The former chief financial officer for a downtown Los Angeles-based affordable housing developer and a Brentwood man who prosecutors say defrauded lenders are facing unrelated federal criminal cases for allegedly taking advantage of funds allocated to assist the homeless, officials announced Thursday.

Cody Holmes, 31, of Beverly Hills, was arrested Thursday on a mail fraud charge allegedly linked to millions of dollars in grant money paid by the state to Shangri-La Industries — where Holmes was CFO — for the purchase, construction and operation of homeless housing in Thousand Oaks, in Ventura County.

According to the complaint, the state paid $25.9 million in funds from Homekey — a California program that aims to convert properties such as motels into affordable housing — to Shangri-La.

See Full Page