Transitional Living with a Long-Term Option In 2013, we discovered our CFO had embezzled funds of $150,000; had failed to file tax returns for 5 quarters & we owed over $400,000. Seeking revenge after being fired, he told HUD, VA, EDD & IRS our accounts were a mess since he knew that first hand. 2014-2015 these agencies audited our books. We had hired 2 new bookkeepers & a consultant to cleanup the books but didn’t have enough time prior to the audits. During this time, we continued to provide services to our veterans as it was important that no veterans went back to the streets, so we tightened our belt the best we could, but the VA refused to pay us $214,000 in reimbursements & HUD cancelled our $850,000 in grants. Unable to survive all this, we closed our doors 12/31/17 & referred our veterans & staff to Veterans Outreach OC.