DOJ arrests two in California homelessness fraud cases involving more than $12 million

  • Federal authorities arrested Michael Young and Lakiya Malone and charged Donye Mitchell in Los Angeles.
  • More than $12 million in homelessness aid was allegedly diverted to personal and business expenses.
  • Alexander Soofer pleaded guilty after admitting fraud involving at least $2 million in homelessness funds.

Federal authorities arrested Michael Young and Lakiya Malone in Los Angeles and charged Donye Mitchell in separate homelessness-fraud cases, alleging that more than $12 million intended for housing and services was diverted to personal expenses, real estate, luxury travel, a nightclub and fraudulent referrals. Young, founder of Home At Last, allegedly used shell companies and sham vendors to misappropriate an estimated $7.5 million from public contracts after his nonprofit received more than $118 million in public funds since 2019. Mitchell, CEO of The Big Blue Umbrella, allegedly misrepresented his organization’s capabilities and used more than $1.2 million in grant money for credit-card debts, family members, video games and legal expenses; he is considered a fugitive. Malone allegedly accepted more than $180,000 in bribes and placed people who were not homeless into aid programs. Separately, Alexander Soofer pleaded guilty to wire fraud and money laundering after admitting that he and Malone billed authorities for services without participants and stole at least $2 million in homelessness aid. The cases come as President Donald Trump’s administration emphasizes government-fraud enforcement and amid scrutiny of recordkeeping and oversight by the Los Angeles Homeless Services Authority.

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