Transgender therapist jailed for allegedly stealing $940,000 in taxpayer funds

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Jacob Rostovsky, the 33-year-old transgender male CEO of Queer Works — a nonprofit dedicated to mental health care access for transgender, gender nonbinary, and intersex (TGI) individuals — has been indicted on 53 felony counts for allegedly stealing over $940,000 in taxpayer money from the city of Palm Springs, California. Rostovsky has pleaded not guilty on all counts.

Rostovsky surrendered himself to the local district attorney’s office on October 17 and posted a $944,000 bail. He faces charges of fraudulent claims, grand theft, misappropriation of public funds, insurance fraud, perjury, and money laundering, according to the district attorney’s office.

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In July 2021, Riverside County awarded grants to Queer Works to fund programs to help homeless individuals and domestic violence survivors. In March 2022, the Palm Springs municipal government gave Queer Works $200,000 to develop a universal basic income (UBI) pilot program, and in July 2022, the city council gave an additional $500,000 matching funds for Queer Works to pursue a UBI program with the state of California.

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The UBI program was supposed to provide 180 participants with monthly stipends of $800. However, financial reviews by Riverside County Housing & Workforce Solutions (HWS) reportedly found that Rostovsky allegedly deposited the county funds into his personal bank account and then altered the financial documents that he submitted to the county.

The DA’s office also said that Rostovsky made at least 89 false statements to county officials and submitted forged documents to the county and city to obtain over $840,000 in funds meant for UBI payments and housing assistance.

“Rostovsky used a portion of these funds, intended for individuals in need of assistance, on personal expenses, including purchases at Disney, Burberry, and the Beverly Garland Hotel,” the DA’s office said in a statement.

Rostovsky also allegedly collected an additional $90,000 by impersonating a Queer Works client and filing a fraudulent insurance claim against Queer Works, the statement claimed. Rostovsky allegedly used his fraudulent alias to negotiate a settlement with Queer Work’s insurance carrier, Philadelphia Insurance, and then used the settlement for his own personal gain.

He also stands accused of multiple acts of money laundering to cover up his alleged misdealings.

In a statement, the Palm Springs municipal government said it “fully supports the Riverside County District Attorney’s efforts in investigating and indicting Mr. Jacob Rostovsky for allegedly defrauding the taxpayers of our city, our county, and state out of hundreds of thousands of dollars.”

The city said it would also take additional measures to prevent the misuse of public funds in the future, including enhanced oversight, staff training, independent audits, and vetting processes for new organizations, as well as requiring regular progress reports to gain funds over $75,000.

“The City is committed to ensuring full accountability for public funds and has already taken significant steps to prevent such incidents from occurring in the future,” it said.

Queer Works was established in 2018.

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source https://www.lgbtqnation.com/2024/11/transgender-therapist-jailed-for-allegedly-stealing-940000-in-taxpayer-funds/

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