the ethics of panhandling (or lack thereof)

So, there's a bum who sits outside my office most of the time, with a sign asking for food, surrounded by his stuff. I have problems with giving money to panhandlers, mostly because I think it perpetuates a problem rather than creating a solution, but I break down every once in a while because I really don't know how to create a solution.

So, back to the bum outside my office. I actively dislike him, because he yells at you if you don't give him money. Now, he says things that make me uncomfortable partly because they're true "You can afford a fuckin' fur coat, but you can't afford to buy me some food?!" and on and on. It exactly nails my guilt, and sometimes I see people walking by ignoring him and it kind of hurts to watch. So I give him money if he doesn't yell at me.

Onto ethics. A woman in my office came in just now, outraged with a new development. Apparently he's dressed up as Santa Claus, and is asking for donations to "Feed the Homeless" and is making out quite well. My first reaction is, well, isn't that inventive of him? He's homeless, he's not lying, per se - and it has a certain air of entrepreneurship about it.

However, there are a few problems with this. One, where did he get the Santa suit? Those fuckers are hard to find around the holidays. Two, he is mimicking a supposedly honest organization that you see around the city and thus probably making more money than he would otherwise. Three, I see him buying coffee in Starbucks occasionally.

Can I judge him for spending his panhandled money on Starbucks? Is it wrong for him to be soliciting donations under false pretenses? How did he get the Santa suit?