Nonprofit CEO Accused of Stealing Grant Money to Face Court Hearing

Jacob Rostovsky, 34-year-old founder and CEO of the nonprofit Queer Works, is scheduled to appear in Riverside County court today for a trial readiness conference on charges he stole nearly $1 million in public funds.

Rostovsky faces 53 felony counts, including fraud, grand theft, misappropriation of public funds, insurance fraud, and money laundering. Prosecutors allege he diverted city and county grants intended for housing assistance and a universal basic income pilot program serving homeless residents, as well as mental health services for the transgender and nonbinary community.

According to officials, Rostovsky spent the misappropriated funds on personal expenses including purchases at Disney and Burberry, and stays at luxury hotels.

The charges carry an aggravated white-collar crime enhancement, which could result in additional prison time if Rostovsky is convicted. He turned himself in to authorities in October 2024 and posted $944,000 bail. He has pleaded not guilty to all charges.

A Riverside County civil grand jury investigation found the City of Palm Springs lost over $700,000 to the alleged fraud scheme due to inadequate oversight. The grand jury report noted the city failed to follow up on missing reports and never received required financial statements from Queer Works, despite issuing large grants. The city's finance director confirmed formal financial statements were never provided despite multiple staff requests.

The trial readiness conference will be held at the Riverside Hall of Justice this afternoon. Our NBC Palm Springs Alondra Campos will have that for you during our Midday Show. Stay tuned for that