Feds Arrest Charity Worker in Multi-Million Dollar Homeless Services Fraud Scheme
An investigation into alleged widespread corruption at the Los Angeles Homeless Services Authority has led to the arrest of a charity worker accused of taking bribes to funnel public funds to a fraudulent homeless services organization.
FBI agents arrested Lakiya Malone, 48, a charity worker, at her South Los Angeles home as part of a sweeping operation targeting fraud within the Los Angeles Homeless Services Authority (LAHSA). The arrests follow a federal investigation into a scheme that allegedly diverted millions of taxpayer dollars intended for homeless services.
Malone is accused of accepting over $180,000 in bribes and kickbacks from Alexander Soofer, 42, the executive director of the homeless services nonprofit Abundant Blessings. In exchange for these payments, Malone allegedly provided priority referrals of homeless individuals to Soofer's organization, including individuals who did not exist or never received services, referred to as "ghost clients." These payments were reportedly disguised as consulting fees through an entity Malone controlled, Grateful Hearts Realty & Consulting.
Soofer is separately charged with stealing $23 million in public funds. He has agreed to plead guilty to one count of wire fraud and one count of money laundering. According to his plea agreement, Soofer admitted to obtaining public money intended to combat homelessness through fraud, pocketing at least $2 million for personal enrichment and unrelated businesses. He has agreed to forfeit these assets to the U.S. government.
Federal prosecutors stated that the funds were used to enrich individuals rather than to assist the homeless population. "That's where the taxpayer's money is going — and it's not going to the homeless," said Bill Essayli, the top Los Angeles prosecutor leading the Homeless Fraud and Corruption Task Force. He indicated that the investigation is continuing, aiming to apprehend those enabling the fraud.
The LAHSA, which coordinates housing and social services for the homeless in Los Angeles County, has faced scrutiny for corruption and payment issues. The Trump administration had previously suspended federal funds to the agency due to these concerns.
Malone faces a 21-count federal indictment including charges of wire fraud, bribery, and conspiracy. Each wire fraud count carries a maximum penalty of 20 years in prison, bribery counts up to 10 years, and conspiracy up to five years.
In addition to Malone and Soofer, federal agents also sought the arrest of two other executives from corrupt homeless services organizations. One of these individuals allegedly spent $12 million in taxpayer funds on personal expenses, including a bingo hall and a nightclub.