Federal law enforcement officers in California have arrested four individuals accused of misappropriating millions of dollars in taxpayer funds designated for homelessness initiatives. The arrests stem from an investigation by the federal Homelessness Fraud and Corruption Task Force.
Michael Young, founder of the nonprofit Home At Last, is accused of misusing more than $7.5 million. According to the Department of Justice, this included using $1 million to open and operate a restaurant and club in Inglewood. Young faces wire fraud charges and could be imprisoned for up to 20 years. He was released on a $500,000 bond and is scheduled for arraignment next month.
Separately, Donye “Danya” Mitchell, CEO of The Big Blue Umbrella nonprofit, is accused of fraudulently obtaining $1.2 million from a county funding distributor. Authorities allege Mitchell misrepresented staffing and spending and used the funds for personal expenses, including video game purchases and his own bail after a 2024 domestic violence accusation. Mitchell has also been charged with wire fraud.
Lakiya Malone, an employee at the nonprofit Special Service for Groups, is charged with accepting over $180,000 in bribes and kickbacks from Alexander Soofer, former executive director of Abundant Blessings. In exchange, Malone allegedly provided preferential referrals for homeless housing participants, including individuals who did not reside at the sites. Malone faces a 21-count indictment including wire fraud, bribery, and conspiracy charges. She was released on a $50,000 bond and is expected to go to trial in November.
Soofer was arrested previously and has agreed to plead guilty to one count of wire fraud and one count of money laundering.
The Los Angeles Homeless Services Authority (LAHSA) has stated that none of its employees are implicated in the alleged crimes. "Diverting resources meant to house vulnerable neighbors undermines the entire safety net and cannot be tolerated," LAHSA said in a statement.
This development comes as homelessness in Los Angeles has seen an increase. LAHSA reported a 3.4% rise in homelessness in the past year, counting 45,194 unhoused individuals in the city and over 72,000 across the county. Mayor Karen Bass commented on the recent arrests, stating her administration has "zero tolerance for fraud — period." She added, "Any misuse of taxpayer funds meant to help unhoused Angelenos should be met with the full force of the law."