Federal prosecutors charge 3 with stealing $12M in homelessness aid in Southern California
Prosecutors say the defendants used nonprofit aid for bribes, luxury trips and real estate while billing for services that were never provided.
- On Wednesday, federal authorities in Los Angeles charged three people with stealing $12 million in homelessness aid, allegedly using public funds for real estate, luxury trips, and vintage vehicles.
- City and county authorities spend roughly $1 billion annually supporting 72,000 to 75,000 homeless individuals across Los Angeles County, though reviews have repeatedly found programs lacked appropriate recordkeeping and documentation.
- Prosecutors allege Michael Young misused $7.5 million, Donye Mitchell misappropriated over $1.2 million, and Lakiya Malone accepted more than $180,000 in bribes while billing agencies for services never provided.
- Separately, Alexander Soofer, the executive director of Abundant Blessings, admitted to billing authorities for services never provided, while a fourth person pleaded guilty to stealing at least $2 million.
- Nathan Hochman, Los Angeles County's district attorney, warned the public to expect further investigations as President Donald Trump's administration prioritizes crackdowns on fraud and waste in government aid programs.
10 Articles
10 Articles
DOJ Arrests LA Nonprofit Employees in Connection to Multimillion-Dollar Homeless Fraud Schemes
Federal agents arrested two Los Angeles-area homeless nonprofit workers Wednesday and charged a third who remains at large. Prosecutors said taxpayer money meant for tents and beds bought a nightclub, […]
Feds open up about massive Los Angeles homeless services fraud, corruption investigation
Federal officials gave an update Wednesday morning on “arrests, cases and other developments” regarding a large homeless services fraud and corruption investigation in Los Angeles. The U.S. Department of Justice announced the arrest of two people employed at Los Angeles-area homeless nonprofits on federal charges alleging misuse of millions of taxpayer dollars. A third […]
Taxpayer funds meant for LA homeless allegedly spent on Tahiti trip, nightclub, luxury cars: feds
Los Angeles homeless fraud charges target nonprofit founder Michael Young, who allegedly misappropriated millions in public funds for a nightclub, luxury cars and a Tahiti vacation.
Associated Press News
The Sun ChronicleFederal prosecutors charge 3 with stealing $12M in homelessness aid in Southern California
Federal authorities have charged three people with stealing $12 million in homelessness aid, allegedly using the money to buy real estate, take luxury trips, and purchase vintage vehicles.
Federal prosecutors charge 3 in alleged $12M homelessness aid fraud in Southern California
Federal authorities have charged three people with stealing $12 million in homelessness aid, allegedly using the money to buy real estate, take luxury trips, and purchase vintage vehicles
L.A. homeless services fraud suspect spent millions on club, luxury trips, feds charge
Federal authorities on Wednesday arrested at least two people employed at Los Angeles-area homeless nonprofits as part of a sweeping crackdown targeting alleged misappropriation of funds.
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