Los Angeles homeless funds corruption federal probe 2026
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LA homelessness fraud cases and oversight concerns
Los Angeles Mayor Karen Bass made a decision to step down from the LAHSA commission.
Los Angeles’ homelessness agency paid one of the suspect nonprofits more than $75 million, according to federal prosecutors.
Rep. Michael Cloud said that government too often judges success by how much money it sends out the door instead of whether the spending is actually helping people.
Federal probe alleges LA homeless funds spent on Tahiti trip, nightclub, luxury cars
Authorities arrested Lakiya Malone, 48, an employee of Special Service for Groups, on a 21-count indictment.
Prosecutors allege Mitchell obtained more than $1.2 million in grant funding after making false representations.
Michael Young received more than $118 million in public funds through government contracts.
LA homelessness non-profit workers arrested for alleged corruption
The investigation was led by the homeless fraud and corruption taskforce formed by US attorney Bill Essayli.
Donye Mitchell, CEO of The Big Blue Umbrella, is charged with wire fraud for fraudulently obtaining $1.2m in public grant funding.
Michael Young is charged with wire fraud to embezzle more than $7.5m.