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The CEO of Palm Springs-based nonprofit organization Queer Works has been charged in a fraud scheme that stole more than $940,000 in public funds, officials announced Wednesday.
A Riverside County grand jury indicted Jacob Joseph Aaron Rostofsky, 33, on 53 felonies, including fraudulent claims, grand theft, misappropriation of public funds, insurance fraud, perjury, and money laundering.
The district attorney’s office announced that the charges include “an enhancement of white-collar crime due to the significant financial loss resulting from this scheme.”
According to the Queer Works website, the nonprofit organization aims to provide accessible mental health services and “promote health equity within the transgender and gender nonbinary (TGI) community.” It was established for the purpose of The website also says the nonprofit was originally founded by Rostovsky in 2018.
In July 2021, Queer Works received a grant from Riverside County for a program aimed at helping victims of homelessness and domestic violence, according to prosecutors.
In 2022, the nonprofit received $200,000 from the city of Palm Springs to develop a universal basic income pilot program, and an additional $500,000 in matching funds for universal basic income grants, according to the prosecutor’s office.
“The Universal Basic Income program was scheduled to provide $800 per month in benefits to 180 participants,” the DA’s office wrote in a release.
County officials later discovered discrepancies in Queer Works’ spending during a financial review and falsified documents provided by Rostofsky. Additionally, county-issued checks were found to have been deposited into the CEO’s personal checking account.
Investigators found at least 89 instances in which Mr. Rostofsky made false statements and submitted false documents to Riverside County and the city of Palm Springs in order to obtain more than $840,000, prosecutors said.
“Rostovsky used some of these funds, intended for individuals in need, for personal expenses, including purchases at Disney, Burberry, and the Beverly Garland Hotel,” the DA’s office wrote. are.
According to the release, Mr. Rostofsky posed as a Queer Works customer and collected an additional $90,000 by filing fraudulent insurance claims against Queer Works.
Finally, the charges indicate that Rostovsky was also involved in multiple money laundering activities using “allegedly fraudulently obtained funds.”
Rostovsky finally turned himself in at the prosecutor’s office on Oct. 17 and posted $944,000 bail, officials said.
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