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LA homelessness non-profit workers arrested over alleged corruption and bribes

LA homelessness non-profit workers arrested over alleged corruption and bribes

Summary

Federal officers arrested two workers from California homelessness non-profits for allegedly stealing millions of taxpayer dollars and taking bribes. The arrests are part of a larger effort by the U.S. Justice Department to investigate fraud in homelessness programs in California.

Key Facts

  • Michael Young, founder of Home At Last, is charged with stealing over $7.5 million, which he used for personal businesses.
  • Lakiya Malone, an employee of Special Service for Groups, is charged with taking over $180,000 in bribes.
  • Donye Mitchell, CEO of The Big Blue Umbrella, is wanted for allegedly misusing $1.2 million of grant money for personal expenses.
  • The probe is led by a homelessness fraud taskforce created by U.S. Attorney Bill Essayli.
  • The arrests relate to investigations into misuse of funds aimed at helping homeless people in California.
  • President Trump supports efforts to find and stop fraud in states like California, focusing on safeguarding taxpayer money.
  • The Trump administration has previously frozen federal funds to states and agencies over fraud concerns.
  • HUD Secretary Scott Turner warned that those who misuse funds for homelessness programs will face consequences.
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