CEO of nonprofit Queer Works in Southern California charged in theft of $940K

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

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

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

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

The DA’s office says that in July of 2021, Queer Works received grant funding from Riverside County for programs aimed at assisting homeless individuals and victims of domestic violence.

In 2022, the DA’s office says the nonprofit received $200,000 from the city of Palm Springs to develop a universal basic income pilot program, and then an additional $500,000 in matching funds for a universal basic income grant.

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

County officials later found discrepancies in Queer Works’ expenses during financial reviews, and altered documents submitted by Rostovsky. In addition, county-issued checks were found to be deposited into the CEO’s personal checking account.

The DA’s office says investigators found at least 89 instances of Rostovsky making false statements and submitting forged documents to Riverside County and the city of Palm Springs to obtain over $840,000.

“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,” wrote the DA’s office.

The release says Rostovsky also collected an additional $90,000 by impersonating a Queer Works client and filing a fraudulent insurance claim against Queer Works. 

Lastly, the charges show that Rostovsky also engaged in multiple acts of money laundering with the “allegedly ill-gotten funds.”

Officials said Rostovsky ultimately surrendered at the DA’s office on Oct. 17, and posted bail in the amount of $944,000.