CEO of Southern California nonprofit Queer Works charged with theft of $940,000

The CEO of Queer Works, a Palm Springs-based nonprofit, has been charged in a fraud scheme that stole more than $940,000 in public funds, officials announced.

A Riverside County grand jury has indicted Jacob Joseph Aaron Rostovsky, 33, on 53 felony counts, including fraudulent claims, grand theft, embezzlement of public funds, insurance fraud, perjury and money laundering.

The district attorney’s office announced that this charge “includes an exacerbation of white-collar crime due to the significant economic loss of the scheme.”

According to the Queer Works websitethe nonprofit was founded to provide accessible mental health services and “promote health equity within the transgender and gender non-binary (TGI) community.” The website also states that the nonprofit was originally founded by Rostovsky in 2018.

The district attorney’s office says Queer Works received a grant from Riverside County in July 2021 for programs aimed at helping homeless people and victims of domestic violence.

According to the district attorney’s office, the nonprofit received $200,000 from the city of Palm Springs in 2022 to develop a pilot universal basic income program, and then another $500,000 in matching funds for a universal basic income grant.

“The universal basic income program was to provide 180 participants with monthly stipends of $800,” the DA’s office wrote a press release.

County officials later discovered discrepancies in Queer Works’ expenses during financial reviews and changed the documents submitted by Rostovsky. In addition, checks issued by the province were found to have been deposited into the CEO’s personal checking account.

The district attorney’s office says investigators found at least 89 instances in which Rostovsky made false statements and submitted forged documents to Riverside County and the city of Palm Springs to obtain more than $840,000.

“Rostovsky used some of this money, intended for people in need, for personal expenses, including purchases at Disney, Burberry and the Beverly Garland Hotel,” the district attorney’s office wrote.

The release states that Rostovsky also collected an additional $90,000 by posing as a Queer Works customer and filing a fraudulent insurance claim against Queer Works.

Finally, the accusations show that Rostovsky is also guilty of several money laundering schemes with ‘alleged ill-gotten money’.

Officials said Rostovsky ultimately surrendered at the district attorney’s office on Oct. 17 and posted $944,000 bail.

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