An investigation into a San Francisco nonprofit organization reveals widespread financial misconduct, including the alleged embezzlement of over $700,000 in public funds. The audit highlights systemic failures in tracking and monitoring homeless spending, raising concerns about transparency and accountability in service provision.
A comprehensive audit conducted by the San Francisco Office of the Controller has uncovered startling gaps in the city's oversight of homeless spending. The investigation reveals that over $80,000 in grant funds from the San Francisco Police Department were misspent on luxury gift boxes, vacation trips, parking fees, and ride-hailing services.
Following a months-long investigation, the former executive director of a defunct San Francisco nonprofit, SF SAFE, has been arrested and charged with dozens of felony counts related to the alleged embezzlement of over $700,000 in public funds. Kyra Worthy, a resident of Richmond, California, is accused of misappropriating public money, grand theft, submitting fraudulent invoices, and wage theft during her tenure as the head of SF SAFE.
Audit Uncovers Severe Mismanagement: California Failed to Track Homeless Funds
SF SAFE aimed to enhance safety and crime prevention in San Francisco in partnership with the city police department. However, prosecutors allege that Worthy diverted nearly $56,000 of the nonprofit's funds to host a lavish holiday party. The complaint also alleges that Worthy spent over $100,000 of SF SAFE funds for her own personal use, including extensive travel and entertainment expenses.
Worthy's alleged theft and mismanagement have had devastating consequences for SF SAFE. The organization, which had a 48-year history of service provision, abruptly closed its doors in January 2024 with no remaining assets. Nicole Castronovo, a prominent criminal defense attorney, expressed deep disappointment at the alleged misconduct, emphasizing the severe impact on those who rely on charitable organizations.
Audit Uncovers Severe Mismanagement: California Failed to Track Homeless Funds
Worthy's alleged misconduct extends beyond embezzlement. Prosecutors also accuse her of failing to pay payroll taxes for 27 employees from September 2023 to January 2024, resulting in wage theft of approximately $80,000. Additionally, Worthy is accused of failing to disburse over $500,000 in public dollars from the city's Office of Economic and Workforce Development to employees of partner organizations.
David Gelman, a former prosecutor and CEO of Gelman Law, expressed concerns about the lack of accountability that enabled Worthy's alleged embezzlement and fraud. He believes the case highlights the need for rigorous oversight and board governance in nonprofit organizations. "She is the executive director, the head of this organization, and no one is overseeing that," Gelman said. "And it's very shocking and just sad. There needs to be some oversight, a board. This is a total misuse of money and total gross incompetence."
Audit Uncovers Severe Mismanagement: California Failed to Track Homeless Funds
Gelman argues that Worthy's position as the executive director of SF SAFE allowed her to operate with impunity. He believes that the absence of a governing board or other oversight mechanisms contributed to the widespread financial misconduct. "There was no accountability," Gelman said. "She could do whatever she wanted, and she did."
Gelman emphasizes the devastating impact of Worthy's alleged theft on the intended beneficiaries of SF SAFE's services. "Charities and individuals who could have really benefited from this money didn't get it," he said. "They were all conned, they were duped in this fiasco. There are no winners here. It's a terrible situation all around."
Audit Uncovers Severe Mismanagement: California Failed to Track Homeless Funds
The San Francisco District Attorney's Office emphasizes that the investigation into SF SAFE's financial mismanagement is ongoing. The Public Integrity Task Force encourages anyone with information to contact the tip line at 628-652-4444. The audit and ongoing investigation highlight the importance of robust oversight and financial accountability in the allocation and administration of public funds for homeless services.
