payment records, and financial statements for irregularities.
- Identified patterns: Used data-mining techniques to look for patterns of behavior that could indicate fraud.
- Investigated counterparties: Looked into the other parties involved in the contract.

While overseeing the design and construction of homeless shelters for Mayor Eric Garcetti as part of the A Bridge Home program, an embarrassing reality emerged: the tail truly wagged the dog.

Providers supplying services arbitrarily added unreasonable requirements and demands that resulted in skyrocketing construction costs, ensuing in housing delays, while seven homeless die every day in the streets of Los Angeles. These requirements were stricter than those of the Building and Safety Department, or the Fire Department. Safety, of course, always demands a high priority, overplaying it and adding exorbitant costs is unacceptable.

Homeless services are provided by the Los Angeles Homeless Services Authority, a broken system which produces fabricated data, fails to meet goals, and is so troublesome it becomes vulnerable to waste and fraud.

Immediately, we need to apply forensic methods and techniques to gain a true picture of this protracted challenge, and we must slam the door shut on the Homeless Industrial Complex.

*(Nick Patsaouras is a transportation and civic leader who served on the boards of the Southern California Rapid Transit District and the Los Angeles County Metropolitan Transportation Authority, advocating for bus transit. He has also held key oversight roles in Los Angeles city projects, as the former president of the Department of Water and Power board, UCLA/Harbor Medical Center expansion, and the LAPD headquarters construction.)*

[![](https://mail.citywatchla.com/images/ME%20DENTAL%20SPA/me%20dental%202026%20final.jpg)](http://medentalspa.com/)

 ![](https://mail.citywatchla.com/images/banners/signup-for-cw.png)

## Get The News In Your Email Inbox Mondays &amp; Thursdays

 Name

 [ ![LA DWP #2 (Pay Your Bill Help)](https://mail.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://mail.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)")

 [ ![Home - HHR Rent is too High - SB-2](https://mail.citywatchla.com/images/HHR/AHF-rent-too-high.jpg) ](https://mail.citywatchla.com/component/banners/click/104 "Home - HHR Rent is too High - SB-2")

 ---

##  Featured CityWatch Stories

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/fd/064h-fdb0b507.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=29355:remembering-ken-draper-citywatch-and-transparency-are-his-legacy&catid=12)

### [Remembering Ken Draper: CityWatch and Transparency Are his Legacy](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=29355:remembering-ken-draper-citywatch-and-transparency-are-his-legacy&catid=12)

LA WATCHDOG - Ken Draper, the editor and publisher of CityWatch for more than 20 years, passed away on August 8, 2022…

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/0f/061a-0f1ada2f.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33148:brace-yourself-for-a-worse-housing-crisis&catid=398)

### [Brace Yourself For A Worse Housing Crisis](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33148:brace-yourself-for-a-worse-housing-crisis&catid=398)

PLANNING WATCH - The California State Legislature will soon vote on the following draft legislation. Please carefully…

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/54/064j-54f0ecbd.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33204:be-prepared-to-protect-our-democracy-in-november-from-a-trumpian-plot&catid=9)

### [Be Prepared to Protect Our Democracy in November From a Trumpian Plot](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33204:be-prepared-to-protect-our-democracy-in-november-from-a-trumpian-plot&catid=9)

BE AWARE - Back in the days when conservatives were so hungry for media platforms that they’d come on progressive shows…

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/ab/063e-ab3b1ba1.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33174:nithya-raman-loses-the-homelessness-gavel-her-record-explains-why&catid=396)

### [Nithya Raman Loses the Homelessness Gavel — Her Record Explains Why](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33174:nithya-raman-loses-the-homelessness-gavel-her-record-explains-why&catid=396)

THE BOTTOM LINE - Raman wants Los Angeles voters to promote her to mayor. Before handing her the keys to City Hall, v…

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/75/064a-75d5dbb3.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33199:your-boss-owns-your-workday-not-your-brain&catid=425)

### [Your Boss Owns Your Workday—Not Your Brain](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33199:your-boss-owns-your-workday-not-your-brain&catid=425)

THE NEURAL WORKPLACE - California must protect workers before workplace surveillance crosses the final frontier: the hu…

---

##  [ LOS ANGELES ](https://mail.citywatchla.com/index.php?option=com_content&view=category&id=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/064n.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33207:how-los-angeles-homeowners-can-use-home-equity-to-finance-major-home-improvements&catid=312)### [How Los Angeles Homeowners Can Use Home Equity to Finance Major Home Improvements](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33207:how-los-angeles-homeowners-can-use-home-equity-to-finance-major-home-improvements&catid=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/063j.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33170:will-the-mayor-city-council-and-school-board-find-boldness-to-convert-empty-schools&catid=312)### [Will the Mayor, City Council and School Board Find Boldness to Convert Empty Schools?](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33170:will-the-mayor-city-council-and-school-board-find-boldness-to-convert-empty-schools&catid=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/062g.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33166:la-county-executive-job-candidates-new-and-old-sincere-and-opportunistic-are-lining-up&catid=312)### [LA County Executive Job: Candidates New and Old, Sincere and Opportunistic, are Lining Up](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33166:la-county-executive-job-candidates-new-and-old-sincere-and-opportunistic-are-lining-up&catid=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/062n.png) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33169:shame-on-da-nathan-hochman-the-prosecution-of-lapd-officer-daniel-flores&catid=312)### [Shame on DA Nathan Hochman: The Prosecution of LAPD Officer Daniel Flores](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33169:shame-on-da-nathan-hochman-the-prosecution-of-lapd-officer-daniel-flores&catid=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/061k.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33147:boyle-heights-warehouse-fire-lessons-learned&catid=312)### [Boyle Heights Warehouse Fire: Lessons Learned](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33147:boyle-heights-warehouse-fire-lessons-learned&catid=312)
<div data-id="1" 
	class="eb-inst eb-hide eb-emailform eb-1 eboxContentLocker"
	data-options='{"trigger":"onPageLoad","trigger_selector":"","delay":3000,"early_trigger":true,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":1,"reverse_scroll_close":true,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":10000,"close_on_esc":false,"animation_open":"slideInDown","animation_close":"fadeOutDown","animation_duration":400,"disable_page_scroll":true,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #1 - Global Email Signup Form","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog eb-formVer" role="dialog" aria-modal="true" id="dialog1" aria-label="dialog1">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<form action="https://citywatchla.us2.list-manage.com/subscribe/post?u=34d69f33624fd058ee9b56516&amp;id=4bfa422f51&amp;f_id=00d6c2e1f0" class="eb" method="post" id="mcform-1" name="mcform-1" target="_blank">
			<div class="eb-form-header"><p><img src="/images/2023/06/be-a-city-watcher.png" alt="be a city watcher" width="350" height="97" loading="lazy" data-path="local-images:/2023/06/be-a-city-watcher.png"></p>
<p>Sign up to receive our special e-news blasts on Monday and Thursday evenings!</p></div>
	
					<div class="eb-field-row">

			
			
			
			<input class="eb-input" type="email" name="EMAIL"  placeholder="Email address"  id="EMAIL" value="" required>

			
		</div>
										
	<div class="eb-footer">
    	<button class="eb-btn" type="submit" name="subscribe" style="background-color:rgba(93, 183, 93, 1);color:rgba(255, 255, 255, 1)">
    		Sign up    	</button>
    </div>
</form>			</div>
		</div>
	</div>	
</div>
<div data-id="3" 
	class="eb-inst eb-hide eb-yesno eb-3 "
	data-options='{"trigger":"onScrollDepth","trigger_selector":"","delay":0,"early_trigger":false,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":2,"reverse_scroll_close":false,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":1000,"close_on_esc":false,"animation_open":"fadeInUp","animation_close":"fadeOut","animation_duration":300,"disable_page_scroll":false,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #3 - Yes \/ No Donation Popup Box","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog " role="dialog" aria-modal="true" id="dialog3" aria-label="dialog3">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<div class="ebox-yes-no">
	<div class="ebox-yn-text">
		
		
		<div class="ebox-yn-headline" style="font-size:22px;color:#888888">
			<p>If you only give once a month, would you consider giving to CityWatch?</p>
<p>Your support fuels our mission to promote and facilitate civic engagement and neighborhood empowerment, and to hold area government and its politicians accountable.</p>
<p>Would you like to help? Even if you can only give $5, it will make a difference.</p>		</div>
			</div>
	
	<div class="ebox-ys-buttons" style="font-size: 16px;">
		
<a
					data-ebox-prevent="0"
		data-ebox-cmd="close"
				target="_self"
		href="https://www.citywatchla.com/donate"
		rel="noopener"
	
	
	
	
	class="ebox-ys-btn"
	style="background-color:#2ec664;color:#ffffff;min-width:100px">
	Yes
	</a>
<a
	
	
			data-ebox-cmd="close"
		href="#"
	
	
	class="ebox-ys-btn"
	style="background-color:#ef2345;color:#ffffff;min-width:100px">
	Not Right Now
	</a>	</div>

	</div>			</div>
		</div>
	</div>	
</div>