Prosecutor calls Newsom 'king of fraud' for oversight failures

Editor's note: This story was updated since its initial publication with information from the White House. (The Center Square) – U.S. First Assistant Attorney Bill Essayli Thursday called California Gov. Gavin Newsom “the king of fraud,” accusing him of a lack of oversight on spending to address homelessness. Essayli made the comments on the “Fox and Friends” telecast, during which he discussed the federal fraud charges that were filed in October against real estate executives Steven Taylor and Cody Holmes for allegedly misusing grant money meant for homeless housing. Holmes, 31, of Beverly Hills was charged with mail fraud charge that was allegedly linked to millions of dollars in grant money that state paid Shangri-La Industries to purchase, build and operate homeless housing in Thousand Oaks, just north of Los Angeles. Holmes was Shangri-La’s chief financial officer. Taylor, 44, of Brentwood, was charged with seven counts of bank fraud, one count of aggravated identity theft and one