A federal appeals court has sided with the Trump administration in upholding a policy that mandates detention without bond hearings for illegal immigrants in the United States who entered without inspection.
In a 2–1 decision issued Feb. 6, the New Orleans-based Fifth U.S. Circuit Court of Appeals reversed lower court rulings that had granted habeas petitions to two Mexican nationals, Victor Buenrostro-Mendez and Jose Padron Covarrubias. The panel determined that such individuals qualify as “applicants for admission” under federal immigration law, subjecting them to mandatory detention under 8 U.S.C. § 1225(b) rather than discretionary release options available under § 1226(a).
Thousands of Iraqis have signed a pledge to help defend Iran in the event of a US attack on the Islamic Republic. According to a statement, almost 5,000 people in Iraq's Diyala province gathered to declare their intent to defend both Iraq and its eastern neighbor, as well as Iran-backed armed groups, "without any compensation".
"We announce our readiness to volunteer to support our security forces, the Popular Mobilization Forces, and the Islamic Republic of Iran, and we categorically reject American intervention in the Islamic Republic," the statement read.
Almost 2,000 truckers deemed to be unqualified to drive on U.S. roads have been removed, with several arrested and many vehicles put out of service, the Department of Transportation (DOT) said in a Feb. 6 statement.
The action came as part of the first wave of Operation SafeDRIVE, a “high-visibility, multi-state enforcement and education effort focused on reducing dangerous driving behaviors, ensuring drivers are properly qualified, and addressing unsafe drivers and vehicles on the nation’s roadways,” the department said.
Inspectors from the Federal Motor Carrier Safety Administration teamed up with law enforcement partners in 26 states and the District of Columbia in the three-day effort, Jan. 13 to 15, carrying out “targeted enforcement actions along major freight corridors and other high-risk locations.”
The operation resulted in 8,215 inspections, with 56 truckers being arrested for driving under the influence and illegally being present in the United States, DOT said. A total of 1,231 vehicles were put out of service.
Out of the 2,000 truckers, 704 were removed from service, including nearly 500 for violating English proficiency standards. The removal of these 500 truckers follows the Trump administration’s implementation of English language proficiency requirements for truck drivers.
President Donald Trump signed an executive order in March designating English as the official language of the United States. In April, he signed another executive order that instructed Transportation Secretary Sean P. Duffy to remove commercial truck drivers failing English proficiency tests.
Proficiency in English should be a “non-negotiable safety requirement for professional drivers,” Trump wrote in the order. “They should be able to read and understand traffic signs, communicate with traffic safety, border patrol, agricultural checkpoints, and cargo weight-limit station officers.”
Derek D. Barrs, administrator of the Federal Motor Carrier Safety Administration, said the recent operation was about safety of the trucking sector. When drivers ignore rules or operate without having proper qualifications, they put lives at risk, he said.
Duffy said Operation SafeDRIVE “shows what happens when we work together with our law enforcement partners to pull unqualified drivers and vehicles off American roads.”
“We need a whole-of-government approach to ensure the Trump administration’s strong standards of safety are in place to protect American families and reduce road accidents.”
Crackdown on Unqualified Truckers
The crackdown on unqualified truck drivers comes amid incidents of illegal immigrants being involved in truck-related accidents.
In August, an illegal immigrant truck driver was accused of causing a crash that killed three people in Florida. In September, another illegal immigrant was arrested after a truck he drove caused an accident that resulted in a 5-year-old girl suffering critical injuries.
This month, Immigration and Customs Enforcement arrested an illegal immigrant from Kyrgyzstan after his truck hit a van in a head-on collision that killed four people in Indiana. He had obtained a commercial driver’s license in Pennsylvania, the Department of Homeland Security said in a Feb. 5 statement.
The Trump administration’s actions against unqualified drivers in the trucking industry has faced legal challenges.
In December, the state of California sued the administration after DOT decided to withhold $33 million in federal funding over the state allegedly failing to comply with the English proficiency requirement for truckers.
California argued in the lawsuit that it does enforce English-language rules for commercial drivers, accusing the DOT action of being “arbitrary and capricious, an abuse of discretion, and contrary to law; imperils the safety of all persons driving in California; and threatens to wreak significant economic damage.”
In June, the Federal Motor Carrier Safety Administration launched a nationwide review that discovered widespread noncompliance regarding the issuing of commercial driver’s licenses across several states, especially California, Colorado, Pennsylvania, South Dakota, Texas, and Washington.
In September, Duffy announced emergency action to restrict the eligibility of foreign-domiciled drivers to obtain these licenses.
“Licenses to operate a massive, 80,000-pound truck are being issued to dangerous foreign drivers—oftentimes illegally,” Duffy said.
More recently, DOT announced on Jan. 8 that a review of North Carolina’s nondomiciled commercial driver’s licenses by the Federal Motor Carrier Safety Administration found that 54 percent were issued illegally. Duffy called this a dangerous situation.
“I’m calling on state leadership to immediately remove these dangerous drivers from our roads and clean up their system,” he said.
Many, many years ago—we’re talking decades—I got into a fight with a boy I’d been dating for (thankfully) not very long. I can’t even recall what the argument was about, but I’ll never forget his very last words to me:
“God, you’re so stupid.”
“There are plenty of insults you could fling at me that would be accurate,” I informed him by way of a breakup. “Hot-headed, demanding, defensive, defiant, opinionated, unfiltered, gets hangry if not fed every four hours—let me help you out—but make no mistake, stupid isn’t one of them.”I think of that moment every once in a while, for instance when I hear celebrities, Facebook “friends,” or the coven of professional scolds over at The View whining about the “fascist dictator” in the White House. And not because my reaction is “God, you’re so stupid”—although it one hundred percent is—but because they’re obviously just reaching for the nastiest insult in the bag and hoping it sticks. It’s basically the “your mom is so ugly, she made an onion cry” of political attacks.
Let me prove it: In America, the worst thing that happens when you stream a boy band is that Spotify recommends more boy bands. Do you know what happens in North Korea? If you’re lucky, you’re sent to a labor camp. If you’re not so lucky, you could face the death penalty. That is not hyperbole.
According to a new Amnesty International report, North Koreans—including children—are being publicly executed for watching South Korean dramas or listening to music by groups like BTS. (Rich families can sometimes bribe officials to escape elimination, so apparently corruption is universal—although the price tag is often too high for many.) Thanks to Kim Jong Un’s 2020 Law on Rejecting Reactionary Thought and Culture, consequences for consuming or distributing unapproved entertainment range from five to fifteen years of forced labor and a public shaming to being brutally unalived in front of an audience as a gruesome cautionary tale.
But please, Joy Behar, tell me again how you’re living under a fascist regime.
North Korean escapees describe being lined up and marched to public executions as part of their “ideological education,” designed expressly to terrorize citizens into compliance. Tens of thousands of people dragged to a field to watch someone die for enjoying an unapproved TV show. Meanwhile, over here, “ideological education” means attending a corporate DEI seminar with lukewarm coffee, sitting through a required HR video about tone in the workplace, or getting lectured by a celebrity who listened to one podcast and now identifies as a constitutional scholar.
You poor, tortured souls. Please reward yourselves with a matcha latte; your activism must be exhausting.
Here’s a little reality check: if your fascist dictator allows you to tweet “FASCIST DICTATOR!!!” in all caps directly from your couch while wearing pajama pants you bought from the TikTok shop, you are not, in fact, living under a fascist dictator. If your most humiliating public moment is the time you accidentally replied-all to an office-wide email and called your boss an insufferable twatwaffle, you are not a victim of political oppression. And if the most hazardous consequence of your entertainment consumption is Hulu finding out you’re logged into your ex’s account and booting you off the platform, you do not live in an authoritarian state. You live in America, where the biggest threats to your freedoms are TSA confiscating your tweezers or Trader Joe’s discontinuing your favorite spicy peanut salad dressing.
“This country is an authoritarian hellscape,” the liberal left loves to lament. I know, it feels cool to say. It’s dramatic. It gets likes and comments and retweets. But if your alleged authoritarian hellscape permits you to organize protests against it, pen songs decrying it, record podcasts objecting to it, and sell merch mocking it, then maybe “authoritarian hellscape” isn’t the right term. Maybe it’s more like “stable, open society with Wi-Fi and too many microphones.” (Also, if it’s so dystopian, feel free to expatriate yourself. No, really. Flights leave hourly.)
These are the same Defenders of Democracy™, I’ll remind the class, who cheered when the unvaccinated were barred from restaurants, fired from their jobs, and banished from polite society altogether. The same hall-monitor brigade that applauded mask mandates, school closures, travel bans, curfews, capacity limits, and the glorious era of “Show Me Your Papers” vaccine passports. And now they want to style themselves as freedom fighters living under an iron-fisted despot? Please. These people didn’t just tolerate tyranny—they demanded it. They celebrated it. They literally couldn’t get enough of it.
When Barack Obama was droning American citizens overseas without trial, the left went mute. When Bill Clinton endorsed the assault on the Branch Davidian compound in Waco, Texas, no celebrity declared we were living under a dictatorship. When Joe Biden tried to impose sweeping vaccine mandates through OSHA and attempted a massive student-loan bribery“forgiveness” plan via emergency powers—both slapped down as unconstitutional—the same people now screaming “authoritarian takeover!” were too busy knitting vagina beanies to notice. Funny how the outrage only kicks in when authoritarianism strolls in wearing a red hat.
So when the likes of Cher and Jim Carrey and John Legend and Bette Midler and George Clooney and Kathy Griffin and Bruce Springsteen use their public platforms to call out Trump’sfascist takeover of America, their claims collapse under their own weight. Because real authoritarianism doesn’t let you complain about authoritarianism. That’s sort of the whole point.
A dictatorship, for the record, is somewhere people cannot complain. Where they cannot consume outside media. Where the government can kill you for pressing play on the wrong USB drive. Where state power and fear control every aspect of life—not where a disliked political figure exercises lawful constitutional authority and triggers a tantrum.
We, on the other hand, live in a country where we can march in the streets chanting “No Kings!” and not a single king will try to stop us.
Seeing the internet teeming with rants about America being one executive order away from total collapse feels like watching a Babylon Bee meme come to life. Because when people are free to say what they think, vocally dislike who they please, and watch anything they want without fear of a firing squad and somehow label that fascism, they’re not oppressed—they’re just spelling freedom wrong.
The next time a celebrity relaunches their “We are literally living under Mussolini” monologue while sipping an $8 iced coffee and documenting themselves flipping off their president, feel free to drop a reminder in the comments that there are places where people are dying because they downloaded the TV show those same celebrities binge-watched on their way to the Save Democracy Brunch.
Borrowing from novelist James Hilton, who coined the word “Shangri-La” to describe a Tibetan utopia in a 1933 novel, Franklin Roosevelt gave that name to the peaceful retreat we know as Camp David.
For California Gov. Gavin Newsom and Los Angeles Democrats, Shangri-La hasn’t become synonymous with a place that connotes peace on earth. It stands for a hellish homeless housing nightmare, eye-popping alleged fraud, and the ease and scale with which alleged con-artists rip off taxpayers.
In October, federal agents arrested Cody Holmes, the 31-year-old former CFO of Shangri-La Industries, a downtown Los Angeles-based developer who was supposed to be providing housing for homeless people in Southern California. First Assistant U.S. Attorney Bill Essayli for the Central District of California, a Trump appointee, charged him with mail fraud.
In October, federal agents arrested Cody Holmes, the 31-year-old former CFO of Shangri-La Industries. Shangri-La Industries
Holmes, who pleaded not guilty, is accused of embezzling more than $2 million in taxpayer funds slated for homeless housing construction to host extravagant parties; a $46,000-per-month Beverly Hills mansion; private jet travel; leases of exotic cars; high-end handbags totaling $128,000; a $35,000 diamond watch; and 20 VIP passes for the 2023 Coachella Music and Arts Festival.
Meanwhile, Shangri-La Industries executives showered Newsom and Los Angeles County Democrats with political donations as they were applying for some $100 million in state contracts that the CFO later allegedly looted to fund his and his ex-girlfriend’s lavish lifestyle.
Even after federal prosecutors exposed the massive fraud, Newsom and L.A. Democrats haven’t severed ties with the embattled developer and have kept political donations from the firm’s executives. Newsom has also allowed the construction firm to continue to tout his endorsement on its social media.
Powerful Friends
Holmes allegedly defrauded the California Department of Housing and Community Development by submitting fabricated bank accounts in its applications for state contracts to build homeless housing. Acting on behalf of Shangri-La, Holmes allegedly falsified $160 million in assets controlled by Shangri-La and its affiliates to demonstrate that the firm had liquid funds to contribute to the construction projects, according to court documents.
Cody Holmes is accused of embezzling more than $2 million in taxpayer funds slated for homeless housing construction to host extravagant parties; a $46,000-per-month Beverly Hills mansion. ABC7
According to the government, most of those funds never existed. The FBI traced only an estimated $24,000 that the developer had on hand at the time of the applications for Newsom’s signature Homekey contracts, a program launched amid the COVID pandemic lockdowns that converted empty motels into homeless housing. Holmes is accused of providing false bank statements for Shangri-La Industries to acquire the more than $100 million in state grant money for seven Homekey projects, according to an affidavit filed with the complaint and other court documents.
Former President Bill Clinton has been linked to Shangri-La Industries and served as a strategic adviser for the firm. (AP Photo/John Raoux) Shangri-La Industries has historic roots to billionaire Steve Bing and Bill Clinton, whom the Bing-led company paid more than $2.5 million to serve as a strategic adviser. Bing died by suicide in 2020, more than a decade after founding the investment, entertainment, and philanthropic empire.
California housing authorities are also suing Shangri-La Industries for breaching contracts under Newsom’s signature Project Homekey homeless housing project in a likely futile attempt to recover the missing millions. Yet, no criminal action was taken against anyone involved until Essayli issued his indictment against Holmes last fall.
Shangri-La Industries CEO Andy Meyer, who also goes by Andy Abdul-Wahab, according to court documents, has blamed Holmes for the bank and mail fraud and filed a lawsuit against him. The suit accuses Holmes, his former intern, of embezzling company funds by moving the money to accounts and shell companies that he controlled while allegedly also transferring money to Madeline Witt, his then-girlfriend. Witt is named as a co-defendant in the suit.
Newsom, L.A. Dems Mum on Returning Shangri-La Donations
Newsom’s office did not respond to an inquiry into whether he planned to return any of the funds Shangri-La employees have donated to his campaigns over the last decade. A RealClearPolitics review of campaign donations found at least $18,000 from Abdul-Wahab to Newsom’s campaigns for governor and lieutenant governor.
Newsom’s office also did not say whether he stands by a quote endorsing Shangri-La Industries and its partner, Step Up On Second Street, which Shangri-La has used on its now-defunct website under the heading, “What Our Customers Are Saying,” and on its active Instagram account.
“In a matter of months, not years, Shangri-La and Step Up gave some of the most vulnerable Californians the dignity of a key, a lock, a door, a place to call home,” the Newsom quote states in reference to a homeless housing project in San Bernardino. California’s campaign finance database also shows a mysterious $30,000 donation from Shangrila Investment LLC in support of Newsom’s signature Proposition 1 homeless ballot initiative. The initiative, which barely passed with 50.2% of the vote in March 2024, approved a $6.4 billion bond for more state homelessness spending and attempts to address related mental health and addiction for the first time.
In the final days of the mail-in voting election, as the outcome hung in the balance, both sides, Newsom and those opposing the ballot measure, urged voters whose ballots may have been rejected to fix their signatures.
Yet, so far, Newsom’s “CARE court” project, attempting to address mental health and addiction, has reportedly fallen far short of expectations. Other controversial donations to the homeless ballot initiative include $100,000 from Edison International and affiliated entities, the parent company of SoCal Edison, whose equipment caused the Eaton fire that killed 19 people last year; and $250,000 from PG&E and affiliated entities, the Northern California utility that caused the 2018 Camp Fire, the deadliest fire in state history, responsible for 84 deaths.
It’s unclear whether this $30,000 donation from Shangrila Investment LLC is related to Shangri-La Industries or other affiliated entities that court documents connect to the embattled developer. Neither Newsom’s office nor Capitol Compliance, the D.C.-based entity that helps run Newsom’s ballot committee, returned repeated requests for comment.
Asked if the donation made by Shangrila Investment LLC is affiliated with the Shangri-La developer at the heart of the fraud scandal, Holmes’ high-powered attorney Michael Freedman, who has represented Harvey Weinstein and Bill Cosby, replied only: “No comment.”
State campaign-finance records show that Abdul-Wahab also showered donations on state and local officials, including $30,000 to the Los Angeles County Democratic Party in 2022, when the developer was trying to win the homeless contracts. The Los Angeles County Democratic Party did not respond to an inquiry about whether it planned to return the funds.
Other donations from Meyer Abdul-Wahab went to former Assemblywoman Wendy Carillo, who represented Glendale and parts of East Los Angeles and is the first former illegal immigrant to be elected to the state Assembly. Additional donations went to Assemblywoman Cecilia Aguiar Curry, who represents a west Sacramento district that includes areas of parts of Napa and is serving as majority leader of the Assembly; Sen. Sabrina Cervantes of Riverside and parts of San Bernardino County; Assemblywoman Jacqui Irwin who represents the city of Thousand Oaks; Sen. John Laird of Santa Clara and Monterey; Assemblyman Alex Lee of Fremont, Milpitas and West San Jose; and Assemblywoman Buffy Wicks of the East Bay.
In December 2021, U.S. Rep. Robert Garcia, a Democrat and the former mayor of Long Beach, where Meyer Abdul-Wahab resides, returned two Shangri-La donations during Garcia’s run for lieutenant governor, according to Cal-Access, the state campaign donations database.
Lobbyists for Shangri-La Industries include Panorea Avdis, partner at Sacramento Advocates, a public affairs and lobbying firm, along with several other firm associates, according to a state lobbying database. Before becoming a lobbyist, Avdis was chief of staff to Lt. Gov. Eleni Kounalakis, and previously served a stint as a director of external affairs at California’s housing department during the administration of GOP Gov. Arnold Schwarzenegger, as well as the state’s Business and Economic Development office under Democratic Gov. Jerry Brown. Sacramento Advocates did not return requests for comment about its relationship with Shangri-La Industries.
At least two of the Homekey motel conversion projects in Southern California have been renovated and are now fully occupied: a 98-unit former Good Nite Inn in Redlands (now called Step Up in Redlands) and a 76-unit former All-Star Lodge in San Bernardino (now Step Up in San Bernardino).
Shangri-La Stiffed Subcontractors
Subcontractors and suppliers to the San Bernardino and Redlands projects filed $2 million in liens for unpaid work and materials, and at least some contractors say they have yet to be paid and are growing increasingly doubtful that they ever will be. Shangri-La Industries allegedly illegally obtained more than $50 million in new loans for several Homekey properties across the state without notifying the state housing department.
Adolfo Gomringer Sr., who owns AG Flooring, told RCP that he has yet to receive $93,000 that Shangri-La owes him for metal framing, drywall, demolition, and flooring work his company performed for the San Bernardino motel conversion in 2023. Gomringer said he has written to Newsom, L.A. Mayor Karen Bass, and L.A. and San Bernardino County officials, asking for their help, but has not received a response.
“Unfortunately, I didn’t hear back from anybody, so I just gave up hope,” Gomringer told RCP this week. “Honestly, it’s just shocking that there was nothing in place to protect us – the contractors actually doing the work on these jobs.”
Shangri-La Industries and Step Up, with the support of the City of Asheville, broke ground on the former Ramada, providing 113 units of permanent supportive housing for people experiencing homelessness in Asheville. The City of Asheville
According to the FBI agent’s affidavit used in the criminal complaint against Holmes, the young CFO completely fabricated a Bank of America account statement showing $59 million that did not exist.
Richard Staropoli investigated bank fraud cases for years as a Secret Service agent, then went on to serve as chief information officer and head of risk for the international hedge fund Fortress Investment Group. Staropoli told RCP that the California housing department should have performed basic due diligence practices to verify the bank accounts Shangri-La claimed to have, and the exact amounts in them.
“Are you kidding me?” Staropoli said in reaction to the FBI’s investigative findings in the Holmes case. “Are you telling me that at this level of the amounts of money that’s involved here, nobody’s checking this? This just speaks to the incredibly poor practices of California’s housing authorities.”
In early January, Essayli warned that more arrests are coming after finding “massive” fraud in California’s homeless services.
For California Gov. Gavin Newsom and Los Angeles Democrats, Shangri-La hasn’t become synonymous with a place that connotes peace on earth. AP
In mid-January, police arrested Alexander Soofer, who allegedly used millions of taxpayer dollars slated to house and feed hundreds of homeless to purchase a $7 million mansion in Westwood, pay for private jet travel, lavish spending at luxury resorts across the United States and a vacation property in Greece, his children’s private school tuition, and a $125,000 Range Rover.
Soofer is also accused of feeding 600 homeless people – which his organization, Abundant Blessings, housed – Ramen noodles, canned beans, and breakfast bars instead of the three healthy meals a day the contract required.
“California is the poster child of rampant fraud, waste, and abuse of tax dollars,” Essayli said, referring to the more than $24 billion the state has spent on fraud without demonstrating any impact from the investment.
“The state has facilitated the spending of billions of dollars to combat homelessness, with little to show for it and almost no oversight.”
“Thankfully, the federal government has begun auditing California’s spending and today’s is just one example of how fraudsters have swindled millions of dollars from taxpayers,” he added. “This money should have gone to those in need, instead it lines the pockets of individuals subsidizing their lavish lifestyle.”
In a testy email exchange last week, Essayli labeled Newsom the “king of fraud” for failing to provide basic oversight measures to protect taxpayer funds and blasted him for claiming the homeless fraud isn’t his fault.
Newsom’s press office, responding to a conservative influencer blasting the governor over homeless fraud after Essayli’s indictments against Soofer, denied any culpability.
“TOTALLY FALSE to imply the Governor was responsible for this fraud! Fraud is unacceptable — and unlike Donald Trump, who pardons fraudsters, Newsom demands anyone who steals taxpayer dollars be prosecuted to the fullest extent of the law.”
“WRONG,” Essayli responded in an X post. “You and the California legislature facilitated this fraud by handing out billions in tax dollars to these nonprofits with zero vetting and zero state oversight.”
Billionaire Bing’s Ties to Shangri-La Industries
Shangri-La Industries – the firm ensnared in the homeless fraud scandal – originally was created by billionaire entertainment mogul Steve Bing, a Democratic Party mega-donor, film and music producer, and the grandson of Manhattan real estate developer Leo Bing.
At 18, Bing inherited a $600 million fortune from his father, then dropped out of Stanford University in his junior year to move to Hollywood and produce and invest in movies. Along the way, he also fathered British actress and model Elizabeth Hurley’s son Damian in 2002.
Bing gave at least $50 million to candidates and California ballot measures over two decades, including Newsom, former Health and Human Services Secretary Xavier Becerra, who is running for governor, Sen. Alex Padilla, as well as Hillary Clinton, John Kerry, Al Gore, and Nancy Pelosi. He formed Shangri-La Entertainment, Shangri-La Music, and Shangri-La Construction, which later became Shangri-La Industries.
Besides the $2.5 million Shangri-La Industries paid to Bill Clinton in 2009 and 2010, according to Forbes magazine, Bing also gave between $10 million and $25 million to the William J. Clinton Foundation in 2008.
Bing’s death is still shrouded in mystery. When the 55-year-old jumped to his death from the 27th floor of a luxury apartment building in Century City, he was nearly broke with only $300,000 in assets. Friends suggested he was depressed because of a lack of contact with people during the COVID lockdowns, but the true reason remains unknown.
Bing’s daughter, Kira Kerkorian, in a lawsuit filed against Abdul-Wahab, alleged that Bing sold Shangri-La Construction to him in 2017, but accused Abdul-Wahab of never paying the agreed-upon amount. The accusation raises questions about whether a dispute over the sales price contributed to Bing’s depleted funds, depression, and suicide. The lawsuit, however, was dismissed without prejudice, meaning that a judge terminated it, but Kira Kerkorian could decide to amend it and refile.
So far, Kerkorian hasn’t refiled. She was essentially disowned and disinherited by two fathers. Her mother, former tennis pro Lisa Bonder, was married to casino and media mogul Kirk Kerkorian, who was 48 years her senior, for only 28 days in 1999. When Bonder became pregnant, she insisted Kerkorian was the father and secured a $100,000-per- month child support agreement and established a $7 million trust for Kira.
But private detective Anthony Pellicano swiped a piece of dental floss used by Bing, a former boyfriend of Bonder, proving through DNA testing that Bing was Kira’s father. Kira was left with $8.5 million when Kerkorian died in 2015 at age 98.
One day after Bing died, Shangri-La Construction’s Instagram account eulogized Bing in a post titled, “With Heavy Hearts We Remember: Steve Bing.”
“Endlessly generous and passionate about the people and causes he loved, he was truly a rolling stone — he belonged to nobody, but he gave a piece of himself to everyone and everything he crossed.” The post also promised that Shangri-La Industries would “never forget his passion for helping people,” and promised to “continue to advance this mission every day.”
Susan
It’s unclear whether this $30,000 donation from Shangrila Investment LLC is related to Shangri-La Industries or other affiliated entities that court documents connect to the embattled developer. Neither Newsom’s office nor Capitol Compliance, the D.C.-based entity that helps run Newsom’s ballot committee, returned repeated requests for comment.
Asked if the donation made by Shangrila Investment LLC is affiliated with the Shangri-La developer at the heart of the fraud scandal, Holmes’ high-powered attorney Michael Freedman, who has represented Harvey Weinstein and Bill Cosby, replied only: “No comment.”
State campaign-finance records show that Abdul-Wahab also showered donations on state and local officials, including $30,000 to the Los Angeles County Democratic Party in 2022, when the developer was trying to win the homeless contracts. The Los Angeles County Democratic Party did not respond to an inquiry about whether it planned to return the funds.
Other donations from Meyer Abdul-Wahab went to former Assemblywoman Wendy Carillo, who represented Glendale and parts of East Los Angeles and is the first former illegal immigrant to be elected to the state Assembly. Additional donations went to Assemblywoman Cecilia Aguiar Curry, who represents a west Sacramento district that includes areas of parts of Napa and is serving as majority leader of the Assembly; Sen. Sabrina Cervantes of Riverside and parts of San Bernardino County; Assemblywoman Jacqui Irwin who represents the city of Thousand Oaks; Sen. John Laird of Santa Clara and Monterey; Assemblyman Alex Lee of Fremont, Milpitas and West San Jose; and Assemblywoman Buffy Wicks of the East Bay.
In December 2021, U.S. Rep. Robert Garcia, a Democrat and the former mayor of Long Beach, where Meyer Abdul-Wahab resides, returned two Shangri-La donations during Garcia’s run for lieutenant governor, according to Cal-Access, the state campaign donations database.
Lobbyists for Shangri-La Industries include Panorea Avdis, partner at Sacramento Advocates, a public affairs and lobbying firm, along with several other firm associates, according to a state lobbying database. Before becoming a lobbyist, Avdis was chief of staff to Lt. Gov. Eleni Kounalakis, and previously served a stint as a director of external affairs at California’s housing department during the administration of GOP Gov. Arnold Schwarzenegger, as well as the state’s Business and Economic Development office under Democratic Gov. Jerry Brown. Sacramento Advocates did not return requests for comment about its relationship with Shangri-La Industries.
At least two of the Homekey motel conversion projects in Southern California have been renovated and are now fully occupied: a 98-unit former Good Nite Inn in Redlands (now called Step Up in Redlands) and a 76-unit former All-Star Lodge in San Bernardino (now Step Up in San Bernardino).
Shangri-La Stiffed Subcontractors
Subcontractors and suppliers to the San Bernardino and Redlands projects filed $2 million in liens for unpaid work and materials, and at least some contractors say they have yet to be paid and are growing increasingly doubtful that they ever will be. Shangri-La Industries allegedly illegally obtained more than $50 million in new loans for several Homekey properties across the state without notifying the state housing department.
Adolfo Gomringer Sr., who owns AG Flooring, told RCP that he has yet to receive $93,000 that Shangri-La owes him for metal framing, drywall, demolition, and flooring work his company performed for the San Bernardino motel conversion in 2023. Gomringer said he has written to Newsom, L.A. Mayor Karen Bass, and L.A. and San Bernardino County officials, asking for their help, but has not received a response.
“Unfortunately, I didn’t hear back from anybody, so I just gave up hope,” Gomringer told RCP this week. “Honestly, it’s just shocking that there was nothing in place to protect us – the contractors actually doing the work on these jobs.”
Shangri-La Industries and Step Up, with the support of the City of Asheville, broke ground on the former Ramada, providing 113 units of permanent supportive housing for people experiencing homelessness in Asheville. The City of Asheville
According to the FBI agent’s affidavit used in the criminal complaint against Holmes, the young CFO completely fabricated a Bank of America account statement showing $59 million that did not exist.
Richard Staropoli investigated bank fraud cases for years as a Secret Service agent, then went on to serve as chief information officer and head of risk for the international hedge fund Fortress Investment Group. Staropoli told RCP that the California housing department should have performed basic due diligence practices to verify the bank accounts Shangri-La claimed to have, and the exact amounts in them.
“Are you kidding me?” Staropoli said in reaction to the FBI’s investigative findings in the Holmes case. “Are you telling me that at this level of the amounts of money that’s involved here, nobody’s checking this? This just speaks to the incredibly poor practices of California’s housing authorities.”
In early January, Essayli warned that more arrests are coming after finding “massive” fraud in California’s homeless services.
For California Gov. Gavin Newsom and Los Angeles Democrats, Shangri-La hasn’t become synonymous with a place that connotes peace on earth. AP
In mid-January, police arrested Alexander Soofer, who allegedly used millions of taxpayer dollars slated to house and feed hundreds of homeless to purchase a $7 million mansion in Westwood, pay for private jet travel, lavish spending at luxury resorts across the United States and a vacation property in Greece, his children’s private school tuition, and a $125,000 Range Rover.
Soofer is also accused of feeding 600 homeless people – which his organization, Abundant Blessings, housed – Ramen noodles, canned beans, and breakfast bars instead of the three healthy meals a day the contract required.
“California is the poster child of rampant fraud, waste, and abuse of tax dollars,” Essayli said, referring to the more than $24 billion the state has spent on fraud without demonstrating any impact from the investment.
“The state has facilitated the spending of billions of dollars to combat homelessness, with little to show for it and almost no oversight.”
“Thankfully, the federal government has begun auditing California’s spending and today’s is just one example of how fraudsters have swindled millions of dollars from taxpayers,” he added. “This money should have gone to those in need, instead it lines the pockets of individuals subsidizing their lavish lifestyle.”
In a testy email exchange last week, Essayli labeled Newsom the “king of fraud” for failing to provide basic oversight measures to protect taxpayer funds and blasted him for claiming the homeless fraud isn’t his fault.
Newsom’s press office, responding to a conservative influencer blasting the governor over homeless fraud after Essayli’s indictments against Soofer, denied any culpability.
“TOTALLY FALSE to imply the Governor was responsible for this fraud! Fraud is unacceptable — and unlike Donald Trump, who pardons fraudsters, Newsom demands anyone who steals taxpayer dollars be prosecuted to the fullest extent of the law.”
“WRONG,” Essayli responded in an X post. “You and the California legislature facilitated this fraud by handing out billions in tax dollars to these nonprofits with zero vetting and zero state oversight.”
Billionaire Bing’s Ties to Shangri-La Industries
Shangri-La Industries – the firm ensnared in the homeless fraud scandal – originally was created by billionaire entertainment mogul Steve Bing, a Democratic Party mega-donor, film and music producer, and the grandson of Manhattan real estate developer Leo Bing.
At 18, Bing inherited a $600 million fortune from his father, then dropped out of Stanford University in his junior year to move to Hollywood and produce and invest in movies. Along the way, he also fathered British actress and model Elizabeth Hurley’s son Damian in 2002.
Bing gave at least $50 million to candidates and California ballot measures over two decades, including Newsom, former Health and Human Services Secretary Xavier Becerra, who is running for governor, Sen. Alex Padilla, as well as Hillary Clinton, John Kerry, Al Gore, and Nancy Pelosi. He formed Shangri-La Entertainment, Shangri-La Music, and Shangri-La Construction, which later became Shangri-La Industries.
Besides the $2.5 million Shangri-La Industries paid to Bill Clinton in 2009 and 2010, according to Forbes magazine, Bing also gave between $10 million and $25 million to the William J. Clinton Foundation in 2008.
Bing’s death is still shrouded in mystery. When the 55-year-old jumped to his death from the 27th floor of a luxury apartment building in Century City, he was nearly broke with only $300,000 in assets. Friends suggested he was depressed because of a lack of contact with people during the COVID lockdowns, but the true reason remains unknown.
Bing’s daughter, Kira Kerkorian, in a lawsuit filed against Abdul-Wahab, alleged that Bing sold Shangri-La Construction to him in 2017, but accused Abdul-Wahab of never paying the agreed-upon amount. The accusation raises questions about whether a dispute over the sales price contributed to Bing’s depleted funds, depression, and suicide. The lawsuit, however, was dismissed without prejudice, meaning that a judge terminated it, but Kira Kerkorian could decide to amend it and refile.
So far, Kerkorian hasn’t refiled. She was essentially disowned and disinherited by two fathers. Her mother, former tennis pro Lisa Bonder, was married to casino and media mogul Kirk Kerkorian, who was 48 years her senior, for only 28 days in 1999. When Bonder became pregnant, she insisted Kerkorian was the father and secured a $100,000-per- month child support agreement and established a $7 million trust for Kira.
But private detective Anthony Pellicano swiped a piece of dental floss used by Bing, a former boyfriend of Bonder, proving through DNA testing that Bing was Kira’s father. Kira was left with $8.5 million when Kerkorian died in 2015 at age 98.
One day after Bing died, Shangri-La Construction’s Instagram account eulogized Bing in a post titled, “With Heavy Hearts We Remember: Steve Bing.”
“Endlessly generous and passionate about the people and causes he loved, he was truly a rolling stone — he belonged to nobody, but he gave a piece of himself to everyone and everything he crossed.” The post also promised that Shangri-La Industries would “never forget his passion for helping people,” and promised to “continue to advance this mission every day.”
Keep these in mind as you contemplate the direction of the American government over the past 50 years and especially since the Obama election.
The Goals of Communism
(as read into the congressional record January 10, 1963, from "The Naked Communist" by Cleon Skousen)
1. U.S. acceptance of coexistence as the only alternative to atomic war.
2. U.S. willingness to capitulate in preference to engaging in atomic war.
3. Develop the illusion that total disarmament of the United States would be a demonstration of moral strength.
4. Permit free trade between all nations regardless of Communist affiliation and regardless of whether or not items could be used for war.
5. Extension of long-term loans to Russia and Soviet satellites.
6. Provide American aid to all nations regardless of Communist domination.
7. Grant recognition of Red China. Admission of Red China to the U.N.
8. Set up East and West Germany as separate states in spite of Khrushchev's promise in 1955 to settle the German question by free elections under supervision of the U.N.
9. Prolong the conferences to ban atomic tests because the United States has agreed to suspend tests as long as negotiations are in progress.
10. Allow all Soviet satellites individual representation in the U.N.
11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces. (Some Communist leaders believe the world can be taken over as easily by the U.N. as by Moscow. Sometimes these two centers compete with each other as they are now doing in the Congo.)
12. Resist any attempt to outlaw the Communist Party.
13. Do away with all loyalty oaths.
14. Continue giving Russia access to the U.S. Patent Office.
15. Capture one or both of the political parties in the United States.
16. Use technical decisions of the courts to weaken basic American institutions by claiming their activities violate civil rights.
17. Get control of the schools. Use them as transmission belts for socialism and current Communist propaganda. Soften the curriculum. Get control of teachers' associations. Put the party line in textbooks.
18. Gain control of all student newspapers.
19. Use student riots to foment public protests against programs or organizations which are under Communist attack.
20. Infiltrate the press. Get control of book-review assignments, editorial writing, policymaking positions.
21. Gain control of key positions in radio, TV, and motion pictures.
22. Continue discrediting American culture by degrading all forms of artistic expression. An American Communist cell was told to "eliminate all good sculpture from parks and buildings, substitute shapeless, awkward and meaningless forms."
23. Control art critics and directors of art museums. "Our plan is to promote ugliness, repulsive, meaningless art."
24. Eliminate all laws governing obscenity by calling them "censorship" and a violation of free speech and free press.
25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio, and TV.
26. Present homosexuality, degeneracy and promiscuity as "normal, natural, healthy."
27. Infiltrate the churches and replace revealed religion with "social" religion. Discredit the Bible and emphasize the need for intellectual maturity which does not need a "religious crutch."
28. Eliminate prayer or any phase of religious expression in the schools on the ground that it violates the principle of "separation of church and state."
29. Discredit the American Constitution by calling it inadequate, old-fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis.
30. Discredit the American Founding Fathers. Present them as selfish aristocrats who had no concern for the "common man."
31. Belittle all forms of American culture and discourage the teaching of American history on the ground that it was only a minor part of the "big picture." Give more emphasis to Russian history since the Communists took over.
32. Support any socialist movement to give centralized control over any part of the culture--education, social agencies, welfare programs, mental health clinics, etc.
33. Eliminate all laws or procedures which interfere with the operation of the Communist apparatus.
34. Eliminate the House Committee on Un-American Activities.
35. Discredit and eventually dismantle the FBI.
36. Infiltrate and gain control of more unions.
37. Infiltrate and gain control of big business.
38. Transfer some of the powers of arrest from the police to social agencies. Treat all behavioral problems as psychiatric disorders which no one but psychiatrists can understand.
39. Dominate the psychiatric profession and use mental health laws as a means of gaining coercive control over those who oppose Communist goals.
40. Discredit the family as an institution. Encourage promiscuity and easy divorce.
41. Emphasize the need to raise children away from the negative influence of parents. Attribute prejudices, mental blocks and retarding of children to suppressive influence of parents.
42. Create the impression that violence and insurrection are legitimate aspects of the American tradition; that students and special-interest groups should rise up and use united force to solve economic, political or social problems.
43. Overthrow all colonial governments before native populations are ready for self-government.
44. Internationalize the Panama Canal.
45. Repeal the Connally reservation so the United States cannot prevent the World Court from seizing jurisdiction over nations and individuals alike.
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