QueerWorks CEO Jacob Rostovsky Back in Court, Seeks Mental Health Diversion Amid Fraud Charges

Jacob Rostovsky, CEO of QueerWorks, returned to court today as he faces more than 50 criminal counts, including fraud, grand theft, and the alleged misappropriation of over $800,000 in public funds. His legal team has filed a petition for mental health diversion, asking the court to delay traditional prosecution in favor of treatment. In a brief hearing at the Riverside Hall of Justice, Rostovsky stood silently beside his attorney as the judge once again agreed to postpone his trial readiness conference. The defense cited the pending mental health diversion petition as the reason for the delay.

If approved, the petition could allow Rostovsky to undergo treatment instead of facing trial. The process would require the defense to provide:

• A verified mental health diagnosis

• A clear connection between the mental health disorder and the alleged criminal behavior

• A proposed treatment plan deemed more appropriate than incarceration

• Both the prosecution and defense declined to comment following the hearing. Prosecutors, led by Riverside County District Attorney Mike Hestrin, originally announced the 53-count indictment in 2024. At the center of the controversy is a Universal Basic Income (UBI) pilot program run by QueerWorks under Rostovsky’s leadership. The initiative aimed to provide monthly stipends to transgender and nonbinary residents in Palm Springs.

• According to investigators, Rostovsky instead used the public funds for personal luxury expenses—including trips to Disneyland, high-end fashion purchases at Burberry, and stays at luxury hotels. Officials allege more than $840,000 was fraudulently obtained through forged documents, false claims, and fake insurance filings.

  A civil grand jury later found that over $700,000 in taxpayer dollars was lost in the scheme. The scandal prompted the City of Palm Springs to overhaul its grant funding process, introducing stricter auditing and fraud prevention policies. Rostovsky is scheduled to return to court on December 17 for his next trial readiness conference. At that time, the judge is expected to issue a ruling on the mental health diversion petition.